FP Markets

This is a discussion on FP Markets within the Spread Betting & CFDs forums, part of the Commercial category; As a start, how about some sort of list of spreads on common index and FX markets, so we can ...

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Old Dec 29, 2011, 10:28pm   #1
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FP Markets

As a start, how about some sort of list of spreads on common index and FX markets, so we can compare them with the opposition.



US30
DAX
FTSE
CAC
EU
GU

etc

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Old Dec 29, 2011, 10:44pm   #2
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Yes good idea. We have Prospreads for example, anything better would be a welcome, they have way too high cost in my opinion compared to trading the real futures (IB).

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Old Dec 30, 2011, 12:31am   #3
 
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Re: FP Markets

Come on FP markets, here is your chance to show us what is on offer.
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Old Dec 30, 2011, 1:23pm   #4
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Re: FP Markets

FTSE spread 0,5 points commissions 2 points (1 to buy 1 to sell) = 2,5 points
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Old Dec 30, 2011, 2:09pm   #5
 
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It would be hard to give an exact spread because only Market Makers can offer fixed spreads. The spreads will naturally shrink or expand depending on liquidity in the market. We do not add on an additional spread to collect our commissions like prospreads may (who are mostly DMA or like any other Market Maker) but we give you the live market price of the underlying. As we are completely transparent we do not tamper with spreads but instead charge you a bet fee dependent on the quantity that you are trading. On the more liquid Indices such as FTSE, DAX, DJIA30 - you are looking at natural spreads anywhere from and low as 0.5 to 2 pips. For FX, again it is dependent on the currencies you are trading, but for example on GBPUSD at the movement as I look at it is 1 pip. EURUSD 0.5 pip.
Although our spreads are very competitive there are also many other benefits. For LSE, ETR, ASX, SGX, HKE etc we offer level 2 depth and allow our clients to participate in the order book. You are also able to participate in the pre and post auctions where, for example on the LSE, on some days a quarter of the volume goes through. We do not profit from client losses so the interests between the client and provider are aligned. There is also no dealer intervention, so no requotes or order rejection.
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Old Dec 30, 2011, 3:12pm   #6
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Quote:
Originally Posted by kalott View Post
FTSE spread 0,5 points commissions 2 points (1 to buy 1 to sell) = 2,5 points
Yes quite expensive if that is the case, have you had a look at the Dow (YM future) or US30 if that is the name of the instrument?

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Old Dec 30, 2011, 3:40pm   #7
 
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Quote:
Originally Posted by kalott View Post
FTSE spread 0,5 points commissions 2 points (1 to buy 1 to sell) = 2,5 points
We never change the spread. We charge a bet fee on top. Letís say a high volume trader gets £5 per FTSE contract then yes it would be the equivalent of a 1.5 point spread. The benefit is that you always see the underlying spread and volume so you will never get a slow fill or bad fill it will be exactly what you see and there will never be a re-quote or order rejection.
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Old Dec 30, 2011, 3:48pm   #8
 
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Re: FP Markets

Quote:
Originally Posted by gle101 View Post
Yes quite expensive if that is the case, have you had a look at the Dow (YM future) or US30 if that is the name of the instrument?

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The US30 or DJIA30, you will be charged similar to the other futures, usual market spread then a bet charge on top. With traders placing 10p a point on equities or £1 a point on futures our service may not be appropriate. It is more suited to the more proffesional traders doing larger volumes due to being able to see volumes in the market. This means you are not relying on your provider to create the liquidity.
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Old Dec 30, 2011, 5:33pm   #9
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Ross Spur started this thread
Quote:
Originally Posted by FP Markets View Post
The US30 or DJIA30, you will be charged similar to the other futures, usual market spread then a bet charge on top. With traders placing 10p a point on equities or £1 a point on futures our service may not be appropriate. It is more suited to the more proffesional traders doing larger volumes due to being able to see volumes in the market. This means you are not relying on your provider to create the liquidity.
Still a tad confused. FP seems similar to Prospreads, except that you automatically hedge everything, whereas they don't (although apparently they did when they started as Futures Betting).

My main interest is DJ (YM), FTSE and DAX. How would the costs compare with those offered by a low commission futures broker, and how do the sums work out for markets in different currencies?

For instance, could you do a breakdown of costs of trading one contract of YM assuming the underlying spread is 1pt.
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Old Jan 1, 2012, 3:22pm   #10
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Originally Posted by Ross Spur View Post
... How would the costs compare with those offered by a low commission futures broker ..
Their site shows a table with a Bet Fee/Commission of 0.118% to enter and 0.118% again to leave - so I think the answer is "significantly higher".
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Old Jan 1, 2012, 7:08pm   #11
 
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Re: FP Markets

FP Markets, is it possible to give us a worked example?

For instance a £10 per point bet on the FTSE index during market hours.

IG index and CMC both have a one point spread. Now I realise you are saying there is a difference because they are market makers and therefore it is based on/ but not actually the underlying market. So you are saying the spread will vary depending on the supply and demand of the market (is that right?)

Can you let me know what the charge would be for placing a £10 per point trade and are you saying the spread could be as low as 0.5 point through to about 2 points depending on the activity of the market?

I can see the benefit of trading in the underlying market where the company has no interest in the outcome of the trade but it is important for us to fully understand the cost compared to other companies.

Thanks
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Old Jan 2, 2012, 4:43pm   #12
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Ross Spur started this thread
Quote:
Originally Posted by bangkoker View Post
FP Markets, is it possible to give us a worked example?

For instance a £10 per point bet on the FTSE index during market hours.

IG index and CMC both have a one point spread. Now I realise you are saying there is a difference because they are market makers and therefore it is based on/ but not actually the underlying market. So you are saying the spread will vary depending on the supply and demand of the market (is that right?)

Can you let me know what the charge would be for placing a £10 per point trade and are you saying the spread could be as low as 0.5 point through to about 2 points depending on the activity of the market?

I can see the benefit of trading in the underlying market where the company has no interest in the outcome of the trade but it is important for us to fully understand the cost compared to other companies.

Thanks
We must all be stoopid

If FP is offering spread bet, then they're making the market, I would have thought? From our side of the fence, the things that matter are execution and spread, which should include all costs, otherwise why call it spread betting?
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Old Jan 2, 2012, 4:55pm   #13
 
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That is what I was trying to get to the bottom of Ross. I was hoping someone from FP would post a concise and clear reply to explain all costs, hopefully with a worked example. From my point of view I haven't had any problem with IG Markets but I would have thought FP would like to put their information out in a clearer format and then if the cost is reasonable and people feel they would benefit from what they say they offer they might know a little more and make an informed decision... at the moment it all seems very vague and unappealing.

Not keen on vagueness, in my mind vagueness usually implies the other person doesn't know the answer or would rather not give all the information up in a format that is clear and concise and unambiguous. Of course I could be wrong.
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Old Jan 3, 2012, 10:34am   #14
 
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Apologies for the lack of response over the weekend as I am the one who monitors this site and I was away.
Secondly in clearing up our vagueness in previous posts, DMA Spread Bet can be quiet complex to explain especially when we are first to market to offer this. The idea behind what we are offering and the years and money that have gone into development was to provide a product that is the opposite of vague, completely transparent. The idea behind direct market access is to eliminate any ambiguity and make sure the end user is getting exactly what they see and make sure there is absolutely no interference or hindrance with their trading.
The issue we face in the initial phases of being first to market with DMA Spread Bet is that not everybody is going to understand the product. This then makes it even more difficult to explain via a blog. Being quiet a sophisticated product it seems to suit the more professional traders.
Instead of chasing our tales all we can recommend is to head to our website and download the DMA Spread Betting guide. This eBook was developed specifically to answer all the questions you have been asking in detail. It will explain how DMA Spread Bet works in comparison to CFDs and standard spread bet. It will also explain how our fees and charges work. Along with this it will provide fully worked examples comparing DMA spread bet to normal spread betting and DMA CFDs.
If you still have any further questions we find it much easier to explain over the phone and would welcome any calls on 08006127070.
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Old Jan 3, 2012, 11:24am   #15
 
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I have found it quiet hard putting worked examples up on this thread but I have added a new album to the FP Markets profile that shows a worked example of DMA CFDs, DMA Spread Betting and normal Spread Betting. The example shows the charges for a Vodafone trade. The charges shown in the example are at their highest and for volume traders the charges can dramatically reduce.
For futures contracts e.g. FTSE future, trading at 5,300 at £10 per point. The total size of the position you would be holding would be £53,000. Per future it would cost £10 to open the position and £10 to close, depending on volumes there are discounts.

Last edited by FP Markets; Jan 3, 2012 at 12:16pm.
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