futuresbetting.com

[westham010]

I have noticed that both spread betting and direct access brokers have real disadvantages;

Spread betting: you are trading with the spread betting firm (not other traders) and relying on their quotes-which may well be in their favour.

Direct access: More profitable but you have to pay capital gains tax- 40%

But the site futuresbetting.com seems to bring together the best of both worlds. They claim to give you access to the actual market, yet as it is spread betting, you do not have to pay any tax on any profit you make.

Does anyone have any experience of this company? Is it as good as it sounds?

Many thanks,

Edmund

 

[cryten]

http://www.trade2win.com/boards/search.php

 

[pit pony]

I have noticed that both spread betting and direct access brokers have real disadvantages;

Spread betting: you are trading with the spread betting firm (not other traders) and relying on their quotes-which may well be in their favour.

Direct access: More profitable but you have to pay capital gains tax- 40%

But the site futuresbetting.com seems to bring together the best of both worlds. They claim to give you access to the actual market, yet as it is spread betting, you do not have to pay any tax on any profit you make.

Does anyone have any experience of this company? Is it as good as it sounds?

Many thanks,

Edmund

yes i do, have been spreadbetting with these guys for 3 years now, and yes it is as good as they say, instant fills, no re quotes they are 100% hedged into the market, so they want the client to win, not like most of the other spreadbetters.

 

[raysor]

Excuse my ignorance but if you "connect direct to the underlying futures market" how is it a spreadbet? (futuresbetting.com)

 

[ffsear]

Their not market makers, so your getting the direct market price, with their spread wrapped around it. Worldspreads do the same, but for some reason they don't use it as a selling point.

 

[arabianights]

No worldspreads don't.

Anyway futuresbetting's effective comissions are a lot higher than direct market for a high volume trader.

 

[neil]

Their not market makers, so your getting the direct market price, with their spread wrapped around it. Worldspreads do the same, but for some reason they don't use it as a selling point.

Their not..........

should be spelt = They are not...or shortened to read "They're not"
:smart:

 

[ceydababy]

Their not market makers, so your getting the direct market price, with their spread wrapped around it. Worldspreads do the same, but for some reason they don't use it as a selling point.

Worldspreads DO NOT DO THIS. Worldspreads are a total joke. Do you work there ?

 

[raysor]

Surely an individual cannot put an order directly into the "market". I.E. there is no way I can input an order without going through a market participant. Therefore I have to pay a net price or commission to a market participant in order that they make some money out of me?

 

[ceydababy]

Surely an individual cannot put an order directly into the "market". I.E. there is no way I can input an order without going through a market participant. Therefore I have to pay a net price or commission to a market participant in order that they make some money out of me?

True, but a broker doesn't have the same "vested" interest as a spread bet company.

 

[raysor]

True, but a broker doesn't have the same "vested" interest as a spread bet company.

Tell me what you mean by that, please.

 

[ceydababy]

Tell me what you mean by that, please.

Well if you trade with a spreadbet company in a way that they don't like they really don't want your business let alone want you to win because you are taking their money.

If you trade via a broker and "win" the broker doesn't care you haven't won their money.

Therefore the spreadbet company has a "vested" interest in your trading style and your profitability.

 

[rawrschach]

Futuresbetting only let you trade in similar size to the underlying and hedge your position in the actual market so they are neutral to whether or not you win...

 

[raysor]

Well if you trade with a spreadbet company in a way that they don't like they really don't want your business let alone want you to win because you are taking their money.

If you trade via a broker and "win" the broker doesn't care you haven't won their money.

Therefore the spreadbet company has a "vested" interest in your trading style and your profitability.

Surely the spreadbet company either keeps his book square and if not just hedges the "offending" bets? And just keeps taking the spread.
A broker, as you say, doesn't care, as he is only acting as an agent. Unless, of course, he is trading as principal. And then it is usually a two way trade, so he cannot lose!
A MM could lose, and probably does, although his wins usually outway his losses.
Do SBs get emotional? You say "in a way they don't like". A friend of mine has been making £100k+ profit for the last 3 years (writing o/m index options hedged by index futures) with no complaints from the SB. (this year he gave back a years winnings in a few days!!)

 

[ceydababy]

Surely the spreadbet company either keeps his book square and if not just hedges the "offending" bets? And just keeps taking the spread.
A broker, as you say, doesn't care, as he is only acting as an agent. Unless, of course, he is trading as principal. And then it is usually a two way trade, so he cannot lose!
A MM could lose, and probably does, although his wins usually outway his losses.
Do SBs get emotional? You say "in a way they don't like". A friend of mine has been making £100k+ profit for the last 3 years (writing o/m index options hedged by index futures) with no complaints from the SB. (this year he gave back a years winnings in a few days!!)

That's the line spreadbet firms give you. But it's nonsense. If you try and scalp or short term trade using a spreadbet they will NOT let you get away with it. I in fact have proof of this. Worldspreads put me on dealer referal. It's not a myth it happens.

If you take longer term trades spread betting will not be a problem.

If you are DMA a broker doesn't care weather you're in the market for 30 seconds or 30 days. In fact the broker might prefer you being in every 30 secs, all that extra Comm

 

[Phil Mibbutz]

That's the line spreadbet firms give you. But it's nonsense. If you try and scalp or short term trade using a spreadbet they will NOT let you get away with it. I in fact have proof of this. Worldspreads put me on dealer referal. It's not a myth it happens.

If you take longer term trades spread betting will not be a problem.

If you are DMA a broker doesn't care weather you're in the market for 30 seconds or 30 days. In fact the broker might prefer you being in every 30 secs, all that extra Comm

All spot on. Futuresbetting has a great platform (apart from the lack of charts), but the commission rates are excessive unless you're trading high volumes. Worldspreads and the rest certainly don't operate the same way, which is why they nobble accounts of anyone trying to scalp.
On fast markets like FX and index futures they basically only want to open bets that have already gone against the punter. This seems fair enough, but it's a pity they can't include it in the t&c when you sign up.

 

[bredon]

Worldspreads DO NOT DO THIS. Worldspreads are a total joke. Do you work there ?

I'm afraid they do my friend.

 

[ceydababy]

I'm afraid they do my friend.

If this is the case....

Why was I put on dealer referal within 72 hours of account opening ?

Surely they wouldn't care I was winning because they were quoting me the real market and taking the spread as "their commission" Technically I would not be trading against them so everyones a winner.

Alas this is clearly not the case. I won and they put me on to dealer referal. Why would they do this if they were just quoting the market wrapping 2 points around the price on YM and taking that as their profit ?

 

[Phil Mibbutz]

I'm afraid they do my friend.

OK, let's see the evidence!

 

[arabianights]

I'm afraid they do my friend.

Absolute nonsense. You can't hedge a £1pp bet in any market that I'm aware of.