Both offer about the same leverage in stocks, indices ETFs CFD. 10X to 20X... For CFDs, you keep all your own profits. No middleman & prop firm gurus to interfere. Whats the advantage of trading thro' a prop firm? Care to enlighten?
prop firm advantages are 1.commissions (at least 4 times lower) 2.all stocks available (CFD only offers a limited number of stocks) 3.professional platfoms (cfd only offer basic and slow platforms)
I can't comment on prop firms, so i can't compare. I would be interested in a comparison of you could provide one. I can get commission free CFDs, as well as $5, $10 and 0.01% brokerage. Number of stocks is no problem, as all liquid stocks are available. I only trade highly liquid stocks. Illiquid are available but the margin becomes too high, 80%+. Platforms only need provide me with a blotter to place orders, I don't use any of the other features. pneuma
Aust CFD providers: Marketech provide free and $5 Most others are $10 or 0.1% see http://compareshares.com.au/CFD_costs.php Now I've shown you mine, can someone please tell me about prop firms. pneuma
Marketech... interesting, thanks. as for prop firms search in the forum... I'm not in one yet. basically they are for day trading, that's why commissions and platform performance are so important, while CFD are best for swing or position trading.
ok, for what I understand commissions in prop firms or LLC or sub-LCC... are 0.003>0.005 per share, depending on volume. With CFD (igmarkets) I pay 0.02 per share for US stocks and 0.1% for Europe. 10$ is the minimum commission.