Zero spread vs DMA discussion?

[DashRiprock]

oh. i dunno then.

 

[trader30]

so if barclays go down, you speak to FSA. if prospreads start taking the micky, you need to speak to FSC tho.

how do they make their money??!

if ftse futures are trading at a 0.5 spread on the exchange, based on the under 200 lots price that ps offer ie. 0.5 in and 0.5 out, for example, i think ps would just charge you (lets assume 6000.0 - 6000.5) 6001 on the way in and then (10 mins later at 6020 - 6020.5) 6019.5 on the way out.

so as they say they dont charge a comm, they just tack 0.5 on the underlying spread each time.

unless ive missed something (often quite possible!)

does anyone on here know of any users who actually use prospreads for decent size (200+ lots a month).

anyone? no? anyone?

 

[Jack o'Clubs]

how do they make their money??!

so as they say they dont charge a comm, they just tack 0.5 on the underlying spread each time.

You've just answered your own question.

 

[Jack o'Clubs]

The point I was making to New Trader et al, is that the issue with spreadbetting is not the spreadbet 'wrapper' but the underlying you are exposing yourself to. It will always be an OTC exposure, but there is a big difference between trading against the house where they are incentivised to beat you (or at least you have no idea whether they are hedging you out and treating it as a commission trade, or hoping you lose), and the Prospreads type model which is pure comm. Ok, so you have counterparty risk, but ultimately the Prospead model is identical to the OTC CFD trades that institutional investors use to trade UK stocks, and in my book counts as 'professional' as a platform.

 

[SanMiguel]

so as they say they dont charge a comm, they just tack 0.5 on the underlying spread each time.

yep, so they are only cheaper if you use limit orders and trade inside the spread.
The it would be worthwhile on the tax free implications vs a DMA broker in the US.
But your trading style must use limit orders.