CapitalSpreads vs IGIndex ?

[leonarda]

Hi,
I have accounts with both of these, so I ought to know the answer! however, i'm still a fairly new trader, so I would be interested in peoples comments. Basically, i'm trading medium-term equities, say 1 to 4 month trade duration, hence using quarterly stock furtures. Now my key difference between the two on these is that the quarterly spreads on CapitalSpreads are very good, typically 0.5% less than IGs, which if you think about it, if you close say 10 trades a month is 60% of trade gain over a year, depending how leveraged you are that could be 10-15% of account!

Also, another slight difference in pricing is how dividends are factored into the price, with CapitalSpreads the expected dividend within the period is already subtracted from the price, but with IGIndex it isn't, the price just drops on ex-div date and dividend credited to account.

However, spreads aren't relevent if the platform doesn't help you achieve that 0.5%! and that's where IGIndex wins, as its platform is very good with lots of bells and whistles, eg.Alerts, Trailing stops, huge range of shares, autochartist, etc..

So what are your opinions?

Thanks

 

[ns1000]

Hi,
CapitalSpreads are very good, typically 0.5% less than IGs, which if you think about it, if you close say 10 trades a month is 60% of trade gain over a year, depending how leveraged you are that could be 10-15% of account!


Thanks

How do you come to this figure? Not sure I follow. If by 'trade gain' you mean total profit on a trade, it sounds suspect to me. If spreads are 0.5% lower at CS, and this makes up 60% your gain, you must be looking to make miniscule amounts.

 

[0007]

Hi,
I have accounts with both of these, so I ought to know the answer! however, i'm still a fairly new trader, so I would be interested in peoples comments. Basically, i'm trading medium-term equities, say 1 to 4 month trade duration, hence using quarterly stock furtures. Now my key difference between the two on these is that the quarterly spreads on CapitalSpreads are very good, typically 0.5% less than IGs, which if you think about it, if you close say 10 trades a month is 60% of trade gain over a year, depending how leveraged you are that could be 10-15% of account!

Also, another slight difference in pricing is how dividends are factored into the price, with CapitalSpreads the expected dividend within the period is already subtracted from the price, but with IGIndex it isn't, the price just drops on ex-div date and dividend credited to account.

However, spreads aren't relevent if the platform doesn't help you achieve that 0.5%! and that's where IGIndex wins, as its platform is very good with lots of bells and whistles, eg.Alerts, Trailing stops, huge range of shares, autochartist, etc..

So what are your opinions?

Thanks

In my opinion "ease of use is" more important - it's a bit psychological. I've used both and feel more at home with IG - nice charting system - very simple - no fancy stuff to distract you from making money.

Don't know what the new CS platform is like - looking forward to trying it.

I find that when I stop over-concentrating on technicalities and look after the basics, I make more money. Funny that!

 

[leonarda]

How do you come to this figure? Not sure I follow. If by 'trade gain' you mean total profit on a trade, it sounds suspect to me. If spreads are 0.5% lower at CS, and this makes up 60% your gain, you must be looking to make miniscule amounts.

Sorry I wasn't very clear. Since the difference would effect all trades win or lose, ie.we're talking "average" profit per trade. 0.5% is significant.
My wins are typically 10%, losses 4%.
My current performance over 25 trades is average 1.25% per trade, so 0.5% would come off that!

 

[ns1000]

Sorry I wasn't very clear. Since the difference would effect all trades win or lose, ie.we're talking "average" profit per trade. 0.5% is significant.
My wins are typically 10%, losses 4%.
My current performance over 25 trades is average 1.25% per trade, so 0.5% would come off that!

0.5% of what? Spread or consideration or P&L?

 

[leonarda]

0.5% of what? Spread or consideration or P&L?

consideration.

So if bet is quivalent to £1000, difference in spread costs £5.

 

[ns1000]

Have you done the maths to check it's cheaper to trade a future rather than holding a rolling daily? I don't have a live account to check, but you may find that you can hold a daily as cheaply as a future.

My gut feeling is that if you're making 1.25% per trade, the execution is more important than the spread. If you're finding the execution ok on CS stick with them. Just make enough trades with IG to keep your free bells and whistles.

 

[leonarda]

0.5% of what? Spread or consideration or P&L?

maybe an example would avoid confusion, using live prices:

Vodaphone June prices:
IGIndex 141.55 - 142.74 spread = 1.19
CS 141.6 - 142.1 spread = 0.5
difference = 0.69

So spread difference alone 0.69 of 141 price is 0.49%

So a £5 bet per point is going to cost me £3.45 more with IGIndex.

 

[leonarda]

Have you done the maths to check it's cheaper to trade a future rather than holding a rolling daily? I don't have a live account to check, but you may find that you can hold a daily as cheaply as a future.

My gut feeling is that if you're making 1.25% per trade, the execution is more important than the spread. If you're finding the execution ok on CS stick with them. Just make enough trades with IG to keep your free bells and whistles.

1.25% on average, gives me currently a 200% gain per year pretty good!
eg: 8% say on wins, and 4% on losses

 

[Sunshine On Leith]

I sometimes wonder how relevant the advertsed spreads are.

What really matters is where they see the current market price. You could be trading with a firm with a 1 point spread, but actually achieve a worse price than you would have with a 2 point spread firm.

If you open both your accounts on screen Im sure it wont be long before you see opportnities to trade with the seemingly more expensive firm at a better prce than the 'cheaper' firm.

Personally I think you should think less about what the spread is and more about what the actual price is. Having a few accounts open at the same time and looking for the best actual price is sensible in my opinion.

 

[ProSpreads]

I sometimes wonder how relevant the advertsed spreads are.

What really matters is where they see the current market price. You could be trading with a firm with a 1 point spread, but actually achieve a worse price than you would have with a 2 point spread firm.

If you open both your accounts on screen Im sure it wont be long before you see opportnities to trade with the seemingly more expensive firm at a better prce than the 'cheaper' firm.

Personally I think you should think less about what the spread is and more about what the actual price is. Having a few accounts open at the same time and looking for the best actual price is sensible in my opinion.

Why not have a look at our website www.prospreads.com
We offer DMA ( direct market access ) so actual mkt prices with no re quotes and instant fills.

 

[leonarda]

Have you done the maths to check it's cheaper to trade a future rather than holding a rolling daily? I don't have a live account to check, but you may find that you can hold a daily as cheaply as a future.

Yep, I did the maths on this, and it varies with provider, as follows:
IGIndex, CityIndex: Qtrly Future cheaper than a rolling daily after about 2 months.
CapitalSpreads: Qtrly Future cheaper than a rolling daily after about 3 weeks.
As you can see CapitalsSpreads Qtrly futures are very good value!

 

[azdo]

Has there been any chances to IG and Prospreads since last year?