Zero Spread WorldSpreads
- Thread starter Tired_Of_Conmen
- Start date
- Watchers 44
I talked to them and found out the prices for indices are taken from a Reuters feed, the FX prices are from FXCM. Stops etc are based on the Reuters feed, which I assume is the last price traded, but I suppose it could just be the midpoint of the underlying bid/offer. If you hold, say a £10 FTSE rolling future overnight, then they will take £10 from your account as a charge per night.
They were a bit cagey regarding how much you could do per point, but seems like £20 a point on the FTSE for example would be no problem.
It sounds quite good, ESPECIALLY for day traders but also for those who may leave a trade on overnight.
I'll definitely be interested in opening an acct.
They were a bit cagey regarding how much you could do per point, but seems like £20 a point on the FTSE for example would be no problem.
It sounds quite good, ESPECIALLY for day traders but also for those who may leave a trade on overnight.
I'll definitely be interested in opening an acct.
I have an account with Worldspreads but have not used it for a while so I thought I would investigate in mind of the recent "zero" offer. I have logged in on Saturday and now today (Sunday 26th Sep) and nothing loads, does anyone else have this issue logging in today, maybe it is weekend maintenance?
I really do hope that they have removed the timeout clock that counts down when you have an open order as I found this extremely frustrating for day trading, in fact it is probably the reason why I stopped using them!
I really do hope that they have removed the timeout clock that counts down when you have an open order as I found this extremely frustrating for day trading, in fact it is probably the reason why I stopped using them!
It's working now. And it's got a set time on every trade ticket you open. That's an inconvenience really.
But youre right, it wasn't working during the week end.
Last edited:
supremegizmo
Active member
- Messages
- 219
- Likes
- 86
When WS first launched 0 spreads i was pretty amazed. Being in Prop trading and then SB industry I though this is a significant and bold step by World Spreads. Secondly I would like to put forward the fact that most of the companies dont like people who trade on bad prices hence you had WS CEO expressing his concerns about it. However the platform and spreads appeal to HF traders for whom spread and commisions is a headache. For example if you got a high frequecy strategy in EUR/USD which makes 2500 pips with 1000 trades your net pips should be approximately 800-1000. However if you used a zero or even 0.5 spread no commision then this increases you performance of strategy to 2000 pips almost double.
Secondly I would like to congragulate WS CEO for being brave and interacting on T2W forum which would encourage confidence for new account traders. the mini £5k deposit is justifiable on their side as if you are a small scale trader your majority of equity is in WS hence you will be inclined to trade other products!
Earlier someone mentioned most of the trades going into WS trading book are hedged by other clients so WS gets added benefit of customers trading additional product.
Secondly I would like to congragulate WS CEO for being brave and interacting on T2W forum which would encourage confidence for new account traders. the mini £5k deposit is justifiable on their side as if you are a small scale trader your majority of equity is in WS hence you will be inclined to trade other products!
Earlier someone mentioned most of the trades going into WS trading book are hedged by other clients so WS gets added benefit of customers trading additional product.
Yes, I have a Platinum acct and am trading the some of the zero spread instruments, but only for a few quid a point. V good, so far.
I am also trading with them and have not had any funny business with them so far, my trades typically £20-£30 per point. A couple of times I have jumped in where there is a bit of bounce and found myself going to 'trade referral', but it's only ever happened twice so far. That said, I really wouldn't want to be trading a major news announcement like LFP with them, I'd use my DMA platform for that.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
I just thought that I would give this thread a bit of genuine feedback regarding ‘zero spreads’ on World Spreads...
Basically if you make short term profits then you get moved to ‘Dealer Referral’ (although they spell it ‘referal’). I phoned them to ask why my account had been earmarked in such a manner and they basically said that I was trading on bad prices. This was not the case in the slightest. I proceed to explain to a member of staff what my actual strategy was. He actually admitted that it was an interesting strategy but said that in his opinion I was abusing the platform by using that strategy. He said that the problem was that I was only in some of the trades for as little as twenty seconds. So far as I’m concerned they’ve moved the goal posts. The explanations given seem to vary from the points laid out by the WS representative at various points during this thread. Basically I’ve been told that my trading style “doesn’t fit in with the firm’s corporate model”.... I take that to mean that because I’m making money they’re losing money!
Obviously, like someone who contributed earlier in the thread, I’ve been around the block a few times when it comes to trading. Any firm who offers a ‘zero spread’ is basically giving away free money provided that a client trades in a particular way. By this I DO NOT mean front running the firm’s quotation – instead I’m talking about market timing when buying or selling once you’ve established the direction of a basic trend. In simple terms (when quoting a single price with no apparent spread) the firm can only be quoting the bid or the ask price of the current market. If you’re looking to buy (because you feel the trend is up) then make sure that you only buy when the zero spread is showing the bid price. If you do this then you’ll generally have an almost 70% chance of being correct. For the mathematicians amongst you the firm are basically giving away lots of small pieces of ‘value’ each time they let you trade. Provided that you are disciplined these small lots of value add up over a string of trades and steadily you account value will rise.
Unfortunately the firm seem to see this kind of knowledge as ‘abuse of their system’. Of course from the trader’s point of view it isn’t. What we’re really doing is using trend and mathematics. At no point is anyone trading on a price other than the price which the firm meant to quote.
Hope this helps anyone concerned.
Cheers,
Steve.
Basically if you make short term profits then you get moved to ‘Dealer Referral’ (although they spell it ‘referal’). I phoned them to ask why my account had been earmarked in such a manner and they basically said that I was trading on bad prices. This was not the case in the slightest. I proceed to explain to a member of staff what my actual strategy was. He actually admitted that it was an interesting strategy but said that in his opinion I was abusing the platform by using that strategy. He said that the problem was that I was only in some of the trades for as little as twenty seconds. So far as I’m concerned they’ve moved the goal posts. The explanations given seem to vary from the points laid out by the WS representative at various points during this thread. Basically I’ve been told that my trading style “doesn’t fit in with the firm’s corporate model”.... I take that to mean that because I’m making money they’re losing money!
Obviously, like someone who contributed earlier in the thread, I’ve been around the block a few times when it comes to trading. Any firm who offers a ‘zero spread’ is basically giving away free money provided that a client trades in a particular way. By this I DO NOT mean front running the firm’s quotation – instead I’m talking about market timing when buying or selling once you’ve established the direction of a basic trend. In simple terms (when quoting a single price with no apparent spread) the firm can only be quoting the bid or the ask price of the current market. If you’re looking to buy (because you feel the trend is up) then make sure that you only buy when the zero spread is showing the bid price. If you do this then you’ll generally have an almost 70% chance of being correct. For the mathematicians amongst you the firm are basically giving away lots of small pieces of ‘value’ each time they let you trade. Provided that you are disciplined these small lots of value add up over a string of trades and steadily you account value will rise.
Unfortunately the firm seem to see this kind of knowledge as ‘abuse of their system’. Of course from the trader’s point of view it isn’t. What we’re really doing is using trend and mathematics. At no point is anyone trading on a price other than the price which the firm meant to quote.
Hope this helps anyone concerned.
Cheers,
Steve.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
£10s and £20s on Eurodollar.
I should also point out that (once I had been moved to Dealer Referral) I have tried over 30 trades - some of these resulted in trade rejection notices (The Price Has Moved - Please Try Again) and others are successful but delays are 15+ seconds. If the price ticks 1 or 2 pips against them in that time the trade is rejected (regardless of whether it is an order to open or close a trade). However, I've had several attempts to trade where the price has moved against me (6 or 7 pips) and these trades always get filled regardless of the fact that they should be offering a better price / rejecting the trade. In other words they use your attempt to trade as a 'option'. Basically I've never had a rejection 'in my favour' as it were.
I should also point out that (once I had been moved to Dealer Referral) I have tried over 30 trades - some of these resulted in trade rejection notices (The Price Has Moved - Please Try Again) and others are successful but delays are 15+ seconds. If the price ticks 1 or 2 pips against them in that time the trade is rejected (regardless of whether it is an order to open or close a trade). However, I've had several attempts to trade where the price has moved against me (6 or 7 pips) and these trades always get filled regardless of the fact that they should be offering a better price / rejecting the trade. In other words they use your attempt to trade as a 'option'. Basically I've never had a rejection 'in my favour' as it were.
stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Are you making any money with them?
This is what Mr WS said at the beginning of this thread...
<<I dont have anything formal I can give you on this, and, as a trader myself, I do empathise with your concerns. The only guideline I can give you is the self-explanatory one, namely 'clients who are only interested in dealing on prices which are not completely "spot on"'. Even with enhancements in processor speeds and broadband connectivity, there will be times where prices lag the exchanges. This is an industry hazard. Unfortunately, there are one or two traders who spoil it for everyone else.
We go out of our way not to place clients on Dealer Referral, but sometimes we have no choice. The fewer clients we have on Dealer Referral, the less time our Traders need to spend checking prices!>>
<<I dont have anything formal I can give you on this, and, as a trader myself, I do empathise with your concerns. The only guideline I can give you is the self-explanatory one, namely 'clients who are only interested in dealing on prices which are not completely "spot on"'. Even with enhancements in processor speeds and broadband connectivity, there will be times where prices lag the exchanges. This is an industry hazard. Unfortunately, there are one or two traders who spoil it for everyone else.
We go out of our way not to place clients on Dealer Referral, but sometimes we have no choice. The fewer clients we have on Dealer Referral, the less time our Traders need to spend checking prices!>>
I think WS are basing their zero spreads offer on the (accurate) premise that most traders lose money, and those that do lose, lose more due to picking the wrong direction rather than because of bid -offer spreads (and commissions).
So from WS's point of view, why not attract traders who do a small amount per point, using the zero spreads offer, and let them lose their money to us! Of course, anyone who makes money, they can be simply weeded out using the "Dealer Referral" scam.
The loss of the income from the spreads (which isn't much if the clients are only doing a couple of quid a point anyway) is more than offset by the increase in customers losing their money to WS.
Quite clever, actually.
So from WS's point of view, why not attract traders who do a small amount per point, using the zero spreads offer, and let them lose their money to us! Of course, anyone who makes money, they can be simply weeded out using the "Dealer Referral" scam.
The loss of the income from the spreads (which isn't much if the clients are only doing a couple of quid a point anyway) is more than offset by the increase in customers losing their money to WS.
Quite clever, actually.
Similar threads
- Black Swan
- Spread Betting & CFDs
