So how much exposure do you have?
Shall We All Just Close Our Spread Bet Accounts??
- Thread starter Truth Seeker
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Taking the no tax issue in account no. But this kind of stake size we are taking about, no way I go with SB.
wackypete2
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I'm not disagreeing with you, but so far I haven't seen evidence of that yet. It's possible that it's a bit more discreet than the MT4 plugin.
Peter
Truth Seeker
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A 10% profit on a account risking 1% of your capital per trade would take you 5 trades at a 1:2 risk reward profile. Come on, this is basic stuff.
Truth Seeker
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LOL, maybe, but you still get better fills than spread bet BS fills.
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libertas
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A 10% profit on a account risking 1% of your capital per trade would take you 5 trades at a 1:2 risk reward profile. Come on, this is basic stuff.
Ahhhh...I understand now, you are assuming your stop will be hit at your desired price or you are using a guaranteed stop loss, I believe some SBs are offering this for a price now. Your actual exposure is far greater than your stop loss. Please be aware that stops on DMA are never guaranteed.
libertas
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Spread betting companies are out to make a profit. To achieve this their customers on average must be wrong more times than they are right. Bearing in mind that the SBs make their own market (loosely based on an underlying instrument) , do you really believe they wouldn't play 'games' with that market to the detriment of the customer? Have you ever compared an instruments chart live with that of it's SB counterpart? It makes very interesting viewing :idea:
Truth Seeker
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Truth Seeker
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I couldn't agree more. The ignorance in this forum regarding spread betting companies is unreal. It's no wonder they make so much money.
As most clients will lose anyway, SB companies don't need to play games. It might have been true once, but SB markets that have a direct underlying instrument could hardly be be described as loosely based nowadays, unless you make the mistake of comparing an index like the Dow with the SB US30/WS30, or the FTSE with the 'UK100', which are based on the futures, adjusted for fair value.
Truth Seeker
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It happens right across all instruments, extended spikes, not turning at round numbers when the market does etc. It's totally legal too, as it's 'their' market we are trading, that's why they do it. FXCM has manipulated FX data loads of time to their favour.
rawrschach
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lawl
evidently you have no experience trading DMA either
try dropping your 10 lot at the market in the FTSE during news and see it execute 20 points away, who'll you blame then? The exchange?
Your stops are probs executed based on market spread plus bucket spread which is why you're getting stopped out at prices the market didn't trade at. If you were trading DMA you would still have been stopped out onl diff is that the chart would show it.
evidently you have no experience trading DMA either
try dropping your 10 lot at the market in the FTSE during news and see it execute 20 points away, who'll you blame then? The exchange?
Your stops are probs executed based on market spread plus bucket spread which is why you're getting stopped out at prices the market didn't trade at. If you were trading DMA you would still have been stopped out onl diff is that the chart would show it.
The SB industry as of today is very clean compared to the overall FX retail industry market making.
Truth Seeker
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Sorry I don't agree with you. Open an account with Oanda and you will find you get good fills 90%+ of the time, just stay away at news times as the widen the spread, but i scalp successfully with them on a daily basis. I can't comment on any other bucket shop type market maker that spring up all over the place based on the MT4 platform as these usually run the virtual dealer plug in that's designed to make your life harder to win.
You have to look at the overall picture of the FX retail market. I am not talking about Oanda, I am talking about the retail FX market as a whole (market makers).
Truth Seeker
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Yes you're probably right there are hundreds of bucket shop market makers about but these are easy to spot, MT4 charting (so they can use the virtual dealer plug in) small deposit opening rules (another huge warning) huge leverage ratios (500-1 1000-1) and a lot haven't traded longer than a few years.
There are some good brokers around but you will find these brokers require larger deposits to open an account ($50k up) but you get what you pay for.
libertas
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(1) Agreed
(2) Maybe that was a bit harsh
(3) Yes I'm well aware of this
The SB industry has become an extremely competitive industry over the last 5 or 6 years. With spreads becoming much tighter it is therefore of even more importance to them that their customers lose money. It doesn't take much 'fiddling' with their market at opportune times to create havoc for the customer.