Started trading with Capital Spreads

If you want to close a position with d4f you must trade on their spread again ..whereas with the other SB companies the daily markets mostly close at a fixed price. (no spread) except for shares which generally close on the bid offer market price.

So that although d4f look cheap to actually make a trade you are comitting yourself to another. Thus the tight spread looks less attractive when you realise you must pay it again to close the bet.

Also from the viewpoint of a professional trader the fact that bets are effectively endless encourages the running of loss making postions. Remembed the first cut is the cheapest.
 
I used to post on message boards in year 2000, and can now remember what was their great, and no doubt endless joy; the ability of people on them to simply slander without evidence (that, and the terrible spelling).

So, just a couple of matters for the record.

From what I can see online, objectively, IG's spreads on the major currency futures are 12, not 20-40. You can see this too in the online dealing handbook. It is 16 for the USDJPY and 20 for the USDCHF, but 12 for the other majors, like EURUSD, GBPUSD, and so on.

Second point.

"You not only reject deals but have altered software logs , the software itself AND your standard customer contract , when the deal goes against you . This happened to a friend and I".

This sounds like nonsense, and if it were within 99% of being true, such a case could be brought to the FSA that the company in question could face enormous legal problems. I have never heard of this happening anywhere; as I said, probably paranoid nonsense. By all means contact a compliance department if you think it is true.

On the matter of our rejection record, from thousands of trades on indices and currencies every day, fewer than 10 tend to be rejected on price. I was contrasting that with my own personal record of being rejected a few times in one day by another company. Again, any objective evidence to the contrary would be interesting - it is the first statistic I look at every morning.

Rational, non-paranoid replies welcome.
 
Simon,

Intra-day traders tend to open and close a bet within the day. So the bet closing at the close price is not important. You can also ask deal4free for a bet that closes at the days close price. I haven't tried that but there are others around who have used that facility.
 
Well it seems to me that you can either have a daily bet that you have to ring to close on the day , or you can have a daily bet that you have to ring to rollover.

I might say that it sounds like six of one half a dozen of the other.

Simon
 
Simon,

I agree. So that just leaves the spread size. Match deal4free and I am sure you will get a lot more customers. Someone has to do it one day.
 
* This sounds like nonsense, and if it were within 99% of being true, such a case could be brought to the FSA that the company in question could face enormous legal problems. I have never heard of this happening anywhere; as I said, probably paranoid nonsense. By all means contact a compliance department if you think it is true. *


The said changes happened AFTER a complaint to the FSA was made . Legal action was taken but we could not afford the fees, such is the expense of litigation.

You will see the documents reprinted on my site when it starts , and then you may take any action you like . I have no fear of you and your company as I have the proof on my side.

You are the one who spouts nonsense , since you do not know half of what your own firm gets up to .

And you can call me paranoid or whatever, but I stand by what I say , and in many people's eyes you are still F'ing cheats .
 
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If you call to rollover , you get charged a spread. If it is auotmatically a rolling bet then no spread is charged ( unless this is not how it is done ).

It makes a difference over a few days .

why cannot CS have a rolling daily bet ?
 
mma
no that is not how it is done

d4f charge you an interest rate cost to roll the position from one day to the next. So that if you hold the position for a number of days you will see the absolute price of your trade alter as the interest rate kicks in. Over the longer term this becomes quite a large number as the interest rate applied by d4f is not exactly cheap as there is a 1.5% over sonia for long positions and sonia -2.5% for short positions. (a profit margin of 4% over the year for all matched positions held by the company with absolutely no risk or exposure at all)

Thus if you held a long position in a share that cost you 100p and held it for one year. at the current rates of around 3 3/4% plus the sonia of 1.5% plus the compound interest etc by the end of the year you would now own the share at around 106 so that for a long term position your shares portfolio would have to climb by over 6% before you made any money !! on top of this you would have tied up your margin funds as well. It sounds alot over the year but this is effetively what you pay on average over all of your positions if you are maybe in the habit of running them over-night etc.

So dont get into the habit of thinking that a rolling daily is free , it isnt.
 
Simon,

This is starting to get silly! D4free rolling cash bets are for short term trading. Why would anyone want to hold an open rolling position for a year? But even if they did, it would probably work out cheaper than rolling over monthly or quarterly bets with the wider spreads of all the other companies.

They also pay me if I hold a short overnight.
 
i'm sorry i was trying to point out that over night positions are not FREE.

and then explaining why !

but i suppose ignorance is bliss for many people

read the e-mail... they pay you at sonia MINUS 2.5% they get sonia minus maybe 1/2 themselves.
 
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Can I join in here, rolling bets do cost.

I held one for 10 days, a £4 bet, it cost £1.10.

I held one for 2 days, a £1 bet, it cost 56p.

Ok not fortunes, but it certainly increases the notional spreads.
 
* I held one for 10 days, a £4 bet, it cost £1.10. *

sounds good to me , I'd rather this than paying the spread everytime I R/O, and I only hold a max of 3 nights usually.
 
if you took a long position out on a share of say 780 and held it over night. And the share closed that night at the same price.

your opening price the next day would be

780 +(780 x (3.75+1.5) /36500 ) or 780.11

doesnt sound much does it until you realise that to hold a six month position in say Amersham with us (Capital Spreads) we quote a total spread on the March future of 6.1 p that is with everything, as on the close today. On the same basis d4f total cost of holding that position would be around 18.4 p three times more expensive.
 
Only an idiot would hold a rolling cash bet for six months. Rolling cash bets are for the short term. Perhaps you should do the same calculations for a 5 day bet and see what you get.

And then you should try them for going short, where they pay you a small premium.

I think they also pay a premium for dividends if you are long and subtract it if you are short. As I don't use rolling cash bets for more than a few days, that hasn't affected me. That will change your calculations.

At least you have put me off opening an account with Capital Spreads. This knit picking is pointless.
 
Good point, I suppose I should have said only an idiot would hold a loosing position for that long. If you had bought the FTSE at 3300 then I am sure you wouldn't be bothered about the small premium. I think the FTSE bets are also adjusted to allow for dividends so they pay you a small fee as well as taking a bit away each day.
 
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