Well before posting I read through all threads in the spreadbet forum (including one on capitalspreads that as 65 pages long) and didn't find info. that would help me decide if Capitalspreads was better than say finspreads. Or how does it compare with betonmarkets (where I have an account for options on forex).
I would also be interested to hear from those who are trading with a broker like IB and who also use a spreadbetter.
I would also be interested to hear from those who are trading with a broker like IB and who also use a spreadbetter.
the blades
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roberk said:
I have found that capital have tighter spreads than Finspreads and IG index. However, the further the contract you buy or sell, (eg far months), the less difference you'll see.
If you get a credit account and hold your positions for longer periods, the advantages of capital spreads can be overtaken by the other 2, who do offer credit. This is covered on the CS thread - although the MD of CS doesn't necessarily agree, I'm certain that my maths are correct.
I don't use IB, so I can't offer comparisons.
Hope this helps a little.
UTB
I have accounts with FXCM (which I don't use much) and with Capital Spreads (among others). I find Capital Spreads infinitely preferable. The customer service is far, far better; the spreads are the same or _smaller_ (contrary to popular belief!); and most important of all, unless you're planning to lose rather than win, all profits are tax-free. As another member observed recently in a different thread, this is really a "no-brainer". CS don't take positions against their clients, they don't mess you about over execution and they don't give you other problems. I don't like holding positions overnight, so the Capital Spreads trading hours of 7.00am to 9.00pm GMT don't inconvenience me. If that's a big problem for you, they won't be suitable for you. I can imagine no other reason why you shouldn't use them.roberk said:
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Yes. I am. So are others here. Above comments apply in the same way. CS don't have any "bias" in indices' cash prices (though some very stubborn and opinionated people here misunderstand the way in which the "cash" price is derived from the futures price and assume wrongly that they do).roberk said:
Thanks Roberto, I gather you are pleased with CS all around,apart from the hours?
I had a look at the spread on Dax and it looks like robbery compared to brokers - but then all the shops are the same I guess.
What is the smallest contract or point size on dax?
Are CS the biggest spreadbetter?
I had a look at the spread on Dax and it looks like robbery compared to brokers - but then all the shops are the same I guess.
What is the smallest contract or point size on dax?
Are CS the biggest spreadbetter?
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Apart from the hours, yes. The MD is aware that many clients would like extended hours but has made no promises. He claims his staff will lynch him, or somethingroberk said:
£1 per point.roberk said:
No; not at all. One of the smallest, I think. There's a whole thread here called "Capital Spreads" which is really, really worth reading (even though there's a lot of it!). It will answer nearly all your questions, I think, and CS themselves are extremely approachable and will certainly answer the rest.roberk said:
What is the spread on the DAX (Deal4Free have a spread of 4)?
The biggest spread betting firm seem to be IG Index and they certainly offer the widest range of contracts. The downside is that they cannot and do not try to compete on price. I would suggest that those trading a wide range of contracts should consider opening an additional account with them. There are times that it comes in handy.
The biggest spread betting firm seem to be IG Index and they certainly offer the widest range of contracts. The downside is that they cannot and do not try to compete on price. I would suggest that those trading a wide range of contracts should consider opening an additional account with them. There are times that it comes in handy.
Spreadbetteur
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Roberto
Check this out, next time you enter a trade with a SB company. Might change your opinion slightly:
Watch the SB price of the company you use to trade against against another price feed. Note that, for a moment, when there is no market movement, the prices are likely to be the same. This while you are not in a position, just flat.
Enter your trade...........
Then you are likely to notice that for most of the time your trade is positive, the company you used to trade with slightly lags the market.
However, should your trade turn negative, you will notice that most of the time the company you placed the trade with is leading the market, so your stop will get hit earlier.
This bias is usually 1 or 2 pips. If price spurts suddenly in your favour (or against if you are negative), you will notice an even larger bias, until price settles.
It is highly probably that most SB companies offer a different price (spread), at any given moment, to clients who are either long or short, by 1 or 2 pips.
If the bias is 1 pip, hardly noticable, unless pointed out, though it makes a lot of profit for the SB company which are managing (hedging) their own account with "Direct Access" with a spread alot less than the one they are offering to you.
I should add that I use spread betting and other types of accounts. So I am not suggesting you should not SB, just be aware that a "3 Pip Spread" is not a 3 pip spread !
Check this out, next time you enter a trade with a SB company. Might change your opinion slightly:
Watch the SB price of the company you use to trade against against another price feed. Note that, for a moment, when there is no market movement, the prices are likely to be the same. This while you are not in a position, just flat.
Enter your trade...........
Then you are likely to notice that for most of the time your trade is positive, the company you used to trade with slightly lags the market.
However, should your trade turn negative, you will notice that most of the time the company you placed the trade with is leading the market, so your stop will get hit earlier.
This bias is usually 1 or 2 pips. If price spurts suddenly in your favour (or against if you are negative), you will notice an even larger bias, until price settles.
It is highly probably that most SB companies offer a different price (spread), at any given moment, to clients who are either long or short, by 1 or 2 pips.
If the bias is 1 pip, hardly noticable, unless pointed out, though it makes a lot of profit for the SB company which are managing (hedging) their own account with "Direct Access" with a spread alot less than the one they are offering to you.
I should add that I use spread betting and other types of accounts. So I am not suggesting you should not SB, just be aware that a "3 Pip Spread" is not a 3 pip spread !
Spreadbetteur
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FX and Index, though I assume on all products they offer.
Remember they are bookmakers and that is their business model.
Remember they are bookmakers and that is their business model.
I do this routinely, actually. I've discussed it in other threads.Spreadbetteur said:
I've certainly never noticed it before. However, I'll look out for it, as you suggest.Spreadbetteur said:
Call me naive, but my initial reaction to this suggestion is to wonder whether, if they displayed different prices to different clients at the same time, depending on the clients' respective positions, the FSA would close them down in hours, or only in days; and whether all the directors would go to prison or only the ones who knew that they were doing that; but I'll discuss it with an FSA official as soon as I can and report back.Spreadbetteur said:
Knowing the extreme care, diligence, inventiveness and imagination which the FSA bring to bear in routinely investigating, checking up on and generally policing the spread-betting industry, I'd certainly be extremely surprised if anything of that kind could avoid their attention for a moment.
I can also think of another way of testing out this theory for myself (which I don't want to describe in detail here in case anyone imagines that I'm potentially invalidating its result by inadvertently "tipping anyone off"), which I'll try out and report back on during the week.
Unlike some other people who post here on this subject, I'm always open to being mistaken and have no problem at all being proved wrong and learning something from that. I hope, though, that you won't mind my saying that I hope you're mistaken here!
Spreadbetteur
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To what degree are the Sb's regulated by the FSA ?
capitalspreads
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i am only going to comment on this thread if anybody actually says anything incorrect
spreadbetteur
you could not be more wrong.... why not get in a room with another account holder then take equal and opposite positions in the same market and see what happens. The prices will be the same for both.
I keep saying this, as do my competitors, if we were lying don't you think someone would have pointed it out definitively with screen prints etc to prove it. We take thousands of trades a day ..we dont have time to bias prices or manipulate quotes.
And although it would be possible to give different prices for different positions this would be self defeating as a client would just make a small bet the opposite way to what he wants to do just to get the ensuing new biased price (i.e sell £1 a point of FTSE) and then buy £10 a point at the new advantageous level created by the position.
Also it would double at a stroke the number of prices being pushed onto the web platform which would be extreemly wasteful of computing resources and would slow our platform down.
The FSA keeps a very close eye on the SB's sometimes, of course, we think too close an eye(!) we have to employ staff merely to ensure that we are compliant.
They check everything from adverts to terms and conditions and ensure that we comply at all times. They check our Financial resources, our client segregated accounts and every single trade made by every single client.
From the FSA point of view spread betting is another form of investing and thus comes under their remit.
As i said at the beginning I won't be commenting generally or answering questions on this thread I just thought that I must respond to some ill informed statements.
By the way.. in answer to that actual question on the thread I think we are fab !!!
Simon
spreadbetteur
you could not be more wrong.... why not get in a room with another account holder then take equal and opposite positions in the same market and see what happens. The prices will be the same for both.
I keep saying this, as do my competitors, if we were lying don't you think someone would have pointed it out definitively with screen prints etc to prove it. We take thousands of trades a day ..we dont have time to bias prices or manipulate quotes.
And although it would be possible to give different prices for different positions this would be self defeating as a client would just make a small bet the opposite way to what he wants to do just to get the ensuing new biased price (i.e sell £1 a point of FTSE) and then buy £10 a point at the new advantageous level created by the position.
Also it would double at a stroke the number of prices being pushed onto the web platform which would be extreemly wasteful of computing resources and would slow our platform down.
The FSA keeps a very close eye on the SB's sometimes, of course, we think too close an eye(!) we have to employ staff merely to ensure that we are compliant.
They check everything from adverts to terms and conditions and ensure that we comply at all times. They check our Financial resources, our client segregated accounts and every single trade made by every single client.
From the FSA point of view spread betting is another form of investing and thus comes under their remit.
As i said at the beginning I won't be commenting generally or answering questions on this thread I just thought that I must respond to some ill informed statements.
By the way.. in answer to that actual question on the thread I think we are fab !!!
Simon
simon i have a general question to you, stems from interest within and thats relating to spread bet companies hedging the clients position , what are your policies regarding that issue? Does it depend on size of bet? or success of individual, is it fully automated that if someone sells 20 you sell 20 or does it depend on categorised factors relating to various catergories of punters? I remember with telephone dealing days i'd get quoted,I'd say sell 10 ,then the phone clerk would shout "selling 10" to a colleague who i assume is covering the position in the market, how does that work with the electronic platform.? and when do you hedge, whats the criterior within your business model?
jsd.
jsd.
