Commission Free Trading

Many people in the UK trade CFD's, or worse - spreadbet.

For those who trade intraday the above methods are suicidal because of the wide spreads and (spreadbetting) biased prices.

More people in the UK are looking at Futures trading (narrow spreads) and the use of US brokers such as Interactive Brokers.

Interestingly, in this so called global financial environment, the so called Investment magazines rarely discuss Futures trading, let alone the use of lower cost US brokers.

Either UK brokers wake up and compete with US brokers for the growing army of UK traders, or they go the way of UK motorcycle manufacturers who stuck their heads in the sand during the onslought of competition from japanese motorcycle manufacturers.

Interactive brokers ( UK ) have placed one or two ads. in mags. I would not be surprised if more US brokers followed.

We may even see magazines devoted to the trader like those in the US.

Markets - seems that many UK people trade the FTSE, DAX,Eurostoxx50, SP Mini's, US shares. The Dax has more volume than the FTSE.

It's complicated and tiresome moving funds to the US. What we need is a US style broker in the UK, so we can deposit funds here in the UK with the broker. The nearest we have to low cost dealing is http://www.easy2trade.com, but they only trade european markets.

Ah..I feel better now

:)
 
www.easy2trade.com Have to wait for CME and CBOT ...

BTW, One-off Account set up charge £50 / €80. Simply ridiculous ! :p

Initially allowing clients to trade both Financial and Non-Financial Futures and Options on the LIFFE and Eurex derivatives exchanges, we are currently expanding our service to include access to the CME and CBOT as well as developing our business to include CFDs, equities and FX into the portfolio of products on offer.
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My advice, and in this case it's worth more than 2 cents is the following.

Never ,ever, ever, trade a non regulated market, or an off exchange product, unless the counter party is a LARGE MONEY CENTER BANK!

If trading an exchange traded future or option never deposit funds with anyone who is not a CLEARING MEMBER of a reputable global exchange!
 
Originally posted by SethArb

personally I sometimes trade USD / EUR on the cme with tight spreads and I only pay $4.80 RT
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Would you like to share with us exactly which cme contract has tight spreads? (Unless you consider 50 basis points a tight spread.)
 
Release: #4611-02
For Release: February 27, 2002

GCI and Vazquez Illegally Offered Forex Investments on Website;
CFTC Settlement Order Requires Them To Cease Forex Operations

The CFTC also today filed and simultaneously settled an administrative action against Global Capital Investment LLC (GCI) of New York, New York and Mitchell Vazquez of Wilton, Connecticut, finding that they had offered illegal forex futures and options contracts to retail investors. The CFTC order issued against GCI and Vazquez, president of GCI, finds that from late 1999 through at least October 2001, GCI and Vazquez sold illegal forex futures contracts to retail customers through a website. On that website, GCI stated that they transacted nearly $2 billion per month in “spot foreign exchange” and invited customers to trade through GCI’s Internet trading platform. Contrary to their claim, the order finds that they were offering forex futures contracts. The order also finds that from at least December 21, 2000 through March 2001, GCI and Vazquez also solicited customers to enter into illegal forex options transactions. According to the order, the forex futures and options transactions were consummated off-exchange, i.e., not on a contract market or a derivatives transaction execution facility, designated or registered by the CFTC. The order finds that GCI and another forex entity acted as the counterparties to the forex futures and options contracts with the retail investors but were not lawful counterparties under the Commodity Exchange Act, as amended by the CFMA.

The CFTC order requires GCI and Vazquez to cease and desist from further violations of the CEA and CFTC regulations, imposes a $100,000 civil monetary penalty and requires them to comply with undertakings. Among other things, they undertake not to seek or claim exemption from registration with the CFTC for five years, not to engage in forex futures and options business for or on behalf of U.S. customers or cleared or conducted in the U.S. for three years, and to cease all current foreign currency operations. GCI and Vazquez recently represented that they have ceased operations and returned all customer funds in accordance with the terms of the order. In settling the action, GCI and Vazquez neither admit nor deny the findings in the order.
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Source: www.cftc.gov/opa/enf02/opa4611-02.htm
And More: www.cftc.gov/enf/enfcomplaints.htm
 
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