CFD, spread bettor, broker !?!?


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Hello, i'm a bit confused over what to use to trade. I understand the benefits of spread-betting but aren't keen on the fact them create their own market price and i feel like they want me to lose, not sure if thats true however. I'm also struggling to get my head around how the spread works in terms of entries and exits, because if i want to enter at market 380, then at 378 they will enter me on 'buy' at 380, i think. and thats not good if your trading on breakouts.

Then brokers, i don't know as much about brokerage, what is Directmarketaccess (DMA) and what is the cheapest/best execution only service? Can you use brokerage to day-trade effectively

Finally, CFD's look interesting, they are based on the real markets and have low margin. But i don't understand the commision, it seems 0.10% commission on igmarkets but also i noticed that there is some kind of spread, which i don't really understand.

I just don't know which would be best for me.
Each day 2.30-5.30 i day-trade, 3 selected US stocks, finishing the trades by the end of the trading day. (each trade aims to win about 30 points)
What would be most cost-effective for this stratergy, or just which would be best and why?

Would it be CFD be best because no stamp duty, market basis, low margin, my understanding is that effectively they take 'one-point' of your winnings. Or is there a catch there or ?

And can someone explain how a spread can exist on CFD's, like Buy 300 Sell 295, i thought that existed in spreadbetting because the 5 points is that you pay igindex for the bet.



P.s. Can you really win spread-betting, i always think 'betting' is a form of gambling which inevitably you can't win but i don't think that applies to spread-betting, but enlighten me, i just don't like betting on 'made-up' market prices, even if they're 'based' on underlying market.

Currently i'm using Igindex. I'm just wondering if there is a better way of doing it.

Thanks :)

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