Tradinglab Benchmark Certificates

[jls483]

I've been looking at TradingLab Benchmark Certifiates as an alternative to an I-shares ETF.

The advantages (according to TradingLab) are as follows:

- There is no management fee with a benchmark certficate

However - from what I can see the disadvantages are more serious:

- the spread of T903 is equivalent to about 30 or more points of the FTSE, whereas ISF is normally about 5-10 points of the FTSE.

Am I missing something, is this large spread unusual or are benchmark certificates not as fab as the marketing blurb makes out.

Thanks,

John.

 

[volatileN]

I've been looking at TradingLab Benchmark Certifiates as an alternative to an I-shares ETF.

The advantages (according to TradingLab) are as follows:

- There is no management fee with a benchmark certficate

However - from what I can see the disadvantages are more serious:

- the spread of T903 is equivalent to about 30 or more points of the FTSE, whereas ISF is normally about 5-10 points of the FTSE.

Am I missing something, is this large spread unusual or are benchmark certificates not as fab as the marketing blurb makes out.

Thanks,

John.

They are an OTC product aimed at the private (and therefore exploited for perceived ignorance) client market. They are of course an utter rip off.