A reliable spreadbetting broker - is just a dream?

rauliordache

Newbie
5 0
Hello everyone.

After reading hundreds of pages about these big BIG mobsters, I have a small incentive to quit, before being disappointed...

As i posted in another topic, actually I have an account at Intertrader company (not Intertrader Direct, so not DMA) and I am ,,fighting” directly with this broker given that any win is a loss for them... (not DMA).

Do I have chance to withdraw something from them? Last week, I was 300pips+, and I dont know they will let me continue, as long as I am not profitable for them

DMA is the best thing for me, but unfortunately, I have not 5000 euros to start. At first, I have thought that SpreadBetting resumes at DMA, and I did not know that I am taking the company's money

All in all, what do you recommend? I really dont want to earn 2000-3000 pounds and then the company refuse the payment

What is the amount of money to withdraw monthly in order not to close the account/refuse payment/ etc?

It is a fight with windmills...

Later Edit: All the pages that I've read are from 2009-2010... Has changed anything? Any new improvements?
 
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lancenicolase

Active member
219 4
First of all, Intertrader is part of bwin (I'll let you google who exactly they are) and they are a big company so nothing will happen to your few grand and they are also a white label for London Capital Group (LCG are listed on stock market and regulated by FCA).
Secondly, and you have to remember it when you deal with FCA regulated brokers... Up to £85,000 of your money with FCA regulated broker is guaranteed by the government (it's the same as if you keep your money in the bank account and it's covered by fscs).

And finally, I have to explain you a bit how spread betting companies operate. They have a pull of customers who spread bet, for example on FTSE; some of the customers will be selling and some will be buying so they will internally hedge your position (because if you win then somebody else loses), then if they have customers taking big positions then they go to the market and hedge all those bets... so they end up making the spread between the bid and ask quotes (it's more complicated and differs on how they manage risks but in a nut shell that's how it works).

So you should concentrate on your trading rather than thinking about "what-ifs".
 
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rauliordache

Newbie
5 0
Thank you lancenicolase. I have asked, because a looot of people are complaining about brokers. For example (in CityIndex forum):

[/U]my friend imy account just recently closed with gftuk and they are the same ,when they notice me making money more than i lose they decide to close my account
they are all of the same because the fund going from their own pockets and that doesn't suit them
they are open this business for losers because 85%of clients los and that why their business running

Also, you have mentioned that if they have customers taking big positions then they go to the market and hedge all those bets. What means big positions in their(broker's) point of view? Can you give me an amount?
 

lancenicolase

Active member
219 4
You have to understand that each broker manages its risks differently and there's no fixed formula... it depends on how much they can hedge internally though their own customer base and how good the traders are.
You understand that most of the traders eventually lose so £1-£10 bets on FTSE100 won't even be hedged but if they notice that you know what you're doing and trade over £20 per point then they might go and hedge.
I went to investment show in Kensignton Olympia a few years ago and Capital Spreads representative mentioned that they had a customer who made £20k profit and they started hedging all his positions. You see that the moment they notice that you're doing well, they will start hedging your positions and banking the bid-ask spread in the proccess.

I have heard a lot of moaning about CityIndex and I am not very sure about them as I don't use them but I never had a problem with IG and Capital Spreads and quite a few times I made over $500 within minutes when I was trading on the news with just £3-£5 per point on DJ30 or Brent Crude but I've never had a problem as it's their job to manage the risk.
 
 
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