prospreads.com

[johnnn]

Having used ProSpreads for well over a year now, I can also confirm that I am spreadbetting on the live underlying market prices (I have also constantly checked their prices against other futures price feeds and platforms).

The clearest advantage of this is that they cannot manipulate or move prices against me ... I am trading the real market with no underhand tactics from an SB company. This was the main reason I moved over to them.

I'm considering opening an account with Prospreads, but really I'd like to be sure of more than just that the quoted prices are real market prices.

Do orders you place show up on level 2? If not, what's to stop the firm from exaggerating real gapping?

Also if they do take the other side, what's to stop them doing things like 'accidentally' cutting off your connection when the market's going against you, which is what other SB firms have been known to do.

I hold no grudge against them, and I really hope that they don't ever take the other side! If they don't, then there's no problem, and I'll open an account with them.

But there's a lot of smoke and mirrors in this game, and one could easily allege that IG, for example (who seem to have a massive advertising budget) are somewhat guilty of "terminological inexactitude" when they say they offer "Pure DMA". The fact is, though, presenting their offering in this way must, er, mislead people, otherwise they wouldn't do it.

Lastly, am I right to think they are under the same ownership as a standard SB firm?

 

[Ross Spur]

But there's a lot of smoke and mirrors in this game, and one could easily allege that IG, for example (who seem to have a massive advertising budget) are somewhat guilty of "terminological inexactitude" when they say they offer "Pure DMA". The fact is, though, presenting their offering in this way must, er, mislead people, otherwise they wouldn't do it.

Lastly, am I right to think they are under the same ownership as a standard SB firm?

Isn't IG Markets the DMA side?

LCG owns Prospreads.

 

[DeusExMachina]

Orders I place do show up on level 2.

As for exaggerating real gapping in the markets, given that they stream their prices directly from the futures exchanges, I don't think they have the ability to do this. I have checked their prices over news releases and market openings and they are consistent with the exchanges.

In terms of disconnections, I have not experienced any (other than when I have had problems on my side).

They are owned by LCG, who also own Capital Spreads, but I do not see how this is relevant.

I know most SB firms are dodgy in one way or another, but I really don't think these guys are, hence why I trade mainly with them.

 

[Truth Seeker]

Have you seen their application form? They want to know the ins and outs of a Cats @rse! You have to have over £500k in equity, full work details, what if you just spread bet for a living? Shot themselves in the foot, because who has over £500k and needs to open a £1k SB account, and what if you lied and said you did have over £500k equity to get through the process and then wanted to withdraw or close your account, would they beable to stop you? All other spread bet company sign ups are a breeze, why should we bother with this one? A reply from Pro spreads would be appreciated on the third degree account questions etc.

 

[johnnn]

Have you seen their application form? They want to know the ins and outs of a Cats @rse! You have to have over £500k in equity, full work details, what if you just spread bet for a living? Shot themselves in the foot, because who has over £500k and needs to open a £1k SB account, and what if you lied and said you did have over £500k equity to get through the process and then wanted to withdraw or close your account, would they beable to stop you? All other spread bet company sign ups are a breeze, why should we bother with this one? A reply from Pro spreads would be appreciated on the third degree account questions etc.

Are you sure saying you've got €500k equity is required? I put "no" to check what would happen, and still got to the next page.

Maybe they just let the office village idiot write the form? In my local library, if you want to go on the internet, someone asks to see your passport. Things are getting ever more Nazi. "How do we want to run our sign-up system?" "Let's ask a load of stupid questions and call the person an 'applicant', as if we're doing them a favour by accepting them as a customer".

As well as the language of the gauleiter saying "PAPERS!", the language of the conman also seems to be ubiquitous in Britain. "You've qualified for an upgrade". "We're giving you 3 months for free". Etc. An energy company recently told me they'd upgrade me to Gold Special Plus, or some such dogsh1t, just to "ensure" that I was "covered".

And usually you get amazingly suspicious and even hateful looks when you call bullsh1t what it is - as if you're really antisocial and are about to kill everyone.

It's a very sick country...

 

[Shaun12uk]

Don't think the 500k issue will prevent an account opening. I do not trade with them but have used their demo account.
Only issue I have is using full size contracts which I am not ready for financially or psychologically.
One other issue is that not FSA regulated as based in Cyprus and all clients have to be professional traders which would have an impact if it ever went into liquidation. Not saying it will by any means but just pointing the fact out!

Despite that never heard a bad report anywhere about these guys!

 

[Truth Seeker]

Don't think the 500k issue will prevent an account opening. I do not trade with them but have used their demo account.
Only issue I have is using full size contracts which I am not ready for financially or psychologically.
One other issue is that not FSA regulated as based in Cyprus and all clients have to be professional traders which would have an impact if it ever went into liquidation. Not saying it will by any means but just pointing the fact out!

Despite that never heard a bad report anywhere about these guys!

You raise some very valid points: How safe is our money?! What if they do go under, they have already gone under once already under the name of Futures Betting.
This 'professional' status has me questioning the whole precedure, the third degree questioning, so if I declared myself 'professional' does that mean I waive my rights to claim any funds back if they do go under again? What is a professional anyway? I'm just a gambler who happens to spread bet. Why aren't they registered in the UK, you call a UK number.....

 

[johnnn]

One other issue is that not FSA regulated as based in Cyprus and all clients have to be professional traders which would have an impact if it ever went into liquidation. Not saying it will by any means but just pointing the fact out!

Good point about not being FSA regulated, but it's based in Gibraltar, not Cyprus. Regulated by the "Financial Services Commission" - the little rock's dedicated own version of the FSA. Licenced as a bookmaker ("gaming company") by the rock's government, and registered at 2/3b Horse Barrack Lane, Gibraltar, which is a lawyer's office and also the address for SolasPro (SB firm also offering 'DMA', with an Irish phone number for its dealing desk).

 

[johnnn]

they have already gone under once already under the name of Futures Betting

Ah - maybe that explains why they're registered in Gibraltar rather than the UK? Might be worth contacting the FSA to make enquiries?

 

[Ross Spur]

Ah - maybe that explains why they're registered in Gibraltar rather than the UK? Might be worth contacting the FSA to make enquiries?

They didn't really 'go under' as Futures Betting, and they were always based in Gibraltar.

 

[Truth Seeker]

They didn't really 'go under' as Futures Betting, and they were always based in Gibraltar.

Erm, yes they did. They ran out of funding, basically went broke, what's your definition then Ross?
They still need to answer some questions about the application form and why the definition of 'professional' is needed, and why the huge equity amount needed etc?
I'm not a 'professional' and I doubt many are here too, or who they have on their 'books'.

 

[johnnn]

They didn't really 'go under' as Futures Betting, and they were always based in Gibraltar.

Erm, yes they did. They ran out of funding, basically went broke, what's your definition then Ross?

What I'd like to know is did anyone lose out when Futures Betting came to an end, who was it, and by how much?

They still need to answer some questions about the application form and why the definition of 'professional' is needed, and why the huge equity amount needed etc?

Agreed.

 

[Shaun12uk]

I think someone from Prospreads needs to clarify the issue of cash safety in respect of:

1. Are Client accounts secured by any regulatory body in Gibraltar i.e as in the UK 50K.

2. Classifying all individuals as Pro's what is the significance of this other than to possibly negate any retail client security/regulation?

I know Gibraltar and Cyprus will be a tax fiddle of some sort but what we need to know is how this affects your security of funds and legal rights if they or you got into trouble with them!

 

[pit pony]

What I'd like to know is did anyone lose out when Futures Betting came to an end, who was it, and by how much?

Agreed.

Johnn

I had every penny of my funds returned within 3 days of them ceasing trading, and didn't have any problem or worries refunding my account when LCG bought them.

 

[ProSpreads]

Ah - maybe that explains why they're registered in Gibraltar rather than the UK? Might be worth contacting the FSA to make enquiries?

I would like to take this opportunity to clarify a few points that have been raised by individuals over the last couple of days:

The Gibraltar Jurisdiction: ProSpreads is located in Gibraltar for the advantageous corporate and gaming tax rates available for corporations who are based there.

Regulation: ProSpreads is regulated by the both the Financial Services Commission (FSC) and the Gibraltar Regulatory Authority (GRA). Currently ProSpreads is only allowed to accept customers who can be categorised as 'Professional', as defined in the EU wide 'MiFID'. 'Professional' clients who open accounts with ProSpreads waive their rights to the Gibraltar Investor Compensation Scheme (GICS); just as 'Professional' clients who open accounts with UK based firms will be required to waive their rights to the UK investor compensation scheme (FSCS). All client money is held in a segregated account, apart from clients who individually adhere to Collateral Title Transfer Agreements.

History: ProSpreads went through a suspended state in early 2008, because it held significant deposits with a brokerage firm, Global Trader Europe (GTE), which went into administration. As a result of the administration process of GTE, all funds deposited with GTE were frozen and therefore ProSpreads' own funds could not be used for its own hedging activities. ProSpreads returned all client funds immediately, which were held in a separate segregated account at Barclays Bank. The Company then proceeded to raise additional funds to replace those 'frozen' in the administration process of GTE, before recommencing operations later in 2008.

Please let me know if you have any further queries.

Simon Brown
Managing Director

 

[Shaun12uk]

Why if as a spreadbetting company do other firms not insist on categorising the Client as a Professional as per the EU MiFID?

 

[ProSpreads]

Why if as a spreadbetting company do other firms not insist on categorising the Client as a Professional as per the EU MiFID?

They have retail clients so have a retail license, we dont. In the near future this may change.

 

[Ross Spur]

Why if as a spreadbetting company do other firms not insist on categorising the Client as a Professional as per the EU MiFID?

Hmm. If you classify yourself as professional, it might be difficult to argue with the IRS if they decide that spreadbetting for a living shouldn't be tax free.

 

[johnnn]

They have retail clients so have a retail license, we dont.

If they required all their retail clients to reapply as professionals, who would their retail clients then be?

 

[pit pony]

If they required all their retail clients to reapply as professionals, who would their retail clients then be?

Johnnn

i think what they mean is that other's SB's can have retail clients and they cant, but maybe in the future they will so their application process may change.