"Relatively honest" Spread Betting/CFD Firms

Quote from local_crusher:

As title says, I'm trying to collect here names of "spread-betting" or CFD based trading firms.

Of course it is in fact a contradiction in terms. However, maybe we can find out a few names with whom at least some basic swing trading (days, weeks) is possible.

The firms should be based in US or Euroland, be somewhat regulated and offer all major markets (equities, bonds, currencies and commodities).

So far, I'm thinking of MAN UK, maybe CMC markets and GNI.

Regards
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CFDs and "spread bucketing" are bucketing.

Only fools invest in bucketshops.
Yeah, you heard it right, FOOLS.
 
the dealer provides liquidity in CFD products. they are making the market.. and also your broker, which creates a potentially dangerous contradiction most traders with enough capital don't want to mess with.

so, in other words, there is as much as liquidity as you can get with your capital limits at a given price, but it is supposed to track the price movement of an underlying (e.g. EBS or Reuters Spot fx quotes or some other mystery formula).

Rumor is many of these otc/'bucket-shop' companies shake you out and take your money, well so do the specialists on the nyse, so welcome to trading...

í have accounts with two different of the largest otc spot fx brokers and i have never once got ripped off, except by myself by not sticking to my plan on a trade |!!

peace
 
Quote from TraDaToR:

I have a question. I don't know about CFDs.

Can you provide liquidity on those products?

I guess not.
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also, if you meant by "add liquidity" like get a rebate by getting hit/lifted... none that i know of

With some of the brokers that are running ecn-style platforms (e.g. oanda) it is benificial to put up orders, so you can get the best price, but you get no rebate whatsoever.
 
I know these guys have a bad rep but they are probably OK if you understand the advantages and disadvantages of using them.

I trade indexes with CMC markets and use IG Markets for FX. They are good for me as I live in New Zealand and it gives me simple real time access to a large number of markets.

Have had no problem trading the S&P with CMC prices seem to reflect the underlying market without being exact. A close approximation to futures markets I think.

Also you can trade very small quantities which is useful for testing strategies.

CMC widen the spreads to 50pips on their currency pairs for no apparent reasons so I wouldn't recommend them for FX.

IG Markets have a fixed spread but lock down trading during periods of high volatility. Which I prefer to the widening of the spreads.

With the extreme leverage offered [which increases their interest income] it is easy for traders to become over leveraged and get wiped out, usually blaming stop hunting or the provider for some reason.

Goldman Sachs owns 10% of CMC, I don't know if that's a good thing or not.

You can get ripped off by any number of people in the financial markets I don't think these guys are any better or worse than other financial service providers.

There is less risk as with the extreme leverage you don't have to hold much in your account so if they belly up or get Madoffed, you will only lose a fraction of the value of your portfolio.

I pay interest at USD rates +2% and have my spare cash earning 5% in the bank.

IG Markets get their data from IT Finance, CMC used to but I'm not sure where it comes from now and is not as reliable as it used to be.

Hope this helps.
 
Quote from crgarcia:

CFDs and "spread bucketing" are bucketing.

Only fools invest in bucketshops.
Yeah, you heard it right, FOOLS.
More...

I have been on the search for a Good honest all round CFD broker for a while and found the GCI Financial to be quite good, But I am still searching.
 
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