Etrade

just21

Member
Do etrade add a few pence to the market price on their cfd business? There rate of 9.95 pounds a trade seems very cheap compared with GNI or other cfd provider who charge a pecentage.
 

CityTrader

Established member
Just21 - CFD's (obviously) involve more charges than just the comm. For example when you are borrowing money, what rate are they charging you? 3% over base is about right, anymore than that , and that's where they are making their money. also handling of dividends, and what they pay you on money you leave on deposit with them...
 

BlueChip Trader

Active member
Etrade act as market maker for their CFDs just like Deal4Free. Therefore they may at times add a penny or two to the price.

GNI on the other hand let your trade the actual market but charge you .25% for the privilege.

If you understand the limitations of CFDs then you might as well trade with D4F.

:D
 

just21

Member
etrade

I emailed gni and they said it was negotiable, thinking about it, 0.25% in and out is the same as the stamp duty, might as well just buy the shares. If you talk to some of the trading bureau, listed on the Liffe web site under access, you can use their GNI cfd accounts for 0.04%, and that is negotiable to 0.03%. Any better deals?
 

CityTrader

Established member
Blue chip- why, what do d4f offer that GNI ( or etrade or any of the other CFD providers ) don't?
 

BlueChip Trader

Active member
City Trader

I would love to trade from the GNI platform with L2 intra-day.
However, their commissions are very high. £9.99 would be very fair but they are not able to do this for me.

As an example I trade AZN a lot. For 1000 lot I would have to make 13.5 points for GNI before I make a penny for myself. Even at worst of times D4F are never 13.5 points away from the market. In fact most of the time they are same as the actual market prices (Here I am only referring to the FTSE 100 stocks).

2 - 4 trades/day and you can see the advantages of trading with D4F. As losses are inevitable cost of trading, it helps to reduce them as much as possible.
 

jitasb

Active member
Hello....

The Etrade rate of £9.99 is for their quote driven platform i.e when they act as market maker (as mentioned by blue chip).

They also have recently released a Direct Market Access platform which allows you to deal on the exchange itself...(presumably same as GNI)..the price for this is 0.2% or £20 min.

Hope this is of some use...
 

dmford

Newbie
ETRADE pricing

Hi,

I'm just opening an account with ETRADE.

I asked about their CFD pricing in detail and here is the reply...

They give Market rate on the spread with the following limits...
Price <150p - minimum spread 0.25 p
Price 150p - 200p - minimum spread 0.5 p
Price >200p - minimum spread 0.75 p

I was told they plan to put this in writing - as this was only over the phone

I can live with this given that the commision is fixed - irrespective of deal size.

I'm also very impressed with the software you get.
 

anley

Senior member
ETrade v GNI v D4F - I think it's all very scientific between them and their charges, there is no clear winner because it depends on the trader and what he/she does in the markets etc.

What you have to do is work out what you're likely to be trading, in what size and how many times a day/week and then run some simulations with the different brokers costs, then you'll get nearer the answer. Don't forget to factor in the cost of the software because I think GNI still charge for theirs.

However if you can get 0.04% with GNI through another broker then personally I can't see how that can really be beaten. But watch it because they might expect you to trade a certain amount a month and if you bullshit them to start with they'll only raise your comms after the first month etc.
 

neil

Legendary member
CFD Brokers

anley said:
However if you can get 0.04% with GNI through another broker then personally I can't see how that can really be beaten. But watch it because they might expect you to trade a certain amount a month and if you bullshit them to start with they'll only raise your comms after the first month etc.

What Brokers Anley ?
 

ithomas21

Junior member
dmford -

Do you trade CFD's on US stocks with Etrade?

If so, how do the CFD prices compare to the underlying stock prices?
 

CityTrader

Established member
I have my CFD's comm down to (just) under 10bp, You would have to trade a lot more frequently than I do to get down to 3 or 4 bp. I think at those sort of levels, somethign would have to give, and I probably wouldn't queee them down that far, maybe 5bp sounds good rate
 

JTrader

Guest
Etrade charge the flat rate of £9.95 for their quote driven platform.

The charges for theDirect Market Access platform are 0.20% (negotiable, minimum £20).

When trading UK stocks what are the advantages and disadvantages of one method in comparison to the other?

Cheers.
 

2468steve

Experienced member
jt,
i believe with their direct market access you can enter your own bid/offer into the market,and with level 2 access also, you can work that order with knowledge of the market depth.
Quote driven is what it says on the tin.You are given a price and either accept or reject it.

cheers
 

nobrainer

Active member
I'm paying well below 10 basis points at gni and ET but have heard there are a few traders getting 0.4% thru intermediaries.With IG now offering direct access , I'd expect rates to come down accordingly.Have a meeting with IG this week over lunch to discuss giving them a main part of my trading.Will be interesting to see how low they will go to secure a valuable account.The days of gni having a monopoly are well and truely over.That said, rates will never go to a level to attract the ordinary punter and for that I'm glad. This ain't the US!!!
 
 
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