Newbie to Spread betting

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hp88

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Hi everyone, I have been doing some research into various methods of trading and Spread betting was one option I found appealing. After deciding SB was the way to go for me, I started to gather more information with the use of blogs, articles, forums, videos, webinars ect..

The next step was to open a demo account, I tried a few brokers but I decided to stick with the CMC account mainly because of the general layout and ease of use.

My game plan was to watch one particular commodity (gold) for a couple of days and try spot any trends. On my third day I decided to invest and get a feel of things. I was placing stakes of £5 a point and later moved onto £10 in the afternoon. At the end of trading I was up by £80.

Now before I take the plunge and actually deposit real cash into my account I thought It would be a good idea to sign up on here and gain some knowledgeable advice.

I would be grateful if any of you could answer my questions.

1) Is the demo platform any different to a live account?
2) Who do you use and how easy it to withdraw your money?
3) Does anyone trade on the go (on iPhone/ipad applications)?
4) Has anyone had any tax issues?

Thanks
 
hp88 said:
Hi everyone, I have been doing some research into various methods of trading and Spread betting was one option I found appealing. After deciding SB was the way to go for me, I started to gather more information with the use of blogs, articles, forums, videos, webinars ect..

The next step was to open a demo account, I tried a few brokers but I decided to stick with the CMC account mainly because of the general layout and ease of use.

My game plan was to watch one particular commodity (gold) for a couple of days and try spot any trends. On my third day I decided to invest and get a feel of things. I was placing stakes of £5 a point and later moved onto £10 in the afternoon. At the end of trading I was up by £80.

Now before I take the plunge and actually deposit real cash into my account I thought It would be a good idea to sign up on here and gain some knowledgeable advice.

I would be grateful if any of you could answer my questions.

1) Is the demo platform any different to a live account?
2) Who do you use and how easy it to withdraw your money?
3) Does anyone trade on the go (on iPhone/ipad applications)?
4) Has anyone had any tax issues?

Thanks
Click to expand...

1) I would think not
2) Ig Index... Never done it but it looks straightforward enough
3) The Ig Index app on my iPhone is really quite decent
4) Nope, no tax issues to consider with spread betting?
 
P.S I too started with Gold and had a fair amount of beginners luck. Started buying just before the big rally of summer 2011 :clap:

Didn't quite start on £5 a point mind, thats way too much for a beginner. Although you have started well be warned it is just beginners luck. You'll probably get over confident and then precede to lose alot of money, as I did. Keep your £ per point as low as possible until you feel really comfortable in what your doing.
 
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Thanks for the quick response. I'm planning to do some maths and work out how much money I could afford to loose, hopefully I will have more realistic £/point figure. I will take a look at the IG account, the iPhone apps looks pretty handy.
 
1) Don't think so.
2) Finspreads - Dead easy to use, 5* Customer Service.
3) Yes, iPhone, but its not easy to use, cannot view much information, can desynchronise if connection is poor ( if there is any connection). This being said, its only a matter of time before updates make it a viable way of mobile trading.
4) No - Spread Betting is considered as gambling and is therefore tax-free.

I'm by no means an expert but I have been watching/trading gold these last 6 months and I can tell you now that it is seriously overpriced and is heading for a big fall (>$1300). Although relatively low now (considering 6 months) it can spike on any news that has large negative repercussions (e.g a Greece default) and hence shorting Gold is probably a better medium-term bet. I personally would look at Short Sell ~ $1650, Buy Back ~ $1600 and Short Sell ~ $1800, Buy Back ~$1550. That's just me and I'm sure more experienced players would have even better targets! Best of luck with your trading, I'm sure you will be successful as long as you can manage your risk :)
 
hp88 said:
Hi everyone, I have been doing some research into various methods of trading and Spread betting was one option I found appealing. After deciding SB was the way to go for me, I started to gather more information with the use of blogs, articles, forums, videos, webinars ect..

The next step was to open a demo account, I tried a few brokers but I decided to stick with the CMC account mainly because of the general layout and ease of use.

My game plan was to watch one particular commodity (gold) for a couple of days and try spot any trends. On my third day I decided to invest and get a feel of things. I was placing stakes of £5 a point and later moved onto £10 in the afternoon. At the end of trading I was up by £80.

Now before I take the plunge and actually deposit real cash into my account I thought It would be a good idea to sign up on here and gain some knowledgeable advice.

I would be grateful if any of you could answer my questions.

1) Is the demo platform any different to a live account?
2) Who do you use and how easy it to withdraw your money?
3) Does anyone trade on the go (on iPhone/ipad applications)?
4) Has anyone had any tax issues?

Thanks
Click to expand...

1. to some degree, I think all demos are different to live accounts (as is the person operating them)
2. Just avoid the ones which don't let you do it on line, or delay payments using excuses like 'FSA money laundering rules'
3. Yes, but it's only useful for long-term trades
4. Don't worry about it until you've made a million

FWIW, I'd say trading gold is not a good idea for a beginner.:)
 
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hp88 said:
Hi everyone, I have been doing some research into various methods of trading and Spread betting was one option I found appealing. After deciding SB was the way to go for me, I started to gather more information with the use of blogs, articles, forums, videos, webinars ect..

The next step was to open a demo account, I tried a few brokers but I decided to stick with the CMC account mainly because of the general layout and ease of use.

My game plan was to watch one particular commodity (gold) for a couple of days and try spot any trends. On my third day I decided to invest and get a feel of things. I was placing stakes of £5 a point and later moved onto £10 in the afternoon. At the end of trading I was up by £80.

Now before I take the plunge and actually deposit real cash into my account I thought It would be a good idea to sign up on here and gain some knowledgeable advice.

I would be grateful if any of you could answer my questions.

1) Is the demo platform any different to a live account?
2) Who do you use and how easy it to withdraw your money?
3) Does anyone trade on the go (on iPhone/ipad applications)?
4) Has anyone had any tax issues?

Thanks
Click to expand...

1. The platform may be the same but trade execution will be different and not in an advantageous way
2. Make sure the broker is FSA regulated
3. OK for checking prices but forget about doing this all from an iphone whilst lying on the beach in Barbados
4. No because you will most likely lose all your money so no tax will be payable. Any profits from SB are supposedly tax free but the chances of ever seeing any are about zero for the first 3 to 5 years.
 
pboyles said:
1. The platform may be the same but trade execution will be different and not in an advantageous way
2. Make sure the broker is FSA regulated
3. OK for checking prices but forget about doing this all from an iphone whilst lying on the beach in Barbados
4. No because you will most likely lose all your money so no tax will be payable. Any profits from SB are supposedly tax free but the chances of ever seeing any are about zero for the first 3 to 5 years.
Click to expand...
Why do you scare him away?:) No really I agree, it is not a bad idea to trade CFD's instead the first couple of years, it all depends on the country and the tax regulation there. As a private investor in Sweden we can deduct from the first Crown lost, up to 70% of the total losses, at the same time we have to pay 30% tax on the profit. Not the same thing in UK I understand.

____________
"Take control with Risk & Money Management"
Planning, Risk & Money Management
 
hp88 said:
1) Is the demo platform any different to a live account?
2) Who do you use and how easy it to withdraw your money?
3) Does anyone trade on the go (on iPhone/ipad applications)?
4) Has anyone had any tax issues?

Thanks
Click to expand...

I think it's time someone with some experience gives you the true facts here.

1) YES it is different. Firstly you will recieve a lot less ticks on demo than in live. You won't experience price spikes so stops that would have been triggered on Live do not happen on demo. You will not get any slippage or requotes on demo and the price you trade at will not be exactly the same as live - again because of the infrequent price ticks. However this does not mean you shouldn't trade demo - it's a great place to learn, but you should be aware that things won't be exactly the same when going live - things move a lot faster. Also there are some demo platforms (can't comment on CMC) that close the quotes out of market hours - yet on live the market remains open and tradeable - thus exposing you to getting stopped out-of-hours which doesn't happen on demo.

I won't talk about psychology here - but that's another issue you'll have to overcome.

2) I use IG and have used Cap Spreads in the past. I've had no issues withdrawing money from either of them.

3) Yes. I often add orders at market open when I'm on the train into work. It's not as good as trading via a PC with a broadband connection, and I wouldn't recommend you try scalping but if you are happy with a 10-30 sec delay between hitting submit and your order getting processed then it's a good way to trade.

4) No. I have never declared any winnings on my tax form - nor do I need to. There is an ongoing debate that resurfaces from time to time about you might have to pay tax if SB'ing is your only income source. But there is case law on gambling profits which points the other way. I wouldn't worry about that now - you have to learn to become profitable first.
 
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hp88 said:
1) Is the demo platform any different to a live account?
2) Who do you use and how easy it to withdraw your money?
3) Does anyone trade on the go (on iPhone/ipad applications)?
4) Has anyone had any tax issues?

Thanks
Click to expand...

1) Not as in layout and how you place trades unless you switch brokers then obviously there will be differences. I think your missing a major point tho. (Hoggums I think was hinting at it)

At the moment your playing with pretend money, when you start trading it will be your money. The difference is often overlooked, you have no mental attachment to the demo accounts money so stop losses can be places with no consideration for Risk/Reward.

I noticed you have no stats to back up your demo account so far. That sets off alarm bells, take a step back and review your trades. Why did you take them, why did you exit when you did. What was your draw down, have you got a clear trading plan or just pushing the button when it feels right. Doing the work now will save time and money in the long run.

2) both ETX Capital and City Index. No problems getting money out.

3) I don't Enter/Exit trades using my iPhone, I do check to see how they are doing.

4) nope
 
Alex Griffin said:
Steven2805 said:
1)

2) both ETX Capital and City Index. No problems getting money out.

Both ETX & City are small fry in terms of liquidity to a serious trader. You start moving up the ladder in terms of stakes sizing and margin as the account compounds, then your going to start facing strong liquidity issues in terms of slippage and manual execution with both these firms. Also the spread and margin requirements are ridiculous for liquid spot pairs.
Click to expand...

Perhaps your correct, I can't comment as my normal stakes doesn't exceed any astronomical levels and account value is kept at a constant level. The spreads may very well be high on some markets vs others. Once again I haven't found there to be an issue both UK and US indices are 1 spread which is my main traded markets. I do occasionally dip my feet in the currencies but only when the move is large enough to warrant it, in that situation the spread wouldn't make much odds.

If in the rare situation am looking to take a trade in a different market. Comparing both ETX and City Index can sometime but not always save a couple of points off the spread.

Thanks for replying, your feedback is always appreciated.

Kind Regards
Click to expand...
 
Alex Griffin said:
Steven2805 said:
1)

2) both ETX Capital and City Index. No problems getting money out.

Both ETX & City are small fry in terms of liquidity to a serious trader. You start moving up the ladder in terms of stakes sizing and margin as the account compounds, then your going to start facing strong liquidity issues in terms of slippage and manual execution with both these firms. Also the spread and margin requirements are ridiculous for liquid spot pairs.
Click to expand...
I am quite sure there are no such problems trading with Capitalspreads, but Cityindex (from personal experience) will be out to get you if you are "too successful". ETX I have have not tried trading with yet.
Click to expand...
 
gle101 said:
I am quite sure there are no such problems trading with Capitalspreads, but Cityindex (from personal experience) will be out to get you if you are "too successful". ETX I have have not tried trading with yet.
Click to expand...

Thats a strange comment in regards to Cityindex Vs Capital , Cityindex is well known for accepting big size stakes and the company is bigger than Capitalspreads , in the other hand it is well known that you are more likely to be put on a dealer referral with Capitalspreads than other SB outfits . Anyway Capital is losing money at the moment , IMHO they will close shops within a few years .

http://www.trade2win.com/boards/spread-betting-cfds/16595-capital-spreads.html
 
tar said:
Thats a strange comment in regards to Cityindex Vs Capital , Cityindex is well known for accepting big size stakes and the company is bigger than Capitalspreads , in the other hand it is well known that you are more likely to be put on a dealer referral with Capitalspreads than other SB outfits . Anyway Capital is losing money at the moment , IMHO they will close shops within a few years .

http://www.trade2win.com/boards/spread-betting-cfds/16595-capital-spreads.html
Click to expand...
Well I get the feeling you are not a big fan of Capitalspreads? Any live experience with them you like to share? I have been trading live with both companies but dropped Cityindex a year ago due to the reason they started to play silly games. A lot more is written about Capitalspreads on this forum and it has been years since I have read about anyone being put on referral to a dealer. Do you know of anyone recently? Losing money can be of a temporary art, and yes it is tough out there, which Cityindex also painfully got to experience a few years back. I believe and hope that Capitalspreads will be around for a long time because they are definitely one of the best SB around.
 
gle101 said:
Well I get the feeling you are not a big fan of Capitalspreads? Any live experience with them you like to share? I have been trading live with both companies but dropped Cityindex a year ago due to the reason they started to play silly games. A lot more is written about Capitalspreads on this forum and it has been years since I have read about anyone being put on referral to a dealer. Do you know of anyone recently? Losing money can be of a temporary art, and yes it is tough out there, which Cityindex also painfully got to experience a few years back. I believe and hope that Capitalspreads will be around for a long time because they are definitely one of the best SB around.
Click to expand...

I refer you to capitalspreads thread which is full of complaints , anyway i am not interested in cap , what silly games did cityindex play with you ? please can you share i am interested ....
 
tar said:
I refer you to capitalspreads thread which is full of complaints , anyway i am not interested in cap , what silly games did cityindex play with you ? please can you share i am interested ....
Click to expand...
This is what I figured. You sure didn't have much to present in terms of negative experience with Capitalspreads. Sorry, but I will not go further into my comments on Cityindex as it is quite a long time back.
 
gle101 said:
This is what I figured. You sure didn't have much to present in terms of negative experience with Capitalspreads. Sorry, but I will not go further into my comments on Cityindex as it is quite a long time back.
Click to expand...

Simon himself ( Capitalspreads ) have said many times that they put scalpers on dealer referral .
 
tar said:
. Simon himself ( Capitalspreads ) have said many times that they put scalpers on dealer referral .
Click to expand...
This is not on the agenda these days it seems. At least not widely adopted by CS. I haven't heard or read about anyone for years have you?
 
gle101 said:
This is not on the agenda these days it seems. At least not widely adopted by CS. I haven't heard or read about anyone for years have you?
Click to expand...

Irrelevant mate , it is their policy as stated by Simon himself ...
 
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