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Spread Betting Laboratory Discuss methods and techniques for spread betting and CDFs

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Old 02-01-2011, 11:26 AM   #17

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Re: Spread Betting a Scam

ProSpreads advertise 'direct market access style trading' on Futures etc, and the couple of people I know who trade it for real say it's very good. Their FX trading runs on a Currenex system (which as I understand it means trading being matched amongst traders, with banks supplying liquidity as required - is that correct?). They had plans to introduce Mini lots in FX, but that's not available yet. So it's kosher trading, not 'bucket shop', with fast execution and no requotes. Their FX spreads are somewhere between spot FX ECN account rates (but no separate commission) and spot FX 'bucket shops', so you pay a pip or two spread to get the tax advantages of spread betting. You do have to trade full FX lots and futures contracts with ProSpreads, so you'd need a healthy account balance, good money management, and proven trading methods.

Of course, If you're not making more than your personal CGT allowance (which is 10,100 single, 20,200 couple), or otherwise using your GCT allowance every year, there's no point in opening a spread bettting acount for the tax advantages. If you're just doing it for a bit of fun and don't mind losing a little, you can open 'bucket shop' spread accounts with very small sums - but in that case, why not just get a free demo FX account and paper trade? You'll have more beer money left that way.

By the way, I haven't yet seen a forum post which suggests that the writer has started with a very small spot FX or spread betting account and grown it to the point where they're now making a living trading., without introducing capital (starting with $500 then adding $50K from your bank is easy, IF you have that $50K). There must be such people out there, and I'd be encouraged to hear they've achieved that - because my researches in the last few weeks tend to indicate that the vast majority of active small spot FX and spread bet traders either blow their accounts, or don't manage to grow them quickly enough, because the odds are stacked against it one way and another. Have any of you managed it?

Max
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Old 05-05-2011, 11:29 PM   #18



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Re: Spread Betting a Scam

Spread betting is not a scam, its just a tax-exempt 'professional trading' version of gambling at the casino ... but hey people will speculate on anything! When is it coming state-side???

MMS
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Old 05-06-2011, 01:22 PM   #19

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Re: Spread Betting a Scam

what makes it professional? they can give you whatever price they want.

And if you are good - they'll close you down.
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Old 05-07-2011, 01:39 PM   #20

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Re: Spread Betting a Scam

Quote:
Originally Posted by maxr »
ProSpreads advertise 'direct market access style trading' on Futures etc, and the couple of people I know who trade it for real say it's very good. Their FX trading runs on a Currenex system (which as I understand it means trading being matched amongst traders, with banks supplying liquidity as required - is that correct?). They had plans to introduce Mini lots in FX, but that's not available yet. So it's kosher trading, not 'bucket shop', with fast execution and no requotes. Their FX spreads are somewhere between spot FX ECN account rates (but no separate commission) and spot FX 'bucket shops', so you pay a pip or two spread to get the tax advantages of spread betting. You do have to trade full FX lots and futures contracts with ProSpreads, so you'd need a healthy account balance, good money management, and proven trading methods.

Of course, If you're not making more than your personal CGT allowance (which is 10,100 single, 20,200 couple), or otherwise using your GCT allowance every year, there's no point in opening a spread bettting acount for the tax advantages. If you're just doing it for a bit of fun and don't mind losing a little, you can open 'bucket shop' spread accounts with very small sums - but in that case, why not just get a free demo FX account and paper trade? You'll have more beer money left that way.

By the way, I haven't yet seen a forum post which suggests that the writer has started with a very small spot FX or spread betting account and grown it to the point where they're now making a living trading., without introducing capital (starting with $500 then adding $50K from your bank is easy, IF you have that $50K). There must be such people out there, and I'd be encouraged to hear they've achieved that - because my researches in the last few weeks tend to indicate that the vast majority of active small spot FX and spread bet traders either blow their accounts, or don't manage to grow them quickly enough, because the odds are stacked against it one way and another. Have any of you managed it?

Max
I'm in a similar situation, and decided to trade futures. Why not trade a transparent market if you can?
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Old 05-21-2011, 05:46 PM   #21

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Re: Spread Betting a Scam

Check out Bobokus and Lance Beggs if you really want to learn how to be a successful trader
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Old 06-14-2012, 08:38 PM   #22

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Re: Spread Betting a Scam

Spread betting is a legitimate form of financial trading. Get the market direction right and you make money - their prices mirror the market. Is that so hard/complicated? Yes because getting the market direction right is hard.
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Old 06-15-2012, 11:32 AM   #23

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Re: Spread Betting a Scam

Its certainly not for the faint-hearted, but its fine as long as you understand the risks, leverage and use a reliable and established company to set up an account with. I've used IG markets for years and never had any problems (although I did lose out quite heavily on the "flash crash" when it happened as my stops were wiped out.
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Old 06-16-2012, 09:52 AM   #24

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Re: Spread Betting a Scam

Quote:
Originally Posted by MadMarketScientist »
Spread betting is not a scam, its just a tax-exempt 'professional trading' version of gambling at the casino ... but hey people will speculate on anything! When is it coming state-side???

MMS
Frankly, I can 't understand why the US hasn't embraced it. The whole reason that it is tax free in the UK is because most traders lose money, and it's better for the Inland Revenue to forego taxation on a handful of successful accounts rather than allow deductions for thousands of unsuccessful accounts. Surely that would also be a preferable scenario in the US?

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