Spreadbetting v currency broker?

[Scaramanga]

I have been day trading Forex on a demo account with a spreadbetting firm for a while, and am considering shortly trading for real. Not being much of an expert, it appears to me that the spreads are only slightly better through a broker, and with the profits through spreadbetting being tax free this appears to offer an advantage.

However, i am sure that this cannot be the whole story, and that there must be aspects to this decision that i am unaware of, as i can see that many do use forex brokers to trade with.

I would appreciate it if some people who use either to trade with could offer me some advice on this thread as to why they feel one is better than the other for them, in order that i can make a more educated decision with regards to who i trade through, and what will suit me best in the long term.

Thanks in advance

 

[fxwinner22]

hi scaramanga - still got a third nipple?

anyway, i spread bet and trade with a broker - there is no difference whatsoever.

I curretly trade £90 a pip split between two spread betting companies and have done so now for more than a year.

the advantages are obvious - no capital gains tax (40%) and no income tax either.

bit of a no brainer really isnt it.

 

[Scaramanga]

Thanks for the reply fxwinner22. It sounds as if Spreadbetting is the way to go then.

Do you mind if i ask which spreadbetting firms you have found to be the best for Forex?

 

[fxwinner22]

all depends on how much money you are playing with - if its low stakes (less than £50 a pip) then Capital spreads is about the best you'll find - unles that is you are scalping in which case the platform isnt fast enough on execution.

for stakes above that level there is really only ig index or cmc which are big enough not to start dicking you around under £300 a pip.

if you are short term trading - ie in one minute out the next, then cmc offers just about the fastest on the market on a par with ig index - cmc will slip you now and again though.

Basically all spread betters are going to act in their best intrests and rob you now and again so no-one is the ultimate.

 

[Priceman]

all depends on how much money you are playing with - if its low stakes (less than £50 a pip) then Capital spreads is about the best you'll find - unles that is you are scalping in which case the platform isnt fast enough on execution.

for stakes above that level there is really only ig index or cmc which are big enough not to start dicking you around under £300 a pip.

if you are short term trading - ie in one minute out the next, then cmc offers just about the fastest on the market on a par with ig index - cmc will slip you now and again though.

Basically all spread betters are going to act in their best intrests and rob you now and again so no-one is the ultimate.

Fxwinner hi, is this real money that you're using ? I'm just getting started and scared with my £1 per pip !! I do use CMC and find it very good and stable.

 

[fxwinner22]

Hi priceman, yes it's real money - i think the highest i ever stakes was £500 a pip - but it was by accident lol

Im currently on around £90 a pip split over 2 brokers, combined with my trading partners who take the same trades we put in around £300 a pip into a single currency.

Ive used most of the spread bet platforms - I used to be with cmc when i was scalping - trouble was they started to slip me on almost every entry - the price you see isnt always the price you get! - i was playing pretty high at that time with them at around £150 per pip and most brokers put you onto dealer accounts when you reach a certain level.

I also trade some managed accounts on a USA platform which equates to me playing around £2000 a pip combined - this was a slow growth for me though so i'm comfortable with it.

If you are scared with £1 a pip then you will lose the money in the account - no doubt about it - scared money never wins.

try moving your account over to finspreads - the platform and execution sucks but you can play with as little as 1p a pip for the first few months and then the minimum is 50p a pip.

when i used to train people i used to start them on the smallest prie possible and they couldnt move up 1 until they had made 500 pips profit - then they went to 20p a pip lol for another 500 pips etc etc - some of them never got above 10p a pip and gave it up but at least it didnt break them financially.

 

[Priceman]

Hi priceman, yes it's real money - i think the highest i ever stakes was £500 a pip - but it was by accident lol

Im currently on around £90 a pip split over 2 brokers, combined with my trading partners who take the same trades we put in around £300 a pip into a single currency.

Ive used most of the spread bet platforms - I used to be with cmc when i was scalping - trouble was they started to slip me on almost every entry - the price you see isnt always the price you get! - i was playing pretty high at that time with them at around £150 per pip and most brokers put you onto dealer accounts when you reach a certain level.

I also trade some managed accounts on a USA platform which equates to me playing around £2000 a pip combined - this was a slow growth for me though so i'm comfortable with it.

If you are scared with £1 a pip then you will lose the money in the account - no doubt about it - scared money never wins.

try moving your account over to finspreads - the platform and execution sucks but you can play with as little as 1p a pip for the first few months and then the minimum is 50p a pip.

when i used to train people i used to start them on the smallest prie possible and they couldnt move up 1 until they had made 500 pips profit - then they went to 20p a pip lol for another 500 pips etc etc - some of them never got above 10p a pip and gave it up but at least it didnt break them financially.

So you're a real pro trader then ! Wow I'm in awe. I want to do this as it has amazing potential but it's just so difficult with the day job. What kind of trader are you if you don't mind me asking ? Daily positions or screen watching and discretionary style or combination of all ? Any advice would really be appreciated. If I can do this by looking at the end of the day then even better.

cheers,
Martin

 

[fxwinner22]

sorry mate - hate to be the bringer of bad news but this takes years to learn. if you dont have the time to learn to trade (about 4 or 5 years) then just find a managed account for your money.

just trying to save you some heartache, hope you take this in the spirit it's given.

 

[rav700]

I would like to advise you to stay away from finspreads a very manipulative spreadbetting company very very poor execution..consistent profit means let just screw the client......

 

[Priceman]

Well I am trying to devote quite a bit of time to this as it's so big. My girlfriend thinks it's something I'm playing at so I'm trying to educate her too with my little knowledge ! I think if I can at least take 30-40 pips on a consistant basis then I'd be happy with that, not looking for any big wins. Anyway keep the useful posts coming they're very welcome and any kind of direction you feel like chipping in please do, same for all the rest out there I'm a big fan on constructive criticism !

Just watched England win so am in good spirits and back to my chart analysis to see if there's something I can learn to chase those pips !

Quick question to whoever; I have asked before but different people say different things... the asian and US trading times... I have;
Asia - 0000GMT open 0800GMT close
Europe - 0600GMT open 1500GMT close
USA - 1100GMT open 1900GMT close

Is this correct please so that I can see when to get in and when to stay out and which periods are more active etc etc etc. This learning is great, it's like doing a degree except it never stops !

good weekend to all, cheers

 

[Oatcake_eater]

Asia - 0000GMT open 0800GMT close
Europe - 0800GMT open 1600GMT close
USA - 1600GMT open 0000GMT close

I think this is about right.

 

[Oatcake_eater]

Asia - 0000GMT open 0800GMT close
Europe - 0800GMT open 1600GMT close
USA - 1600GMT open 0000GMT close

 

[Priceman]

Well here's a chart I devised from the GMT website with current times on it... hope people find it helpful with their trading

 

[cheeta]

do anyone use global trader 247 spreadbetting platform

 

[Euro_d]

Hi priceman, yes it's real money - i think the highest i ever stakes was £500 a pip - but it was by accident lol

Im currently on around £90 a pip split over 2 brokers, combined with my trading partners who take the same trades we put in around £300 a pip into a single currency.

Ive used most of the spread bet platforms - I used to be with cmc when i was scalping - trouble was they started to slip me on almost every entry - the price you see isnt always the price you get! - i was playing pretty high at that time with them at around £150 per pip and most brokers put you onto dealer accounts when you reach a certain level.

I also trade some managed accounts on a USA platform which equates to me playing around £2000 a pip combined - this was a slow growth for me though so i'm comfortable with it.

If you are scared with £1 a pip then you will lose the money in the account - no doubt about it - scared money never wins.

try moving your account over to finspreads - the platform and execution sucks but you can play with as little as 1p a pip for the first few months and then the minimum is 50p a pip.

when i used to train people i used to start them on the smallest prie possible and they couldnt move up 1 until they had made 500 pips profit - then they went to 20p a pip lol for another 500 pips etc etc - some of them never got above 10p a pip and gave it up but at least it didnt break them financially.

Spot on advice not just in FX,
I find paper trading OK but you always kid yourself. With real money even if its peanuts you start to feel the market. The idea of moving up when you have 500 pips in the bag is excellent.
Dave

 

[zagreb]

well fxwinner22,

I'm (experienced) profitable fx trader but must admit that fx spread betting is something that lures me more and more. What do you think, is it possible for a seasoned fx trader to be succesfull at (fx) spread betting with present skills. Or there is different set of rules.

What method do you think is better, short-term intraday up/down or longer time frames (like those on betonmarkets)?

regards

zagreb

 

[fxwinner22]

there is no difference at all in practice zagreb. I do both spread and proper brokers - makes no difference at all between them.

Every now and again you have to argue with all of the brokers, spread or real - but no change there.

try it, chuck 10k into a spread account and have a go - at least then you wont be giving the fat incompetent scotsman any more money to throw away (gordon brown)

 

[zagreb]

thank you

 

[zagreb]

heh, one more question

how do you set money/risk management (since looks like there are predetermined/fixed sum bets only), compared to fx. And winner is also fixed, cannot go 200 pips in your direction.

VFP? FFP? Martingale?

thanks