The other side

[GladiatorX]

I cannot remember as it was around 2 years ago but it was with someone who had worked there a long time and was being quite open about their operations. Why do you ask ?


Paul

My best-friend works for a spreadbetting company (I won't name).
Told me that most clients aren't hedged and clients are assessed on Risk management/position sizing and past results to consider whether they are a potential hedge client.
I then asked him why slippage would exist on trades that were 0.10pence per point and therefore clearly unhedged and his answer was just as i suspected, 'its legally made up'.

Although this was a random casual chat - It totally put me off Spreadbetting, even in the form of hedging my share positions... Whether they hedge or not obviously doesn't matter if a customer gets his price, but when corporations are untransparent about such issues upon phoning them, it puts doubt in my mind about the rest of their operations...

My advice for all traders is to not bother spreadbetting; I'm sure their are succesful exceptions... Who knows, maybe they'd be billionaires if they'd chosen a exchange brokerage instead haha

 

[Black Swan]

I cannot remember as it was around 2 years ago but it was with someone who had worked there a long time and was being quite open about their operations. Why do you ask ?


Paul

They have 'players' there, I'm sure...