For those of you who think that spread betting firms only make money if you lose.

[bedsit]

I've found it so funny when people talk about hedging etc. - What a load of b***x.

They'll take your money whichever way they can. If you don't know how to trade they don't have to do anything. On the other hand if you are good at trading, they'll make sure you lose. Simple.

 

[Sidekicker]

I seriously doubt that, in fact in retail forex it has been proven that companies were using software to ensure that slippage was always against the client. Given that some of the companies also provide SBing its inconceivable that they arent doing the same thing on SB as well.

got some links for that proof ooi? I wouldn't mind a read or perhaps a FSA report.

 

[Sidekicker]

I've found it so funny when people talk about hedging etc. - What a load of b***x.

They'll take your money whichever way they can. If you don't know how to trade they don't have to do anything. On the other hand if you are good at trading, they'll make sure you lose. Simple.

So, you trade DMA?

 

[pboyles]

got some links for that proof? I wouldn't mind a read or perhaps a FSA report.

I thought you were an expert on such matters, what with your yawning emoticons and dismissive tone. Do you think I'd have said it if there wasnt proof?

 

[scose-no-doubt]

Hey, sidekicker. A bit of a heads up, Boylesy knows his shizen and never says anything without proof. He's the forum Kojak and the bane of scam companies, vendors and cheating spread bet firms everywhere. Seriously though.

 

[Sidekicker]

I thought you were an expert on such matters, what with your yawning emoticons and dismissive tone. Do you think I'd have said it if there wasnt proof?

If you really believe that then do you trade with SB firms / brokers at all?
I'd just be interested to see the proof that's all.

 

[pboyles]

If you really believe that then do you trade with SB firms / brokers at all?
I'd just be interested to see the proof that's all.

Well I dont like your tune so I'm going to give you some work to do to find the information.

1. Google 'FXCM fined'

2. Google 'MT4 virtual dealer plugin' or 'Boston Technologies scam'

3. Google 'Gain Capital fined'

4. Go to the NFA website and read their enforcement actions

The proof you require is all there. Other actions are pending with CFTC so keep an eye on their website too.

 

[Sidekicker]

Well I dont like your tune so I'm going to give you some work to do to find the information.

1. Google 'FXCM fined'

2. Google 'MT4 virtual dealer plugin' or 'Boston Technologies scam'

3. Google 'Gain Capital fined'

4. Go to the NFA website and read their enforcement actions

The proof you require is all there.

No bad tone, difficult to make point on a forum.
I note a lot of those have the words "fined" or "enforcement" in them, ie action taken.
The dealer plugin is a debateable one, I've seen it before as it's mainly youtube links that could or could not have been faked.

So, do you trade with SB firms / brokers at all? I do, I don't have any issues.
I found some crap ones with mostly bad IT software and those were the ones with slippage. I've traded DMA too and that had more slippage than most SB firms - again a function of the software, links to the exchanges, etc.!

 

[pboyles]

No bad tone, difficult to make point on a forum.
I note a lot of those have the words "fined" or "enforcement" in them, ie action taken.
The dealer plugin is a debateable one, I've seen it before as it's mainly youtube links that could or could not have been faked.

So, do you trade with SB firms / brokers at all? I do, I don't have any issues.
I found some crap ones with mostly bad IT software and those were the ones with slippage.

Well if you google 'Gain Capital fined' you'll see how they were using it to manage slippage in their favour. I havnt seen youtube videos about it, they may be right or wrong, but the NFA fined them after an investigation so that's good enough proof for me.

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2622

 

[pboyles]

So, do you trade with SB firms / brokers at all? I do, I don't have any issues.
I found some crap ones with mostly bad IT software and those were the ones with slippage. I've traded DMA too and that had more slippage than most SB firms - again a function of the software, links to the exchanges, etc.!

I don't trade with SB or retail FX brokers, too much funny business with little recourse if/when things go wrong. I did in the past, until I realised how things work.

 

[Hotch]

BTW re spreads , most of them offer tight fixed spreads on indices 1 point or even 0.7 point ! , and it is fixed during market hours ...

Can't speak for underlying, but having been at a fx brokerage, their spread will be 0 quite often. So it's not like the spread betters are only getting a tenth of a pip or anything.

 

[pboyles]

er didnt I just post here saying FXCM have been fined $14.2 million?

 

[counter_violent]

er didnt I just post here saying FXCM have been fined $14.2 million?

Yes you did, you also started a new thread with the same link. So make your mind up cos your not having it all ends up !

 

[pboyles]

Yes you did, you also started a new thread with the same link. So make your mind up cos your not having it all ends up !

As Basil Fawlty would say, 'dont mention the fine, I did once, but I think I got away with it'

 

[scose-no-doubt]

Yes you did, you also started a new thread with the same link. So make your mind up cos your not having it all ends up !

you're

 

[Ross Spur]

#2 is usually a function of poor IT systems and delays within rather than any effort to screw the trader. For example, if price moves 1 pip while they are waiting for a computer trade to fill and reply to their own in house system before filling you, then you will be slipped, it's not to make a profit, it's to avoid a loss and to ensure the trades are matched up correctly between their hedging system and you.

Have you though that if #1 reduces, the amount of customers might increase actually keeping the overall profit the same?

#3 is a business choice.

The firm offering zero spreads is a marketing choice as they then get spread from other instruments.

They offer zero spreads by having a platform where you have to select Buy or Sell before placing the bet. The 'poor IT systems' is just a very handy excuse for not filling trades automatically.

 

[pboyles]

They offer zero spreads by having a platform where you have to select Buy or Sell before placing the bet. The 'poor IT systems' is just a very handy excuse for not filling trades automatically.

Yes and if you read up on the MT4 Virtual Dealer Plugin you'll see it could be programmed to delay execution by up to 5 seconds.

 

[Sidekicker]

Yes and if you read up on the MT4 Virtual Dealer Plugin you'll see it could be programmed to delay execution by up to 5 seconds.

Just MT4? What about all the other systems? Worth asking on this forum: Virtual Dealer Plug-in for Metatrader? - MQL4 forum
Granted there are also valid reasons for needing to delay execution in times of volatility, etc.
Worldspreads is one thing (zerospreads) but they are also cheap, so their systems are slow anyway.

 

[pboyles]

Just MT4? What about all the other systems? Worth asking on this forum: Virtual Dealer Plug-in for Metatrader? - MQL4 forum
Granted there are also valid reasons for needing to delay execution in times of volatility, etc.
Worldspreads is one thing (zerospreads) but they are also cheap, so their systems are slow anyway.

I suspect you'll not get a straight answer on the MQL forum, theyll probably delete your post.

I doubt this is the only piece of software in the world that can 'manage' slippage, this one has come to light due to the NFA investigation. I did hear they were auditing all their FX brokers so perhaps more systems will come to light in future.

 

[wackypete2]

Most of the threads on that forum related to the virtual dealer or boston technologies have been deleted. Accounts that posted pics and quotes from the boston technologies website regarding it have been suspended.

Peter