Commodities & Spread Betting

[stephendavies]

I trade mainly in commodities with just a few indicies and currencies. At the moment I am using IG Index, but for the following reasons would like to switch to another SB company.

One one trade this week IG Index were offering a 70pt spread, compared to either 20 or 30 on deal4free. On another trade IG Index would not allow me to put a stop less than 180 points away from the opening, and on another trade the minimum bet per point was £2. On another trade I got the market close time wrong, and so ha a trade left open overnight. I watched it moving against me but could not close the bet. Luckily I use guaranteed stops, albeit at a premium.

Is there a bette SB company for trading commodities? Ones such as spreadright.com and trdindex.com do not offer a full enough range of commodities. The downside with deal4free is that I need to load software to use it, this is OK at home, but I also like to keep my eyes on trades while at work, and I'm not allowed to download software on the work machines.

Is anyone else trading mainly commodities, and which SB company are you using?

Stephen.

 

[DaveT]

Hi Stephen -

I also specialise in commodity trading, and I do use IG Index as my main trading facility/platform.

I am personally very happy with IG, as I mainly put on longer-term swing/position trades lasting from 2 weeks to 3 months or more, therefore I have no problem with the spreads, as my timing is usaully good enough to get through it within a couple of days or so, and my profit targets reduce the 'penalty' to a minimal amount. The rule on the stop-loss, is (I believe) that you must place it at a distance of AT LEAST 3 TIMES THE SPREAD away from the market at any one time.

However, all that does not help you with your predicament. Sorry to hear you are having problems.

As for the other SB's who offer a good range of commodities, I think the ones of note are :

- FinSpreads
-Capitalspreads
- City Index.

All these offer the main commods - Oil, Gold, Silver, the Grains, Metals, Softs, etc - but I do find that not all will quote beyond the front month at certain times, for certain markets (due to liquidity issues)

Finspreads will allow you to trade very small sizes, if you so wish. I can't speak for the other two, as I have never traded with them. I'm pretty certain, though, that NONE of the other SB's offer as wide a range of commodities as IG Index. I have even asked IG if they would quote ceratin commodities NOT LISTED in their dealing guide (such as the EuroNext Maize, or Palm Oil, etc), to which they replied that, if I traded in a certain size, they would consider it and add it to their platform.

In my opinion, each trader will have a different set of priorities when selecting a suitable SB company, based on his/her capital, risk profile and trading style. But it is vital that you understand their rules, and the general principles of what Spread-Betting will and WILL NOT allow you to do (Or indeed what trading methods are effective, and which are not.)

For me, taking personal experience into account, IG Index fits the bill for the following reasons :

1) Wide-range of commodities quoted.
2) Reliable, clear, easy-to-use on-line dealing platform and Live streaming prices.
3) Ability to trade in relatively large sizes (when appropriate)
4) GoodlLIVE Intraday/TICK charting with full Techncial studies.
5) Excellent newswire and research services added-on
6 ) Freindly and efficient telephone dealing and helpdesk.


Needless to say, I am enjoying a certain degree of success with my trading venture in general (at the moment). Yet even during my losing days (the steep learning curve not so long ago!) I found IG Index fair and efficient.

Do not make the mistake of blaming the SB for your trading errors/mistakes. It is all too easy to think this way. If your methodology is not working, you will have 'grievances' with ANY company, thinking this way.

You do, however, need to be aware of certain things - to safeguard you interests when dealing - they are classed as financial BOOKMAKERS afer all :

1) Never give your Client Number until you have received a quote, and they have executed the trade

2) Never indicate which way you are planning to bet - up or down - before receiving a quote.

3) Be aware of 'delays' when dealing on-line - phone trading eliminates this 'tendency'.

I hope all this is of interest/use to you - may I ask how long you have been trading commodities, which you have traded and how long you have been with IG?

 

[zuke]

I trade mainly in commodities with just a few indicies and currencies. At the moment I am using IG Index, but for the following reasons would like to switch to another SB company.

One one trade this week IG Index were offering a 70pt spread, compared to either 20 or 30 on deal4free. On another trade IG Index would not allow me to put a stop less than 180 points away from the opening, and on another trade the minimum bet per point was £2. On another trade I got the market close time wrong, and so ha a trade left open overnight. I watched it moving against me but could not close the bet. Luckily I use guaranteed stops, albeit at a premium.

Is there a bette SB company for trading commodities? Ones such as spreadright.com and trdindex.com do not offer a full enough range of commodities. The downside with deal4free is that I need to load software to use it, this is OK at home, but I also like to keep my eyes on trades while at work, and I'm not allowed to download software on the work machines.

Is anyone else trading mainly commodities, and which SB company are you using?

Stephen.

Hi Stephen,

I too trade commodities and some FX (mainly cable) and for years used IG. However, some of the ridiculous spread (particularly on HG Copper) and a number of "price no longer valid" incidents when I stood to make a very healthy profit, turned me to my current SB co - Capital Spreads. The spreads are much tighter BUT the trading hours are more prohibitive than IG, they offer a small range of markets and usualy will only quote the front months. Accordingly, I use CS for some products and IG with others. I believe CS are upgrading their facilities and hence I expect their product range and trading hours to improve. Simon Denham (Head of CS) is a regular contributor to this forum and there is a huge thread (called capitalspreads) dedicated to this company. Good Luck!!

 

[jklondon]

agree with whats been said so far...to summarise the best option (and this is the one I use at them moment) is to use IG for research / tools and CS to trade - this way you get the best of both worlds IMHO.

 

[..]

I have just signed up for Capital Spreads (on the basis they have better spreads on some markets) but find that IG Index have been efficient at placing the orders I've given them.

A not of caution - IG offer Guaranteed stops which although are wider offer you that bit of security that you have 'strictly limited risk' ie you can only lose 100% of what you decide when you open the trade! essential I think for say, silver futures

Cannot vouch for CS yet but look forward to trying them out

 

[SvenFoster]

You can use deal4free from a web browser simply go to the page entitled "live logon" on the bottom left hand side.
Not sure if it covers all your commodities but they are definately on there.

have fun.

I trade mainly in commodities with just a few indicies and currencies. At the moment I am using IG Index, but for the following reasons would like to switch to another SB company.

One one trade this week IG Index were offering a 70pt spread, compared to either 20 or 30 on deal4free. On another trade IG Index would not allow me to put a stop less than 180 points away from the opening, and on another trade the minimum bet per point was £2. On another trade I got the market close time wrong, and so ha a trade left open overnight. I watched it moving against me but could not close the bet. Luckily I use guaranteed stops, albeit at a premium.

Is there a bette SB company for trading commodities? Ones such as spreadright.com and trdindex.com do not offer a full enough range of commodities. The downside with deal4free is that I need to load software to use it, this is OK at home, but I also like to keep my eyes on trades while at work, and I'm not allowed to download software on the work machines.

Is anyone else trading mainly commodities, and which SB company are you using?

Stephen.

 

[antares]

Hello.
I had enough of IG INDEX, now having a really good time with Dealing Desk! Give them a try.

 

[Hoggums]

Hello.
I had enough of IG INDEX, now having a really good time with Dealing Desk! Give them a try.

I use both CS and IG and for commodities have no complaints about either. I guess CS is better if you want to trade smaller bet sizes. For instance min bet on Crude is £2 on IG but you can trade £1 on CS. Silver IG is £5 - but you get the cash option, On CS it's £1 but you only get the future.

IG have a far wider range and offer guaranteed stops plus their margin requirements are a lot less restrictive if you run wide stops. But if you trade some of the more obscure futures then you pay for it with the spread.

IG have just introduced a trailing stops feature too.

 

[poker_trader]

I'd like to invest in commodities with a long term view, i.e. buy and hold for at least a few years. Could someone please tell me where I can do that with minimal cost? I have had accounts and one month of trading experience with igindex,city index and cmcmarkets.

Cmcmarkets claim they don't charge anything for monthly futures rollover, is that true? I
I noticed for my COTTON MAY 08 during the rollover on 11th April, it was closed at 74.20 and then reopen as COTTON JULY 08 at 77.69
I really wonder, as I have no way of knowing, but did I kind of have to pay for the spread again during the rollover when it rebought Cotton July for me @ 77.69 ?

cheers

 

[grantx]

PT,

I hope I understand you correctly. As May closed it would have been sold at the bid. The July contract would have been bought at the offer, hence the spread. I doubt there is any way around this.

Grant.