URGENT: starting Spreadbetting?

[charliechan]

lads, i got a plan.

i want to start a spreadbetting company.

how much money do i need?

how long is the process (fsa regulation)?

i think i can the software from these people: www.aieralcommunications.co.uk

what else do i need? (appart from a dolly bird to answer the phone while i smoke a cuban - or something else )

im serious about this.

as time goes on i see there are no end of people wanting to open a sb account and then getting badly burned. its free money and im gonna get my share. its gotta be easy money if ever there was such a thing.

t2w'ers will get a free £1000 when they open an account of £2000 or more - but you cant withdraw the £1000 for 6 months. remember: every penny you make is tax free - YOU CANT LOSE!

what you people think? any helpers?

cc

 

[wasp]

I'm in, seems a much easier way to earn a living!

 

[Priceman]

So all the money I have given to finspreads and CMC before I had a proper system I will not get back now that I do have a very good system and lots of discipline ?

Coz they owe me bigtime and it will be mine again !

 

[dc2000]

one problem I forsee is you will have to shell out mucho wonga on data feeds for the prices

unless of course you just make them up

 

[Splitlink]

lads, i got a plan.

i want to start a spreadbetting company.

how much money do i need?

how long is the process (fsa regulation)?

i think i can the software from these people: www.aieralcommunications.co.uk

what else do i need? (appart from a dolly bird to answer the phone while i smoke a cuban - or something else )

im serious about this.

as time goes on i see there are no end of people wanting to open a sb account and then getting badly burned. its free money and im gonna get my share. its gotta be easy money if ever there was such a thing.

t2w'ers will get a free £1000 when they open an account of £2000 or more - but you cant withdraw the £1000 for 6 months. remember: every penny you make is tax free - YOU CANT LOSE!

what you people think? any helpers?

cc

Charlie, you'll never make money like that. You sound positively dodgy to me. I wouldn't sign up.

How does someone with a few hundred quid get to trade? Are you trying to squeeze them out of making a few bob?

I get it! You are trying to tell people not to spreadbet! It's Sunday and you've been to church.

I think that you should tell the alternatives, because that is what the majority of spreadbetters want to know. They either bet or do nothing. It's no good telling people that they are going to lose their money because the chances are that they would lose it with the brokers, anyway.

And, for the few people who do not fail, what are you going to tell them? Not to spreadbet?

I think that you are on a losing wicket, Charlie. If it's not the gee-gees, it's got to be football, lotteries. Gamblers will always be with us and there will be others who take their money. That's the way it goes.

Besides, you mustn't call yourself a spreadbetter. Have a look at IG- they are known as general financers.

Split

 

[charliechan]

Charlie, you'll never make money like that. You sound positively dodgy to me. I wouldn't sign up.

How does someone with a few hundred quid get to trade? Are you trying to squeeze them out of making a few bob?

I get it! You are trying to tell people not to spreadbet! It's Sunday and you've been to church.

I think that you should tell the alternatives, because that is what the majority of spreadbetters want to know. They either bet or do nothing. It's no good telling people that they are going to lose their money because the chances are that they would lose it with the brokers, anyway.

And, for the few people who do not fail, what are you going to tell them? Not to spreadbet?

I think that you are on a losing wicket, Charlie. If it's not the gee-gees, it's got to be football, lotteries. Gamblers will always be with us and there will be others who take their money. That's the way it goes.

Besides, you mustn't call yourself a spreadbetter. Have a look at IG- they are known as general financers.

Split

moi?

dude - im as honest as a summers day is long.

im deadly serious about this. i think a spread betting company is a great idea. people with a few hundred quid will be more than welcome to trade - they just wont get the $1k bounty that i am kindly offering.

i am in no way on a sunday moral bashing crusade. i think spread betting is a great way to get involved in the markets and learn some basics - especially at my sb company (or the company i will form). remember, its tax free! there are THOUSANDS of t2w members who spreadbet on a regular basis every day. they cant all be wrong can they?

i like your idea though - general financiers of course will be the target of my marketing campaigns, even if they do only have this months rent money with which to open an account. general financiers are of course also known to enjoy sporting events, so, being one who listens to my customers, i will of course offer my general financiers a full suite of sporting events so they can have the opportunity to add to their wealth - its all tax free remember.

you cant lose!

seriously - anyone know the costs involved? where do i start? anyone want to come in on this with me? im gunna call the fsa next week, and also that company that does the software. im gunna get this gig sussed by end of week.

cc luvs you all

(ps - mods - i'll notify you in due course when i have this set up so you can give me one of those vendor badges that i will wear with pride.)

 

[charliechan]

if anyone has any ideas of features/facilities they would like to see in a spread betting company, please do list them here (serious only please):

im all ears.

 

[gc1]

What about all the costs you incur:
salary for dealer(s), rent for office, lawyers fees for those customer agreements to make sure your customers can't sue you, then the time to get FSA authorisation.
I'm surprised there are enough customers to go around all the existing firms.

 

[timsk]

as time goes on i see there are no end of people wanting to open a sb account and then getting badly burned. its free money and im gonna get my share. its gotta be easy money if ever there was such a thing.
cc

Yo cc,
I've followed your rant against SB Co's and I'm grateful that you and others make the points that you do. It's important that the downside be spelled out in black and white for the the unwary. However, I suspect that you've already sewn the seeds of your own demise, before the project has even got off the ground. How many peeps open a SB account thinking that the markets present 'free money' or 'easy money', only to blow the lot? I should know, I've been there! To think that running an SB operation is the holy grail to riches is just as naive, I suspect. It ain't that simple and the playing field isn't (quite) as one sided as you believe it to be. That said, go ahead and prove me wrong; I'll be the first to congratulate you if you succeed. Certainly, a SB firm operated by T2W members for T2W members has merit and would be a logical derivative product that could get Sharky and the T2W hierarchy salivating with excitement!
Tim.

 

[charliechan]

good questions. i see it working like this:

it will be entirely s/w driven. no need for dealers.
office space will be minimal as i will outsource the it infrastructure - hosting is dirt cheap these days. yes i will need a lawyer to draw up agreements, but i could do that myself by looking at existing ones. like all brokerages & sb companies - they will not assume any liability for anything whatso ever, so i guess my butt is covered there. fsa authorisation will take some time though. how much does this cost anyway? guess ive got to take a couple of exams. i plan to start small at first, and build my client base of general financiers.

how many sb firms are there at the moment? how many of them have you read complaints about? i plan to open an honest, reliable, tax free service where the customer comes first. they will get great fills in a timely manner. however i will probably only offer a selection of markets to start with. stock index stuff, major fx pairs, and some commodities. i want to do this as i want to focus on key markets for the benefit of my general financier clients. i feel they will get a better service with specialisation, rather than the current 'jack of all trades' that currently ply their services.

sounds great doesnt it! i already have had 10 pm's from people saying they are looking for a new sb company that is honest and fair just like mine will be, and requesting details as soon as i set up shop.

 

[charliechan]

Yo cc,
I've followed your rant against SB Co's and I'm grateful that you and others make the points that you do. It's important that the downside be spelled out in black and white for the the unwary. However, I suspect that you've already sewn the seeds of your own demise, before the project has even got off the ground. How many peeps open a SB account thinking that the markets present 'free money' or 'easy money', only to blow the lot? I should know, I've been there! To think that running an SB operation is the holy grail to riches is just as naive, I suspect. It ain't that simple and the playing field isn't (quite) as one sided as you believe it to be. That said, go ahead and prove me wrong; I'll be the first to congratulate you if you succeed. Certainly, a SB firm operated by T2W members for T2W members has merit and would be a logical derivative product that could get Sharky and the T2W hierarchy salivating with excitement!
Tim.

thanks for the support tim.

yes i admit that i used to be anti-sb, but at last i have seen the light. we are allowed to change our minds arent we. if only politicians were the same!

sb is a fair and honest way to make money. the sb'er has just as much chance of making money as its tax free remember, and you dont have to pay any commission. thats why its so popular.

i will offer loads of excellent training and education for my general financiers.

i think we need to look at the issues though: 80% of people lose in any market. add to this the spread. if the average share or stock index rises at 4% per annum, and the spread of the share or index product is 1%, then one only needs to buy and sell once a year, and half your profit is gone! so, i just need to make sure im on the opposite sides of the publics trades (the 80%) AND capture the spread of the winners. simple innit! its like these folk thinking they are clever writing options all day, thinking they have an edge knowing 80% of options expire worthless. its just another trading fallacy, cos any premium you get to keep is wiped clean out + some more as soon as you get a loser. selling options is like cutting your profit on 80% of trades, and running your losses. its another example of the publics errors which i shall profit from nicely - being on the other side and all.

 

[charliechan]

one problem I forsee is you will have to shell out mucho wonga on data feeds for the prices

unless of course you just make them up

lol! exactly. all prices from any sb company is proprietary. in other words, yes i believe they do 'make them up' although they do base them around rough market prices.

this will be one of my usp's - the data that is. i dont want to give too much away because i dont want others knicking my ideas, but i can assure you, i will have better prices than any other sb company.

one thing i am thinking of doing is creating an order book so people can see how other general financiers are positioned. think of it as a sentiment indicator. of course it will be 100% transparent. all you will see is the gross position of other general financiers and either fade them, or go with them. this will be a premium service of course. think of it as a cot report for general financiers. i strongly feel that lack of market knowledge in terms of order and size placement is a key reason for failure.

 

[horse19]

It would be illegal and immoral to show your clients' positions to other clients.

 

[Tuffty]

charliechan,
Somewhere on this site is the pdf of the IG Index Prospectus when they came back to the market. It has lots of interesting info about the business model. When I originally read it I was suprised at how much of their client base they had to replace every year just to stand still (let alone expand). You may need lots of money for marketing especailly as there are a number of competitors out there. To get the branding off the ground how about contacting Mr Richard Branson to see if he will let you use the Virgin branding - it may suit your honest, straight forward approach. If he declines there is always the Easy branding. I can see it now....EasyWin Spreadbetting or Virgin Spreadbetter etc etc.

 

[the blades]

charliechan,
Somewhere on this site is the pdf of the IG Index Prospectus when they came back to the market. It has lots of interesting info about the business model. When I originally read it I was suprised at how much of their client base they had to replace every year just to stand still (let alone expand). You may need lots of money for marketing especailly as there are a number of competitors out there. To get the branding off the ground how about contacting Mr Richard Branson to see if he will let you use the Virgin branding - it may suit your honest, straight forward approach. If he declines there is always the Easy branding. I can see it now....EasyWin Spreadbetting or Virgin Spreadbetter etc etc.

or maybe just open an account yourself and gain some experience about a subject you're obviously ever so keen on

UTB

 

[charliechan]

Order book's a nice touch - a little spoofing never hurt anyone and will encourage others to trade.

The main thing that concerns me about your model (if you're serious about this and not just having a little Monday fun) is that the single most important factor to most SBers (consistent, fair execution) is the one thing that, if as you say you aren't employing any dealers, you seem to be happy to abrogate responsibility for. Either you're going to white label your pricing to another firm (that neither knows nor cares about your customers), or you're going to keep the pricing in house, but fully automated, which seems to me will mean people will just be queuing up to snipe you.

Half tempted to come in with you, but the other half of me says I should join up and be your most hated customer ;-)

Good luck matey

GJ

cheers gj.

id rather have you as a partner than a customer to be honest. i would rather have the public as my customer base than the insiders. im sure you understand why ( i want to keep it ooooh soooo simple to start with - just take the other side of retail 'traders' - probably no need to even off set heehee)

the software engine i have identified lets me skew the price - its called a slippage margin or words to that effect. see the link i posted earlier for details. its pretty neat. (its all tax free to the retail crowd remember - something they seem to luuurve for some reason)

tufty - showing customers positions is not imoral, as long as it is anonymous. i can quite happily say $x is long/short spoos at an average price of 12xx.xx. cme & cbot do release trader id's on execution (clearing details etc) in the futures industry and algorithms are built around such info - so transparency isnt in fact as transparent as some think anyhow. think of the cot report as another example. a simple figure telling you the open interest long/short of commercials, speculators, and non reportables. this is seen as useful info by some, and so i am sure my customers/general financiers will do so too. the only difference is that my info will be in real time, not a week late.

its all about how you position your offering anyhow.

im gunna get loaded!

remember £1000 free in your account if you pony up £2k plus. YOU CANT LOSE!!! (but dont tell the fsa i said that )

 

[wasp]

Do I have to make any trades, sorry, bets with you to get the £1000 or can I just wait a coupla weeks and withdraw the £3K! :cheesy: