Hi all
I have just had an unfortunate experience with Deal4free trading YHOO.
I went short this stock on the 21 April at 35.53. The market closed at 35.85 but my analysis showed that there was a high probability that the price would drop so I set a stop at 36.28.
At around 2pm on the 22 April I logged onto D4F and was surprised to see that my stop had been hit.
Thinking that this was an error as the market hadn't opened yet I phoned D4F who told me that they take NASDAQ 100 stock prices from 1pm onwards. I checked their site and sure enough there it was in black in white. Silly me, will know better for next time.
However during this time D4F famous 5c spread had grown to 15c and the price was bouncing around like crazy as the stock was bought and sold at anywhere from 36.52 to 35.85.
Of course as soon as the market was about to open the price settled down to the closing price of the previous day and then began to plummet by almost $1.
Unfortunately I didn't have a smug smile on my face as I was now out of the position.
I rang D4F to ask why they allowed the quotes to open at 1pm when the prices were so screwy and the market makers were obviously quoting silly prices to lure in the suckers.
Their response was that their customers had asked for this and it was part of the service they offered.
Does this sound right, have I missed something? Why would any sane person want to set themselves up to be ripped off by the market makers before the market opens?
It seems to me that D4F allow this because it means that there is a greater chance that their clients stops get hit ,therefore they make more money. Or am I being too cynical.
I thought D4F were a good choice for the smaller sized (account) trader but now I am not so sure. In any case I'll only be trading NASDAQ stock with Capitalspreads.
I was going to call the Head dealer at D4F on Monday to ask these questions.
Any constructive comments thoughts , advice welcome.
Good Trading
I have just had an unfortunate experience with Deal4free trading YHOO.
I went short this stock on the 21 April at 35.53. The market closed at 35.85 but my analysis showed that there was a high probability that the price would drop so I set a stop at 36.28.
At around 2pm on the 22 April I logged onto D4F and was surprised to see that my stop had been hit.
Thinking that this was an error as the market hadn't opened yet I phoned D4F who told me that they take NASDAQ 100 stock prices from 1pm onwards. I checked their site and sure enough there it was in black in white. Silly me, will know better for next time.
However during this time D4F famous 5c spread had grown to 15c and the price was bouncing around like crazy as the stock was bought and sold at anywhere from 36.52 to 35.85.
Of course as soon as the market was about to open the price settled down to the closing price of the previous day and then began to plummet by almost $1.
Unfortunately I didn't have a smug smile on my face as I was now out of the position.
I rang D4F to ask why they allowed the quotes to open at 1pm when the prices were so screwy and the market makers were obviously quoting silly prices to lure in the suckers.
Their response was that their customers had asked for this and it was part of the service they offered.
Does this sound right, have I missed something? Why would any sane person want to set themselves up to be ripped off by the market makers before the market opens?
It seems to me that D4F allow this because it means that there is a greater chance that their clients stops get hit ,therefore they make more money. Or am I being too cynical.
I thought D4F were a good choice for the smaller sized (account) trader but now I am not so sure. In any case I'll only be trading NASDAQ stock with Capitalspreads.
I was going to call the Head dealer at D4F on Monday to ask these questions.
Any constructive comments thoughts , advice welcome.
Good Trading
