Pazienza
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Where are you based, J?
Pazienza
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OK.
Well, if you're starting with that kind of capital actually trading futures is out.
I'd suggest you try a spread betting firm to get your feet wet. IG are perfectly good and have a wide range of markets.
I would seriously advise you to look at index as well as commodity futures
.Once you get comfortable with them you can look at switching to a futures broker and trade the real thing, or use one of the SB / DMA hybrids like prospreads or I bet financials where you trade in full lots. Or you might stick with IG, there's really nothing wrong with them (you can make cost savings elsewhere though when you're doing some size.
Hope this helps.
Pazienza
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Ask away, mi casa su casa.
I have never traded cfds, you'll have to ask someone else. I mean, I know the difference, but if you want practical experience of trading cfds, I haven't got any.
In terms of capital, it depends. You need enough to be trading a small percentage of your account on each trade. What this needs to be in my opinion should be determined by your stop distance.
Take ES for example, and say you want to trade IG's bucket-shop version. Assume your stop is going to be in the region of 3 to 8 points depending on the set up. I would say you should start with a minimum of four or five thousand.
Don't go in under-capitalised, it will mess you up and interfere with your decision-making.
If you just want to get your feet wet, and accept that you need to spend some money just getting used to the markets, use as little as possible.
But in my opinion it is better to demo while you build your account through work / savings / crime and then do it live, rather than struggling with an inadequate account.
Whatever you do, always try to trade with a big account mentality. By that I mean, when you start you often take crappy trades because there might only be 10 or 50 quid at risk or whatever. But would you take that same trade if there was 3 or 4 thousand at risk? Because one day you want to be trading at that level right? So start as you mean to go on. Force yourself to focus on the best right from the start.
Sidekicker
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If you trade futures, there is no difference in trading CFDs or spread bets, you would be better off with SB due to the tax implications. Some say the CFDs are more lined to the underlying market but I've seen just as much mess with spreads as such on CFDs as SB.
You could try DMA, but you'd have to go with a US broker, not worth it if starting out.
If you are starting out, start with the lowest £pp and leverage you can find - I cannot stress this enough.
You could try DMA, but you'd have to go with a US broker, not worth it if starting out.
If you are starting out, start with the lowest £pp and leverage you can find - I cannot stress this enough.
stopdownlimitup
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This is extremely subjective... some brokerages like AMP require a $500 minimum while IB requires $10,000 (I believe?). How much you actually use should be however much you're willing to lose.
