Scalping Indicies via CFD or Futures - your preference?

toby400 · Nov 20, 2021

Based in the UK I have scalped Micro Dow as an introduction to Indices. However, using a CFD provider ( that promised narrow spreads) I find that as I execute a trade I am immediately down 11 points or more ( slippage?)
Would I get a better experience trading Futures (Micro Dow) via a Futures broker in the USA such as Tradestation or Tradovate etc?
I use a one minute time frame for scalping.

nooby_mcnoob · Nov 20, 2021

CFDs seemed to me to be a scam. I dabbled, but futures won out.

traider · Nov 20, 2021

You can just compare the trading costs and make a decision. This is the easier part of trading

toby400 · Nov 20, 2021

nooby_mcnoob said:
CFDs seemed to me to be a scam. I dabbled, but futures won out.

Why did Futures "win out." Can you elaborate with examples please?
Thanks

toby400 · Nov 20, 2021

traider said:
You can just compare the trading costs and make a decision. This is the easier part of trading

And the costs are?
Thanks

jbt · Nov 21, 2021

toby400 said:
Based in the UK I have scalped Micro Dow as an introduction to Indices. However, using a CFD provider ( that promised narrow spreads) I find that as I execute a trade I am immediately down 11 points or more ( slippage?)
Would I get a better experience trading Futures (Micro Dow) via a Futures broker in the USA such as Tradestation or Tradovate etc?
I use a one minute time frame for scalping.

CFD Dow should be 3 off market hours 1.5-2 on market hours. If your are trading 11 wide - you are using a very bad broker

traider · Nov 21, 2021

toby400 said:
And the costs are?
Thanks

brokers comms and bid ask spreads

Overnight · Nov 21, 2021

jbt said:
CFD Dow should be 3 off market hours 1.5-2 on market hours. If your are trading 11 wide - you are using a very bad broker

Indeed. There's probably a reason CFDs are not allowed to be traded in the US. Maybe this is one of those reasons?

maxinger · Nov 21, 2021

toby400 said:
Based in the UK I have scalped Micro Dow as an introduction to Indices. However, using a CFD provider ( that promised narrow spreads) I find that as I execute a trade I am immediately down 11 points or more ( slippage?)
Would I get a better experience trading Futures (Micro Dow) via a Futures broker in the USA such as Tradestation or Tradovate etc?
I use a one minute time frame for scalping.

If you day trade CFDs, you wouldn't be able to earn $$$$.
the very wide narrow spread will kill you.