Newbie needing broker advice

phoenix25140

Active member
102 2
Relative newbie here, im at the stage of taking the plunge into the markets with larger amounts.. god help me.

Ive been using Betfairs financial trader, Tradefair, as a test platform with small amounts £1/2 per point but the market depth is extremely poor.

Could anyone suggest a SB company with a large market stock depth including DAX, CAC40, SPDR ETF's.

I will be placing maximum £5/6 per point on 7/8 trades per week.

Prospreads? Ive been scared off so many by nightmare stories on this site.

Thanks guys,
N
 

capitalspreads

Experienced member
1,452 79
phoenix

if you are using tradefair there is easily enough liquidity for that size .. also tradefair does not do £1/2 a point. The minimum bet size is £1.. are u sure you are not using their LMAX product?

trades up to £50 a point or so would not even register on the dealer screens...

i am not sure what the nightmare stories are on prospreads as we do not seem to get actual client complaints.. nearly all the comments are from people who have never actually opened an account... let alone traded on it..


Simon
 

gle101

Veteren member
3,717 84
phoenix

if you are using tradefair there is easily enough liquidity for that size .. also tradefair does not do £1/2 a point. The minimum bet size is £1.. are u sure you are not using their LMAX product?

trades up to £50 a point or so would not even register on the dealer screens...

i am not sure what the nightmare stories are on prospreads as we do not seem to get actual client complaints.. nearly all the comments are from people who have never actually opened an account... let alone traded on it..


Simon
I am one of the traders that have been waiting for Prospreads to introduce an automatic stop loss feature. One don't need to be trading live with Prospreads to grasp the important need for it. Honestly Simon, you are not suggesting that a "relative newbie" should be trading without an automatic stop loss feature are you?:)

Otherwise, I think Prospreads are quite good and I cannot find any horror stories about them.
 

capitalspreads

Experienced member
1,452 79
automatic stop losses are a bit difficult when the trades go direct to the exchange as most exchanges do not recognise orders as being attached to positions... this is because positions are fungible across brokers... i.e I could buy FTSE futures via Goldman Sachs and sell then via Fortis but they will both clear (at the end of the day) into my account.. so i could hardly put a stop order with Goldman as they would have no idea about my Fortis trade.

i am also reasonably sure that, with most futures exchanges, orders get cancelled at the end of each day and it is up to the brokers to reinstate client orders.

with normal non-DMA SB companies there is no fungibility at all . you cannot open a position with Capital Spreads and close it with IG index... all your trades must go thorough a your single provider. which makes it easy to attach orders to existing positions.

if it was simple we would do it... and we are working on a solution .. but .. we have a large number of other projects as well.

gle101

to be honest i would recommend that a newbie start small with a non-DMA platform (i.e capital spreads) with the smaller sizes and heavy control features they allow. ... even after ten years of this i still consider (personally) a £10 FTSE position (1 futures contract) to be a reasonably large position. A client can make or lose hundreds of pounds a day with just £5 FTSE bets .... which seems rich enough to me.

Simon
 

Lightning McQueen

Moderator
4,916 780
Are you REALLLLY that lonely and bored with nothing else to do in your life than to stalk me round a forum on each thread at 01:05 in the morning?

you're starting from a £100 pound pot, don't you think you're getting slightly ahead of yourself asking about £100-£200-£300 per point on the DAX and Wall St :rolleyes:
 

Lightning McQueen

Moderator
4,916 780
The question was aimed at those stake sizes as with 35% compounding, the £100pp stake size will start between trade 10-13, based on the spreadsheet should things to to plan. Hence why I asked the question.

spreadsheet? what this one?



well you tried that already, blew up spectacularly quick by all accounts, then disappeared along with the subs money that you mugged off your victims.
 

capitalspreads

Experienced member
1,452 79
Griffin

we have no particular problem with these sizes but you must bear in mind the actual underlying liquidity.

£100 a point in the Wall Street is the equivalent of 30 dow contracts ... it is rare that the market has this type of volume on a 1 pip wide spread. for instance as i write the dow future has volumes of 4 contracts by 3 contracts (i.e about £12/£9 !! ) and the FTSE of 4 contracts by 2 contracts (i.e £40/£20).. so clients should appreciate that by accepting trades of 100s of pounds a point the SBcompanies are, in general, offering far greater liquidity than there normally is available on the 'real' market.

This said we do have a lot of clients who trade in these sizes (£100 point and greater) .. and they seem to stick with us..

Simon
 

gle101

Veteren member
3,717 84
automatic stop losses are a bit difficult when the trades go direct to the exchange as most exchanges do not recognise orders as being attached to positions... this is because positions are fungible across brokers... i.e I could buy FTSE futures via Goldman Sachs and sell then via Fortis but they will both clear (at the end of the day) into my account.. so i could hardly put a stop order with Goldman as they would have no idea about my Fortis trade.

i am also reasonably sure that, with most futures exchanges, orders get cancelled at the end of each day and it is up to the brokers to reinstate client orders.

with normal non-DMA SB companies there is no fungibility at all . you cannot open a position with Capital Spreads and close it with IG index... all your trades must go thorough a your single provider. which makes it easy to attach orders to existing positions.

if it was simple we would do it... and we are working on a solution .. but .. we have a large number of other projects as well.

gle101

to be honest i would recommend that a newbie start small with a non-DMA platform (i.e capital spreads) with the smaller sizes and heavy control features they allow. ... even after ten years of this i still consider (personally) a £10 FTSE position (1 futures contract) to be a reasonably large position. A client can make or lose hundreds of pounds a day with just £5 FTSE bets .... which seems rich enough to me.

Simon
Thanks Simon for your answer. Yes I agree entirely on your answer to my post. I do not know exactly how it works with stop loss orders, but I guess you have a limit order internal and as soon as it is hit it will convert to a market order? I take for granted that most orders are after all internal with Prospreads?
 

capitalspreads

Experienced member
1,452 79
level -headed

i used to worry about comments on this thread by clients or potential clients... and sometimes (when it was somebody who was obviously a loser trying to blame us) I used to try to find out who they were by the info they placed on the thread..

but now it seems pointless. ... either a client wins or loses .. nothing i can do or say will make any difference to this fact of life..

three days ago clients (as a whole) lost a packet on the dow/s&p big fall.. but the next day they made all of it, and more, back again.... maybe not the same clients but as a group.... worrying about individuals is fruitless.

Simon
 
 
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