Zero Spread WorldSpreads

Tired_Of_Conmen

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Ok... I don't know about anyone else but every single banner ad on T2W on my PC is right now all about one thing: 0 point spread on major markets with WorldSpreads.

Sigh.... do I need to ask? What's the catch?

Anyone from WorldSpreads on here want to comment? Anyone got any experience with this?

I'm presuming WorldSpreads is not a charity trying to make us retail trader's successful...? So what's the catch?

As far as I know, if you don't charge commission and you have no spread you make... about.... erm.... £0.00 profit per trade as a broker? Sorry if my math is slightly off.

TOC
 
The catch could be that you only get filled if the price moves against you?

btw. We seem to have three threads about the same thing here, Mr Mod.
 
Ok... I don't know about anyone else but every single banner ad on T2W on my PC is right now all about one thing: 0 point spread on major markets with WorldSpreads.

Sigh.... do I need to ask? What's the catch?

Anyone from WorldSpreads on here want to comment? Anyone got any experience with this?

I'm presuming WorldSpreads is not a charity trying to make us retail trader's successful...? So what's the catch?

As far as I know, if you don't charge commission and you have no spread you make... about.... erm.... £0.00 profit per trade as a broker? Sorry if my math is slightly off.

TOC

There is another thread on 1st page
 
Always be wary of a finance company offering something for free.......
 
Ok... I don't know about anyone else but every single banner ad on T2W on my PC is right now all about one thing: 0 point spread on major markets with WorldSpreads.

Sigh.... do I need to ask? What's the catch?

Anyone from WorldSpreads on here want to comment? Anyone got any experience with this?

I'm presuming WorldSpreads is not a charity trying to make us retail trader's successful...? So what's the catch?

As far as I know, if you don't charge commission and you have no spread you make... about.... erm.... £0.00 profit per trade as a broker? Sorry if my math is slightly off.

TOC


Dear Tired_Of_Conmen,

We have decided to offer 10 of our popular markets at zero spreads. We quote over 2,000 markets and there has been no change to the spreads on those. In our experience, clients trade a range of markets, so while we will clearly be earning less on the 10 'Zero Spreads' markets, we would hope clients will also trade other markets where we offer 'normal' spreads. So, while we are not a charity, as you correctly state, there is no catch.

Conor Foley
CEO
WorldSpreads
 
Dear Tired_Of_Conmen,

We have decided to offer 10 of our popular markets at zero spreads. We quote over 2,000 markets and there has been no change to the spreads on those. In our experience, clients trade a range of markets, so while we will clearly be earning less on the 10 'Zero Spreads' markets, we would hope clients will also trade other markets where we offer 'normal' spreads. So, while we are not a charity, as you correctly state, there is no catch.

Conor Foley
CEO
WorldSpreads

Do trades on these popular markets go through automatically, or is there dealer intervention? Zero spread is bound to attract short-term traders, but presumably you don't want 'scalpers'.
 
Zero spreads only for the Platinum account - you need to deposit £5000.
But then, how long will the offer last?
In which case why leave your existing SB company that already offers low spreads?
Are regular winning traders put on manual or requoted trades?
Thse are just a few points to ponder and monitor while you try the company.
 
What happens if your account balance drops below 5000?
Do you have to maintain a minimum balance of 5000 all the time?
 
Do trades on these popular markets go through automatically, or is there dealer intervention? Zero spread is bound to attract short-term traders, but presumably you don't want 'scalpers'.


Hi Ross,

There is no dealer intervention for 'regular' traders, namely clients who have an opinion on the market, as opposed to clients who are simply trying to beat the system.

You use the term 'scalpers'. I guess it depends on what your definition of what a 'scalper' is. In my experience, this term is used interchangably between:

a) Short term traders who have a 1, 3, 5 or 10, (etc) minute view on where a price is going and try to profit from that; and

b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


We are perfectly happy to offer clients who fit into the a) category above 'Zero Spreads', without Dealer Referral, but anyone who persistently tries to deal on slow prices will be placed on Dealer Referral.

Conor Foley
CEO
WorldSpreads
 
Zero spreads only for the Platinum account - you need to deposit £5000.
But then, how long will the offer last?
In which case why leave your existing SB company that already offers low spreads?
Are regular winning traders put on manual or requoted trades?
Thse are just a few points to ponder and monitor while you try the company.


All good questions, Neil.

This is not an "offer". We intend to continue with this in the long term.

"Regular winning traders" are not put on manual or are they "Referred to Dealer". Only if we suspect a client is purely interested in dealing on slow prices (and nothing else) will that client's trades be Referred to Dealer.

Regards,

Conor Foley
CEO
WorldSpreads
 
What happens if your account balance drops below 5000?
Do you have to maintain a minimum balance of 5000 all the time?

Gamma,

Once you have been approved for a Platinum Account, your balance may drop below £5,000 and you will still be allowed to mainain your Platinum Account. The Account is designed for frequent traders and, in our experience, many frequent traders have a minimum of £5,000 in their account (or an equivalent Credit Limit).

We have prepared a Fairness Charter and posted it on our site as a guide for what we would see the relationship between the client and ourselves operating. It is a two way process.

Conor Foley
CEO
WorldSpreads
 
Hi Ross,


b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


Hi Conor

Do you have specific guidelines/rules/process to determine the above, otherwise it could be a fairly wide judgemental call?

Thanks

T
 
Hi Ross,


b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


Hi Conor

Do you have specific guidelines/rules/process to determine the above, otherwise it could be a fairly wide judgemental call?

Thanks

T

That's what I'm wondering, too. Probably 99.9% of SB-ers don't and can't trade on slow prices, or 'system prices that may not be perfect', but they still get put on dealer referral.

btw, how much interest do we get on the £5k?:)
 
When you say "gilt", would you be interested in offering zero spreads on the two and five year gilt futures?

If so I will open account and deposit tomorrow :)
 
Hi Ross,


b) Traders who have no opinion on the market but try to generate a profit by dealing on system prices that may not be perfect (i.e. may lag the market by a second or so).


Hi Conor

Do you have specific guidelines/rules/process to determine the above, otherwise it could be a fairly wide judgemental call?

Thanks

T


Hi T,

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!

You are correct - at the end of the day, it is a judgement call, but we only do it when we have to.

Regards,

Conor.
 
That's what I'm wondering, too. Probably 99.9% of SB-ers don't and can't trade on slow prices, or 'system prices that may not be perfect', but they still get put on dealer referral.

btw, how much interest do we get on the £5k?:)


Ross,

I can tell you, sincerely, that we dont place clients on Dealer Referral without good reason and, for those that we do place on Dealer Referral are still quoted the market price. OK, it may take a couple of seconds longer, but we are only talking about a couple of seconds.

I do need to present the facts in relation to Dealer Referral and the concerns that clients have about prices being called against them. When a Trade pops up in front of our dealers, they are not aware whether a client is opening a new position or closing an existing one. If you are in any doubt about that, you are welcome to visit our offices and I will show you. All our dealer is interested in doing is quoting you a correct, two-sided price. If I thought I was being 'read' by a firm, I would simply sell if they called it up or buy if they called it down. With 1 points spreads, and now 0 point spreads, we simply cannot call the price away from the market price. We would be arbitraging ourselves.

Conor Foley
CEO
WorldSpreads
 
When you say "gilt", would you be interested in offering zero spreads on the two and five year gilt futures?

If so I will open account and deposit tomorrow :)


Hi Arabianights,

We are only spread free on the 10 year Gilt at the moment. There isn't sufficient liquidity in the 2 year and 5 year to go zero spreads on those.

Regards,

Conor Foley
CEO
WorldSpreads
 
Just out of interest, do you have any plans to offer the zero spread on GBPUSD or the wall street 30?
on another note, I never fully understood why worldspreads opened up a trading as company called twowayspreads with almost similar software...
 
Ross,

I can tell you, sincerely, that we dont place clients on Dealer Referral without good reason and, for those that we do place on Dealer Referral are still quoted the market price. OK, it may take a couple of seconds longer, but we are only talking about a couple of seconds.

I do need to present the facts in relation to Dealer Referral and the concerns that clients have about prices being called against them. When a Trade pops up in front of our dealers, they are not aware whether a client is opening a new position or closing an existing one. If you are in any doubt about that, you are welcome to visit our offices and I will show you. All our dealer is interested in doing is quoting you a correct, two-sided price. If I thought I was being 'read' by a firm, I would simply sell if they called it up or buy if they called it down. With 1 points spreads, and now 0 point spreads, we simply cannot call the price away from the market price. We would be arbitraging ourselves.

Conor Foley
CEO
WorldSpreads

So generally speaking most clients will be filled automatically and instantly?

As you're here, can I ask why only Platinum accounts get zero spreads? Surely it's easier to offer tighter spreads with lower stakes, as those with maybe £500-1000 margin will be using?
 
Just out of interest, do you have any plans to offer the zero spread on GBPUSD or the wall street 30?
on another note, I never fully understood why worldspreads opened up a trading as company called twowayspreads with almost similar software...


Surprising to offer zero spread on FSTE, DAX, etc, but still 2pt on Dow when a certain other SB co has had 1pt for months.
 
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