Best Thread Capital Spreads
Jack Hughes
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But aren't you one of the many who have stopped using CS because of the creaky platform, gle?
tar
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very few ! , most of the guys in this thread complained about CS the last year u r one of them , this is a small sample but it gives u a clue about their situition . from 4 m to 2.2 m compared to the same period from the last year ( 1 H ) , for God sake Don miller alone made few millions trading the SP from his home last year ....
You just have to read the annual report, during that period of time they might have invested a lot in the new platform. You cannot draw such a vast conclusion from a thread like this. Sure, the competition has increased and that might have affected them financially, but to go beyond this without facts on the table is too much. Yes I have complained, but I still have the account funded and waiting for the upgrade. But during that time I am using the new platform on a white label SB setup by LCG.
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I use the platform only occasionally, waiting for the upgrade to the new platform. Things are not just black and white guys.
tar
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Jack Hughes
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Software designers will hardly bother getting out of bed for £350k, so expect the worst.
I had a quick look at the 2009 midyear report. No, nothing points towards that the clients are fleeing the company. On the contrary, the company revenue grows as well as the client base and number of trades. During the recession it seems they have been a certain trade pattern that have affected the results negatively, added that the clients, as expected, have not kept the trading accounts optimal funded, resulting in less profit trough interest. They have invested in a in-house software development team (new staff for developing the new platform) and acquisition of Futuresbetting.com (Prospreads.com).
I must say by reading the report, it looks promising for the future. I especially like the fact, they now have a in-house software developing team.
I must say by reading the report, it looks promising for the future. I especially like the fact, they now have a in-house software developing team.
tar
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These numbers doesnt mean anything if u c no growth in revenue which is the case here , if there is 10000 account opened maybe there is 20000 old accounts stopped trading , i c this as a weak sign for the future when i c 40 % drop in profits while there is many accounts oppened , how if this growth in account opening slow down what will happen with the company's profits ?! other SB firms made nice growth in profits at the same period which put a Q mark on CS sitiution . And the acquisition for prospreads doesnt give excuse for this huge drop , IG opened many offices and made aquistion as well for FXONLINE and they still making big growth in revenue .
tar
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This what they said in the report , for me i will not pay 50 k for this new platform ...
I don't agree, why don't you read the numbers given in the report? Compare it to the last report, and you will find out that they are not losing clients, they are gaining clients, also number of trades have increased. They have not lost revenue. There are reasons for the loss in profit, as explained clearly in the report. Compare to IG, LCG is a small company and you simply cannot make any conclusion on the financial state of LCG, based on IG's report. LCG have had a rapid growth over the years, maybe too fast for their size. I am not at all surprised that the profit have come down during this severe recession. Compare to IG they are more vulnerable, and a report of loss in profit, might not be as alarming as it sounds, seen in the light of their estimated growth cycle.
Looking by what they have done with this new platform so far, I have to say I am quite impressed. Even at this early stage, this is simply one of the best SB platform around. Sure, they have got some minor platform issues to solve, but I am quite sure they will come around to that.
Paying 50k for this excellent platform would be a utterly steel.
tar
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I read the numbers most of the new accounts is opened with the white labels , and this doesnt mean they have many new clients , as everybody know CS has more than 10 white label partners , many guys who is already a client for CS was trying white labels like Dealing Desk and Paddypower so no growth in this case ...
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tar
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Revenue didnt increase at all , i was talking about clients who is already dealing with CS and they opened other accounts with Dealing desk and other white labels , the point is these numbers doesnt mean anything cuz it doesnt show the real number of clients ...
You gave the link to the report. I have read it and only post what it says. I quote from report.
"In total, revenue increased by 4% to £12.95 million from £12.51 million on the comparative period. Trading revenue from continuing operations increased by 7% to £12.34 million (H1’08: £11.53 million) reflecting strong underlying organic revenue growth."
"The spread betting division continues to perform well, with average trades per day increasing 59% to 26,208 (H1’08: 16,456). However the market flattening at the start of 2009 resulted in a limited 7% increase on H1’09 average trades per day compared to H2’08. In H1’09 we opened 11,388 new accounts, a 71% increase on H1’08 of 6,662. Of these new clients White Label partners account for 70% but direct Capital Spreads account openings also increased with 3,407 new accounts in H1’09 compared with H1’08 of 2,232."
tar
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this is not the growth we r talking about , this is an unaudited results not big deal between 12.5 and 12.9 if u say they opened 11 k new accounts ! these numbers is a disaster , CS ususally make very high growth , double digit growth not 4 % in revenue and 39% drop in profits ! , and as i said look 70% of the new accounts is opened with white labels , many existing clients open more than account to try white labels like DD . Regarding the number of trades doesnt mean anything maybe it is at size of 1 sek / point , how come all these new accounts and more trades and the revenue is the same ! there is something wrong with their business model , what will happen to their revenue if account opening slowed down or some guys closed their accounts . BTW these 2.2 m pound in profit includes prospreads , CS , white labels , capital forex and derivatives brokerage ! I think CS should change its way , they should think to provide a better serivce : better platform , better execution , no dealers games ...etc , believe me if they change they will make much better ...
