thank you jonnysharp for your reply, I do actually trade CFD's with IFX and the prices for the cfd's that i trade are in line with the market. However i will be great if you can give us some reasons to why you will not trade CFD's ? Cheers Liri
- Commissions if your a short term trader are too expensive, my average commissions bill at Cfds had been $600 per month, for the same amount of trades at IB works out to be $85 per month. - A stock is quick moving, it takes ages to get a good fill, but when a you enter a trade and it immediately moves against you they will fill you straight away, dodgy as. - Sometimes i've had 20 - 40c slippage on US stocks, but when i caused a stir they re-filled me at my initial buy stop level, dodgy as. - I've never had positive slippage. - Shit customer service. - their total costs on each transaction for them is less than 0.01c, they charge $10 minium for under $10K worth of stock. Because they don't have per share pricing, scaling in and out of a position is NOT feasible, a critical element of game theory. - If your thinking about system trading the SPI, ES, HS, NQ, YM through cfds, think again. e.g. because cfd aussie200 doesn't mirror the SPI or the cash index, its their own pricing, good luck in getting historical data on cfd's to backtest(this one got me good). - they have all these fancy-dancy leverage to the hill products, let what a lack in execution functions, you can;t even leave a buy stop on a stock. Cfd shops are sucking in traders through window dressing, but knowing very well they have a business model similar to a casino, they have the edge on YOU.
Jonnysharp, thank you for your detailed reply. I do trade CFD's because i trade not more than 500 shares at a time and they do not charge me a min comm and also i'm on 0.15% of the deal size. Also i do not make any market orders all my orders are limit or stop orders and in my portfolio i have 8 stocks from the ftse100 and i dont trade any other markets , for dow30 i have an account with IB,
I just received an email from CMC saying they're "proud to offer Futures trading completely free of both commission and exchange fees." http://www.cmcgroupplc.com/us/futures/benefits.jsp Ok, now I'll ask the famous ol' question: What's the catch??