An interview with highbury fx

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highbury fx

Well-known member
Mar 31, 2014
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#2
Would you please make a quick introduction about yourself ? Thanks .
I started in the interbank market whilst on a gap year in Sydney in 1987 with Prebons on the spot aussie desk. Moved back to London couple of years later with Prebon London before going to Tulletts both in London and New York, then moved to a broker in Luxembourg half owned by Tulletts and spent a few (very) happy years there doing usd/dem went to IG then another spread bet company in London and finally to where i am now, a fca and cysec regulated stp spreadbetting and cfd company. I run the company as ceo - we're busy and profitable and continuously struggling to stay compliant in this ever increasingly difficult industry. i don't bet (except poker).

Previously said no to Timsk when asked to do an interview because i don't want my identity to be known. I've seen people i know step out of the shadows on trade2win and get shouted down and i don't want that to happen to me but i'm happy to answer what i can, when i can.

thanks.
 

tar

Well-known member
Nov 18, 2006
10,440
1,307
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#3
Thanks , no thats not a typical interview just a few questions about the industry , simple answers will do .
 
Likes: highbury fx

tar

Well-known member
Nov 18, 2006
10,440
1,307
223
#4
How many traders use stops ?
 

tar

Well-known member
Nov 18, 2006
10,440
1,307
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#9
Great much appreciated , thats generous of you .


How many traders with small accounts are constantly profitable ? or whats the percentage of small accounts are constantly profitable ? Difficult to answer that one now maybe but a ballpark will do .

Whats small ? lets say few grands max .
 

highbury fx

Well-known member
Mar 31, 2014
338
114
53
#10
Hi highbury

Have you ever heard of anybody paying tax on spread betting winnings?

Thanks
yep.

the key always used to be what you declared as your occupation on the spreadbet application form. if you put down 'trader' or similar then the revenue may have considered it to be your source of income and taxed you regardless of how little you may have won.

I knew of someone about 10 years ago who spreadbet fx for a living and done very very well but paid an estate agency £25k to put him on their books as a salesman so he could declare that on the application form.

I think the key thing here is if you are not spreadbetting profitably or not making a decent wage from spreadbetting you should not put down 'trader' as your occupation. You could create some problems further down the line for yourself.

I don't think spreadbetting profits will be taxed to the mainstream any time soon simply because spreadbet losses will then have to be tax deductible. You don't need me to tell you that more money is lost spreadbetting than won.
 
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tar

Well-known member
Nov 18, 2006
10,440
1,307
223
#11
Have you came across an account thats grows exponentially - compounding - ? for example from 2K to 50K . And not by a one lucky trade .

Is it rare ?
 

highbury fx

Well-known member
Mar 31, 2014
338
114
53
#12
Have you came across an account thats grows exponentially - compounding - ? for example from 2K to 50K . And not by a one lucky trade .

Is it rare ?
if you're talking life changing money its super rare but its amazing when it happens.. you're seeing someones life change in front of your eyes.

typically they would need to go on an amazing run for a few months and have balls of steel. I had a guy deal with me for about 8 months who turned £40k in to over £4m. he was picking tops and bottoms for fun every day for months. think about this though, at some stage he had turned his £40k in to £100k and then £200k and then £600k and then £1.7m... not everyone has the courage to not cash out along the way. he was trying to get to £10m to start a foundation but never made it and done the lot. it was not nice seeing the downfall.

enough people manage to turn £5k in to £25k+ but they don't walk away, they keep going and that's what you need to remember, that we have the spread on our side and more often than not that's what tips the balance our way. if someone has run 5k to 25k and not cashed out then inevitably they end up giving it back. lots make money at some stage but not many withdraw and walk away.
 

tar

Well-known member
Nov 18, 2006
10,440
1,307
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#13
Cashing out is important :mad:

How many super active traders you have ? What i mean by active is trading 100s of times per day . And are they profitable ?
 

highbury fx

Well-known member
Mar 31, 2014
338
114
53
#14
Great much appreciated , thats generous of you .


How many traders with small accounts are constantly profitable ? or whats the percentage of small accounts are constantly profitable ? Difficult to answer that one now maybe but a ballpark will do .

Whats small ? lets say few grands max .
lets look at accounts for the first 9 months of 2016 that came directly to us and funded with $1,000 to $4,999 in their account. we saw that the leverage they used was typically 11:1 and they won 54.98% of their trades. Unfortunately only 12.27% went on to be profitable during the life of the account.

this shows that retail traders are good, no one denies that, were it not for the spread a lot of spreadbet firms would really struggle to survive, but it also tells us that our clients losing trades lose more than their winning trades win even though they may win more often than they lose.

don't move stops.
 

tar

Well-known member
Nov 18, 2006
10,440
1,307
223
#15
How spread traders are doing ? Are they better than the rest ? What i mean by spread traders : brent vs wti , calendar spreads , fixed income spreads - non directional betting - .
 

highbury fx

Well-known member
Mar 31, 2014
338
114
53
#16
Cashing out is important :mad:

How many super active traders you have ? What i mean by active is trading 100s of times per day . And are they profitable ?
we'll do about 25% of our daily volume with about 1% of our number of daily active clients.

its hard to be super active and profitable. your cost of dealing is the spread, if you deal 100 times per day on a 1 pip spread you need to make 100 points to be flat.. try doing that every day and see how you get on.

spreadbet firms like us that quote eur/usd around a pip wide is not the right environment to trade like a machine, you need to find someone to quote you 0.2 pips or there abouts to stand a chance.

there are plenty of people though that trade hundreds of times per day. inevitably my experience shows most lose.
 

tar

Well-known member
Nov 18, 2006
10,440
1,307
223
#17
Have you came across traders/clients that trade in a unique way ? Something interesting that you came across and got your attention .


ps. Ofcourse they have to be profitable or otherwise dont mention their experience to us :LOL:
 

highbury fx

Well-known member
Mar 31, 2014
338
114
53
#18
Have you came across traders/clients that trade in a unique way ? Something interesting that you came across and got your attention .


ps. Ofcourse they have to be profitable or otherwise dont mention their experience to us :LOL:
not really.. even a blind squirrel finds a nut every now and then.

events can conspire to make your strategy run like clockwork for a period of time but things don't last for ever. the trouble is you end up thinking you're the best trader ever and start to do things that you wouldn't normally and that's when you end up getting your bum bit. for example I came across a guy that was taking money off me every day for a couple of weeks on the ftse and we ended up working out that he bought the index every day between 8:45am and 8:50am.. for a period of time it worked but not because he had hit upon the holy grail but because for a couple of weeks coincidentally the ftse rose between 8.45am and 8.50am... suffice to say his strategy eventually ended up on the scrapheap.

back in the 90's I dealt with a senior trader from one of the uk's largest clearers who started his day by buying if the sun page 3 girls boobs were pointing up and selling if they were pointing down... now that's a strategy !!!!
 

Oscar Reed

Well-known member
May 19, 2015
1,994
553
123
#20
Hi highbury

Do you get traders not compounding there accounts and look to take regular profits out.

Also what is your typical day/week like.

Thanks for sharing.

Oscar