hi, a bit new to all this.....very keen to start CFD's and semi-opened an account with iDealing and IG markets. have read stuff that 'perhaps' they maniplulate the spread if they see people getting it right. is this true? is there any one place to go for a good read and/or insight into how this can work for the average investor (i've spend 5+ years in the traditional arena so i have a pretty good knowledge foundation).

I was looking at "Deal4free" yesterday. They make no charges for trades and no government levy, as you are not an active shareholder as such. You need their software to deal, which I tried to download but my server dumped jsut before the end (trying again today). HOWEVER, I can find no reference to the actual COST of the software - presumably deal4free get an income from somewhere, but WHERE?

Maybe they're a marketmaker and hence make money from a) the spread (which is pretty tight anyway cf. other providers) and b) positioning just like any liquidity provider in the real market. It's worth remembering nothing is for free in these markets ... !

Hi all, in response to Terod:

I am using deal4free and have been for over 2 years. they are very good, quick and their spread on FTSE is unbeatable (3pts). Their spreads in general are very tight.

Trading is truly 'free' (beside the spread)

I have tried other providers, but did not found one as good yet.

Last time I have looked at Etrade they had a 4pts spread on the FTSE and charged 10 x trade. Compare that!

Deal4free software is free and comes on CD Rom. They also send you a new CD everytime the platform is updated.The software itself is very good and allows for basic TA.

Also you can trade online using their java platform just by logging on from any PC.

The transfer of funds in and out of the account is impressively quick and so is order execution (never been requoted).

All in all, I haven't been able to find anything cheaper and as efficient.

Hope this helps

Thanks - I did wonder. I still can't believe it is all for free! But will try them

Linzimason, truly free and efficient (beside spread costs, of course).

Forgot to mention that they also let you place OCO orders (One Cancel the Other)which allow for greater flexibility. I believe not all brokers let you do that.

enjoy

Many thanks to all. i have since had a run through other recent similar threads (perhaps a bit confused now !!) and will try to digest the info.

Zarif - how are you doing with the daytrading? that too is my goal and have spent what feels a lifetime thinking about it and practicing but it seems the odds are hugely stacked against. My intention is to only (used loosely of course) trade ftse100.

Trading Shed - you've convinced me, i think i'll ditch IG and give D4F a shot. fingers crossed.

terod:
ftse100 - is alright but too slow for me.
Dow : This is the main one that i concentrate on and the volatility is there which means thhat you can be in/out of trades very quickly and ride the trends.
Ofcourse there is risk -but dont get greedy -weigh the risk/reward ratio.
Better to do small gains and the contibution will increase by the no of trades.

Lokking at Sp500 and nasdaq

Even though you do daytrading better to pay slightly higher spread and use the future quote : eg: wall st dec etc ( usually 2 point spread extra)

rgds
zarif

do you go both long and short, does one prove more successful than the other? I have gathered a lot of infomation over the months and have been fearful of the DOW for just that reason (volatility). What 'triggers' do you use? i've been concentrating of Jap.Candles with 14 day EMA, backed up by RSI, which on paper seems to work but like i say, only really focusing on FTSE100 as i don't know the DOW constituents well enough. In any case, just when i think i've got it right 'someone' pulls the rug out from under my feet - there just doesn't seem to be any rhyme/reason why the DOW/FTSE jump about against each other.

Terod
I've been on D4free for a while. I'm not so enthusiastic as Trading shed but I still recommend them. Orders sometimes take ages to fill, requotes do happen to me regularly and recently when abroad I couldn't get the web based trade system to work plus it took ages to download at an internet cafe with ADSL. D4free still seem the best around and there are plenty of volatile shares in the FTSE to keep you amused.

Whilst I agree that Deal4free are excellent, I would point out that they are not a gambling organisation for tax purposes, and therefore any gains are subject to Capital Gains Tax. Also any losses are allowable against other Capital Gains.
The other organisations all appear to be treated as "bookies" and therefore the tax is covered in the spread. Thus Deal4Free can offer tighter spreads.

have alook at a site called: indexking trades it is quite interesting

www.winning-spreadbets.com

let me know what you think of this trading tips etc.

rgds
zarif

Zarif - if you're full time, try the traders BB on this site for a while. Most of us trade full or part time too.

gausie:
Many thanks your advise I was and am going to join the traders BB. Can you tell me how much it is to join etc??? and is it worth it ( iam sure it must be from the friendliness and the decent threads etc that are posted on the inv bb
rgds
zarif

Gausie: for those of use who hope to go full-time, and wanting to join in the traders' BB, any advice as to how to jump on board, what's the etiquette regards joining threads? also, what do the majority of you do - spreads, cfd, anything 'traditional' or is all about latest techniques? I am very keen to get started but just need to hear testimonials from others that you can make a go of it. i've loads of experience with trading shares - now looking for real capital growth, with short-term, quick in/outs.

if there are any threads you can recommend my reading....

thanks.

t.