they don't hate spreadbetting at all, intelligent people embrace the fact you can make money tax free using a spreadbet vehicle... what they hate is that spreadbet firms capture their loss and no matter how much they whine and moan they cant accept that its not the spreadbet firms fault at all but their trading style that does the bank roll damage - too much leverage, too many trades, stops so tight, doubling up etc. The leading spreadbet firms invest millions in technology and sits there patiently because they know the client will most probably lose and do the damage themselves, and do it fairly quickly. The S/B co doesn't have to interfere with that process, human nature does the job well enough for them.
with spreads and margins what they have been the last 5 years DMA and spreadbet are very close, to the extent that some smaller spreadbet firms (names that you would know) use other spreadbet firms to hedge instead of using the underlying directly. why would they do that if the whole model was deliberately made too difficult to make money. if I eat in a bad restaurant I don't go back because there are too many other restaurents to try.. spreadbetting is the same, find a good one, stick with it and use it for what its designed to be - a platform for retail traders to buy and sell derivatives under a tax free wrapper.. its not designed for people to execute hundreds of trades per day trying to capture fractions of pips - that's the same as someone going up to the endless buffet 10 times a day? how long would the restaurant put up with that before they told the fat fker to not come back?
its so simple in principle but greed takes over and then blame. funny no one ever complains to a s/b firm when their limit is filled by mistake or that strange spike triggers their limit to be filled or an order that puts them straight in the money. There aren't too many phone calls to s/b firms yelling at them telling them to take that incorrect profit off their account and stop moving the markets in to the clients favour deliberately to fill all the limit orders !!
