Thanks Simon, the new platform is definitely worth the wait.
It seems like I have to keep bothering you about the MiFID "Best execution" directive in the future, even after you have transformed to the new platform.
Best Thread Capital Spreads
It seems like I have to keep bothering you about the MiFID "Best execution" directive in the future, even after you have transformed to the new platform.
Simon, have a look at this article.
Dell's Online Price Error Troubles Worsen in Taiwan - Business Center - PC World
We are only asking to be able to buy at the prices you are offering (not major technical price feed errors). In the end it is a losing game you are playing against your clients, if you continue to segregate clients into special categories of execution.
Dell's Online Price Error Troubles Worsen in Taiwan - Business Center - PC World
We are only asking to be able to buy at the prices you are offering (not major technical price feed errors). In the end it is a losing game you are playing against your clients, if you continue to segregate clients into special categories of execution.
tar
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At least there is no dealer intervention , plus you have the ability to join the bid and the offer instead of just hitting buy or sell ...
Phil Mibbutz
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Yes, I still don't understand the argument that clients shouldn't be able to trade using the supplied prices, when all SB companies stress that those are the only prices we can trade at, the underlying instrument being incidental. To return to the gee-gees comparison, is it normal for bookies only to take bets after the start, for a race that they're controlling anyway?
Yes, you are able to trade the prices offered by the SB. That is, if you fall into their self made categories and approved trading style. This is govern by back office administrative parameters, set on an individual client basis. Maybe not illegal today, but I am quite sure it is in the pipeline to become an illegal practice in the years to come.
This is the reason why some traders are put on dealer intervention isn't it?
It's your way to issue a 'polite' invitation to move on to the next provider.
Gle101 is right. Giving different prices to different clients and segregating some clients into groups for worse execution contradicts the MiFid rules !
Phil Mibbutz
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Spreadbetting would probably be finished if that happened... which might not be all bad news, because then we'd get far better deals on DMA accounts, as in the US.
No, I think SB will grow rapidly. I wouldn't be surprised if SB becomes legal in the USA, in the next years to come.
When it comes to trading instruments the USA lags the rest of the world - no CFD and no Spreadbetting allowed and I doubt it ever will.
The reason Spreadbetting has grown is because it is tax free. Remove the tax free and the spreadbet companies would find competition very hard and would not survive with their slow and obsolete platforms.
tar
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I dont think so , now NFA r putting new rules and limits for Forex trading , also the congress considering putting limits for spaculation on the energy markets , they want to put limits and new regulations for the markets , they will not open another casino in the US called financial spreadbetting . Spreadbetting will stay around for some guys but it is outside the real world of trading for example the average daily volume for GS stock is around 2 billion $ , in the other hand IGindex ( big SB firm ) made net profit 60 million pounds last year , SB is a game and we like it thats it but it is outside the real world of trading ...
capitalspreads
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phil
i am sorry but we do not give "different prices to different clients"... all clients get the same price. While everyone here talks about Mifid (best execution) as though they have a clue what it all means ...please actually read the bloody thing!
we had to ......
do you really believe the FSA or FOS would allow an SB company to break Mifid rules? All our clients must agree to our order execution policy (as they do with all SB companies).
I did like the comment about "maybe you would get as good a deal in the US via DMA" i have to assume this particular commentator had never actually tried to trade over there.
Pipstar
actually it is not a polite invitation to move elsewhere it is a polite invitation to stop trying to scalp. !
re the US question over cfds or spread bets being permitted over there ...the answer will probably be that if they do not allow cfds then the US exchanges will continue to drain liquidity and volume as US equity trading moves to more favorable centres (Goldman quote US equity cfd's to LCG out of London but cannot do the same for their US clients in the States !). The US prides itself on its capitalistic outlook. If revenue is draining then they will change.
Spread betting ? unlikely ...but Spread Trading ? possibly
all of this talk about wonderful DMA is all very nice but the fact is that the average bet for CS is around £5 and that is only because equity trades are so big. Normal sizes for our clients in the FTSE, Dax, currencies etc are 1, 2, 3 or 4 pounds. The Dax contract on Eurex is minimum size €25 !! hardly retail friendly...margin requirements on just 1 ftse contract are generally around £3000 which must be topped up every day. CS offers the exact same trade with as little as £300 on your account AND the margin does not have to topped up all the time (even if the market closes just a few pips away from your stop). Stops can be held over more than just the trading day (not available in DMA) the spread is fixed (not available on DMA) the trade price is generally good in over £100 a pip (not available in DMA) etc etc etc.
In reality (as I have mentioned earlier in this thread) client losses on Spread Betting with CS are actually lower on a percentage winning clients versus lossers than private clients trading in the DMA environment (CME/CBOT report on private account traders).
In reality these are different markets for different clients. You might believe what you like about SB companies but an enormous number of city dealers, who know rather more about DMA (and its limitations) than most commentators on this thread, use SB as their preferred trading route.
The idea that it is only the tax that makes SB attractive rather flies in the face of the fast increasing footprint of the SB companies in Europe where there is no such tax advantage.
simon
i am sorry but we do not give "different prices to different clients"... all clients get the same price. While everyone here talks about Mifid (best execution) as though they have a clue what it all means ...please actually read the bloody thing!
we had to ......
do you really believe the FSA or FOS would allow an SB company to break Mifid rules? All our clients must agree to our order execution policy (as they do with all SB companies).
I did like the comment about "maybe you would get as good a deal in the US via DMA" i have to assume this particular commentator had never actually tried to trade over there.
Pipstar
actually it is not a polite invitation to move elsewhere it is a polite invitation to stop trying to scalp. !
re the US question over cfds or spread bets being permitted over there ...the answer will probably be that if they do not allow cfds then the US exchanges will continue to drain liquidity and volume as US equity trading moves to more favorable centres (Goldman quote US equity cfd's to LCG out of London but cannot do the same for their US clients in the States !). The US prides itself on its capitalistic outlook. If revenue is draining then they will change.
Spread betting ? unlikely ...but Spread Trading ? possibly
all of this talk about wonderful DMA is all very nice but the fact is that the average bet for CS is around £5 and that is only because equity trades are so big. Normal sizes for our clients in the FTSE, Dax, currencies etc are 1, 2, 3 or 4 pounds. The Dax contract on Eurex is minimum size €25 !! hardly retail friendly...margin requirements on just 1 ftse contract are generally around £3000 which must be topped up every day. CS offers the exact same trade with as little as £300 on your account AND the margin does not have to topped up all the time (even if the market closes just a few pips away from your stop). Stops can be held over more than just the trading day (not available in DMA) the spread is fixed (not available on DMA) the trade price is generally good in over £100 a pip (not available in DMA) etc etc etc.
In reality (as I have mentioned earlier in this thread) client losses on Spread Betting with CS are actually lower on a percentage winning clients versus lossers than private clients trading in the DMA environment (CME/CBOT report on private account traders).
In reality these are different markets for different clients. You might believe what you like about SB companies but an enormous number of city dealers, who know rather more about DMA (and its limitations) than most commentators on this thread, use SB as their preferred trading route.
The idea that it is only the tax that makes SB attractive rather flies in the face of the fast increasing footprint of the SB companies in Europe where there is no such tax advantage.
simon
Simon, you go to great lengths to prove otherwise but in the end you do give "different prices to different clients" in the following situation:
- Trader A is on automatic execution and get filled straight away
- Trader B is on dealer confirm and gets 'The price has moved' or similar message. He does not get filled and chases the price until your dealers are prepared to fill at worse price of course since price has moved. And he'd be lucky to close the trade at your quoted price !
In other words, you are filling Trader A at a price that you are not prepared to fill Trader B.
..........
Why do you hate scalpers? Is it because they are successful
..........
Of course CS has a few things going for it regarding margin etc. that you quote above. No one is disputing this. It is this selective execution of trades for winners and losers that is the bone of contention.
- Trader A is on automatic execution and get filled straight away
- Trader B is on dealer confirm and gets 'The price has moved' or similar message. He does not get filled and chases the price until your dealers are prepared to fill at worse price of course since price has moved. And he'd be lucky to close the trade at your quoted price !
In other words, you are filling Trader A at a price that you are not prepared to fill Trader B.
..........
Why do you hate scalpers? Is it because they are successful
..........
Of course CS has a few things going for it regarding margin etc. that you quote above. No one is disputing this. It is this selective execution of trades for winners and losers that is the bone of contention.
tar
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This doesnt change what i said b4 that SB is another world outside the real trading world , whither SB or DMA is better this is another story , i agree there is some advantages for SB for small players and for UK traders because of the free tax issue , but lower margins is not one of the SB advantages infact it is a disadvantage and it is a trap for newbies , in the other side with DMA there is no dealer intervention which means there is no one in the other side playing with my orders ! , plus the trader can join the bid and the offer and this is a big advantage for the DMA ...
Good, you are getting irritated by our posts about MiFID and fair treatment.
tar
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LONDON, July 8 (Reuters) - London Capital Group Holdings Plc : * We have experienced adverse trading conditions in the first half of 2009 * Profits have been impacted by lower levels of interest income * Sees profit before tax at around £3.75M, compared with £5.9M last year
SB has its given place, there are disadvantages with both platforms. I give you an example, trading the FTSE. I absolutely do not recommend a newbie to trade the Z future. It would just kill him. CFDs is growing, you pay tax. Even with a tax issue SB will continue to grow. Some are saying, the only reason people are trading SB is because of the tax issue, this I don't buy. Remember, paying tax need not be a bad thing, you also have the possibility to deduct losses.
luckystrike23
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'Profits have been impacted by lower levels of interest income' ->> are these the financing charges? - this seems to imply they make more money on financing than spreads?
tar
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Thats what they claim but it is not true , i think CS is having problems with trading volumes !
