CityIndex vs ...

charlesD

Member
53 3
So I've only one spreadbetting account with CityIndex.

Which is the best in your opinion? Your answer will not mean much unless you've opened accounts with the one's you're leaving opinion on, so please don't leave opinions if you haven't had accounts with both the companies you're comparing.

So at City the spreads on shares are at least 9 pips. The availability of guaranteed stop losses is only available on a select handful of the mega-caps which is quite a limiting choice if you're only willing to use guaranteed stops. The minimum guaranteed is 5% from current price. The minimum stake can be as low as 0.06pence, but the majority are as high as 0.30pence or more.

Which provider can beat these metrics.
Ie. smaller spreads, more guarantees available on larger selection of stocks, closer range to set guaranteed stops, lower minimum stakes. As each stock will vary slightly, just the majority or modal values I want.

I haven't got a problem with the spreads or margin requirements for the major indices or currencies, but for the majority of shares it seems quite costly. For example a 9 pip spread on a share priced at say 18$, or 1800, at a 9 pip spread the share has to move 0.5 % just for you to break even! or if a guaranteed stop is minimum 5% away, and minimum stake is 0.30 pence, then for a share trading at say 70$ or 7000, if the stop would be taken out it would cost you £105, which is way too high a risk if you've got less than £1000 in your account. I seen market gapping where the price opens next day like say day after earnings at a several hundred pip gap, even thousands, so if I wanted to spreadbet an individual share I wouldn't trade it if I couldn't place a guaranteed stop. Has anyone ever been gapped out by thousands of pips like this and ended up with a negative balance?
 

mblack

Newbie
6 0
Hi Charles,

Hope this site remains about helping each other out and learning. You don't have to have read everything. Any cross references are helpful and appreciated.

I was also a beginner (still feel like one in some areas) and IG Index was where I got interested in finance in the first place so have a big loyalty to them.

I think when professionals talk about PIPS it is in relation to foreign exchange only.

For CFDs on shares and indecies it's POINTS.

I think to compare we need to look at specific stocks. So on IG Index for Vodafone (VOD):

The spread was 131 points.

Min size: GBP 0.10
Margin factor: 10.0%
Min stop distance: 0.1%
Min guaranteed stop distance: 12.5%
Slippage factor: 30%

And for Apple (AAPL):

The spread was 11 points. But we have to bear in mind the US equity markets have not opened for cash trading yet.

Min size: GBP 0.24
Margin factor: 5.0%
Min stop distance: 1
Min guaranteed stop distance: 5%
Slippage factor: 30%

In relation to gapping, like you I noticed that and that is where buyer beware comes in. You have to do the basic diligence of finding out when a company reports before investing in it.
 

charlesD

Member
53 3
So on IG Index for Vodafone (VOD):

The spread was 131 points.

Min size: GBP 0.10
Margin factor: 10.0%
Min stop distance: 0.1%
Min guaranteed stop distance: 12.5%
Slippage factor: 30%

And for Apple (AAPL):

The spread was 11 points. But we have to bear in mind the US equity markets have not opened for cash trading yet.

Min size: GBP 0.24
Margin factor: 5.0%
Min stop distance: 1
Min guaranteed stop distance: 5%
Slippage factor: 30%

In relation to gapping, like you I noticed that and that is where buyer beware comes in. You have to do the basic diligence of finding out when a company reports before investing in it.

Ok Thanks for your input MBlack

So on City Index for Vodafone (VOD):

The spread was 0.5 points*

Min size: GBP 0.50
Margin factor: 4.0%
Min stop distance: 0.0%
Min guaranteed stop distance: 5%
Slippage factor: ?

* your 131 spread seems high, is it 0.01 per point? this spread was 199.80-200.30 per 1

And for Apple (AAPL):

The spread is 9 points. During open hours.

Min size: GBP 0.06
Margin factor: 4.0%
Min stop distance: 0.0%
Min guaranteed stop distance: 5%
Slippage factor: ?

From looking at these two comparisons, it seems that CityIndex has the better deals. 12.5% minimum guaranteed stop distance for Vodaphone? that seems awfully high, it'll probably wipe out half your account even on micro stakes lol!

Want a few more comparisons on say: Google, Mastercard, Tesla, Disney?
 

SpreadDoctor

Well-known member
318 59
i would recommend you check out interactive brokers. You can trade stocks, indices, commodities, futures, options all underlying or CFD format. Crucially you orders are entered into the market so for some strategies the spread becomes something you collect rather than pay. Commissions are industry low, properly regulated with $5bn in capital.
 

mblack

Newbie
6 0
Ok Thanks for your input MBlack

So...

Want a few more comparisons on say: Google, Mastercard, Tesla, Disney?

IG drops the decimal so:

VOD 12590-12722 = 131 point spread vs. City at 50
AAPL 9362-9373 = 11 point spread vs City at 9

Thanks, no need for more data. I will open an account at City at some point. They appear to price better and are big and reputable.

Would also echo what SpreadDoctor said about opening an account at Interactive Brokers. Plus sign up for the real time data. You can cross compare data and you will find the cost of doing business there a lot lower. You might well want to come back to the spread betting later for specific reasons relating to tax and leverage but that depends on your circumstances.
 

charlesD

Member
53 3
i would recommend you check out interactive brokers. You can trade stocks, indices, commodities, futures, options all underlying or CFD format. Crucially you orders are entered into the market so for some strategies the spread becomes something you collect rather than pay. Commissions are industry low, properly regulated with $5bn in capital.

In fact I'm in the process of finding a new online broker. I looked at your site, how much do they charge for equity transactions. Do they charge monthly fees/or inactivity fees? Do they have Online Share ISA?
 

luckystrike23

Active member
120 3
I wonder whether Interactive Brokers allow trading of UK small caps and the stocks that are market maker traded? Saxobank is sometimes refusing to deal in such stocks.
 

charlesD

Member
53 3
IB looks way too expensive anyway, their fees are way too complex, and will probably add up to a hefty amount over time. They swipe $10-$20 each month just for having an account! Yeah if you've got a big balance and want to trade options it looks the place to be. Plus they don't do ISA just the american equivalent IRA. Well I've found someone now, much more affordable.
 

Splitlink

Legendary member
10,850 1,233
i would recommend you check out interactive brokers. You can trade stocks, indices, commodities, futures, options all underlying or CFD format. Crucially you orders are entered into the market so for some strategies the spread becomes something you collect rather than pay. Commissions are industry low, properly regulated with $5bn in capital.

You have to be, absolutely, certain about your trading ability before you go with IB, or any other online broker.

One contract at 10 GBP per point represents a lot of money if you have a losing streak. No room for learners. Find an SB, is my advice. I know that some folk give them a bad reputation but I, for one, have found find mine to be square with me.

It must be remembered that this business attracts many kinds of clients and an SB firm cannot be easy pickings, otherwise it would not last very long.
 

pigbear

Member
56 3
Finspreads part of City Index have jacked up their spreads. Its now 4 points for Wall Street out of hours and I think the same for UK100 as well.
 

Splitlink

Legendary member
10,850 1,233
Finspreads part of City Index have jacked up their spreads. Its now 4 points for Wall Street out of hours and I think the same for UK100 as well.

Haven't paid much attention to futures spreads but FT cash is 1.5 points OOH.

I can, still, trade with that. I rarely enter a trade after hours, although I often keep a trade open past the exchange close.
 

charlesD

Member
53 3
Yes Cityindex just recently a couple days ago too increased the spreads on some of its instruments, the FTSE,CAC,and DAX DFTs, CFDs, and Futures have increased to 1.5 from 1, and the WallStreet Daily Futures increased to 2 from 1, and WS Futures and CFDs to 6 from 4. But the WallStreet DFT is still 1.

At CI it's always been 4 for WS and 6 for FTSE out of hours as far as I can remember (2 years)
 

Hate2Lose

Active member
155 3
So I've only one spreadbetting account with CityIndex.

Which is the best in your opinion? Your answer will not mean much unless you've opened accounts with the one's you're leaving opinion on, so please don't leave opinions if you haven't had accounts with both the companies you're comparing.

So at City the spreads on shares are at least 9 pips. The availability of guaranteed stop losses is only available on a select handful of the mega-caps which is quite a limiting choice if you're only willing to use guaranteed stops. The minimum guaranteed is 5% from current price. The minimum stake can be as low as 0.06pence, but the majority are as high as 0.30pence or more.

Which provider can beat these metrics.
Ie. smaller spreads, more guarantees available on larger selection of stocks, closer range to set guaranteed stops, lower minimum stakes. As each stock will vary slightly, just the majority or modal values I want.

I haven't got a problem with the spreads or margin requirements for the major indices or currencies, but for the majority of shares it seems quite costly. For example a 9 pip spread on a share priced at say 18$, or 1800, at a 9 pip spread the share has to move 0.5 % just for you to break even! or if a guaranteed stop is minimum 5% away, and minimum stake is 0.30 pence, then for a share trading at say 70$ or 7000, if the stop would be taken out it would cost you £105, which is way too high a risk if you've got less than £1000 in your account. I seen market gapping where the price opens next day like say day after earnings at a several hundred pip gap, even thousands, so if I wanted to spreadbet an individual share I wouldn't trade it if I couldn't place a guaranteed stop. Has anyone ever been gapped out by thousands of pips like this and ended up with a negative balance?

If you’re concerned about wide spreads and gapping, you could look at CFDs – but I would go for direct market access.

Accendo Markets do it, worth a look. I have used them a lot. For spread betting, which I only do occasionally, I think you can’t go wrong with IG.
 
 
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