Does anyone here work for a SB company?

tommog

Well-known member
402 56
Hello all!

I was wondering if anyone here actually works for a spread betting company? What are they like to work for? Many people talk of spread betting companies as bookies and i would like to know how do spread betting companies look upon consistant winners? How do you price your markets? Do you really not fill orders as promptly for your bigger clients? And any other questions you probably aren't allowed to answer. It would be interesting to hear an "insiders" view of the industry.

cheers
 

Airthrey Capital

Well-known member
370 15
I am amazed at the huge amount of suspicion and cynicism that is aimed at the spreadbetting companies by many posters on this site.

Spreadbetting companies are strictly regulated, and have neither the time nor the means to implement half the "scams" that they are accused of.

I can only assume that the criticisms aimed at them come from people who have lost money and fail to understand / admit that the losses come from their own poor trading skill / knowledge / discipline.

One only needs to read the postings by Capital Spreads on this site to realise that there are people with integrity working within the business.

However, one can shout until one is blue in the face that spreadbetting companies do not implement "dodgy" practices.

But like all unsuccessful traders, they fail to listen and fail to admit their own trading weaknesses.

Now instead of moaning, go away and re-think your trading strategies.......
 

TheBramble

Legendary member
8,395 1,170
Blairlogie said:
Spreadbetting companies are strictly regulated, and have neither the time nor the means to implement half the "scams" that they are accused of.
..and the other half...? :LOL:

Seriously though BL, you're right I am sure - some failed SB traders will blame the SB rather than their own poor system, money or risk management.

But it has to be said, there are instances where SB prices have spiked without any similar movement in the underlying and it has happened far too often for it to be purely technical in nature. The question of poor fills (no fills) when the market is moving in the punters favour also occur more regularly than one experiences or hears about with regular brokers. Not to mention the situations where bets are refused. It's unlikely all of these instances are down to out-and-out lies or sour grapes from c*rappy traders.

I think there is cause, at least, to keep an open mind to the possibility of shenanigans from the SBs. They certainly have the ability to carry out all the tricks they are accused of. Whether they do or have done in all cases cited is quite another matter.
 

henry766

Well-known member
433 17
i'm with blairlogie on this one, think it's true in life too , incompetence far more common than conspiracy!!
 

andrewmooton

Active member
192 1
well.....i've had a similar conversation with a poster on moneytec called bunnygirl. She is a very successful fx trader who trades with deal4free spreadbet. She tells me shes been with them for 4 years and any problems shes had with them have always been sorted. If they were so bad then she'd have left them by now. Thats good enough for me.
 

henry766

Well-known member
433 17
another reason they get bad press is because they have more clients than some , as people don't shout about ok service so much as they do bad you can get a disrepresentative view on boards like these, i've been caught out with thier spread widening on me occasionally , but it's generally tighter and cheaper than others , just have to be a little carefull is all!!
 

CityTrader

Established member
665 26
I'm with Blairlogie on this one,. There are way too many conspiracy theories out there - the only problem I've had, is with CityIndex refusing point blank to honour a phone trade - and accordingly, I have never dealt with them again.

There are a lot of SB'ing companies out there ( 6? 8? never actually counted) Don't only use 1- open accounts with 2 or 3. Find the one that suits your style the best, and if you think 1 of them's conspiring to part you from your money? use another one. I think you'll find it's your own lack of accountability rather than the SB'ing companies or the markets conspiring to do it....
 

Buk

Established member
615 6
good posts Blair/City Trader.....maybe another reason why you don't get too many peeps shouting the odds in defense of the SB's/positive account balances is cos they'd attract a shed load of doubters/flamers??!!

I think those who trade regularly (via all avenues) can testify to fast tricks & spoofing now & again - after all, it's the business we're in....but again, if your strat(s) are tight & your finger quick, it shouldn't do too much harm.
 

Denny

Member
52 1
Spreadbetting

I do think SB companies are getting a bad press here. SB companies operate on a wider spread than a conventional broker, obviously, and this is their commission. If you look at conventional brokers the spread at some times during the day, especially on lightly traded companies, can move dranatically. Therefore SB companies just follow suit as they would have to if they want to make money.
I honestly feel it is more likely to lose out with a conventional broker due to scams by market makers. Just look how many stoplosses get triggered because the market maker can see the orders waiting to be filled and therefore lower prices for a short while to buy in stock at a low price. The conventional brokers I am sure welcome this as every trade makes them money.

Just check ADVFN for trades and you will be amazed how the spreads on some FTSE 250 companies widen sometimes for apparently no reason.

I do not work for a SB company nor have any vested interest in them except for being a punter with IG Index & capital Spreads.

Denis
 

stevespray

Experienced member
1,289 154
Denny....Market Makers can not see stop losses. The only sides of the markets which are visable are the two order books. That is 'bids' for stock below the market and 'asks' for stock above the market. These are effectively 'limit orders'. Stop orders are completely different. These orders are not held at exchange but by your broker. If you stop gets triggered then your broker just submits a market order to close your position at the prevailing level.
It could of course be argued that the spreadbetting firms have access to you stop loss levels becuase they encourage you to set stop losses with them. In truth this could be a hidden advantage for them when it comes to making their prices. If they know that certain people will be doing something at a certain level then it can become financially beneficial for the SB co to ensure that their market does or doesnt trade at that level.

Steve.
 

CityTrader

Established member
665 26
Denny said:
I.
I honestly feel it is more likely to lose out with a conventional broker due to scams by market makers. Just look how many stop losses get triggered because the market maker can see the orders waiting to be filled and therefore lower prices for a short while to buy in stock at a low price. The conventional brokers I am sure welcome this as every trade makes them money.



Denis
I have to be honest, I'm surprised this conspiracy theory ( AKA " a bad workman blames his tools" ) didn't come up earlier.
Like Stevespray says, a Market maker can NOT see the stop loss orders. If a broker chooses to leave a stop loss with him, then that's down to their relationship, but it's extremely unlikely. And even then, it would only be in SEAQ,. AIM or OFFEX. No dis respect Denny, and after all, we are all learning to some degree, but surely you should understand the basic workings of the markets you are trying to trade?

Be lucky..

CT

ps if we follow your scam idea to a logical next step, what would there be to stop the predatory instituions (who do run the market )buying large amounts of this given stock, when the market maker has only lowered his price to try and buy some retail punters 500 shares from a stop loss? sounds like a recipe for disaster....
 

Denny

Member
52 1
Spreadbetting

My post was intending to stick up for SB companies, not a whinge about blaming anyone because I do rather well trading fulltime on the markets. I tend to trade more medium term so knowing how stop orders are initiated are rather irrelevant to me because I only use automatic stop orders whilst spreadbetting. With my longer term trading I certainly use a stoploss but not an automatic one rather by a disciplined approach based on the closing price which I always adhere to. This stops one getting stopped out due to erratic movement of prices.

Denis
 

gullible

Active member
159 0
Buk said:
good posts Blair/City Trader.....maybe another reason why you don't get too many peeps shouting the odds in defense of the SB's/positive account balances is cos they'd attract a shed load of doubters/flamers??!!

I think those who trade regularly (via all avenues) can testify to fast tricks & spoofing now & again - after all, it's the business we're in....but again, if your strat(s) are tight & your finger quick, it shouldn't do too much harm.
Buk,
agree with everything you have said. However, with CMC at times even with fastest finger your attempted trade will only be accepted if it is going against you. Actual experience not once, twice, thrice but several times:-

Once the mouse is clicked the order screen is frozen, no more trades can be placed, may eventually go through only if price as moved against me, Otherwise a re-quote.

Mouse clicked, order screen stays yellow, theoretically giving me a option to cancel the order as well as an option for CMC to refuse the trade. If the price moves against me try to cancel -no luck trade accepted. Otherwise the screen stays yellow till the inevitable re-quote.

Trade accepted, subsequently cancelled -reason bad price. Only the opening trade cancelled, closing trade stays valid. Had to have a 10 mins discussion before no profit/loss situation was restored- only on one occasion.

CMC, as market makers, told me that they will not accept an order for 1000 Abbey National (FTSE 100 CO) as there were no buyers. Placed limit order, price reached the limit order - no fill. When queried got a similar response, however, all of a sudden got filled, and guess what within seconds the price moved in the right direction by several pence. Forget the details, but it was about 10 to 15 pence.

Finally, the above tactics were experienced with 80, 25, 5 and even 1 Dow contract.

None of the above is made up or is sour grapes actual practical experience.
 

Buk

Established member
615 6
yep, fair points Gullible....sorry, I was referring to the currencies in my blurb on that post, and on hindsight, it's a different environment altogether.

I can appreciate (& empathise with) your frustration, but honestly can't comment or share the occurances you speak of, cos I don't trade shares/indices etc......

I'll butt out of this conversation :rolleyes: it's apparently aimed at a different arena, apologies for insinuating these situations aren't 'the norm' as I'm not really qualified to judge the daily ins & outs in that particular camp!!.....all the best mate ;)
 

LION63

Established member
746 33
What gullible describes happens regularly with CMC and there is no point in pretending that it does not. Sadly it seems that the more successful the trader is, the more it happens (shares and indices). Traders can only talk about their own experiences and with CMC it is not a case of seeking to place the blame elsewhere. IG Index on the other hand do not carry out such practises (in my experience) but their spreads/charges are much higher. The problem with Capital Spreads is that they only accept relatively small trades (based on comments posted by other members) so the best thing is to have a few accounts and use them for different types of trade.
 

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