Having your account closed

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robbyd

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I have just opened an account with IG Index. My trading strategy will be lots of trades, looking to make just a few points on each trade. I am not naïve enough to think I will win on all the trades, but I was hoping to make more wins than losses.

Anyway, I am worried this is scalping/unacceptable practice, and if I prove to be good at this method and make money am I likely to have my account closed?

Thanks in advance
 
go DA instead, you will benefit from tighter spreads and not having to worry about your accont been closed.
 
I say with 95% certainty that they will not close your account.

They are most definitely a fully equiped firm. But be aware that "scalping" on s/b'ing accounts puts you at a big disadvantage to those with a professional setup.

Good luck.
 
thing is if you dont trust them to start with, you are going to think they are cheating yo every time you get a delayed fill or a re-quote.

one way or another you will be calling them crooks. getter to go with a set up you have 100% confidence in.
 
Scalping on a SBing account is very very difficult. I'm not saying it's impossible, but the spread will kill you. As Vaco says, go DMA. Ok you'll have commissions, but it won't hurt you as much as the spread will.
 
robbyd said:
I have just opened an account with IG Index. My trading strategy will be lots of trades, looking to make just a few points on each trade. I am not naïve enough to think I will win on all the trades, but I was hoping to make more wins than losses.

Anyway, I am worried this is scalping/unacceptable practice, and if I prove to be good at this method and make money am I likely to have my account closed?

Thanks in advance
Click to expand...

I've had 2 accounts closed (myself and partner) but that was for accounts with 90% sports trades. Not heard of any for financial alone................
 
robbyd said:
Thanks for your answers - really naive here but what is dma?
Click to expand...

Robby,

DMA stands for 'Direct Market Access' :

The difference between Spreadbetting and Direct Market Access :

Spreadbetting is placing a trade/ bet against a bookie. You are not contributing in any way to the markets, you are making or losing your money against your bookie. So if you place a trade and you get it right, the bookie is paying you. You get it wrong, you are paying the bookie.

Direct market access (dma) - you are a participant in the market. So (for example) if you are trading with one futures contract, you are buying / selling from somebody else actually in the market. This is facilitated through a direct market access broker. So you pay your broker a commission to buy/ sell the contract. He couldn't care less whether you make money or not. He gets his commission and he's happy.

So why are you (potentially) worse off with spreadbetting ? Well this is the age-old debate that runs through numerous threads on this site.

The bones of it are :

Spreadbetting is tax-free. The government still classes it as gambling and as a result you are not liable to any income tax on your earnings. Also with spreadbetting, the barriers to entry are very low. If you've got £200, you can open an account and away you go. But, given that the bookie makes/ losses money from you ... well this is the bit that is quite contentious ... supposedly they play games to screw you over... people claim they will mess around with their pricing to deliberately stop you out or just plain close your account if you are doing too well. There are numerous threads on this - do a search if you want to read more .....

Direct market access is a different story. Firstly, the minimum deposit to open an account is much higher. Also, any income is taxable. But ... you are participating in the markets, you are one of the market and you are merely paying your broker a commission to do so.

I hope this explains it better.

Paulie
 
robby,

before you even think of opening an account i think you need to do some more reading might wanna buy a book alone the lines of a beginners guide to daytrading.
 
To be honest, they'll love you. If you make 100 trades/day, you'll be paying their spread 100 times. They'll probably even send you a hamper and champagne at xmas just to say thank you. Also you've got to be really good if you're making a high volume of trades to overcome their large spreads and turn a profit too.
 
robbyd said:
I have just opened an account with IG Index. My trading strategy will be lots of trades, looking to make just a few points on each trade. I am not naïve enough to think I will win on all the trades, but I was hoping to make more wins than losses.

Anyway, I am worried this is scalping/unacceptable practice, and if I prove to be good at this method and make money am I likely to have my account closed?

Thanks in advance
Click to expand...

Do not worry.

There is absolutely no risk of you making any money at all doing what you describe. I can guarantee it. On the contrary, the bookmaker will be delighted to take your business.
 
robbyd said:
I have just opened an account with IG Index. My trading strategy will be lots of trades, looking to make just a few points on each trade. I am not naïve enough to think I will win on all the trades, but I was hoping to make more wins than losses.

Anyway, I am worried this is scalping/unacceptable practice, and if I prove to be good at this method and make money am I likely to have my account closed?

Thanks in advance
Click to expand...

Plenty of folk on this thread should know better what the true defintion of a "scalper" is and why so many SB firms don't tolerate it/them. True scalping is very much a diverse skill that has (IMHO) very little to do with trading. It's exploitative. If that's your chosen path then use DMA with; Fxpro, FXCM and Alpari and you won't go far wrong.

However, if you want to make a go of trading of 5min charts (that is not scalping) you can make it work with, for example, IG and or FXCM. IMO you could sit there for a few hours a day and take plenty of trades off one pair such as cable. IF you have the IG plus account you'll be dealing through the charts and paying between 2-3 pips. Just looked and using my edge (not that I'd trade off 5 mins) I'd have taken ten trades today (from 7am) on cable and would have had to have had a fookin stroke at lunch time not to have made pips...

So go for it buddy, but if you're paying a 3 pip spread and a 3 pip GS with IG, on their limited risk account playing cable, you might struggle...
 
robbyd said:
I have just opened an account with IG Index. My trading strategy will be lots of trades, looking to make just a few points on each trade. I am not naïve enough to think I will win on all the trades, but I was hoping to make more wins than losses.

Anyway, I am worried this is scalping/unacceptable practice, and if I prove to be good at this method and make money am I likely to have my account closed?

Thanks in advance
Click to expand...

Personally, I wouldn't scalp, and if I did, it wouldn't be with IG Index, who are a decent company, but do not excel when it comes to spreads.


Prospreads claim to welcome scalpers and offer a DMA-LIKE spread-bet platform, but have their own issues (please use search). Similarly FXCM.



If you are new to trading, please ask yourself whether scalping is really the correct approach for a new trader.


As for DMA, from what I can gather the tax issues are the thorny issue. It's one thing if you are already established as a successful trader and can more or less guarantee a certain income. It's quite another when you are uncertain as to how successful you will really be. I think that's where spread-betting companies can come into their own.
 
It seems so-crates has de-cloaked.

But i preferred Spanish.

Can we have him back instead of so-crates.
 
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