Are CFD providers as bad as we all think?

[Duffenator]

I have been using CFDs for a couple of years now. I am on to my second CFD provider after my first insisted on implementing an update of their charting software that was absolutely terrible (I think you know what company I am referring to)!

I find their customer service amazing...when I am asking for the forms to open an account...but not so good when I need some help.

Anyway, I thought my new provider was good. However, today, 2 things have finally gotten to me.

1. I am constantly getting re-quotes. By the time I can actually get into a position, the price has moved up to 8pts! needless to say, I do not accept any re-quotes!!!

2. I was watching a 1 min chart of the AUS200 and a large price move appeared at 11am. It was also on the SPI, so nothing dodgy about that. But then after a few more min, the SPI had a few more bars on it...where as my poor bar chart was still on this one bar with a large price range. After 5min, I finally got another bar. The time on this bar was 11:05am. For someone who looks for patterns in price, this sort of service is practically stealing money!

On the bright side, they asked me for a screen shot to look into it. No outcome from that yet.

I am becoming most frustrated with trying to trade CFD's!!

 

[James Austin]

when trading index CFDs there are a few important features to look for.

1] no requoting

2] excellent ordering system, offering both speed and convenience

3] reliable charting

4] margin, spread and commission are also factors to consider


for me, 1] and 2] are at the top of my priority list, but the others are also important

IG dont requote and have the best ordering system i have found for what i want to do and given i'm trading index minis, so i lean towards them -- having said that i do begrudgingly use CMC also.

but in the end, every provider has their inconveniences -- the objective is to sift through the lesser of the evils

james

 

[acedrum]

2. I was watching a 1 min chart of the AUS200 and a large price move appeared at 11am. It was also on the SPI, so nothing dodgy about that. But then after a few more min, the SPI had a few more bars on it...where as my poor bar chart was still on this one bar with a large price range. After 5min, I finally got another bar. The time on this bar was 11:05am. For someone who looks for patterns in price, this sort of service is practically stealing money!

I've had that happen almost everyday with IG markets. It's as though the price data stops getting through. I put it down to some sort of connection or network error. If I log in on another computer, log out then log back in, the chart seems to be back to normal.

 

[skc]

I've had that happen almost everyday with IG markets. It's as though the price data stops getting through. I put it down to some sort of connection or network error. If I log in on another computer, log out then log back in, the chart seems to be back to normal.

I think IG uses two separate feed / signal for the prices on their platform and their charting package. I have had charts frozen / missing bars at times, but it is rare on the platform. The only requotes (may be once every 2/3 month) I have had with IG were actually in my favour, so can't complaint.

 

[Duffenator]

I was with CMC - but their new charts...grrr is all I will say.

After leaving CMC, I looked at IG and GFT. IG has the charts CMC used to provide, but I wasn't a fan of the web-based charting, I like the reliability of a platform. So I went with GFT. They have, what I consider, and excellent platform. I can download the days data and save it for backtesting etc. When using the GFT demo, I didn't once get a re-quote - stupid me for thinking this would be reflected in their real platform.

I can kind of understand the need for a re-quote in a fast moving market. But today I was requoted 4 times, and the price movement was 0.5 of a tick!

I didn't go with IG cos I wasn't a fan of the $5 per tick on their AUS200. I like being able to scale in and out of positions and doing this on $5 ticks is a bit rich for me at the moment....but if they do not re-quote, then maybe it would be more beneficial! ...though the freezing charts and missing data is a bit off putting for trading on a 1min chart.


Question for IG users:Firstly I assume you trade intra day on small time scale charts (e.g. ticks, 1min etc)- and you don't have any probs with re-quotes? I am guessing you may if the market moves quickly?

 

[James Austin]

Question for IG users:Firstly I assume you trade intra day on small time scale charts (e.g. ticks, 1min etc)- and you don't have any probs with re-quotes? I am guessing you may if the market moves quickly?

in over a year, i've never been requoted index trading with IG, they tell me they dont requote, but what they do do is give you the better price if it moves in your favour b/w when you send your order and when they recieve it.

re charts,
myself, i havent had a problem with them, but at the moment am not doing the aus, only the ftse at night.

personally IG is the best i've found re index CFDs, and i've investigated quite a few providers; having said this, it does depend somewhat on your needs, eg., i like IG a lot cos they dont requote and i can also place a stop simultaneously when sending a market order. so i'm never fumbling around with stops in fast moving markets, with prices potentially getting away from me

james

 

[Duffenator]

Thanks James - some useful information!

Think i will be giving IG another look in the not to distant future!

Another question for IG users - how do you find the web based charting? Also, I remember that IG has a trading platform - does anyone use it? And how does it differ to the web based platform. If I remember correctly, an IG rep actually told me that one is DMA and one is market maker.