Spreadco spread free trading

britkid99

Junior member
26 1
Spreadbet companies are well known thieves who are allowed to get up to all manner of dubious tactics. Why not use a proper broker such as AMP who now allow CME micro contracts. A micro contract is 1/10 of a futures contract so on the DOW $5 would be 0.50 cents per point/tick. Margin is $50 per micro contract and min account size is $100. Also they now have a European set up if you want to use Euros instead of dollars.
 
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twinj

Well-known member
264 6
Thank you for posting britkid99. I like spreadbetting because it is tax-free. I don't believe spreadco were thieves because I made good returns using them until they placed me on dealer referral. For close to fifteen years, I have only been using spreadbetting. I agree the about so many years ago, there was one company that prevented a trade from going through and filled me in at a worse position. But if spread is fixed and they give you a requote instead of slipping, I think you are relatively safe.
 
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tomorton

Legendary member
7,192 945
Thank you for posting britkid99. I like spreadbetting because it is tax-free. I don't believe spreadco were thieves because I made good returns using them until they placed me on dealer referral. For close to fifteen years, I have only been using spreadbetting. I agree the about so many years ago, there was one company that prevented a trade from going through and filled me in at a worse position. But if spread is fixed and they give you a requote instead of slipping, I think you are relatively safe.

I agree.

The internet's full of people with no valid experience giving out about SB companies. Keep doing it if it works for you. (it works for me).
 

twinj

Well-known member
264 6
Thanks tomorton, since I am looking for a new spread betting service, could you tell me which one(s) you use and are happy with?
 

tomorton

Legendary member
7,192 945
Thanks tomorton, since I am looking for a new spread betting service, could you tell me which one(s) you use and are happy with?

I really don't see much between the big 4 or 5 UK-based firms. I've got a live account with one and a demo with another. I could recommend one but it would be no better than another. Start with the biggest. Absolutely must be FCA-regulated.
 

twinj

Well-known member
264 6
Thanks for your advice but they tend to be variable spread with slippage (you click on a price and get a different price).
 

twinj

Well-known member
264 6
Since I did not get a clear answer from spreadco from either my account manager or the person who has put me on dealer referral, I have asked the CEO about whether FIFO (first in first out) means it would be wrong to open a trade and close the trade within 3 minutes on a loss-making trade? It is unimaginable that they would put a person that is making lots of losses even though trades are closed quickly on dealer referral, I stuck to this rule but caught me out by stating too many of my trades are under 3 minutes even though they were loss-making. I will post what the CEO/Founder's response but my conclusion so far is that it is an unfair company and you can only imagine some other unfairness may creep in. I don't know if there are fair trading companies out there but if there is evidence of unfairness, it is best to steer clear.
 

britkid99

Junior member
26 1
I have over the years used CMC, Capital Spreads, ETX Capital and IG Index . Due to the fact that they are a third party, by which I mean, they must get their prices from the actual markets before doing anything else, there is a natural lag. Then when you request a price for a trade they must then refer back to the price before allowing it or if the price has moved too much declining it or requoting. This leads to frustratingly chasing the markets or missing the trade entirely. The same can occur when you want to exit as the price starts to go against you and you try to get out before your profit disappears. Then there is dealer referral which is again a delay, which may be acceptable depending on your proposed time in the trade but not if you want a quick entry/exit. Then there is whether you are trading against the SB co. ie if they have hedged your trade they make sure they get in/out before you do. So if you think they have tight spreads that may not be the case in reality.

As far as being tax free, there are a couple of answers to that. First if you made more by going direct that might pay your tax.
You have a Capital Gains tax allowance of £12000 / yr and if you had a joint account £24000/yr.

Finally, I have a SIPP account where I can trade tax free directly. There are some restrictions on this though.
 

tomorton

Legendary member
7,192 945
I'm told by traders who should know that unless you're scalping or similar, the differences between SB quotes and underlying market prices (we're talking forex majors, oil, gold and indices here) are too small to even be a factor.
 

britkid99

Junior member
26 1
Agreed, there may not be much or any difference on the prices displayed, it is what price you manage to achieve that matters.
I am by nature a quick in and out guy and if your timeframe is longer, all day or swing then SB is probably fine for that as a requote wont matter too much.
Regards.
 
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twinj

Well-known member
264 6
Just received confirmation not from the CEO but someone that is keeping me on dealer referral. All trades should last a minimum of 3 minutes. It is a shame that I was misled by one of his colleagues that it would be understandable to close loss-making trades within 3 minutes.
 
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twinj

Well-known member
264 6
most spread betting firms are now variable spread with slippage it seems as opposed to fixed spreads with requote/rejection model. What I don't like the former is when there is an abnormal situation such as disconnection of the internet say and you could be left hanging and filled at an undesirable position. With the latter, you can be assured of the price you see or it is rejected so it makes me more comfortable.
 

Spread Co Ltd

Newbie
2 0
Hello everyone,

We thought it would be helpful to explain how our ‘Spread Free’ account type works and to also clarify the terms and conditions.

We offer two Spread free spread betting account types: Spread Free Basic and Spread Free Bronze.

Each spread free account has a daily trade limit, max position limit per instrument and a max bet size per trade. At present, there is a choice of 15 spread free markets to trade.

Spread Free Basic

No of free opening trades per day: 4
Max Bet size: £3 per point
Max Position size: £8 per point
Monthly Fee: NIL

Spread Free Bronze

No of free opening trades per day: 6
Max Bet size: £5 per point
Max Position size: £8 per point
Monthly Fee: £10

All Spread Free markets are charged for trades greater than the maximum free opening trades per account type.

Once you have exceeded your daily limit of spread free trades there will be a charge of £1 per point per opening trade, closing trades are free.

FAIR USAGE POLICY:
Both account types are subject to a fair use policy and consequently we have the right to withhold the Spread Free element when we have reasonable belief that there has been co-operation, collusion or organisation of trades from the same source, or if we have reasonable belief that the Spread Free Account is being abused in any way, inclusive of scalping i.e. opening and closing a position within 3 minutes (this includes all trades, buy/sell or sell/buy regardless of any trading strategy). Full terms can be found here.

We hope this sheds some light to some of the questions that have been asked. If you would like to know more please visit our FAQ’s section or feel free to contact us directly.

Best regards

Spread Co

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.