Day Trading & Forex Forum

Black Swan

Anyone noticed any difference over and above when they were futuresbetting? Only £2,500 to open/fund an account, on the face of it the whole set up for their 4 methods/levels of SB look good...feedback appreciated.

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gle101

Have you compared their pricing model against IB (Interactivebrokers)? If that is the case, I would like to know if there is much difference in price.

gedward3

Black Swan,

How many contracts say of the dow can you trade on that.

Last time i looked their margins were quite high per contract.

Ged

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Phil Mibbutz

Although the no tax on profits angle was attractive, the main problem with Futuresbetting was the spreads. For instance, on YM they add 2pt each way, making the effective commission $20. The extra spread halves after 200 trades, but it's still expensive compared with ordinary futures.
Prospreads seems to be the same but without the facility to use Ninja, so apart from a lower account minimum, what's the point (no pun intended)?

arabianights

I think someone only doing 200r.t. in a month is longer term trading, in which case who case who cares about commission....

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gle101

Yes this is exactly my point with the former Futuresbetting and now Prospreads. Prospreads takes over some of the tax burden from the client (in order to get it categorize as SB), so they are not able compete with the larger future brokers. I don't know if this assumption is correct, but it could be one of the reasons they can't offer a better spread.

arabianights

It's incorrect gle. They assume no extra tax; their only extra costs over a normal broker are the effort in becoming a registered spread betting broker.

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Only morons take my advice!

Chatroom for STIR traders - open during UK market hours (7am-6pm). Anyone welcome, especially locals, IB/HF traders, brokers (particularly if you have lots of flow ), those with an interest in this field...

gle101

Ok, that could be the case. Anyway, I guess the hedging is a considerable cost for them at this stage, them being quite a small company. SB just have to hedge the unbalance in the book.