Trading FTSE100 stocks

[JTrader]

Trading stocks

Hi

having traded with CMC I am of the opinion that although 90% of the time they offer a good service, occassionally I have gained the impression that I am at their mercy by delayed quotes that can lead to not being filled at the right price when entering and exiting a trade.
With CMC there seems also a difficulty with volume and difficulty in trading with bigger amounts.

This has led me to explore alternatives like etrade flate rate £9.95 quote driven CFD's. However, on FTSE100 stocks, etrade spreads are likely to be 0.25-0.5p wider than level 2.

Are the any alternatives to these two companies that offer the best of both worlds?

Cheers.

 

[goldy]

I've had the same problem with CMC, Jtrader.

I deal in large amounts - buying and selling up to 40,000 shares in a single deal in the more volatile FTSE stocks like RBS. I have no problem with the spreads 95% of the time, but they always let themselves down in the more fevered market conditions, just when you want to be making that trade! The spreads then vary from the Level 2 price and the delay in executing can be criminal. However, for the volumes that I trade there really is no alternative to dealing for free so I tend to take the rough with the smooth!

 

[theknifemac]

Don't e-trade now offer a CFD product where you are trading against the "real" SETs prices ?

Mac

 

[JTrader]

Yes etrade also now offer direct access CFD trading with a negotiable commission of 0.2%

 

[JTrader]

Dealing in 40,000 shares (£400 per point) is a surprisingly big position for day trading with CMC to me. I am surprised that it is possible to get fills at this level without delayed executions etc. What volume are other people able to trade up to with CMC without experiencing such problems?

Cheers.

 

[goldy]

Hi Jtrader
I don't actually place 40,000 in a single ticket, although the most I have managed is 20,000. I use Level II and watch the market depth before placing/closing a trade. I usually place 8 x 5,000 share tickets in very quick succession or grab 4 x 10,000 's if the depth is there. There may be a penny or two difference. I try to be in and out in a day but always trade with enough spare margin to be able to cope with an overnight position. The beauty of D4F on FTSE 100 CFD's is that I only need 5% capital and D4F are putting up the other 95%.

I guess I am a swing trader in that I am much more patient than I used to be. If I wasn't trading every day, I would feel I was missing out. It is now a week since my last trade as I have been watching and waiting until all the charts tell me that it is time to strike. When I do strike I strike big and feel pleased with my day's work if it comes off (or not!)

 

[olwenh]

I'm surprised that D4F let you fire off trades in quick sucession - they stopped me from doing it & mine weren't so big.

good luck whilst they let you continue - I doubt that it will last.

 

[goldy]

How did they stop you? How did they justify it because they make money on their spread everytime you trade? They even make a point of saying you can trade as many times a day as you want!

 

[JTrader]

Cheers goldy,

How many points profit do you make on average in a week?

 

[olwenh]

I use spreadbet, it may be different for cfd's.

They sent a message on the 'chat' line & said that their software is programmed to pick up multiple orders in quick succession. If I didn't stop doing it they would route all my trades through a dealer. It's exactly what they did and all my trades were held before I could trade.

I went from being quite profitable to losing - I've had to change the way I trade.

As I say, good luck whilst it lasts.

 

[JTrader]

Is the CFD experience any better or different to the spreadbet experience?

 

[JTrader]

Still
it's reassuring to see that it's possible to place 5000 or 10000 orders alone or in quick succession. I'm not at that level yet.

 

[rafik]

Companies like CMC who are market makers have a vested interest in the prices they offer. Although there service is commission free, all the comments that I have read suggest that they have a poor service for it. I recommend trying a new company called ISX Markets.

They are going to start trading on Monday 22nd Feb. I came across there website and gave them a call and they have told me that;

They act as broker and the only money they make is the commission (so its in there best interest to get the best spreads for its clients).
They use MM such as Refco, and provide commission rates much better than the MM.
Provide direct MKT access, i.e. all prices are mkt level 1 & 2 prices.
They provide the following products;

Equity CFDs 0.2%
Futures £4.95
Options £4.95
Forex Free

Although they are a new company they use existing mkt makers to trade, and as they will be bringing high volumes to thes MM there clients are given a far better service.

www.isxmarkets.com (tel 020 8911 9553)