Paul, why don't you make it easy and just close the account? There are a lot of news traders around and not all trade on lagging prices. They trade on volatility in hope of getting in early on a big swing. I just don't like the idea of flagging certain clients based on their trading style, it is quite clear that this contradict the regulation of the MiFID.
I went to ONLINE TRADING ACADEMY yesterday and opened my eyes to Spread Betting. So much that I have changed my ideas on SB firms, I was planning to add my funds weekly to my SB acc with SLM but after what I learned I pulled off my deposit ( only £50 lol)
Heads up and learn !
NO SPREAD BET COMPANY IS DMA ( direct narket access )
The SB company gets the DMA Feed to there systems then thats put onto there platform at different rates from DMA rates thats the first way they make there money.
Second way they make money is then in the spread which is not worth there time and thats why you see tight spreads on SB firms and now I see a firm with NO SPREAD.
Then if you compare a real DMA Chart feed to SB charts you see spikes but SB spike that bit extra to hit stops. IT HAPPENS
DMA - You Sell Forex there is a real person in the market buying your sell
SB - You Sell Forex your broker is taking your BET, then hedging on DMA AGAINST YOU
Real DMA sites http://tradingacademy.com/about-us/Partners.aspx
As a test I ran a Demo account (MT4) on Windsor Brokers and SLM and there was a big difference. No price sticking, it seemed SLM was behind the Market moves and I did this on My Demo and Live SLM acc.
I'm now moving to GTS Pro
Good Luck Guys
Heads up and learn !
NO SPREAD BET COMPANY IS DMA ( direct narket access )
The SB company gets the DMA Feed to there systems then thats put onto there platform at different rates from DMA rates thats the first way they make there money.
Second way they make money is then in the spread which is not worth there time and thats why you see tight spreads on SB firms and now I see a firm with NO SPREAD.
Then if you compare a real DMA Chart feed to SB charts you see spikes but SB spike that bit extra to hit stops. IT HAPPENS
DMA - You Sell Forex there is a real person in the market buying your sell
SB - You Sell Forex your broker is taking your BET, then hedging on DMA AGAINST YOU
Real DMA sites http://tradingacademy.com/about-us/Partners.aspx
As a test I ran a Demo account (MT4) on Windsor Brokers and SLM and there was a big difference. No price sticking, it seemed SLM was behind the Market moves and I did this on My Demo and Live SLM acc.
I'm now moving to GTS Pro
Good Luck Guys
Tenapenny
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This is not news! Crikey.
EBS Pricing Advantage
FX Solutions entered into an exclusive partnership with ICAP, the owner of EBS (Electronic Broking Services), in 2008. Their award-winning EBS trading platform is considered by many to be the preeminent “FX exchange” and is the most widely used platform in the Interbank FX Market. EBS provides access to spot FX and precious metals pricing for banks and non-bank professional trading organizations in 800 trading floors in 50 countries.
Through this exclusive relationship with ICAP, FX Solutions is the only FDM with direct access to EBS servers and price feed.
Pricing from the other guys
The pricing from the "other guys", our competitors, is derived from banks whose pricing originates with EBS. After that pricing is received by the banks, it is manipulated to suit the banks’ risk exposure before displaying it to their clients – the "other guys." This process creates a latent price feed into their trading platform and traders, in turn, miss out on potential opportunities
Pricing from FX Solutions
By contrast, the pricing displayed on GTS comes directly from EBS, the market source. Trading with FX Solutions gives you 24-hour access to unparalleled liquidity all in real-time without latency.
Based on this pricing accuracy, we’re able to facilitate automated order execution, which means no dealing desk, no dealer intervention and exciting opportunities for our traders.
FX Solutions entered into an exclusive partnership with ICAP, the owner of EBS (Electronic Broking Services), in 2008. Their award-winning EBS trading platform is considered by many to be the preeminent “FX exchange” and is the most widely used platform in the Interbank FX Market. EBS provides access to spot FX and precious metals pricing for banks and non-bank professional trading organizations in 800 trading floors in 50 countries.
Through this exclusive relationship with ICAP, FX Solutions is the only FDM with direct access to EBS servers and price feed.
Pricing from the other guys
The pricing from the "other guys", our competitors, is derived from banks whose pricing originates with EBS. After that pricing is received by the banks, it is manipulated to suit the banks’ risk exposure before displaying it to their clients – the "other guys." This process creates a latent price feed into their trading platform and traders, in turn, miss out on potential opportunities
Pricing from FX Solutions
By contrast, the pricing displayed on GTS comes directly from EBS, the market source. Trading with FX Solutions gives you 24-hour access to unparalleled liquidity all in real-time without latency.
Based on this pricing accuracy, we’re able to facilitate automated order execution, which means no dealing desk, no dealer intervention and exciting opportunities for our traders.
Smart Live Markets
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Hi
We could close it, but it is not something I like to do.
I have no problem with people dealing on volatility or those who deal on figures.
I have a problem with people who consistently try and deal on latent prices. I cannot go into the ins and out of this instance, but that is it.
As for MiFID,beleive me I know more about this than you could possibly imagine. We are so overly MiFID compliant it is unbelieveable.
We offer tighter prices than the market, which are fixed even when volatility increases, and we offer fixed liquity to get trades on when the real market might have nothing in it.
Regards
Paul
SLM
real market ? What lol
As my instructor said to me "Spread Betting, the word it self should tell you. YOUR NOT TRADING, YOUR GAMBLING AND THE SB FIRM CAN SEE ALL YOUR CARDS"
Don't get me wrong as SB goes SLM has fantastic customer service and if you like spread betting then SLM is great but I'm out
Example see this: http://www.fxsolutions.com/trading/ebs-pricing-advantage.asp
This old anti SB stuff is quite boring. Of course you should be trading DMA when the stakes are high, no question about it. But there is definitely a place for SB. SB at the present stage being categorized as gambling don't take away the fact that you are trading on the movement of the underlaying asset.
Smart Live Markets
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Hi JDTRADER
I am not quite sure where all this has come from or going for that matter.
Firstly, yes you are quite correct, most spread betting firms are not DMA.
There is a reason for this, not least what I mentioned before. Small retail clients generally like to be able to deal on tight spreads and trade in small amounts. Well on DMA this is not the case. For starters the spreads will probably be wider and variable... and by that I mean 20 points on EURUSD just 10 seconds before figures.
You cannot have it both ways. In order to facilitate all the markets we offer on MT4 it has been impossible to make them DMA. That said we are working on a DMA option for the top 20 FX pairs which we hope to offer soon, to anyone who wants that as a spread bet.
But I have to say as someone who knows what DMA is like, all this means is that you will get wider more volatile spreads, and you will not neccessarily be guaranteed to get trades on without re-quotes either.... but if that’s what you want then so be it.
Secondly, and I have said this before, we want our clients to make money. We run a very small book to accumulate all the small trades clients do and then hedge them. It is a very simple model, and nothing underhand goes on, certainly not here.
Thirdly you stated that you cannot go short UK stocks earlier unless this is a spread bet if you are a retail client. Well with respect you are totally wrong. You have been able to do this for years, they are usually done as CFDs, and they are as old as the hills.
Whatever you 'instructor' has told you about spread betting being just betting is wrong. It is called betting because it must, otherwise it does not qualify for the tax benefits of not paying any on your winnings.
Years ago one of my previous places of work we were going to change what we offered from spread betting to spread trading as the powers that be thought it sounded more upmarket. We were told by the Inland Revenue that if we did this then it would not be classified as a bet so would be liable for tax, ie in essence the same as a CFD.
Spread betting can be seen as betting if you want, or it can be seen as it is, which is a fantastic tax efficient and easy way to speculate on global financial markets. What you do is up to you. There are a lot of people out there who think they know it all, and will gladly try and brain wash you into believing all they say.
Our price feeds for shares and commodities come from the exchanges. For FX they come from a blended feed of the top banks feeds in the world. They are the same as they give their institutional clients except we fix ours and make them usually tighter.
So the fact that we have 'seen your cards' is irrelevant. Do you think we move our two way price in one direction just to stop you out?, because I can assure you I have better things to do. Also that is not allowed. Also I want you to make money !!!!
Regards
Paul
SLM
If a client really is trying to deal on latent prices, why not just phone them up, explain the situation and if they carry on, close the account? That seems fairer (and much less hassle for everyone) than introducing delays, which as gle says does seem to go against MiFID.
btw, I would have thought that the only SB prices that are tighter than the market are WS's zero spreads, although City's 1pt Dow probably qualifies most of the time?
The SB industry has this thing about lagging prices. In fact I think you have to give it up in order advance to the next level. In the years to come I think a variable price feed model will be something that will be more common among SB companies. I agree, a fixed spread is a problem under certain market conditions, but that is the way the real market work and function, for which the SB industry try to reflect.
Yes right, some kind of warning system before being put on referral to a dealer is a good idea.
Hey Paul
Cool mate I do not want to get into a slagging match lol
There is something for everyone , good luck guys
unsubsidised from thread.............................PEACE
Smart Live Markets
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Hey Paul
Cool mate I do not want to get into a slagging match lol
There is something for everyone , good luck guys
unsubsidised from thread.............................PEACE
Hi
Don't worry. I had better do some work in a minute anyway.
Have a good w/e.
Regards
Paul
Smart Live Markets
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Hi
I cannot go into too much detail on this case.
We did not introduce delays to this client, merely an extra price check, which is nothing against MiFID as I have mentioned before. We are just as entitled to be protected under MiFID as everyone else. It was put in place to protect all parties.
With regards to your thoughts on SB prices, well I would have thought 1 point on the FTSE,DAX,CAC etc was good, as is 1 pip on EURUSD and 2 on GBPUSD, and remind me of the commission or brokerage you pay + VAT to spread betting companies compared to the market ?? Hmmmm ... oh yes .. Nothing !
It is very easy to pick up on something and point out negative points. I do that myself. But I really do feel people should not assume the worst about people. Some of us genuinely are trying to make things better.
Regards
SLM
Same here, he is worst than Simon at Capitalspreads (not meant to be in a negative way).Hey Paul
Cool mate I do not want to get into a slagging match lol
There is something for everyone , good luck guys
unsubsidised from thread.............................PEACE
Smart Live Markets
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Hello
Well Latent prices are prices that basically are out of date. Let me try and explain.
With the best will in the world, from the mighty Citi Bank all the way down to your local green grocer, if they put prices out over the internet then there will be a delay from the price leaving their price engine or distributor to it showing up on your screen, you dealing on it and then it going all the way back to be confirmed.
This usually takes microseconds and all companies do everything they can to make this delay as tiny as possible.
However there are instances, sometimes due to Geography, ie living in New Zealand and dealing with a company in London, or having a poor or slow internet (broadband) connection which cause this microsecond delay to become larger.
Also over big numbers, like Unemployment numbers or retail sales for example, with the massive increase of price updates over a small amount of time this can slow down the speed in which price updates occur, again only fractionally, but it adds up.
Some people do deal when figures come out hoping to catch a move, and there is nothing wrong with that. It is when you are dealing deliberately on a wrong or latent price that there becomes an issue.
What some people try and do is take advantage of this. They may have another price feed from a more local source, or one which is indicative only, but faster. They can compare the two either manually or usually they automate it, and if they see a price discrepancy then they attempt to deal on the wrong price.
Some people call this arbitrage, but it is not really. It is an attempt to deliberately deal on a price that is latent, due to the reasons mentioned above.
This phenomenon does not affect 99% of clients. However there is a small minority who specialise in it, and invariably they get found out, and if that is all they are trying to do then the trading company/brokers do not like it, as the client is not trading or even trying to trade on a correct price.
It is only to be expected that in any industry you will always get people ‘trying it on’ and it is always a battle to distinguish between those and the majority of people who trade normally.
Regards
SLM