dod
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As an aside to intraday trading, I'm looking at doing some trades based on weekly data. I estimate each trade will last anything up to three or four months. I'm talking mainly about individual equities, UK, US and Oz.
I could use Direct Access but I'm worried that some world event may cause the bottom to fall away leaving me perilously exposed. So, I'm keen to use Controlled Risk or Guaranteed stops.
This seems to leave only CFD and Spreadbet providers. I've trawled through all the sites I can find and they seem to offer an equal mix of advantages and disadvantages. Some charge commission or have wide spreads; other don't. Some charge for changing a guaranted stop; others don't. Some cover the widest possible range of markets; other don't.
On balance, D4F (tight spreads, no CFD commissions, charges for moving a guaranteed stop, but not so many markets - no Oz, for example) and IG (CFD commissions, wide spreads, no guaranteed stop moving charges, wide array of markets) seem the best.
Can anyone using either of these two comment on how they might be for my specific purpose? Or, maybe, if anyone trading a similar timescale to the one I propose has experience of other providers, they could mention them?
For me, it's crucial all orders can be dealt with online and that guaranteed stops and an associated limit can be linked as a OCO.
From a back of an envelope calculation, it seems to me, using IG CFDs or Spreadbets, between 9% and 19% of risk amount (ie, the difference between entry price and initial stop loss) would be lost per trade in charges (with CFDs, the charges are .3% of transaction costs for a guaranteed stop plus .25% - .5% commission; with Spreadbets, it's .3% guaranteed stop plus .9% quarterly spread).
For example, say I was buying 1000 shares at £8, with a stop at £7.50. That's a £500 risk. With a transaction figure of £8000, at .55% (CFDs), that's £44 carrying charge. At 1.2% (Spreadbet) it's ££96.
With D4F, I haven't worked out what the daily rollover charge would amount to over several months, but I'm sure it would be considerably less. I believe the charge for a guaranteed stop is a little less than IG.
If I've made an obvious bloomer with these figure, please tell me!
I could use Direct Access but I'm worried that some world event may cause the bottom to fall away leaving me perilously exposed. So, I'm keen to use Controlled Risk or Guaranteed stops.
This seems to leave only CFD and Spreadbet providers. I've trawled through all the sites I can find and they seem to offer an equal mix of advantages and disadvantages. Some charge commission or have wide spreads; other don't. Some charge for changing a guaranted stop; others don't. Some cover the widest possible range of markets; other don't.
On balance, D4F (tight spreads, no CFD commissions, charges for moving a guaranteed stop, but not so many markets - no Oz, for example) and IG (CFD commissions, wide spreads, no guaranteed stop moving charges, wide array of markets) seem the best.
Can anyone using either of these two comment on how they might be for my specific purpose? Or, maybe, if anyone trading a similar timescale to the one I propose has experience of other providers, they could mention them?
For me, it's crucial all orders can be dealt with online and that guaranteed stops and an associated limit can be linked as a OCO.
From a back of an envelope calculation, it seems to me, using IG CFDs or Spreadbets, between 9% and 19% of risk amount (ie, the difference between entry price and initial stop loss) would be lost per trade in charges (with CFDs, the charges are .3% of transaction costs for a guaranteed stop plus .25% - .5% commission; with Spreadbets, it's .3% guaranteed stop plus .9% quarterly spread).
For example, say I was buying 1000 shares at £8, with a stop at £7.50. That's a £500 risk. With a transaction figure of £8000, at .55% (CFDs), that's £44 carrying charge. At 1.2% (Spreadbet) it's ££96.
With D4F, I haven't worked out what the daily rollover charge would amount to over several months, but I'm sure it would be considerably less. I believe the charge for a guaranteed stop is a little less than IG.
If I've made an obvious bloomer with these figure, please tell me!