CFDs anyone?

[tarnor]

Hi,
Looking at changing my online broker to one that has a stop loss facility and was also hoping to be able to do some shorts. I can't seem to find any that allow short selling but have noticed that you can do this with cfd's. Reading a little about cfd's i'm almost sold on the idea and thinking about having a small amount of my capital in cfd playing with the big leverage, just for those times when your onto a sure thing...

Was just wondering if anyone here has been using cfd's and whats been your approach?.. Is thier anything you would of done differrently. how useful is it for short selling etc? Any bad experience etc.. seems you could get burned pretty bad if your not careful...

 

[It's Snake Pliskin]

Re: CFD's anyone?

Tarnor,

Go to the Etrade site and they have information on CFD's. They also have stoploss facilities.

I'm sold on the CFD trading but have yet to start. Still more research to be done and chosing brokers.

From what I 've read so far, Etrade might be the one I go with.

 

[Would Be Trader]

Re: CFD's anyone?

Hi,
Looking at changing my online broker to one that has a stop loss facility and was also hoping to be able to do some shorts. I can't seem to find any that allow short selling but have noticed that you can do this with cfd's. Reading a little about cfd's i'm almost sold on the idea and thinking about having a small amount of my capital in cfd playing with the big leverage, just for those times when your onto a sure thing...

Was just wondering if anyone here has been using cfd's and whats been your approach?.. Is thier anything you would of done differrently. how useful is it for short selling etc? Any bad experience etc.. seems you could get burned pretty bad if your not careful...

I have been using CFD's since May this year with good results. My advice is to focus not only on the choice of stocks (I've been using ASX 200 only stocks) but even more importantly the use of stop loss and money monogement. As far as brokers is concerned I have been using Sonray (www.sonray.com.au). I have been impressed with their openess and customer service. They edge themselves on any CFD you buy or sell so your win it is not going to be their loss, as it is the case with some CFD's brokers.

 

[wayneL]

Re: CFD's anyone?

There was a great article on CFD's in the currents Shares Mag. Comparing providers etc.

My concerns with CFD's are:

1/ security of capital - access to the providers financial records

2/ transparency of prices - direct access

Both seem to have been answered by the more recent companies to join the fray.

Maquarrie, IG, and Etrade are who I'd choose from....(and may just be doing)

Cheers

 

[mit]

Re: CFD's anyone?

I admit I haven't read the latest review but Shares Mag has run reviews various times and each one I have read seems to be an advertisement and doesn't list the downsides.

MIT

 

[wayneL]

Re: CFD's anyone?

I admit I haven't read the latest review but Shares Mag has run reviews various times and each one I have read seems to be an advertisement and doesn't list the downsides.

MIT

Hmmm, yes. This seems a bit more balanced but as you say, downsides are scarcely mentioned.

On further research I have deleted IG, leaving Macbank and Etrade/Man. I like Macbanks approach...non tricky, straight out and fair dinkum.

But I'll prolly stick with what I'm doing anyway. I'm finding it difficult to better trading yankee futs and stocks. It's just the nightshift which can get to you sometimes.

 

[Milk Man]

Re: CFD's anyone?

Hmmm, yes. This seems a bit more balanced but as you say, downsides are scarcely mentioned.

On further research I have deleted IG, leaving Macbank and Etrade/Man. I like Macbanks approach...non tricky, straight out and fair dinkum.

But I'll prolly stick with what I'm doing anyway. I'm finding it difficult to better trading yankee futs and stocks. It's just the nightshift which can get to you sometimes.

Not enough light entering through your retinas will make you depressed. Do a search on the winter blues to see exactly what I mean. If your feeling it then maybe make sure youve got real bright light globes in your trading area. Or get some maccas signs; nothing like bright plastic McF..... as Rodney Rude would say .

 

[It's Snake Pliskin]

Re: CFD's anyone?

Hmmm, yes. This seems a bit more balanced but as you say, downsides are scarcely mentioned.

On further research I have deleted IG, leaving Macbank and Etrade/Man. I like Macbanks approach...non tricky, straight out and fair dinkum.

But I'll prolly stick with what I'm doing anyway. I'm finding it difficult to better trading yankee futs and stocks. It's just the nightshift which can get to you sometimes.

I've chosen E-trade. They have all the stop loss facilities which may be of importance when leveraging and direct pricing.

 

[wayneL]

Re: CFD's anyone?

I've chosen E-trade. They have all the stop loss facilities which may be of importance when leveraging and direct pricing.

Etrade has the advantage of being able to trade FPO's and options from the same platform, I gather. Both Macbank and Man/etrade look to have a great product.

MAcbank will apparently talk turkey with high volume traders with regards to commisions.

I like the webiress platform etrade is using a lot, but I still like the way macbank does business...its a tossup.

 

[It's Snake Pliskin]

Re: CFD's anyone?

Etrade has the advantage of being able to trade FPO's and options from the same platform, I gather. Both Macbank and Man/etrade look to have a great product.

MAcbank will apparently talk turkey with high volume traders with regards to commisions.

I like the webiress platform etrade is using a lot, but I still like the way macbank does business...its a tossup.

I considered Macquarie, but Etrade opens up a bank account with the ANZ giving 5.25% interest for over $100,000. I only get 4.75%(or there abouts) with HSBC. Macqauries cash trust only gives 5% I think. The bank account is opened up for me and then I just transfer funds and start going for it. Plus you have the security of knowing your money is kept with a big four bank, rather than some small CFD provider who may not be transparent.

Yes macqaurie will talk to any trader who trades a lot to reduce fees etc. this doesn't apply to me at the moment.

Regards
Snake

 

[tarnor]

Re: CFD's anyone?

Thanks alot for the information all, very helpful.. etrade would be a good way to go for me since i want to ditch my current broker anyway(st george). The article in Shares was useful also..

My main reason for wanting access to cfd's is for shorting stocks, I guess the available stocks to short would change with each cfd providers.. But would be basically similar?? because this might be an important factor to consider also..

 

[tigeroz84]

Re: CFD's anyone?

They edge themselves on any CFD you buy or sell so your win it is not going to be their loss, as it is the case with some CFD's brokers.

Hi all, a newbie here. I've been reading posts on CFDs but can't seem to understand why your wins become the CFD providers' losses and thus they will make it difficult for you to execute trades etc? Can you please explain what the CFD providers do with the shares whenever you take up either long or short CFD positions? Thanks

 

[chemist]

Re: CFD's anyone?

On further research I have deleted IG, leaving Macbank and Etrade/Man. I like Macbanks approach...non tricky, straight out and fair dinkum.

What have you got against IgMarkets? their commission is the lowest if you deal in volume.

cheers,
chemist

 

[wayneL]

Re: CFD's anyone?

What have you got against IgMarkets? their commission is the lowest if you deal in volume.

cheers,
chemist

Commission is only one aspect, however the point is now redundant as far as I am concerned. I have decided against trading CFD's.

 

[Bobby]

Re: CFD's anyone?

Commission is only one aspect, however the point is now redundant as far as I am concerned. I have decided against trading CFD's.

Just need to know your thoughts of why ( redundant ) regarding CFDs.

Bob.

 

[Dollarman]

Re: CFD's anyone?

Hi Yep have been looking@cfds-Thinking of going to day semins.Mac bank
and perpetual hold them.has any1 experiensed?Yes no one seems to talk about downside.me interested in hoe much interest rate bites in. :

 

[wayneL]

Re: CFD's anyone?

Just need to know your thoughts of why ( redundant ) regarding CFDs.

Bob.

Hey Bob,

Was looking into them for trading the ASX, but being resolutely nocturnal, I went back to the US.

I prefer options and futures for that market. Nothing against CFD's in any way. ( although I am highly suspicious of certain providers )

Cheers

 

[RichKid]

Re: CFD's anyone?

Hey Bob,

Was looking into them for trading the ASX, but being resolutely nocturnal, I went back to the US.

I prefer options and futures for that market. Nothing against CFD's in any way. ( although I am highly suspicious of certain providers )

Cheers

You're kidding, so back to the last empire Wayne? As the night sets in you set out....into the depths...you must have been a bat or owl or something in a previous life ?? Guess it'll be good for mod work as I prefer not to have the night shift...so be warned folks, 24hrs surveillance on ASF!


btw Wayne, which ones did you think were the most reputable CFD spruikers when you did your research? Things will probably change once Comsec comes on board, the market dynamics would be different.

 

[Bobby]

Re: CFD's anyone?

Hey Bob,

Was looking into them for trading the ASX, but being resolutely nocturnal, I went back to the US.

I prefer options and futures for that market. Nothing against CFD's in any way. ( although I am highly suspicious of certain providers )

Cheers

Hullo Wayne,

Thought you gave up the nightime stuff, but its your choice of how to make a $ buck ( your good at it ! ) understand .

Yep out of the 8 major providers, there is some that worry me !!

Take care Bob.

 

[phoenixrising]

Re: CFD's anyone?

Man are upgrading their software (webiress)

Including shortly,

CFD's on Japan top 500 TSE

CFD's on top Hong kong 200 SEHK

NZ top 20 on NZX

Singapore top 50 on SGX

US and Europe later in year

SFE Futures SPI 200 + SFE listed futures (requires separate account)

Cheers