Best Thread Capital Spreads

Spanish index....

Hi Simon,

IMO...I think you should forget getting these smaller markets that cost money, if you only get two people trading them the cost gets passed on to everyone else..obviously effecting your very tight spreads !!!

Keep up the good work...and keep squeezing those spreads !!

fx spreads

hannibal.barca
thanks for pointing this out ... the demo gets less attention than the live platform for obvious reasons. the spreads you mention are the ones available on the live platform . I will get the demo changed to reflect the proper spreads on the live platform.

The spreads you quote are between the hours of 07.00 and 21.00 ..during the night they widen slightly.


alf25

can you call when you notice these propblems? as by the time is read these comments they have invariably disappeared and it is rather difficult to raise an issue with our charting company when it is no longer visable. thanks

fx winner

no news yet these things take a great deal of tense negotiation as my dealers always think of loads of reasons not to do things! no they will look at the feeds over a period of time on a testing site before coming to a desision.

ceydababy

i know what you mean but as we intend to spread across the globe we will have to offer these markets sooner rather than later. Mifid (which some of you may have heard of) seems to be likely to allow marketing of the spread betting product across europe so we will have to add more and more of the 'smaller' indices to keep our product competitive.

Simon

USA and Spreadbetting

Hi Simon,

I have some friends in the US that are interesting in opening accounts....As US Citizens can they open accounts with Capitals ??

US clients

We would love to be able to offer US citizens accounts but the regulatory environment is such that it is illegal for US citizens to make bets/trades via a spread betting platform. US private client trading is incredibly restrictive for foreign companies which is why UK banks have to buy US units to get a foot hold and why futures/broking fees are so much higher in the states than over here. There is a little known rule that states, in effect, that "foriegn financial insitutions cannot offer US financial products to US citizens without approval", you can guess how easy that approval is to come by. So much for 'Free Trade'.

It is no wonder that all of the huge investment banks are US originated as they have a virtual monopoly over the richest nation on earth which means that they can compete from a massive position of strength in other countries.

We have never offered US citizens accounts , and in light of what happened to Party Gaming and Sportsbet etc and some of their directors we are quite thankful that we were never tempted.

No doubt some big US investment bank will eventually come up with "hey, these new fangled cfd's and spread bets" get approval for them through the regulators and then sit with no foriegn competition in their home market.

Simon

top trader said:

capitals-


IG Index and CMC do give interest, if they can why not Capitals?

thanks

Click to expand...

capitals-

still waiting for your reply.
thanks

IG index do NOT give interest on balance and nor do CMC.

if you are talking intrest on open positions then they all do - basically the cap spreads way is whatever the swap is take off 2.5% for their coffers and that's what you get - so GBPJPY does pay long for example today 1.8 pips overnight obviously short it would be negative.

what I hate is that IG and CMC both close positions and open them again every night - a nightmare for managing.

Cap spreads however do the right thing and just add / take away the rollover charges leaving your position intact

Simon,

Just a thought - my wicked side coming out....the limit for, say, rolling FTSE bets is 300 quid a point. Do you have any facility to accomodate clients who wish to go to a higher poundage than this? For example, could one have multiple accounts, or perhaps be restricted to telephone trades for a higher amount?

Any possibilities, or is it just that you cannot hedge any bigger than this and therefore don't do it?

ftse trades etc

jbat

the limit is 300 quid on any one trade. You can open positions up to 2000 quid a point if you wish by making a series of 300 point a point trades (we have several clients who deal in this type of size). The 300 quid a point limit is due to the liquidity in the Futures where 30 contracts is a pretty normal amount on the bid/offer.

interest on accounts

i think that one or two SB companies do pay interest on 'unencumbered funds' to some clients but they dont pay very much. As I have said if interest income is important to you then please put your money into a bank. At capital spreads you get both 'tight spreads'and 'high leverage' due to the mandatory stops. This means that you require less money to run your positions. Margin not required can be kept in your bank and only deposited at the moment it is needed.

fx winner

the actual adjustment is +/- 2% (not 2.5%), slightly better for clients.

simon

i stand corrected

swings and roundabouts if you ask me from a general trading point of view - suppose you have some on the carry trades tho

fxwinner22 said:

IG index do NOT give interest on balance and nor do CMC.

if you are talking intrest on open positions then they all do - basically the cap spreads way is whatever the swap is take off 2.5% for their coffers and that's what you get - so GBPJPY does pay long for example today 1.8 pips overnight obviously short it would be negative.

what I hate is that IG and CMC both close positions and open them again every night - a nightmare for managing.

Cap spreads however do the right thing and just add / take away the rollover charges leaving your position intact

Click to expand...

ig do give interest but you have to ask for it.
cmc pays interest if your unused balance is over 10k.

CS king of server side error message!

Anybody else got a problem with this error message "Trade rejected for server error"?

top trader said:

ig do give interest but you have to ask for it.
cmc pays interest if your unused balance is over 10k.

Click to expand...

didnt know that on IG - My cmc account is around 28k and no intrest - guess a call is in order then

top trader said:

ig do give interest but you have to ask for it.
cmc pays interest if your unused balance is over 10k.

Click to expand...

top_trader I suggest if you often keep positions overnight with IG you trade the futures instead. I don't like the way they close/re-open the position every night - effectively realising your profit loss every day. If you look in their handbook they are very vague about what you are charged overnight. This doesn't happen with futures.

CS is far better in this respect - however if you don't mind the slightly wider spread trade the future. For instance long on the FTSE the cost of the cash is about equivalent to 30 pips a month - but the future is about 18 pips a month (may be more since interest rates went up recently).

I'm also getting on to IG for that interest!

capitalspreads said:

jbat

the limit is 300 quid on any one trade. You can open positions up to 2000 quid a point if you wish by making a series of 300 point a point trades (we have several clients who deal in this type of size). The 300 quid a point limit is due to the liquidity in the Futures where 30 contracts is a pretty normal amount on the bid/offer.
simon

Click to expand...

2000 quid a point!

That's an insane position size - underlying market value of about 13 million pounds (FTSE) in the underlying market. I feel giddy just thinking about the profits you could make on a position that size.....could have made a bar in the last 30 days on DAX with that one....absolutely fecking mad..... :cheesy:

ftse positions

i have to agree with you !!

hoggums

the numbers are not quite so bad the futures work on 5.5% and the rolling on 7.5% (if long (and 3.5% if short) so the one month difference is about 30 points on the futures and 40 on rolling (if long) 19 if short. Of course divvys then come into the calculation etc etc.

Simon

ftse this morning

ftse has been widened to 2 points this morning due to no futures exchange. LIFFE has gone down for some reason.

But at least we were available continuously !!

Simon

simon, can you tell me what time your platform switches on Sunday evening / Monday morning?

Your front page says 7am monday but you were live earlier than that today - is there an official time for forex?

FX markets

Some FX markets come under the heading of '24hr' markets. The major crosses are available from midnight sunday.

The product information sheet gives the crosses that are available ouside of 0700 to 2100

simon

Wall Street

Simon,

Are you planing to over a better value on the Wall Street rolling daily? 4 spread is way too much.

wall street spreads

As mentioned in times past.

the wall street spread is rather linked to the mini S&P which we use to hedge. The dow futures are not liquid enough and too volatile to use as a hedging tool so we use the S&P. The S&P is quoted on a 2.5 pip spread (plus comms etc) equals 3pips. We therefore quote it 4 pips wide as we do with the Wall Street contract.

We have clients who happily punt away in £200 or £300 a point in the wall street contract which equates to some 60 or 90 contracts. As i write (in the middle of the trading day in the US) 90 contracts would move the market 3 pips down or 4 pips up!

We may come in a pip at some time in the future but in reality we cannot give great certainty of fills if the spread narrows too much. The FTSE is less volatile and has greater size per tick which is why we are able to offer the 1 point spread.

Simon