WorldSpreads

[MarvinS]

Actually you are absolutely correct we should have an open discussion! No problems with me, the only concern i had was with people adding comments that were unfounded and had not even opened an account with WS other than that point taken.

Just to let you guys know we have opened 300 new accounts this month, that is why i have been slighlty busy, so sorry i have not been on much! I shall endevour to be more regular.

The offer will be on going however it may be pulled if it is not financially viable, but so far it has been succesful. Touch wood!

 

[dcarrigan]

Actually you are absolutely correct we should have an open discussion! No problems with me, the only concern i had was with people adding comments that were unfounded and had not even opened an account with WS other than that point taken.

Just to let you guys know we have opened 300 new accounts this month, that is why i have been slighlty busy, so sorry i have not been on much! I shall endevour to be more regular.

The offer will be on going however it may be pulled if it is not financially viable, but so far it has been succesful. Touch wood!

was opening account, but carnt see the point if having to wait more than 1 sec for internet response to my deal. i dont want to go into past comments on this thread but can you tell me how long is the response time to trade in orderly market midday . mini dow.

 

[swissgold]

Hi swissgold sorry but I don't agree with that, it matters very much to the Spreadbetting shop if you are winning or losing since they stand to make or lose money, and this issue becomes more significant the tighter they make the spreads.

I haven't looked at Twoway, but I can say it is not the same philosophy as IB. IB is simply a fascillitator, they provide access to the market, allowing you to place your trade there, and dealing with the settlement etc. They have no interest in the outcome. They make their money from the commission. A Spreadbetting shop however makes its own market, and that is what you are trading, if you take the DOW, the standard has been a 4 point spread, if the SB needs to hedge you it can do so on the YM contract at a 1 point spread and yes makes money there, but if they reduce the spread to 1point it now costs to hedge you and therefore one may be inclined to ook for another edge. Now it is true that they won't have to hedge all positions, as many will hedge each other. The point however is that it would be wrong to think that SB's and DA brokers have the same view of their clients

Now let's get back to basics. I know that IB works on commissions and Twowayfutures on spreads, but let's look into some numbers. Let's take the YM contract that you have mentioned. The market spread on the DOW is 1 point, IB charges $4,26 on a $5 mini dow roundtrip (bundled) and Twowayfutures charges 1 point on top of the market spread for those that trade 251 to 1000 lots per month. The more you trade, the cheaper it gets. How cheap can it get? If you trade over 40.000 lots with Twowayfutures you'll get a spread of 0.18 Twowayfutures hedges all bets in the underlying market and makes big money out of these low spreads. That 1 point spread that you pay to worldspreads is hedged by them at a price that is much lower than 1 point and that difference is the money they make out of your bet. IB and Twowayfutures (an SB) have the same view of their clients and it seems to me that worldspreads wants to change it's business model and come out of that old SB monkey business model that you can see in Finspreads, Capital Spreads, IG index, City index, Cantor index, CMC etc. The revolution in the spread world has started in the UK with Twowayfutures and is now going on with worldspreads. I don't see much competion between these 2 brokers because they target different types of clients. Twowayfutures applies a real instant execution as IB does and this should be the standard for worldspreads. So worldspreads needs more clients, higher trading volumes and a much better platform and the result of this revolution will be a better business for them and a better service for us. I believe that worldspreads can achieve this in the long term, they are on the right track as long as they are willing to listen to it's clients. There are big numbers of small traders in the UK and overseas that are willing to trade on a very tight and fast tax free spread, many SB's are already loosing a lot of their clients and worldspreads has to give a honest welcome to these people that have been raped by the SB's. There is a time to sow and a time to reap, let's see if worldspreads is ready for this revolution.

 

[hungvir]

... Just to let you guys know we have opened 300 new accounts this month, that is why i have been slighlty busy, so sorry i have not been on much! I shall endevour to be more regular. ...

Oh dear, based on the much quoted winners/losers ratio of 10/90 we'll soon have some 270 moaners here

 

[JTrader]

Thanks MarvinS.

If and when is the World Spreads platform going to improved to a stage so that all trades requests are processed automatically, without dealer intervention so that all clients trade requests are executed instantly (lets say <5 seconds)? Or are such improvements not planned, and not part of the World Spreads business plan?

Does WS plan to have automatic trade execution (without any dealer intervention)?

Many thanks.

If WS can guarantee a reliable trading platform, where trade requests are automatically filled without being referred to a human dealer, instantly (or within a few seconds) without requotes becoming an issue, and WS can maintain tighter spreads than the competition - I AM SURE that many traders will switch accounts to WS.

A reliable platform, with quick automatic trade executions without human dealer interference, delays or requotes are what day traders want most. I would rather pay a 3-pip spread on EUR/USD, and get this level of functionality/reliability, than pay a 1 or 2 pip EUR/USD spread, and experience, human dealer intervention, delays and requotes.

 

[hungvir]

I totally agree. I hope WS can deliver, Marvin! Congrats on your initial success as well!

I openned my SB account with WS first then with CMC and Fins and now I use Fins exclusively whenever I am at home. I have to use WS when at work but I really don't want to wait for 10-15 or 20 seconds for a trade to be filled. With Fins, it's almost instant.

Cheers,

H

 

[hungvir]

And can I add just one more thing to the wish list - market orders. I want to be stopped out when the market forces me to not when SB companies' quotes do so.

I know it's not feasible but if WS can learn and incorporate all the good things from CMC and Fins into your platform, you'll surely be number 1.

 

[MarvinS]

DCarrigan - In answer to your question you get straight through prices if you trade off our genuine 1 point spread. This means you are not re-quoted at all. I will explain what i mean by this below:
We have analysed some clients that have used our trading platform and they have in 1 example had 700 winning trades and 25 loosing trades. What this means is that some clients are trading off prices that are consistenly better than the markets and when our pricing system catches up with the underlying price they close out. If clients are taking advantage of our system we place them on referral and we have no issues doing this. If a WS client comes along and says that they are being put on referal because they are winners or because they are great scalpers they are very much mistaken. I have no issues with winners and they get my respect, more and more traders do this on a full time basis and it is a living.

I agree that some of the points made on this thread are justified, you should get straight through prices most of the time. However as SwissGold suggested, as we get more clients trading GBP EUR FTSE DOW DAX on a 1 pip spread this will give us greater justification to offer a system that is faster than any other Spread betting companies. Remember we are a new company and i thank clients for opening an account with WS, however i must stress that the 1 point spreads staying depends on you! We are in it for the long term....

Regards
MarvinS

 

[MarvinS]

Yes Hung! We need feedback and func. requirment lists from traders. This may take time to get done but i will try to get it added to our to do list.

 

[wasp]

MarvinS,

How about 24/5 for currencies?

 

[Racer]

Marvin is what you are saying then, that you offer one point spreads, which I would have thought would actively enourage scalping but your system cannot cope with scalpers, so you stop the scalpers by referring them

 

[Racer]

. What this means is that some clients are trading off prices that are consistenly better than the markets and when our pricing system catches up with the underlying price they close out.

"Consistently better" but that implies that the trader is trading the right diiection? But what if the trader is trading the wrong direction as a lot of traders do! The prices are consistently worse than the market in that case.

 

[roguetrader]

Now let's get back to basics. .............................................................

That was an interesting and informative reply swissgold, I thank you for that. I will take a closer interst in both this thread and those companies.

 

[MarvinS]

Racer we have already discussed this! We offered the 1 pip spreads to attract scalpers yes....
Scalping is a term used to define day traders who do not swing trade the markets but trade on an intra day basis in some cases for a quick profit. We are not stopping scalpers by reffering them all we are doing is giving them the REAL market price. We are not going to entertain any systems traders who try to benefit from a system failure or slow price. We want genuine scalpers and swing traders who want to only pay a 1 pip spread and if you do not want to trade the markets but just wrong prices please do not open an account with WS.

 

[Racer]

Racer we have already discussed this! We offered the 1 pip spreads to attract scalpers yes....
Scalping is a term used to define day traders who do not swing trade the markets but trade on an intra day basis in some cases for a quick profit. We are not stopping scalpers by reffering them all we are doing is giving them the REAL market price. We are not going to entertain any systems traders who try to benefit from a system failure or slow price. We want genuine scalpers and swing traders who want to only pay a 1 pip spread and if you do not want to trade the markets but just wrong prices please do not open an account with WS.

By the time you get a price back it isn't the real market price because it has moved because you had to wait to get a quote from a dealer. And that still doesn't answer the question about the assumption that your prices are 'consistently better' than the market... what about the traders who get the direction wrong?

 

[wasp]

what about the traders who get the direction wrong?

Then you ALWAYS get filled. Always.

 

[MarvinS]

Racer - The Market spread on mini dow is usually 1 pip and on FTSE is usually 0.5 pips, these can vary in market hours. Even with the markets being so volatile last week we stayed 1 pip spread.
All other SB firms requote clients at their discretion and we do not re-quote all our clients, i already made my point on why we have to re-quote. IG index re-quoted me all the time on the Dow and they are a 4 pip spread. Racer our prices are not always wrong! As you are trying to portray...

 

[Racer]

Racer - The Market spread on mini dow is usually 1 pip and on FTSE is usually 0.5 pips, these can vary in market hours. Even with the markets being so volatile last week we stayed 1 pip spread.
All other SB firms requote clients at their discretion and we do not re-quote all our clients, i already made my point on why we have to re-quote. IG index re-quoted me all the time on the Dow and they are a 4 pip spread. Racer our prices are not always wrong! As you are trying to portray...

Marvin it is you who said WS had 'consistently better' prices not me.. as I said, to the trader who gets the direction right that is true, but not for the one who gets it wrong

 

[swissgold]

Racer we have already discussed this! We offered the 1 pip spreads to attract scalpers yes....
Scalping is a term used to define day traders who do not swing trade the markets but trade on an intra day basis in some cases for a quick profit. We are not stopping scalpers by reffering them all we are doing is giving them the REAL market price. We are not going to entertain any systems traders who try to benefit from a system failure or slow price. We want genuine scalpers and swing traders who want to only pay a 1 pip spread and if you do not want to trade the markets but just wrong prices please do not open an account with WS.

I don't think that your clients want to take advantage of your system, indeed I may say that WS can make a lot of money from scalpers if WS provides a pricing system that is linked to the underlying market price. TWF is offering this facility and I don't see the point why WS shouldn't do the same. You can't blame the scalpers for doing what is right for them, it is WS duty to let us trade the way we want to do without any referral to dealers. If you want to give us the REAL market price that's ok for me, I don't ask for anything else then that. Take the market price, put the 1 pt spread on top of it and the issue is closed forever, it works for TWF and I don't see the point why it shouldn't work for WS. System traders don't exist if the system works as it should and if it doesn't work yet than please do something about it and do it fast, because our money has work according to what the market does and not a system that goes slower or faster then the market (I've not yet come across a system that beats the real market price). Real market price + 1 pt spread + fast execution and WS profits will rock. Quote us happy and we'll do business with WS for many years to come.

 

[MarvinS]

Swissy - every point you have made seems very astute!
1pt spread+ real market price+ fast execution+ good customer service - Why not! SB been lacking this....