Trading spread on indices. How much?

balusa

Junior member
23 0
Hi, I am considering opening a live CFD trading account with a company that provides indices as trading instruments along with FOREX and CFD stocks. Currently they charge 0.1% of the value of each index contract, 0.15% of stock (CFD) contract value and 0.04% of each forex contract. They also charge about 0.02% of overnights and there are no other charges apart from these ones. I wonder if the above charges can be considered acceptable for a trader to open a CFD trading account.
Thanks.
PS. I am currently participating in their free dukascopy.com trading contest

edited, chartman
 
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stevet

Established member
917 5
balusa

your heading and comments dont really tie up - which company are you looking to use?
 

balusa

Junior member
23 0
I would like to open a CFD trading account with Dukascopy Technologies Corp (www.dukascopy.com). For index trading they charge fixed commission of 0.1% of the value of each contract. They call this commission "spread" (I suppose that is how they interpret it). So I was wondering if 0.1% is the right commission for index contracts.
 

stevet

Established member
917 5
balusa

where are you based?

why did you alight on that company are is your post an advert for that company?
 

balusa

Junior member
23 0
Absolutely not :). I gave company details because I am having difficulties understanding their terms and conditions, so I think you will need to see them for yourselves before coming up with an educated judgement regarding their index trading policy (which is quite a rare thing by the way).
 

stevet

Established member
917 5
balusa

dont you think you would be better sticking with a company who you do understand?

i understand them - but you should stick to companies which have a history and are well known
 

balusa

Junior member
23 0
Stevert,
No well-known companies that i know offer index trading+they all have unacceptably high commissions. Besides, I do not think it will be right to ask the company whether their spreads are the most competitive on the market. We all know their answer...
 

stevet

Established member
917 5
balusa

most companies offer index trading

but perhaps not on the basis of this company

but the simple answer then is - yes - their fee is way too high

and the fact that this company is an unknown source with no affiliation with any substantial financial entity may give you cause to think about their usefulness to you

who do you already use for your trading?
 
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balusa

Junior member
23 0
thanks, stevert
No, I am not trading with any company at present. Can you advise me the ones that offers competitive commissions on indices (Nasdaq and S&P are my favorites). Thanks again.
 

stevet

Established member
917 5
balusa

if you want to trade indicies - the best way is with futures brokers - i dont want to recomend anyone in particular but there is one who has a great deal for retail traders with a fee of less than $5 per round turn, and there are others who do charge more, but that will hold your hand a bit more

but for sure as you are starting out by the sound of it as you dont already have someone you are trading with - you might do best to trade with spreadbetting - and i dont do that so cannot recommend any of them - but again i am sure you will get some validations from others on here and then just check them out for yourself
 

Naz

Experienced member
1,391 24
If you really want to get down and trade some US indicies why not think about doing it without any spread and without any bias.Whilst getting filled in the blink of an eye with fantastic liquidity.Try the diamonds.Here is the screen,you'll notice there is no spread.
 

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Naz

Experienced member
1,391 24
Here was a decent entry today,one that i posted live elsewhere.
 

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Naz

Experienced member
1,391 24
Paying spreads and having spread betters bias can cost you up to 20 points.Trading the diamonds you can do the same trade and loose nothing in slippage.
Here's what happened today.
 

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