"Tight" spreadbetting company

[yusimi]

Hi one and all,
this is my first post! I have been checking out the site for a while and have found the articles and forums quite useful and will definitely continue to checkout this site regularly.

My first query is: can anyone suggest a good spreadbetting company which has tight spreads preferably 1 point FTSE, 3 points DOW or better? I have found a company that has got the above spreads but the execution of trade orders isn’t fast enough especially when trying to exit trades!

Can the suggestions be companies other than IG index and Capital spreads (for possibly obvious reasons!)?

Thanks

 

[Claudia123]

Spreads don't really matter as long as you not trying to scalp. If you trying to scalp then should not be spread betting. IG and CS as as good as you gonna get right now IMO.

 

[Black Swan]

Pay attention to C123's advice, you should be trading 'off' TFs of one hour or greater. As such you shouldn't be too spread sensitive whilst finding your feet and remember it's not just the spread it's the overall rep. of the SB firm you should be concerned about.

For example if you traded cable off 1 hr TF's last week then there were (arguably ) 3/4 good trades last week, off 4 hr there were 2 good trades, the best giving up 200+ pips. Whilst we should all strive towards excellence and total professionalism, hunting for that extra 2 pip gain on being filled is rendered obsolete when you move up the TFs.

 

[yusimi]

Thank you both for your quick responses, I thought that I would have to wait at least a week! I sense “value” in your comments and will take them on board, thanks again.

 

[Chorlton]

IMO You want to trade through a broker which offers DMA. To my knowledge most Spread Betting firms are Market Makers, so should be avoided.

Ensuring they offer DMA will be more beneficial for you in the long run rather than purely focusing on tight spreads...........

Just my 2cents.....

 

[Black Swan]

IMO You want to trade through a broker which offers DMA. To my knowledge most Spread Betting firms are Market Makers, so should be avoided.

Ensuring they offer DMA will be more beneficial for you in the long run rather than purely focusing on tight spreads...........

Just my 2cents.....

tbh the only time I notice a lare diff. between prices offered by IG and Alpari and FXCM is on Sun eve. forex opening. For the most part the prices and execution is pretty similar a pip difference thats all. I don't get/havn't experienced the SB slippage issues others have. SB is the perfect place for a newbie in the UK to start is trading career. He can then switch from, for example, FXCM's SB platform to dma once consistently profitable.

 

[Shakone]

While you're probably right Black Swan regarding 1 or 2 pips not being that significant on a higher time frame, I still think you should get the smallest spread possible (assuming reliable and fast execution). It all adds up.

 

[yusimi]

Hi, again thank you all for the quick feedback. I think that I will take the advice and carry on with the SB firms while checking out the DMA’s.

 

[Ambrose Ackroyd]

Have a look at Dealing Desk.

Tight spreads, nice platform.

IG is probably the best.

 

[pinkyperkypaula]

Spreads don't really matter as long as you not trying to scalp. If you trying to scalp then should not be spread betting. IG and CS as as good as you gonna get right now IMO.

Hi folks,

Could someone please explain what scalping is?

Is it just trading on a very short timeframe? If so what timeframe?

Do the spreadbetting companies have any minimum timeframe per trade?

Sorry if the answers are completely obvious.

thanks in advance,

Paula.

 

[yusimi]

Hi, scalping is a very short term trade traded on timeframes from 1 min, the idea is to get in and out of trades quickly, sometimes seconds. The spreadbetting companies don’t have any minimum timeframe per trade as they do not know the timeframe that you are using although scalping does give them an idea (sorry for the contradiction). This is a quick reply, I’m sure one of the more experienced traders can elaborate , or correct me!

 

[Chorlton]

tbh the only time I notice a lare diff. between prices offered by IG and Alpari and FXCM is on Sun eve. forex opening. For the most part the prices and execution is pretty similar a pip difference thats all. I don't get/havn't experienced the SB slippage issues others have. SB is the perfect place for a newbie in the UK to start is trading career. He can then switch from, for example, FXCM's SB platform to dma once consistently profitable.

I haven't used a Spreadbetting firm (Market Maker) for a number of years now so maybe they have improved as my early trading experience was anything but acceptable with them. I won't mention specific names.....

Back then (i) wider spreads, (ii) the fact that you weren't involved directly in the underlying market (as you were trading off their "synthetic prices" and (iii) coupled with the fact that they can take the otherside of your trade (and as such profit from your loss) made life much more difficult to actually make money.

 

[Black Swan]

I haven't used a Spreadbetting firm (Market Maker) for a number of years now so maybe they have improved as my early trading experience was anything but acceptable with them. I won't mention specific names.....

Back then (i) wider spreads, (ii) the fact that you weren't involved directly in the underlying market (as you were trading off their "synthetic prices" and (iii) coupled with the fact that they can take the otherside of your trade (and as such profit from your loss) made life much more difficult to actually make money.

I reckon they have improved... massively. No debate that dma is the way to go, iirc it's only odl allow the use of meta trader with SB. If I was starting over I honestly don't thing I'd do anything different; IG (starting to SB) then FXCM (SB) and beginning dma forex whilst learning Meta trader. Then EAs/automation...

 

[pinkyperkypaula]

I reckon they have improved... massively. No debate that dma is the way to go, iirc it's only odl allow the use of meta trader with SB. If I was starting over I honestly don't thing I'd do anything different; IG (starting to SB) then FXCM (SB) and beginning dma forex whilst learning Meta trader. Then EAs/automation...

For me and my own particular budget, spreadbetting is the only option.

I do however believe that it is possible to simulate dma using spreadbetting such that the anticipated profit/loss per pip from an imaginary larger dma trade can be mapped on to a spreadbet so that the P/L is the same for both.
Am I being naive or missing something spectacularly?

Obviously MM and stops are key here so that the SB doesnt cause carnage but with discipline I feel sure that SB can be a decent substitute for DMA for those on a lower budget.

Any thoughts?

Paula

 

[timsk]

Hi folks,
Could someone please explain what scalping is?

Hi Paula,
Welcome to T2W, I love your nick!
In the main red header you'll see various parts of the site listed, the last of which is 'Taderpedia'. Click on that and then put 'scalping' into the search facility and you'll be pleasantly surprised at the result. All manor of trading terms and jargon are explained in there!
Enjoy,
Tim.

 

[Claudia123]

For me and my own particular budget, spreadbetting is the only option.

I do however believe that it is possible to simulate dma using spreadbetting such that the anticipated profit/loss per pip from an imaginary larger dma trade can be mapped on to a spreadbet so that the P/L is the same for both.
Am I being naive or missing something spectacularly?

Obviously MM and stops are key here so that the SB doesnt cause carnage but with discipline I feel sure that SB can be a decent substitute for DMA for those on a lower budget.

Any thoughts?

Paula

Nothing wrong with spread betting with the right firm. If your budget low just take your time, don't even think going dma you don't need it. Learn to be profitable on SB then........ well why go direct?

 

[Black Swan]

For me and my own particular budget, spreadbetting is the only option.

I do however believe that it is possible to simulate dma using spreadbetting such that the anticipated profit/loss per pip from an imaginary larger dma trade can be mapped on to a spreadbet so that the P/L is the same for both.
Am I being naive or missing something spectacularly?

Obviously MM and stops are key here so that the SB doesnt cause carnage but with discipline I feel sure that SB can be a decent substitute for DMA for those on a lower budget.

Any thoughts?

Paula

Bang on the money.