brendansvest
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is anyone spreadbetting indices? If so, who do you use and why?
Spreadbetting Indices
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brendansvest
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Who do you use and is there any particular reason you use them?
Hi brendansvest
Lots of T2W users spread indices and you'll hear lots of stories about spreads being very wide, stops being gunned to take out positions, and poor customer service.
Personally, I would suggest,
spreads should be competitive, they are an overhead - but they aren't a key factor unless you're scalping very short-term, in which case the SB is probably going to take you to the cleaners anyway, and the key factor will be the decision to try scalping, not the spread
I don't believe SB firms gun my tiny positions' stops, but as in any form of trading, if you put a stop in an obvious position, as do a thousand other folk, the market may well turn just at that point. SB is no different to the equity market in this respect
I don't find customer service from SB firms is any worse than from e.g. an airline or a garage, but they use much more small rpint than some industries. Trade through a reputable and large firm, registered with the FSA in the UK. Sometimes their platform will be unavalable and/or they won't anmswer the phones, leaving you stuck in a failing position: for such a crisis, keep a smaller second account with another SB firm so that at the very least you can open an opposing postion with the back-up service.
Enjoy your trading.
Lots of T2W users spread indices and you'll hear lots of stories about spreads being very wide, stops being gunned to take out positions, and poor customer service.
Personally, I would suggest,
spreads should be competitive, they are an overhead - but they aren't a key factor unless you're scalping very short-term, in which case the SB is probably going to take you to the cleaners anyway, and the key factor will be the decision to try scalping, not the spread
I don't believe SB firms gun my tiny positions' stops, but as in any form of trading, if you put a stop in an obvious position, as do a thousand other folk, the market may well turn just at that point. SB is no different to the equity market in this respect
I don't find customer service from SB firms is any worse than from e.g. an airline or a garage, but they use much more small rpint than some industries. Trade through a reputable and large firm, registered with the FSA in the UK. Sometimes their platform will be unavalable and/or they won't anmswer the phones, leaving you stuck in a failing position: for such a crisis, keep a smaller second account with another SB firm so that at the very least you can open an opposing postion with the back-up service.
Enjoy your trading.
brendansvest
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Thanks for the reply
I am actually enquiring from the other side of the fence.
We are launching a rebate system for all clients using or execution platform for SB indices and FX.
We will rebate part of the spread for indices and rebate a set amount per million on FX. I'm really trying to find out if this will be popular by asking what the traders on here like and dislike about the service they are getting.
I am actually enquiring from the other side of the fence.
We are launching a rebate system for all clients using or execution platform for SB indices and FX.
We will rebate part of the spread for indices and rebate a set amount per million on FX. I'm really trying to find out if this will be popular by asking what the traders on here like and dislike about the service they are getting.
montmorencyt2w
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Who's "we"?
There must be a bug in my system, as it doesn't let me see your vendor's icon.
brendansvest
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Per million turnover.
brendansvest
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brendansvest
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Im trying to gauge what the SB traders look for in a provider/broker. The Sreadbetting rebate is launching next week.
In regard to the CFD rebate no other broker is offering this and the take up has been very good.
Thanks for asking.
In regard to the CFD rebate no other broker is offering this and the take up has been very good.
Thanks for asking.
brendansvest
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Win or lose the rebate stays the same.
The rebate is (Spread*10%) * size of bet
This is calculated per completed trade,i.e., Buy and Sell.
The rebate is (Spread*10%) * size of bet
This is calculated per completed trade,i.e., Buy and Sell.
Like the Partymarkets model? http://www.partymarkets.com/tradeback/
brendansvest
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Similar but our rebate is 10% across the board. We see this as fairer as the smaller traders will receive a larger rebate from the start.
why not just charge 10% less in the first place?
brendansvest
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There is no charge on spreadbetting. The rebate sytem is a big favourite amongst futures traders. If you traded a certain volume on a monthly basis you would receive a rebate based on that volume regardless of P&L.
The charge is the spread.
Its pointless to give everyone 10% back, just charge less by making the spread smaller.
brendansvest
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I prefer the way we do it. As I said, it's a very popular system amongst Futures traders and I'm sure a lot of spreaders will see the benefit.
I still don't seee where any claimed benefit is?
Please explain the benefit over just charging less with a smaller spread.
Otherwise its hard to see it as anything but smoke and mirrors.
