The future of spread betting.

[Chimaera]

March 7th heralds the future of spread betting. This site: Futuresbetting.com goes live on that date.

Essentially you can trade exactly like the professionals, buy the bid, sell the offer and instead of paying clearing fees you have an equivalent decrease in the spread. Free software which essentially gives you live access to the exchanges, free live charting package, free news, free squawk box. And....It's all TAX FREE!!!!!

No more farting about with Deal4Free...

The future is bright, the future is virtually spread free, totally tax free and there are no fixed overheads.

We've never had it so good.


C

 

[FetteredChinos]

indeed, verily so, that is good news..


whats the catch though?

i might have to look into these chaps..

 

[Chimaera]

indeed, verily so, that is good news..


whats the catch though?

i might have to look into these chaps..

No catch...... Unless you regard having to deposit a minimum of £10,000 in a segregated account as a catch.


In which case you'll have to carry on paying through the nose using thieve4free!!!


We are finally able to trade futures markets tax free. How good is that?


C

 

[anley]

Tax Free is all very well if you make money. Most don't so tax-free is actually a massive negative.

Still, when it comes to marketing, selling the 'greed' factor of TAX FREE is something you should bang on about.

 

[Chimaera]

Tax Free is all very well if you make money. Most don't so tax-free is actually a massive negative.

Still, when it comes to marketing, selling the 'greed' factor of TAX FREE is something you should bang on about.

If this formula proves successful then all the existing spreadbet companies will either follow suit and offer a similarly competitive package or they'll be consigned to the scrap heap where most of them belong.

This represents a whole new level of competition which, as we all know, is a good thing for the punter on the street.

You're right tho, it won't stop most of them pissing away good money after bad. But they won't be able to blame it all on rip off spreads any more will they?



C

 

[Tuffty]

Looks interesting. Thanks for the link. Anyone know what issues there are with them being based in Gib and being regulated by the Gib authorities rather than the UK FSA? If there is a 'catch' there may be issues here...I'm not sure! Why haven't UK domiciled spread bet firms moved to Gib if there are advantages for them? (or are they an off shoot of one of them?). So many questions so little understanding (from me)!

 

[Chimaera]

Looks interesting. Thanks for the link. Anyone know what issues there are with them being based in Gib and being regulated by the Gib authorities rather than the UK FSA? If there is a 'catch' there may be issues here...I'm not sure! Why haven't UK domiciled spread bet firms moved to Gib if there are advantages for them? (or are they an off shoot of one of them?). So many questions so little understanding (from me)!

I think they're in Gib for their own tax reasons. The company has been set up by a number of successful futures traders who I suspect are about to get alot more successful in the near future. Many screen based locals trading these products are going to switch to this platform since it saves them alot of overhead costs and dramatically reduces the income tax they have to pay.

The site is designed primarily to attract these people's business away from trading arcades and clearers who charge for front end access to the exchanges as well as charts, desk space etc.

C

 

[fastnet]

Not sure I fancy depositing 10K with a company not regulated by FSA or local equivalent.

 

[boy]

Chimaera.

Are you connected to this firm or are you a customer?

 

[Tuffty]

fastnet, They state they are regulated by the Financial Services Commission of Gib.

Interesting in that they appear to be direct access but in a spread bet wrapper. They state all trades will be placed on the exchange, so no messing with prices or lack of hedging issues.

 

[LongandWrong]

fastnet, They state they are regulated by the Financial Services Commission of Gib.

Interesting in that they appear to be direct access but in a spread bet wrapper. They state all trades will be placed on the exchange, so no messing with prices or lack of hedging issues.

what are their spreads gonna be? can't seem to find them...

min bet size same as contract value, so €25 for dax? too rich for me....

 

[fastnet]

If they plan to place all trades surely they must have a fairly hefty min bet size? Maybe min of relavent exchange tick size? This would make sense but might alienate some of the newbies that enjoy the freedom to cut their teeth on small posns?

We need a description of their target market, the margin requirements and min net sizes.

Chimaera - could you enlighten us?

 

[Tuffty]

In the pdf file it looks like they will have a sliding scale of spreads based on your volume (I think if I read it correctly). It says even at the lowest volume scale the spread will be 1/4 of the most competitive spread bet firm.

The web site for the Gib FSC is www.fsc.gi/ but the regulatory list is only updated monthly. This company didn't come up when I did a search (23/2/05).

 

[boy]

O.k.