I was also skeptical of these products, but now I think that they could be a good solution to small and mid size accounts 2k up to
50 k when you want to trade index products , commodities and bond futures overnight without leverage and with the flexibility of choosing exactly your size. I realized this with Oanda, the ability to choose your size , scale in and out, can make the difference betwen profitability and unprofitability or can significantly reduce volatility in your equity.
However with everything I read on CFD providers, they all seem crooked and I wouldn't know which one to choose.
I do not know either if the fact that they are DMA or MM is relevant when you trade indices and commodities nor if it makes a big difference when you trade equities.
I see RBS uses Oanda's platform, are they fair ?
To trade CFD 's as an alternative to futures, the spreads would have to be reasonable if wider, during overnight trading , i.e. 2 am-8am ET. Where can you get those trading conditions ?
For ex. OANDA offers gold with a 30 cent spread which is reasonable but I think it widens in the middle of the night.
Also stop gunning should be a rare occurrence, otherwise you would have to do without stops which may negate the benefits of smaller size.
