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This is a discussion on prospreads.com within the Spread Betting & CFDs forums, part of the Commercial category; I think the biggest attraction of prospreads is the low margins... A 2 tick spread is the tightest dow spread ...

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Old Jul 29, 2009, 9:35pm   #25
Joined Nov 2007
I think the biggest attraction of prospreads is the low margins...

A 2 tick spread is the tightest dow spread around, it really comes down to whether you want to spread bet or trade DMA; imo DMA wins hands down unless you're a low frequency trader.
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Old Jul 29, 2009, 9:42pm   #26
Joined Jun 2009
think your better with DMA broker myself

one that provides A1 phones to traders desk

I experienced only 2 order errors (failure to execute resting stops) in close to two years
both E mini Dow ......... which can move pretty quick through 50 - 100 !

very glad phones were A1, involved phone to exchange to get position closed which was carried out while on phone with no security rubbish to slow process down

rob peter to pay paul over the long haul if you don"t get full service for very low RT fee"s imho (your bound to have a platform down eventually its just a numbers game, just a matter of when)

modern platforms all have get out of jail liability warnings, orders may appear correct and working but advice is always to monitor platform and order execution

most brokers will match reasonable RT com once you have been with them a month or two and they no your active (same for platform .... only take feeds you require etc)

sort it proper before you start and test broker back up on regular basis

ie: phone to close one to check response time ........... at a busy time :-)

com and spread kills ....... good post tim

all the best with it tim



latter

Andy
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Old Jul 29, 2009, 11:15pm   #27
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Originally Posted by timsk View Post
I'm looking for a futures broker to trade the E-mini Dow (YM) and ProSpreads are one of the brokers I'm considering. However, in spite of the pro's in ProSpreads (which I accept are good), the con's strike me as being considerable. The issue - as ever with SB companies - is the dreaded spread. Here's my take on the situation. If I'm wrong - or I've overlooked anything - please correct me . . .

As I understand it, ProSpreads add in a fixed number of points to the spread which varies according to the underlying instrument. "0-200 Spread: This is the fixed spread charge that is added to the underlying market spread to produce the ProSpreads spread bet price. For the first 200 lots (where I lot = minimum stake size) traded in any one month, across all products)." In the case of YM, it's 2 points for the first 200 contracts traded. This equates to $10 per contract. So, suppose I average 5 trades a day of 2 contracts each (or 10 trades of 1 contract), I'll pay $100 per day in 'commission' (via the spread) or $2,000 per month. To receive the 'discount' of 1 point instead of 2 being added to the spread, I'll either need to do more trades per month or add more contracts. When viewed this way, the deep discount direct access brokers suddenly look very attractive, especially when one considers (as has been mentioned already) that ProSpreads don't offer any kind of charting package. So, anyone who needs one (as I do), will have to source that elsewhere at additional cost. Perhaps my maths is wrong or I've misunderstood something but, at the moment, even allowing for the tax free status, I'm not convinced that ProSpreads are a very economical solution.
Thoughts anyone?
Tim.
I've been in a similar position, wanting to trade mainly YM but without going against a bookie(SB co) and the market. The rt commission with Prospreads is effectively $20 until the 200 trades per month level, which is very expensive compared with a DMA broker. If the rate started at 1pt extra ($10 rt) I'm sure Prospreads would sign up far more customers.
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Old Jul 30, 2009, 5:54am   #28
 
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http://www.trade2win.com/boards/gene...ad-vs-tax.html

That link is my take on have a read, hope it helps.
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Old Jul 30, 2009, 10:01am   #29
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Quote:
Originally Posted by Phil Mibbutz View Post
I've been in a similar position, wanting to trade mainly YM but without going against a bookie(SB co) and the market. The rt commission with Prospreads is effectively $20 until the 200 trades per month level, which is very expensive compared with a DMA broker. If the rate started at 1pt extra ($10 rt) I'm sure Prospreads would sign up far more customers.
Hi Phil,
Just to be clear, your comments imply that one pays a 2 point spread commission to enter AND a 2 point spread to exit, i.e. 4 points in total for the full RT (4 x $5.00 = $20.00)? This isn't my understanding and, if you're correct, makes ProSpreads even more expensive than I initially thought. Twice as expensive in fact!

Tim.
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Old Jul 30, 2009, 10:29am   #30
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Originally Posted by timsk View Post
Hi Phil,
Just to be clear, your comments imply that one pays a 2 point spread commission to enter AND a 2 point spread to exit, i.e. 4 points in total for the full RT (4 x $5.00 = $20.00)? This isn't my understanding and, if you're correct, makes ProSpreads even more expensive than I initially thought. Twice as expensive in fact!

Tim.
Yes I agree, if the taxation is not a big issue, the choice is quite clear if you compare Prospreads with a company like IB (Interactive Brokers).
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Old Jul 30, 2009, 11:48am   #31
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Originally Posted by timsk View Post
Hi Phil,
Just to be clear, your comments imply that one pays a 2 point spread commission to enter AND a 2 point spread to exit, i.e. 4 points in total for the full RT (4 x $5.00 = $20.00)? This isn't my understanding and, if you're correct, makes ProSpreads even more expensive than I initially thought. Twice as expensive in fact!

Tim.
Sadly, I think that's the case, Tim. The effective spread on YM is 5pt minimum, reducing to 3pt after 200 trades per month. The main advantage of Prospreads is the speed of their platform and absence of SB nobbling, which would make short-term trading possible. Difficult with a 5pt spread, though, even if you can benefit from buying/selling at bid/ask and not pay the market spread.
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Old Jul 30, 2009, 1:42pm   #32
 
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I don't think that prospreads is designed for traders that would notice the first 200 lots... that's pretty much their way of putting a monthly charge on traders doing at least 10k a month...
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