Recommend Trading platform with tightest spread

[sharesr4us]

Hi everyone,

What uk trading platform can you recommend that is ideal for majority of indices/forex markets which has the tightest spread?

I'm currently trading with Igindex and although it's a great platform, I notice that their spreads are getting more and more expensive.

 

[hhiusa]

Hi everyone,

What uk trading platform can you recommend that is ideal for majority of indices/forex markets which has the tightest spread?

I'm currently trading with Igindex and although it's a great platform, I notice that their spreads are getting more and more expensive.

Interactive Brokers has the best spreads I have been able to find. You can have direct access to interbank rates and can leverage Forex up to 50:1.

https://www.interactivebrokers.com/en/?f=%2Fen%2Ftrading%2Fpdfhighlights%2FPDF-Forex.php

 

[hhiusa]

 

[hhiusa]

 

[sharesr4us]

Thank you for the link hhiusa. My apologies as I forgot to mention I'm a beginner and don't have massive amounts to spend that Interactive Brokers require. My post should have said uk trading platform for beginners with tightest spreads.

 

[hhiusa]

Thank you for the link hhiusa. My apologies as I forgot to mention I'm a beginner and don't have massive amounts to spend that Interactive Brokers require. My post should have said uk trading platform for beginners with tightest spreads.

Please tell me when you find someone. I would be curious to know so that I can tell others.

 

[sharesr4us]

Sorry hhiusa, but I don't understand what you mean? Is Interactive Broker cheaper than IG Index?

 

[hhiusa]

Sorry hhiusa, but I don't understand what you mean? Is Interactive Broker cheaper than IG Index?

They are ridiculously more expensive. They also do not appear to be a full-service broker at first glance. If you are happy with them, then that's all that matters.

 

[sharesr4us]

I never said I was happy mate, hence my post in the first place, but isn't interactive broker asking for huge deposits?

 

[hhiusa]

I never said I was happy mate, hence my post in the first place, but isn't interactive broker asking for huge deposits?

The lower the minimum deposit, the worse the spreads will be. I would recommend just trading with a paper account from a full service broker. TD Ameritrade has a $1,000 minimum deposit and will have a decent paper trading platform to pratice on. I wouldn't necessarily consider it to be a huge deposit.

http://www.tddirectinvesting.co.uk

 

[sharesr4us]

IG Index already have a demo account which I have been practicing on for a while now. So that I can understand, can I ask you why you are so against IG Index??? What problems have you encountered or how are they worse compared to others?

I've never used TD-direct, but how reliable are they? I couldn't find a demo account of theirs

 

[hhiusa]

IG Index already have a demo account which I have been practicing on for a while now. So that I can understand, can I ask you why you are so against IG Index??? What problems have you encountered or how are they worse compared to others?

I've never used TD-direct, but how reliable are they? I couldn't find a demo account of theirs

What do you mean by reliable? I would be curious to know what problems you have encountered.

I noticed that you asked about firms trading against you. The market is very Darwinian in my opinion. People are trading against everyone.

To answer your question about problems I have encountered, the answer is that I haven't had any. I have only had concerns and grievances with firms that have such low account minimums. Firms with low account minimums are more likely to be the snake oil vendors and not the firms, which require more. This rule can apply anything that you buy mutatis mutandis. If you buy a $10 fan from Walmart, it won't last forcing you to buy another fan in 6 months and then another one after that. You could instead buy a$50 fan from a good manufacturer that will last for years to come. You will have ended up spending more at Walmart over the course of those years than just buying a poorly made fan now. Firms with low account minimums will have higher commission structures. These firms also do provide direct access to the market so you cannot see where your money is actually going and most times it doesn't go to the NYSE or LSE directly. These firms may actually just be selling you their stocks that they hold in whatever company you are buying instead of buying directly from the exchange. Secondly, If you place a market order through (1) they have up to 5 seconds to hold your order for a better at which point they sell their stock to you and the buy the stock at the better price for themselves, charging you the difference and (2) they send your orders to market makers that behoove them. Many times these market makers are paying them for liquidity flow.

In the end, good things come to those who wait. I would say continue to trade virtually until you have enough money to trade with a broker that provides direct access. A direct access broker allows you to see all available prices for that equity and choose where you want to route your order to. They also provide commission structures for a fraction of the cost of retail brokers.

 

[sharesr4us]

I totally take your point and agree to continue trading virtually for the moment.

I wasn't suggesting that I don't agree with you regarding the choice of broker, but being relatively new I am curious to learn and just wanted your advice and help. I do have enough to go with TD direct, but just haven't heard any reviews about them, whereas everyone know IG Index.

You mentioned that some firms sell stock to you that they hold, but I don't plan to trade in stocks...it's spread-betting and I thought that was simply bets and no assets involved?

Could you please explain how ig index is not a direct broker, whereas TD direct is?

In fact whenever I'm ready, I will start off with £1k deposit just to get the hang of things and then see where I go from there.

 

[hhiusa]

I totally take your point and agree to continue trading virtually for the moment.

I wasn't suggesting that I don't agree with you regarding the choice of broker, but being relatively new I am curious to learn and just wanted your advice and help. I do have enough to go with TD direct, but just haven't heard any reviews about them, whereas everyone know IG Index.

You mentioned that some firms sell stock to you that they hold, but I don't plan to trade in stocks...it's spread-betting and I thought that was simply bets and no assets involved?

Could you please explain how ig index is not a direct broker, whereas TD direct is?

In fact whenever I'm ready, I will start off with £1k deposit just to get the hang of things and then see where I go from there.

I didn't mean that TD is a direct access broker. I suggested it based upon the amount of capital that you have to work with. Direct access brokers will traditionally be more expensive. That has been my experience when I have been looking around.

I have limited concerning UK brokers and I have never used IG so I cannot say for sure. Direct access brokers in the US give you the ability to place orders directly with the exchanges or another individual and can give you almost instantaneous execution. Certain services incur extra charges. TD Ameritrade is not a direct access brokerage firm. They are essentially removing the costs of exchange fees, clearing fees, etc. and acting as you go between and charging you a simple albeit higher cost commission structure. It is usually more expensive like $10 or £6 per trade.

As I said if IG works for you, then stick with it.