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UK Spreadbet firms to be investigated by the FCA
- Thread starter Visaria
- Start date
It seems the most talented traders haven't learned much about rethorical questions, but never mind, it's a priviledge to have one of the big boys share the secret sauce on the forum. Notebook and pencil ready to jot down any more of your inspired input Xela.
So Visaria, how would you arb a cfd/spreadbetting broker, that gives you very wide spreads or hunt your stops (you know, those disaster stops, like in "they create a disaster" ) with prices that never get there in the underlying market ?
Not implying this happens with the large UK brokers btw, no experience to base an opinion on.
So Visaria, how would you arb a cfd/spreadbetting broker, that gives you very wide spreads or hunt your stops (you know, those disaster stops, like in "they create a disaster" ) with prices that never get there in the underlying market ?
Not implying this happens with the large UK brokers btw, no experience to base an opinion on.
Last edited:
So Visaria, how would you arb a cfd/spreadbetting broker, that gives you very wide spreads or hunt your stops (you know, those disaster stops, like in "they create a disaster" ) with prices that never get there in the underlying market ?
You don't. Someone said that the spreadbetting firms could give you whatever quote they liked to which i responded with the arb comment. Evidently a widening of their quote is not possible to arb. If they stop you out due to a widening of spreads, you would have to check the underlying market as to whether that actually occurred there..if not, you would have grounds for a complaint, which they do take seriously.
if not, you would have grounds for a complaint, which they do take seriously.
From what I've read in many places online, they quickly refer customers to the famous part in the contract which says "we have the right to change or alter any trade".
Its why they have such a bad vibe...... even on their website they say they have worked to fix the problems with their platform........ there wasn't anything wrong with their platform!! They had it setup that way.
Three of the leading UK forex brokers – CMC Markets, IG Group, and Gain Capital’s City Index, are forming a contract for difference (CFD) providers association as a response to the recent announcement of the UK Financial Conduct Authority (FCA) that it intends to alter the regulation of forex trading service providers. The newly-formed CFD association will facilitate brokers in communicating their concerns and worries.
Do you think they'd manage to change something?
Do you think they'd manage to change something?
the largest CFD and spreadbet provider IG have contacted customers. they have said the FCA are proposing to cut leverage to 50:1 for FX for traders who have more than 12 months 'experience'. The insane leverage available may be getting trimmed. 50:1 is still more than enough for any trader using sensible MM. my 2c.
edit - 25:1 proposed for trades with <12 months experience. I am a big beleiber in light regulation however I think capping leverage at say 50:1 across the board is a good thing.
edit - 25:1 proposed for trades with <12 months experience. I am a big beleiber in light regulation however I think capping leverage at say 50:1 across the board is a good thing.
It seems the most talented traders haven't learned much about rethorical questions, but never mind, it's a priviledge to have one of the big boys share the secret sauce on the forum. Notebook and pencil ready to jot down any more of your inspired input Xela.
So Visaria, how would you arb a cfd/spreadbetting broker, that gives you very wide spreads or hunt your stops (you know, those disaster stops, like in "they create a disaster" ) with prices that never get there in the underlying market ?
Not implying this happens with the large UK brokers btw, no experience to base an opinion on.
I think it depends on the strategy. My main strategy targets taking out the bulk of the average daily range as profit and typical stop will be 1/3rd of ADR, that doesn't mean I am shit or bust, I get out when I think I am wrong. I do see evidence in price of traders playing strategies without stops, so they will average in at select points or some will just have larger puke points. In addition a lot of this comes down to size, for the guys doing nose bleed size they are often very wary of revealing a stop.