Hello all

[Luminox]

Don't have a S&L account, but maybe they widened the spreads when they added charts to their platform?

The spreads were widened back in June '09. Some futures were widened while some dailies were tightened.

Phaffing around with the business model I suppose!

 

[Luminox]

What are the reasons we should join spredex? what are the advantages? Do you hold our bets for a few seconds to see if it goes your way? what do you do with winning traders,have you ever barred any for winning? Why are your spreads not competitive(that alone implies you are only after poor traders). Thanks

Hi Julian,

Spreadex has very low churn (thus, very high retention of clients); the vast majority of our clients are very happy with how we treat them, customer service being something that, in our opinion, outweighs slightly tighter spreads when a client has an issue with a position exposed to a large amount of risk/reward.

We offer a personalised service, someone to speak to about your trades and the markets with which you deal (someone that knows your voice, what you like to trade, and what you might interest you in respect of market movement). John Ruskin explains the concept of value much better than I ever could, but the point is that you pay for what you get and that often, where you pay less initially, you pay more ultimately because the service/product you bought was inferior for the purpose required.

HOWEVER, this is not to say that everyone would like Spreadex. If you're interested in a cheaper service that doesn't pass on the costs of advanced facilities and dedicated traders, a cheaper no-frills service would be better. Hence Shorts&Longs...

Why would we ban a winning trader? With large positions held by clients we simply hedge their trade (the risk to us) by buying stocks in the underlying market (for example). Unlike a casino/bookmaker, we don't hope our clients lose money, we hope they enjoy from us the reasons why the financially spread bet. It would leave us with a pretty awful business model if we didn't... So, we make our money from the commission, i.e. the spread. A similar commission that you would pay a broker when buying shares, the difference being that neither stamp duty nor gains tax are applicable to FSB.

Regards the last point you made, I doubt clients choose us because we're not the cheapest; they might pick us for the service we can give them however, something that does influence the price of our service.

 

[Luminox]

A 'business decision' in that they don't want any business?

 

[Omoh101]

"....Regards the last point you made, I doubt clients choose us because we're not the cheapest; they might pick us for the service we can give them however, something that does influence the price of our service.

I don't know any clients that will want to pay more especially if they are in it to make money - competitive pricing should be a main focus if you are looking to expand your clientele.

 

[Luminox]

I don't know any clients that will want to pay more especially if they are in it to make money - competitive pricing should be a main focus if you are looking to expand your clientele.

Completely agree with you. In terms of growing the business, it'll be the main factors that influence people when deciding which broker to go with (tight spreads, markets offered, platform, reputation, etc).

I do know clients who are willing to pay more. Only, however, if they get more, be it through service or otherwise; the cost must render a benefit. If it didn't, by logical extrapolation, Spreadex would've had the official receiver on the phone not long after its incorporation in '99.

Some, however, neither want nor need that service, so the business model could be perceived as hindered in that respect, which is why hearing people's opinions is vital.