Best Thread Spreadbetting, the myths and what is the reality?

[montmorencyt2w]

In order to trade with SB at a safe level, you must be aware of what might happen and include that in the risk profile. If there were no problems with some individual traders, you would not have such a thing as referral to a dealer or excessive re-quotes. I had a SB that called me up from GB a year ago (a white label, not connected to CS) suggesting I open an account with them. Ok I said, they came back to me a couple of hours later, telling me they do not approve of short term traders like me.

Who was it?

 

[gle101]

Who was it?

If I wanted to disclose the company in question, I would have mention them in my post.

 

[montmorencyt2w]

If I wanted to disclose the company in question, I would have mention them in my post.

Just thought I might catch you in an off-guard moment....

<Mrs Doyle from Father Ted>
Ah go on, go on
</Mrs Doyle>

 

[gle101]

Just thought I might catch you in an off-guard moment....

<Mrs Doyle from Father Ted>
Ah go on, go on
</Mrs Doyle>

You nearly got me.

 

[montmorencyt2w]

"they only want losers" = this is not true, I can tell you with first hand experience, the best client is a client who just churns his account, someone who is making something which is not worth withdrawing, but not losing enough to make the client give up or wipe him out. it costs money and effort to go get another client. winners and losers both have their advantages also. Ultimately this depends on the business model employed by the SB firm and the person you are asking.

What is this first hand experience of which you speak?
Is it as a customer or from the other side of the counter?
i.e. are you the whistleblower that some of us have been looking for?

 

[montmorencyt2w]

wtf were you long on EUR/USD... sorry mate, not wishing to sound critical, I just don't see it...always open to ideas etc TIA.

Pin-ish bar around 10:00 perhaps?

I wasn't on it, but I might have been in other circumstances.
(Not because of the pin so much, but more because I didn't believe the prior fall was sustainable)
Not that my choices lately have been any recommendation
(This will all change once I become "legendary" of course).

 

[Black Swan]

Pin-ish bar around 10:00 perhaps?

I wasn't on it, but I might have been in other circumstances.
(Not because of the pin so much, but more because I didn't believe the prior fall was sustainable)
Not that my choices lately have been any recommendation
(This will all change once I become "legendary" of course).

Pin bars finbars...(sounded better in my head in a Mrs Doyle accent)

 

[Black Swan]

You nearly got me.

I know of one SB co, (not a white label) who used to vet your non-credit account opening form and if you put in the boxes that you were experienced for x amount of years they wouldnt open you....true...

 

[gle101]

I know of one SB co, (not a white label) who used to vet your non-credit account opening form and if you put in the boxes that you were experienced for x amount of years they wouldnt open you....true...

Ha ha!

 

[Black Swan]

Pin-ish bar around 10:00 perhaps?

I wasn't on it, but I might have been in other circumstances.
(Not because of the pin so much, but more because I didn't believe the prior fall was sustainable)
Not that my choices lately have been any recommendation
(This will all change once I become "legendary" of course).

I'd been short since 7am, went long yesterday at 9pm...currently B-even and watching it like a hawk...

 

[montmorencyt2w]

Pin bars finbars...(sounded better in my head in a Mrs Doyle accent)

Well neither me or Mrs Doyle know what the feck is going on with the dollar just now, and as far as I can tell, the ECB managed to crap all over the Euro this morning, intentionally or otherwise.

 

[Jack Hughes]

I know of one SB co, (not a white label) who used to vet your non-credit account opening form and if you put in the boxes that you were experienced for x amount of years they wouldnt open you....true...

And who might that have been? Not WoollySpreads, I don't suppose?

 

[jiggly]

Can't we find someone who used to work for a SB company to spill the beans? Or do they sign confidentiality agreements?

Or maybe, if we did find someone, and they told us that there was no such conspiracy, we wouldn't believe it anyway.

I personally don't believe there are elaborate algorithms to fleece clients, but I'm in the minority.

the majority of clients lose money on their own accord anyway, we can safely assume this, no elaborate algorithms conceived by the SB company is necessary, there is one already, the market itself!!!! there is no need for an SB company to help them do this faster and deal with the complaints as an aftermath, its a strain on resources.

generally the SB company just wants the client to deposit more money, so they can lose more money on their own.

an account manager does not want to go hunting for clients unless it is to add to his portfolio, he does not want to make 100 calls a day to replace the clients who have lost all their money and have dissappeared because 'its impossible to make money from this business', 'its gambling' etc.... an account manager, at an SB company, depending on how his compensation plan is structured, wants the client to trade and make money.......if a % of the collective trading volumes from his portfolio makes up some of his commission, the account manager wants the client to trade larger, for longer and more frequently. Churning the account at worst, making money at best so deal sizes and life expectancy can be increased.

the SB company is lke a casino, the market is its 'game'..........we know the rest of where this is going.

casinos dont need to rig and interfere further with their games.

 

[jiggly]

What is this first hand experience of which you speak?
Is it as a customer or from the other side of the counter?
i.e. are you the whistleblower that some of us have been looking for?

the other side of the counter.....I see all sorts, particulary that which revolves around a clients activity and how *lame* they generally are. You can do everything possible, within regulation to help them out but it really will not do much good. The vast majority just dont listen.

for conspiracies and the rest of it, they are just......

excuses made by losers because they are losers.....

a client that makes money is hard to find........but more than welcome in my book.

 

[gle101]

the majority of clients lose money on their own accord anyway, we can safely assume this, no elaborate algorithms conceived by the SB company is necessary, there is one already, the market itself!!!! there is no need for an SB company to help them do this faster and deal with the complaints as an aftermath, its a strain on resources.

generally the SB company just wants the client to deposit more money, so they can lose more money on their own.

an account manager does not want to go hunting for clients unless it is to add to his portfolio, he does not want to make 100 calls a day to replace the clients who have lost all their money and have dissappeared because 'its impossible to make money from this business', 'its gambling' etc.... an account manager, at an SB company, depending on how his compensation plan is structured, wants the client to trade and make money.......if a % of the collective trading volumes from his portfolio makes up some of his commission, the account manager wants the client to trade larger, for longer and more frequently. Churning the account at worst, making money at best so deal sizes and life expectancy can be increased.

the SB company is lke a casino, the market is its 'game'..........we know the rest of where this is going.

casinos dont need to rig and interfere further with their games.

Yes you are right. The odds are in favor of the SB company and this should be sufficient to uphold their business. Still, it is a fact that some SB discriminate and flag some of their clients on a constant basis, this in order to restrict their trading success. This resulting in dealer interference, delay and excessive re-quote. Discrimination of clients is not allowed according the EU MiFID financial directives. So why do some SB still practise this kind of restriction on some of their clients? Usually you have network latency as an excuse, but this in not a valid cause (and not a major problem today anyway) for such a serious action breaking the rules set up by the regulators.

 

[gle101]

the other side of the counter.....I see all sorts, particulary that which revolves around a clients activity and how *lame* they generally are. You can do everything possible, within regulation to help them out but it really will not do much good. The vast majority just dont listen.

for conspiracies and the rest of it, they are just......

excuses made by losers because they are losers.....

a client that makes money is hard to find........but more than welcome in my book.

After 5 years of trading SB you don't need a conspiracy theory to understand how some of the SB operate. I am considered on this forum to be pro SB, but what you are saying is to go too far, it is like denying there is starvation in some parts of Africa.

 

[jiggly]

After 5 years of trading SB you don't need a conspiracy theory to understand how some of the SB operate. I am considered on this forum to be pro SB, but what you are saying is to go too far, it is like denying there is starvation in some parts of Africa.

not quite, but you are not wrong either,

lets remember that this topic is related to the 'excusses' given, as highlighted in the thread starters first post.

 

[jiggly]

Yes you are right. The odds are in favor of the SB company and this should be sufficient to uphold their business. Still, it is a fact that some SB discriminate and flag some of their clients on a constant basis, this in order to restrict their trading success. This resulting in dealer interference, delay and excessive re-quote. Discrimination of clients is not allowed according the EU MiFID financial directives. So why do some SB still practise this kind of restriction on some of their clients? Usually you have network latency as an excuse, but this in not a valid cause (and not a major problem today anyway) for such a serious action breaking the rules set up by the regulators.

if you have proof, you should take it up with EU MiFID.......

they will investigate why some 'particular' SB undertake the practices and restrictions you talk about...

 

[gle101]

if you have proof, you should take it up with EU MiFID.......

they will investigate why some 'particular' SB undertake the practices and restrictions you talk about...

The MiFID financial directives have quite recently been implemented. I believe It will take a couple of years before it will have a lasting affect on the SB industry. I have no incentive to take this matters further as it have no affect on my trading as a whole. The regulators know very well what is taken place in different areas of the financial and gambling markets. I think writing about it in a balanced way on a forum like this, could at best, rise the awareness among SB traders about the issue at hand, and in turn it might affect the SB in a positive way.

 

[gamma]

Are there actually any posters here, who have had there accounts restricted by spreadbet companies, because they were too successful?