Prospreads DMA for scalping - yes or no?

johnnn

Member
55 2
I've read the threads on T2W here and here about Prospreads.

What's the consensus among the T2W cognoscenti? From a "retail scalper's" point of view, is the Prospreads "DMA" offering as much of a scam as the offerings by other SB firms?

Or, notwithstanding the talk about "strategic hedging and "auto-hedging", which seems a very wriggly way to answer the question "do you ever take the other side?", is their offering "genuine" enough to be worth trying?

By genuine, I mean - to be blunt - that if you start making funds, they won't try and take them off you as the the other SB firms do.

Do they ever make a profit or loss from a trade other than from the spread they apply?

For the record, IG Markets offer "pure DMA" which we know is misleading. The interesting thing is that there must be a market consisting of people who "want DMA" but are happy to throw money away using something that's called DMA even if it's not really DMA. As every bookie knows, many customers who've thrown money away will come back and throw some more away, especially if they're told they're doing something "new". The way IG Markets call it "pure" DMA makes me think of someone saying "I'm not lying to you, you know! It's God's honest truth!"

I hope this doesn't apply to Prospreads! What are people's experiences of them?
 

pit pony

Active member
152 2
I've read the threads on T2W here and here about Prospreads.

What's the consensus among the T2W cognoscenti? From a "retail scalper's" point of view, is the Prospreads "DMA" offering as much of a scam as the offerings by other SB firms?

Or, notwithstanding the talk about "strategic hedging and "auto-hedging", which seems a very wriggly way to answer the question "do you ever take the other side?", is their offering "genuine" enough to be worth trying?

By genuine, I mean - to be blunt - that if you start making funds, they won't try and take them off you as the the other SB firms do.

Do they ever make a profit or loss from a trade other than from the spread they apply?

For the record, IG Markets offer "pure DMA" which we know is misleading. The interesting thing is that there must be a market consisting of people who "want DMA" but are happy to throw money away using something that's called DMA even if it's not really DMA. As every bookie knows, many customers who've thrown money away will come back and throw some more away, especially if they're told they're doing something "new". The way IG Markets call it "pure" DMA makes me think of someone saying "I'm not lying to you, you know! It's God's honest truth!"

I hope this doesn't apply to Prospreads! What are people's experiences of them?
Johnnn

I can only talk from my experience, but i have never had a prolem with ProSpreads, i always trade intra day no o/n, sometimes scalping, sometimes i hold on longer with a trailing stop.They add a spread to the actual market spread to make there money, if they do act as a bookie then i have certainly never seeen it as i have always been filled and never requoted like the others.thankfully at the moment dare i say it but i'm up on the year so far and have never had any problems or delays when requesting for my profits to be returned,
 

Mark1979

Junior member
48 0
Hi Pit/ Johnnn,

Can you help me with my understanding of the Prospreads spreads please - I take it the spread on euro-usd is 1 (0.5 on entry + 0.5 on exit) - the 0.5 quoted on their site is slightly misleading?

Cheers,

Mark
 

tommog

Well-known member
402 56
I imagine for scalping they are going to be quite expensive considering it costs you about a tick to put a trade on
 

rawrschach

Experienced member
1,223 277
tax free though
 

A Dashing Blade

Experienced member
1,373 170
Free of CGT, perhaps not of income tax, given that you have to give an assurance that you are a "professional" - see other thread.
That's more an FSA definition to assess your level of market knowledge, nothig to do with your main source of income.
 

johnnn

Member
55 2
That's more an FSA definition to assess your level of market knowledge, nothig to do with your main source of income.
I think it's an EU requirement. I don't know what definition of 'professional' they use. In most areas, the word is meaningless, except to denote that someone does something because they're paid to, by clients or employers, or otherwise does it as a job. "Under what circumstances do HMRC give a toss when someone taxable in the UK ticks an EU 'professional' box?" is the question. I don't know the answer, and wouldn't be surprised if Propreads don't either :)
 
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