Advice on Etrade

[hbgymbc]

Hi all

I'm fairly new to spreadbetting, and have been with Etrade for a while. I'd like to ask what everybody thinks of them? I've had two bad experiences recently that I'd like your advice on if possible.

The first thing was I had a down bet on Northern Rock (not rocket science!) the other day. I placed a trade overnight to SELL 10 @ 438.9 with a stop at 441. However, Etrade placed the sell @291.0 (almost 150 points lower) and left the stop at 441. Needless to say, the price went up from 291 and I lost a few hundred pounds before I even worked out what was going on and pulled the bet. I'm told by Etrade that this is perfectly acceptable and was down to "Market slippage" overnight. They can place the bet at the nearest possible place if they can't place it at the price you want it at. Whilst this shows me up to be the novice I am, I was amazed that they could think I would want to sell at almost 150 points lower than I originally wanted to. Especially without moving the stop.

The second thing was that last night I placed a BUY 1 on Wall Street. This was after the massive jump in the market, and things were fairly calm trading wise. I had some things to do and when I returned about 45 mins later, I noticed that Wall St had risen and I should have been about £80 up on my bet. However, Etrade had not placed the bet. I can't see any reason for this - the funds were there and the market had moved above my buying in point. They are not answering the phone and so far have not responded to my email on this. I guess I will hear nothing.

Does anybody else use Etrade? Can anybody recommend a better company? They seem to be truly awful.

 

[chump]

what you are highlighting is one of the basic problems between trading the direct market and trading with what is a market maker ...in the real market you either have a real buyer/seller at your price level or you don't...you don't want slippage you order fill or kill at that price and just move on if it doesn't happen ...with the market makers without your order being able to attach the same instruction you will be filled when THEIR next best price becomes available which in slippage terms is a killer...it isn't in my view that they are wrong per se ..it is that you are not aware of the basic differences in trading with them and the direct market ...I really don't see how some systems could actually be traded to worthwhile profitability with SB's .

 

[Jack o'Clubs]

as Chump says. And it's particularly important when trying to trade exceptional market conditions when clearly the MM stands to lose a fortune in a big after-market move.

FWIW I think etrade is a white label of Capital Spreads, so if looking elsewhere you might want to avoid them and the other brands to whom they provide a white-label product as they'll all act the same way.

Having heard about (and been on the thick end of) various SB tricks over the years, your first problem doesn't sound particularly unreasonable on their side, although the lack of fill for your Dow trade seems a bit off. And you might think that if they can miss that fill, how slap-dash they might be about filling stops when you need them...

 

[ae589]

Read the capital spreads thread - it will probably clear up the questions you have (especially after page 300!).

 

[black bear]

I experienced problems with e-trade but nothing really major, I do recall having a stop not filled in the closest month contract but it worked out in my favour so I wasnt to upset.

My main complaint was even at modest stakes when closing out any position the slippage was poor and never in your favour and you frequently had to request re-quotes ,Yawn.

oh ye and the charts have a habit of stopping, then whole platform requires re-log in, but most SB firms are the same they all have BUGS ? in them,

The charts do not line up with the platform and the platform prices do not line up with the requested quotes. The re-quested quotes are their real price but you can only keep ticket open a short time so you have no real idea within 6 points where their market is, so the tight spreads on offer are pointless.

They made payments request from account promtly, no problems there. If you are trading and holding position overnight etc they are ok but they close their books so you do not have any chance to close out positions out of hours.

Your orders will be gapped intra day around even the most minor News announcement, when I challenged them they informed me politely that the market never traded there. I didnt bother to ask which market I gave them their commision for another bad fill and voted with my bank balence.

Not my place to tell you what to do, its your money, but you say you are a novice so I will.
I would not start trading the Dow until you find your feet its an animal and not the best place to cut your teeth in this game.