With FT100 stocks it really shouldn't make any difference. They are all SETS traded so there is no real room for a broker to get a tighter spread by hassling the MMs as they can do with small caps. For FT100 stocks I'd choose a broker purely on the basis of commission, service etc.
For the life of me i'm sorry if spreads are important why not trade the Nasdaq 100 instead of the FTSE 100.Nasdaq traders don't need to pay spreads.If they do its normally only 1c.
After hours Nasdaq traders can capture up to 40c on
the spread thats $400 profit with a thousand shares.
TELL me why when its been said time and time again about the benefits of trading the Nasdaq why more UK traders don't look at it.Forget that i teach it.I'm not pumping for any business.
I'm a trader first, like all of you and it saddens me when i read things like the above.Who offers the best price? Who cares, offer your own price on an ECN,become your own market maker.Trade on a level playing field with the market makers.Don't throw money away in unnecessary costs.
They think it's too difficult when it's easier, and many of the folk I've trained start off thinking the US market is so unfamiliar they'll get eaten alive and are quickly delighted to discover how much more transparent it is than the London market; and how much easier and more consistent it is to trade.
But yes, I too shake my head with disbelief sometimes.
Mind you, I also do the same when I read some of the methods used by some folk on this board.
This might be the hardest and daftest post I have ever done. Not only I'm I going to give reasons why to trade UK stocks, but I'm also going to do this while <strike>Arguing</strike> discuss my point with Mr.Charts and Naz - 2 superb traders in their own right. I don't fancy my chances on this one
The time difference means you don't have to worry about trades that your in the evening.
The markets are less volatile - Ok another thing in favour of the US.
You know more about the companies your trading.
There's a lot less to look at
Can only trade 3 times a week on a small account
Some of these points can be used in favour of US trading - but as always in comes down to personal choice.
There you go, my attempt at justifying trading the UK over the US - I think I failed, but hey I gave it a shot