win/lose more important than tax

This is a discussion on win/lose more important than tax within the Spread Betting & CFDs forums, part of the Commercial category; I have just started trading with a proper ECN forex broker and I found most my T/P orders are filled ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Nov 16, 2011, 7:13am   #1
Joined Aug 2009
win/lose more important than tax

I have just started trading with a proper ECN forex broker and I found most my T/P orders are filled at better prices, if not at the T/P prices. They slip in my favour. S/L orders may slip in their favour. In short, the broker is in a neutral position.

With spreadbetting companies, I found T/P prices always filled at specified prices, never at better prices, but S/L orders slip in their favour. Moreover, with limit orders, orders can only be filled when both bid/ask pass the desired price. For instance, if I want to buy EUR/USD at 1.34400, and the spread co quotes 1.34400/1.34410, the order wont get filled until it moves lower at 1.34390/1.34400, i.e. I am paying the ask price. In contrast, on forex ECN platform, if I am buying, the order can be filled at the bid price, e.g. 1.34400/1.34405 and if I am selling, the order can be filled at the ask price.

To sum up, I won't go back to bucket shops again.
alex2006 is offline   Reply With Quote
Old Nov 16, 2011, 8:43am   #2
 
Hotch's Avatar
Joined Jul 2008
Re: win/lose more important than tax

I find IG often slips in my favour, and rarely against, but that probably has something to do with where my stops/limits.
__________________
I'm just the guy that never tried, I'm just the stupid **** with brilliant luck and sometimes a bright idea.
Hotch is offline   Reply With Quote
Old Nov 16, 2011, 9:04am   #3
Joined Oct 2006
Re: win/lose more important than tax

Quote:
Originally Posted by alex2006 View Post
I have just started trading with a proper ECN forex broker and I found most my T/P orders are filled at better prices, if not at the T/P prices. They slip in my favour. S/L orders may slip in their favour. In short, the broker is in a neutral position.

With spreadbetting companies, I found T/P prices always filled at specified prices, never at better prices, but S/L orders slip in their favour. Moreover, with limit orders, orders can only be filled when both bid/ask pass the desired price. For instance, if I want to buy EUR/USD at 1.34400, and the spread co quotes 1.34400/1.34410, the order wont get filled until it moves lower at 1.34390/1.34400, i.e. I am paying the ask price. In contrast, on forex ECN platform, if I am buying, the order can be filled at the bid price, e.g. 1.34400/1.34405 and if I am selling, the order can be filled at the ask price.

To sum up, I won't go back to bucket shops again.
Its called asymmetrical slippage and its what FXCM were fined millions for.
pboyles is offline   Reply With Quote
Old Dec 8, 2011, 11:25am   #4
 
FP Markets's Avatar
Joined Nov 2011
Re: win/lose more important than tax

Quote:
Originally Posted by alex2006 View Post
I have just started trading with a proper ECN forex broker and I found most my T/P orders are filled at better prices, if not at the T/P prices. They slip in my favour. S/L orders may slip in their favour. In short, the broker is in a neutral position.

With spreadbetting companies, I found T/P prices always filled at specified prices, never at better prices, but S/L orders slip in their favour. Moreover, with limit orders, orders can only be filled when both bid/ask pass the desired price. For instance, if I want to buy EUR/USD at 1.34400, and the spread co quotes 1.34400/1.34410, the order wont get filled until it moves lower at 1.34390/1.34400, i.e. I am paying the ask price. In contrast, on forex ECN platform, if I am buying, the order can be filled at the bid price, e.g. 1.34400/1.34405 and if I am selling, the order can be filled at the ask price.

To sum up, I won't go back to bucket shops again.
Not all Spread Betting companies use these sorts of techniques. You need to find one with DMA, and then you know that the feed will be coming from the market not the provider. Using DMA the provider does not profit from client losses so your interests are aligned.
FP Markets is offline Spread Betting Company   Reply With Quote
Old Dec 8, 2011, 12:00pm   #5
Joined Oct 2011
Re: win/lose more important than tax

Quote:
Originally Posted by FP Markets View Post
...... You need to find one with DMA, and then you know that the feed will be coming from the market not the provider......
Do you know which CFD brokers use DMA?
I thought I read post somewhere that no CFD providers have DMA.
MoonRocket is offline   Reply With Quote
Old Dec 9, 2011, 12:25am   #6
Joined Jul 2010
Re: win/lose more important than tax

Quote:
Originally Posted by FP Markets View Post
Not all Spread Betting companies use these sorts of techniques. You need to find one with DMA, and then you know that the feed will be coming from the market not the provider. Using DMA the provider does not profit from client losses so your interests are aligned.
If it's really DMA it's not spreadbet?

Last edited by Ross Spur; Dec 9, 2011 at 1:50pm.
Ross Spur is offline   Reply With Quote
Old Dec 9, 2011, 9:59am   #7
 
FP Markets's Avatar
Joined Nov 2011
Re: win/lose more important than tax

Quote:
Originally Posted by Ross Spur View Post
If it's really DMA it's not spredbet?
Of course there is still spead betting with DMA. There is always a natural spread on the market between the buy and sell price. For some reason everyone seems to only think that commission should be charged within the spread. Accourding to HMRC 451 when betting, a charge can be in the form of commission or in interest. The only reason why you think DMA can't be done is because it is the norm in the UK to charge through a spread. The reason why it is not rely done is becuase HMRC makes providers pay 3% of clients net losses. If you want to know more you should request the Direct Market Access Spread Betting Guide from FP Markets website.

Hope this helps
Alex
FP Markets is offline Spread Betting Company   Reply With Quote
Old Dec 9, 2011, 1:57pm   #8
Joined Jul 2010
Re: win/lose more important than tax

Quote:
Originally Posted by FP Markets View Post
Of course there is still spead betting with DMA. There is always a natural spread on the market between the buy and sell price. For some reason everyone seems to only think that commission should be charged within the spread. Accourding to HMRC 451 when betting, a charge can be in the form of commission or in interest. The only reason why you think DMA can't be done is because it is the norm in the UK to charge through a spread. The reason why it is not rely done is becuase HMRC makes providers pay 3% of clients net losses. If you want to know more you should request the Direct Market Access Spread Betting Guide from FP Markets website.

Hope this helps
Alex
Don't quite follow. With spread bet you're never directly accessing the market, you're trading with the provider/bookie, using prices derived from the underlying instrument (or something else, 'out of hours'.
Ross Spur is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Find out why 90% of all traders lose and 10% win big_trader Psychology, Risk & Money Management 34 Apr 22, 2017 7:35am
Very Important !!! Tell Congress to Block the Trader Tax timt Indices 1 Oct 10, 2009 4:57am
You have to lose before you can win ... GotGold First Steps 6 Oct 6, 2004 10:12am
Lose/Win Percentage for a Good Trading System pkfryer Psychology, Risk & Money Management 61 May 27, 2004 10:51pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)