Spread betting

[klastica]

Are there any firms that allow you to trade the indicies at less than £2 per point?
With IG it's min bet £2.

 

[TomTom]

Try finspreads ....

 

[tomorton]

Hi klastica - Its important to realise the simple maths of trading the FTSE100 and the Dow at say £1 per point. As the Dow currently has 2x the points of the FTSE you are effectively taking on twice the position size, therefore double the risk and reward. Bear in mind also the volatility of each index - even with nominally the same points value, some indices tend to make much greater daily changes than others.

 

[klastica]

Hi klastica - Its important to realise the simple maths of trading the FTSE100 and the Dow at say £1 per point. As the Dow currently has 2x the points of the FTSE you are effectively taking on twice the position size, therefore double the risk and reward. Bear in mind also the volatility of each index - even with nominally the same points value, some indices tend to make much greater daily changes than others.

Do you know any spread betting firms that offer less than £1 a point?

 

[yacarob1]

Capital Spreads offer a demo account with no time limit.

It allows you to practice with "pretend" money until you feel ok to go live.

The charts with the demo account are delayed by 15 minutes but you can get live charts by also opening a real account.

There is no need to fund the real account until you are ready.

Minimum bets are £ 1 per point on the real account for most indices I believe.

 

[Splitlink]

Hi klastica - Its important to realise the simple maths of trading the FTSE100 and the Dow at say £1 per point. As the Dow currently has 2x the points of the FTSE you are effectively taking on twice the position size, therefore double the risk and reward. Bear in mind also the volatility of each index - even with nominally the same points value, some indices tend to make much greater daily changes than others.

Hi Tom,

A two point spread has never worried me with index trading because I am not, by nature, a scalper. Yet, I am a trader who likes to be out before the close. Anyone who is worried about that kind of spread certainly has more problems than I have.

The 3 point spread on Euro/GBP is, also, nothing to be worried about when one thinks about it. The damned thing moves that much in no time.

What I do appreciate is a fast fill. If I get that, consistently, then a lot is forgiven.

A few years ago I was fortunate to be in contact in a chatroom with someone who, pretty well, had the same trading ideas as I had. But he had a broker account. At the end of the day we were both surprised at the similarity of points made by us in similar trades. It put my mind at rest with regard to going back to a broker's account.

Of course, advantages are more frequent for the sophisticated, professional trader, but I am content not to be one of those and I suspect that spreadbetting is good enough for most of us.

Nevertheless, Klastica, you must take everything into consideration before you start and you may prefer the closer spread that a broker will give. On the positive side, the low trading size is very helpful for a new trader. and that is the route I would advise.

 

[yacarob1]

Hi Split

I am contemplating the move from broker to SB in order to free up a load of capital which I have sitting in my broker account.

Which SB company would you advocate ?

Just in case it hasn't already been mentioned, SB profits are deemed to be gambling receipts which are not taxable in the UK under existing legislation, as opposed to profits earned from a broker account which are taxable.

I am not sure what the situation is where your main or sole source of income is from gambling receipts.

I am unsure as to whether that horrible tax man would seek to tax some or all of those profits.

 

[yacarob1]

By the way folks, have a look at the DAX.

Slightly more volatile than the FTSE100 I think and gives some excellent moves.

Only a 2 point spread on Capital Spreads for the DAX.

 

[Jbat001]

By the way folks, have a look at the DAX.

Slightly more volatile than the FTSE100 I think and gives some excellent moves.

Only a 2 point spread on Capital Spreads for the DAX.

It's only a 1 point spread for the DAX during market hours with Capital Spreads(FTSE too!). You could also give Spread Betting | ODL Markets a try - 1 pip spread on FTSE and DAX, and also a minimum stake size of 50p a point. Just make sure you sign up for the most basic account - the stakes are higher on the more complex ones. You also get guaranteed stops for free - you just have to place them not less than 0.6% of the index away from the market.

 

[Splitlink]

Hi Split

I am contemplating the move from broker to SB in order to free up a load of capital which I have sitting in my broker account.

Which SB company would you advocate ?

Just in case it hasn't already been mentioned, SB profits are deemed to be gambling receipts which are not taxable in the UK under existing legislation, as opposed to profits earned from a broker account which are taxable.

I am not sure what the situation is where your main or sole source of income is from gambling receipts.

I am unsure as to whether that horrible tax man would seek to tax some or all of those profits.

I'm not very keen on recommending firms because I am likely to be answered by a load of discontented traders. However, since you ask, I trade with Finspreads and, so far, no complaints.

Anyway, a trial with a small amount will soon tell you if it is for you.

Regards Split

 

[KillPhil08]

You just open up a trade, then cut it straight away by the amount you want (to the nearest penny).

Works on odl, iii, ig.

iii.co.uk offers a month of minimum bets 10p (and a free £100). But you have to meet the entry requirements for all SB agencies first...