Yes I have been thinking about that possibility as well. My impression is that they will mirror the full lots trading, and hopefully the result will be the same. Maybe Simon could clarify this?
fibbinstarchi
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They probably went home to watch TV.
A Dashing Blade
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Narrower spreads . . . . Huh? they offer the spreads that you see on the actual underlying market, how could they be narrower?
Faster execution . . . .Huh? In the round, you actually trade on the actual market ie your citrix connection -> their servers -> the exchange servers. Tbh if your concerned about >100ms latency then you should be trading with a prop shop.
A Dashing Blade
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You shouldn't be playing the futures markets if losing £1,000 scares you (serious)
I am told you can now open with £500, but can only trade mini lots.
I agree with all your comments as I have used them for a few years now.
fibbinstarchi
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You forgot to mention their round trip commissions which works out 3 pip on the euro total (without slippage, mini) now consider FXCM/CS 1 pip and CMC 0.7 pip spread, you can see how wide there spreads inc com are. I have experienced slippage with Prospreads on my live account, whether it's the real market or sb made up market I don't care, it still affects my bottom line the same, so if everyone's slipping you, why would anyone go for the broker with the wider spread (inc comm)?
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Either you trade the DMA or you don't, you can't have it both ways. DMA have got its advantage a well as SB (glad to hear someone that likes SB in front of DMA). You would probably gotten the same slippage in the real market trading futures.
rawrschach
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He probs means commissions and I agree with him. Still too high for scalping.
isatrader
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I trade CFDs with CMC and always get slippage with buy-stop orders of around 0.3 to 0.5 pts on the DOW 30. So with the 0.7 spread it's about 1 to 1.2 pts fee per trade, which is less than Prospreads 2 point spread on the YM. However, the benefit I can see with prospreads is that you are getting the actual futures prices, whereas on my CMC account the highs and lows of each hours bar has a variation of 1 or 2 points over or under the actual prices. So for example if I place a buy stop to go long 1 point above the previous hours high which was 13331 at 13332, sometimes my CMC price will make a new high above the previous hours bar whereas the futures price which prospreads uses does not. So I'm then in the trade when I shouldn't have been as there wasn't actually a new high.
So that's the benefit I can see with prospreads, as order placements and stop losses can be much more accurate, whereas with CMC I have to give a few points of space to not be stopped out when i shouldn't have been, or get in a trade that wouldn't have been filled on prospreads as the price didn't actually reach the required level in the proper market.
rawrschach
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If someone is slipping you .3 of a point in a market not quoted in smaller ticks they're ripping you off imo.
It's cheap to trade e-minis intraday, I don't see why you wouldn't go DMA..
It's cheap to trade e-minis intraday, I don't see why you wouldn't go DMA..
Well it is quite high stake trading the real market with FTSE and DAX, that is where SB got its strength (besides being tax free in some countries).
isatrader
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I agree, but the problem I found with prospreads which put me off for the time being was the lack of risk management tools on the order ticket/ladder. As i want to be able to set the target and stop loss distance at the same time as the buy-stop order.
Another thing was that the spread/commision is a fixed percentage on prospreads, so if you increase the amount of lots you trade then it's still the same percentage cost wise. Whereas if you trade with a futures broker like Mirus for example, then the percentage cost per trade of the commission decreases when you increase the amount of lots per trade.
Martin Kong3
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You would of got an email from them if they using Multicharts. Besides Multcharts cost a lot money than what P.S is using right now.
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R.Charnock
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Surely PS's spreads are quoted per side, so YM is 5pt total, not 3pt? It's also worth remembering the effect of the future moving in whole points and spreadbet having decimals, although I'm not sure exactly what effect this has in practice. I suspect it's something a SB provider can tweak to their advantage. Every little bit counts, so it's very crafty if they can consistently grab 1 - 1.2pt instead of the theoretical 0.7pt.
R.Charnock
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I did get an e-mail from them.
Yes I agree completely, not being able to set the stop loss in points in the order ticket or in the ladder is a huge draw down. This missing feature alone make me hesitate to sign up with them. I think I will wait until they implement it, which probably won't be long as they are now also targeting retail clients.
R.Charnock
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I think they had no choice but to target retail clients, because they had so few of the other type of client, but in doing so they'll become more like any other spreadbet outfit.
Prospreads got a totally different approach being close to DMA, I don't think there is any risk of them becoming just another SB in line of what we already have today. Offering mini-lots to retail client is a brilliant move, and if they could just improve on the features of the platform and narrowing the spread somewhat, they would for sure have a hit on their hands.