Where are the successful spreadbetters?

[alan5616]

Hi,

My personal opinion is that it ultimately depends on what you trade. I traded for 7 years as a hobby but lost a significant slice of my income at the time. Any SB company will ultimately limit or close your account if they dont have any effective mechanism to lay off your trades. Also, If they consider that you may have better/inside information compared to them then your accounts days are numbered. Yes, this is a pessimistic view, but, you can keep an account open if you trade the right markets ie either highly liquid or SB firm has hedgeing mechanism.

They are a bookie taking bets after all and I think some forget that.

The best markets to trade, with a SB, are major forex pairs. They have no difficulty in hedging their position and it shouldn't bother them how much profit you make. For every trade you place, they're making a small percentage without exposing themselves to risk.

One of the major SBs allows certain clients to bet up to £10,000 per pt. They're quite happy if those clients take £300k to £1m a day out of the market. More risk free profit for them.

 

[jaswells]

The best markets to trade, with a SB, are major forex pairs. They have no difficulty in hedging their position and it shouldn't bother them how much profit you make. For every trade you place, they're making a small percentage without exposing themselves to risk.

One of the major SBs allows certain clients to bet up to £10,000 per pt. They're quite happy if those clients take £300k to £1m a day out of the market. More risk free profit for them.

Agreed, near/far quarter forex futures for certain pairs can be both profitable and sustainable w/spread betters.

 

[William Waller]

The best markets to trade, with a SB, are major forex pairs. They have no difficulty in hedging their position and it shouldn't bother them how much profit you make. For every trade you place, they're making a small percentage without exposing themselves to risk.

One of the major SBs allows certain clients to bet up to £10,000 per pt. They're quite happy if those clients take £300k to £1m a day out of the market. More risk free profit for them.

Which one?

 

[pit pony]

Which one?

maybe worth having a look at ProSpreads; I dont personally trade a lot of fx pairs, but they seem to be very profesional, honest and i certainly dont get any requotes like other spreadbetters.

 

[alan5616]

Which one?

IG Index

 

[Dubai]

Alan, are you serious? 10k GBP a pip? IG index are horrible for slippage and they definitely slow down execution once your pip amt builds up.

 

[anley]

Alan, are you serious? 10k GBP a pip? IG index are horrible for slippage and they definitely slow down execution once your pip amt builds up.

I don't know if people are trading that much but if they are they've probably worked out a private deal with IG, ie they phone up and get quoted a price which is not always the same price as via their online platform.

And when it comes to stops they would have also worked out a deal. Remember, the people trading £10k a point will be very experienced in the cash market so won't take any crap from IG and will know if they're trying it on. IG will also realise they're good for business so won't give them much crap either.

 

[alan5616]

Alan, are you serious? 10k GBP a pip? IG index are horrible for slippage and they definitely slow down execution once your pip amt builds up.

See Anley's reply. He has summed it up very well.

If you were part of the senior management team, at a major spread betting co, would you mess around a wealthy client with tricks such as excess slippage and slow execution? I certainly wouldn't. Especially, for a client that trades 000s of forex lots, plus millions in equities, every week.

 

[Ross Spur]

See Anley's reply. He has summed it up very well.

If you were part of the senior management team, at a major spread betting co, would you mess around a wealthy client with tricks such as excess slippage and slow execution?

I'd certainly give it a go if the client proved to be tricky to hedge.

 

[alan5616]

I'd certainly give it a go if the client proved to be tricky to hedge.

Then they'd soon become an ex-client.

 

[Ross Spur]

Then they'd soon become an ex-client.

Yes, but better to concentrate on guaranteed losers. New mugs are born every minute.

 

[Dubai]

Ain't that the truth.