Negotiating charges

[OpenMind]

I have been trading CFDs with IG for some time. I make about 30-35 trades/month on average and my average trade size is £5,000. My market exposure at any point is usually between £150k-250k.

I tried to negotiate commission rates and/or financing charges, they almost laughed at me (although I must admit their customer service is very good in my experience). I thought with 35 trades a month I should be able to get cheaper commission rates.

Would appreciate if any CFD veteran (e.g., Racer) can enlighten me: when is the right time to negotiate? With what sort of volume or exposure?

Many thanks, as always.

 

[nobrainer]

35 trades per month is not a lot and the average 5k size is very small.

Are you using DMA or just normal cfd's? What % commission per trade are you paying at the moment and how much do you generate per month for IG at the moment?

If you are using IG then that's probably not too sensible.For the trade sizes you do CMC is a much better bet and thereafter Etrade esp. if you are not using DMA.
You can negotiate rates with the cfd providers for direct access but you need to be doing quite a bit of trading.A reasonably competent daytrader using DMA will generate about 3.5k commission per month and should be able to get his DMA rate down to 0.1%.If he's paying more than that , then he's not been aggressive enough with the cfd providers.
Naturally, thereafter ,if you generate more , you can get your rates a lot lower.I'm on probably the lowest rate in the uk for a private client but generate more than 20k in commissions every month for my DMA providers.Needless to say I still have had to pester them to ensure that lowest rate.

 

[OpenMind]

Thanks for the information. I see IG were right to laugh at me.

I cannot use D4F because I must trade cash prices, not house quotes. IG charge me 0.15% commission per trade. Their finance rate is BOE base rate +/-2.5%.

I do not day trade.

 

[nobrainer]

Trust me, use Cmc for stocks rather than IG....they give you cash prices esp. for the sizes you deal and without commission.

 

[Tuffty]

nobrainer, I appreciate the guidance on CFD charges - there isn't much on here re CFD's - you may well the biggest private CFD player in town!
Have you found much flexibility on finance rate charges, although I guess that may not be important to you if you generally don't hold overnight.
Cheers Tuffty.

 

[nobrainer]

I do hold positions overnight but because I'm 90% a daytrader , I've concentrated on getting my commission charges down rather than the financing charges on overnight trades.Maybe some longer term holders could be of more help.

 

[belgiumbrit]

CFD charges

HI

Like you, i am with IG ALSO, and am very happy with their levels of service ! HOWEVER, the recent size of spreads ( i trade spot gold ) are making trading conditions pretty difficult ... i have seen the spread move form 50 cents - 3 usd - as we speak it is 1usd ! I have trade up to 40 lots a go ... sometimes 3 times a day ... so ... a valued client i think ! But -they will not offer any incentives -such as reduced charges !
I have looked at Direct market access - quite appealing - spreads typically of 30 CENTS - but comm charges on top ! And this is the futures market cbot ! I have been really comfortable trading spot on CFD's but unless they can reduce their spreads - i will venture forth elsewhere !

By the way - anyone had experience witn Man financial ? The name should say it all ... Big player - but what are your experiences ?

I have been trading CFDs with IG for some time. I make about 30-35 trades/month on average and my average trade size is £5,000. My market exposure at any point is usually between £150k-250k.

I tried to negotiate commission rates and/or financing charges, they almost laughed at me (although I must admit their customer service is very good in my experience). I thought with 35 trades a month I should be able to get cheaper commission rates.

Would appreciate if any CFD veteran (e.g., Racer) can enlighten me: when is the right time to negotiate? With what sort of volume or exposure?

Many thanks, as always.