Spread Betting v Direct Access - The Annual Revisit

[new_trader]

That is one of the stupidest posts I have ever read!! Try reading what I wrote properly, preferably with your brain engaged.

For starters I was not arguing in favour of either spreadbetting or direct access just stating the FACT that each can be more efficient in the right situation and giving an examples of what these situations could be. I have never personally placed a spread bet, I have only ever used D.A. and my style of trading could not be done any other way. You have not won the arguement with me - I was never arguing against D.A. and my ego isn't fragile enough that I have to argue that I'm any better for not using S.B. I was never arguing - They both have their places.

You say that hypothetical arithmetical examples aren't evidence of anything and then straight after claim to "win the arguement" with one

Someone making £10million/ year trading DA and paying tax is better off than someone making £250k tax free through spred bettin'...therefore I win the argument!!

and.... umm... someone making £10 million/ year spread betting is better off than someone making £250k trading D.A..... So what!!??!

That is one of the stupidest posts I have ever read. Try again, preferably with your brain engaged. You have never placed a bet with a spred betta yet you feel you are in a position to give FACTS about the merits of both..

Do you know what H-Y-P-O-T-H-E-T-I-C-A-L means?

Read post 59 before spewing utter nonsense.

 

[PKFFW]

Blah Blah Blah...........

Carry on.......

Cheers,
PKFFW

 

[barryb]

New_trader, you seem to have ruffled quite a few feathers on SB vs DA in this thread, very funny indeed. I myself am trading from several spreadbetting accounts, and i agree that I am classified as a professional gambler, what else can i or any other spreadbetter be? Spreadbetters are not traders.

I traded futures professionally in London for 3 years before leaving and re-working my style to a longer term approach, hence why i use SB's, small trades possible, low barriers to entry and i don't need anything other than price. However as soon as the performance of these SB's is brought into question regarding size per point, or i need to get a mortgage or extra credit, i will switch to DA as that's where the big money is made anyway. In my view traders should be always looking to increase their size to avoid getting stuck in their comfort zones. This continuous advancement of size is simply not possible with SB's.

 

[TomTom]

With Direct Access Dow futures can S&P furtures can be traded with £250 per contract.
One point spread on DOW FUTURES
So the cost is in fact cheaper than Spread Betting

 

[trader_dante]

This continuous advancement of size is simply not possible with SB's.

If you find this, then you are either trading with the WRONG SB firm or trading SHORT TERM.

Get the right broker and trade longer term and continous advancement of size is not a problem.

 

[barryb]

If you find this, then you are either trading with the WRONG SB firm or trading SHORT TERM.

Get the right broker and trade longer term and continous advancement of size is not a problem.

Unfortunately I don't have these problems as of yet, however I'm reliably informed that upwards of £150 per tick, re-quotes and delays are hugely more frequent even trading a longer term strategy.

When i say continuous advancement of size, i'm talking about going beyond £400/500+ per point. This is only possible with DA, and personally speaking i would only be happy trading this size DA.

 

[trader_dante]

Unfortunately I don't have these problems as of yet, however I'm reliably informed that upwards of £150 per tick, re-quotes and delays are hugely more frequent even trading a longer term strategy.

When i say continuous advancement of size, i'm talking about going beyond £400/500+ per point. This is only possible with DA, and personally speaking i would only be happy trading this size DA.

The way round requotes and delays is to enter an order and don't try and hit a price or alternatively hit several brokers at the same time. This is one of the reason I have nine.

In addition, some SB firms such as ETX Capital will let you trade unlimited size.

P.S. SB firms always have loopholes that you don't have in the direct market and some of them mean free money.

 

[new_trader]

The way round requotes and delays is to enter an order and don't try and hit a price or alternatively hit several brokers at the same time. This is one of the reason I have nine.

In addition, some SB firms such as ETX Capital will let you trade unlimited size.

P.S. SB firms always have loopholes that you don't have in the direct market and some of them mean free money.

You have 9 (nine) spread betting accounts? Do I understand this correctly? 9 accounts to do what a proficient trader can do with 1 (one) DA account......

This is what you teach?

 

[barryb]

The way round requotes and delays is to enter an order and don't try and hit a price or alternatively hit several brokers at the same time. This is one of the reason I have nine.

In addition, some SB firms such as ETX Capital will let you trade unlimited size.

P.S. SB firms always have loopholes that you don't have in the direct market and some of them mean free money.

Entering the order will be the way i'll get around that one yeah, so long as i've got time to enter at the end of my TF before my strike getting hit. On ones like that there might be problems as it won't be in the order book long enough for the SB to hedge in time.

Fair enough regarding ETX, but my preference at that level of investment would definitely be DA.

 

[trader_dante]

You have 9 (nine) spread betting accounts? Do I understand this correctly? 9 accounts to do what a proficient trader can do with 1 (one) DA account......

This is what you teach?

One "proficient" trader could do 15 lots short in the Dax, get onside and then see all the offers pulled and end up paying up to get out because of the lack of liquidity.

A very "proficient" trader could take £30 per point with 9 different SB brokers, suffer no slippage and make a tax free gain to boot. (Depending on the broker and the speed with which they execute across the different platforms)

This is not how I trade and certainly not how I teach, I am simply making an example.

It's not the ONLY reason I have 9 accounts. It is because spreads differ as do loopholes that effectively offer "free money" from time to time. A person has to stay on top of their game by studying all aspects. That includes the broker as much as the playing field.

You go on so much about being proficient. It's like it is your buzzword. All proficiency is, is an advanced degree of competence.

Competence in trading is measured by RETURN FOR RISK. How much you return for how much you risk.

If I return 1000 pips for every 100 pip stop I have, that makes me as good as any trader that returns 50 pips for every 5 they risk or 10 pips for every 1 pip they risk. Do you get this or not?

It does not make you more PROFICIENT to be in the direct market rather than trading through 715 different spreadbet firms. It might make you slightly more EFFICIENT but if that doesn't translate into your P&L, guess what?? It doesn't mean sh*t.

 

[the blades]

You go on so much about being proficient.

if you'd tasted one of his pizza's, you'd understand.

UTB

 

[Mr Flibble]

Ziggle...I just got paid a dividend for my spread with Microsoft today. Real enough for you?