Live trading attempt
- Thread starter rsd
- Start date
No. It's just an OTC instrument that mirrors ETF and other instruments.
The cfd of spy, it's called spy. It acts like spy, it trades like spy, it might fill entries and stop losses even better than spy , it pays no dividend and it has an overnight cost.
Have you ever heard of Google search? It's pretty good...
I did after I posted and found what I suspected...they are a garbage product for day traders with robin hood accounts lol.
CFDs are attractive to day traders who can use leverage to trade assets that are more costly to buy and sell. CFDs can be quite risky due to low industry regulation, potential lack of liquidity, and the need to maintain an adequate margin due to leveraged losses.
All that AND over night costs on your leveraged positions lol.
admin fee of around 2-3% plus the central bank's overnight rate. If they hold a short position they will still pay the admin fee of around 2-3%
And they ding you for being short too! lol.
I don't see anything wrong with Robinhood...
Big traders can sign-up to better ones, but these other beginner brokers won't rip you off and run with your money.
Cfd fees, 3% a year? if your trade last 3 days your admin fee is 0.02%?
If you are leveraged you'd pay margin rate anywhere.
IG doesn't ding you for being short, is regulated, money are in segregated accounts, charts are good, trading platform easy, you can choose guaranteed stops for a fee in spread (you are trading otc).
In the UK they even have the same protection for capital of a bank like Barclays or HSBC (85k).
Even IB offers cfd's
Big traders can sign-up to better ones, but these other beginner brokers won't rip you off and run with your money.
Cfd fees, 3% a year? if your trade last 3 days your admin fee is 0.02%?
If you are leveraged you'd pay margin rate anywhere.
IG doesn't ding you for being short, is regulated, money are in segregated accounts, charts are good, trading platform easy, you can choose guaranteed stops for a fee in spread (you are trading otc).
In the UK they even have the same protection for capital of a bank like Barclays or HSBC (85k).
Even IB offers cfd's
CFDs are traded 24 hours a day, five days a week. Trading hours are based on the underlying market's opening and closing times, meaning that trading will not take place when the underlying market is closed. For example, if the underlying market closes at 5:00 PM, trading for the CFD will close at 5:00 PM as well.Nov 10, 2023
So essentially you're holding SPY over night, leveraged with no stops? I'm all for not using stops and holding over night which is essentially the same thing ..but not if heavily leveraged where you can be liquidated.
But it's the same for spy ETF, with more leverage available but one doesn't need to use it.
For long term position it's definitely better to use Spy ETF.
In Europe, Usa ETF are not allowed to non professionals, and European etf like spy5 have high commission fees.