Commsec as CFD provider?

[aferguson15]

Hi all

Impressive forum.

I am new to CFD trading but have been investing in shares for quite some time, I am doing as much reaseach as possible into CFD's before i get my feet wet.
I am basically looking at trading in index CFD's only (as i see them as a safer option, correct me if i am wrong) till i get my confidence up, nothing huge.

Basically want to know peoples opinion on Comsec as a CFD broker and liquidity of Index CFD's

Apparently Comsec use the IRESS platform and by doing a bit of reading on this forum it sounds like IRESS is ok??? the main reason i am asking about Comsec is because i already trade my shares through them, but no one on here seem to be using them, why is that????

My next question is about the liquidity of Index CFD's, basically how liquid are they??? and peoples thoughts in gerneral about Index CFD trading

Any thoughts or advice would be much appreciated

 

[Glen48]

Re: Comsec as CFD provider????

I have been using GFT for awhile who had a few demo setup but I guess there are a lot of others who do the same....hard part is to make money and working when the US market is working..GFT and others give you their opinion om FX market. all the bestr

 

[Wysiwyg]

Re: Comsec as CFD provider????

Hello, are you aware Commsec offer ASX CFD's and OTC CFD's? There is a difference between the two and one may be more flexible than the other.

Which option did you take?

ASX Contracts for Difference (ASX CFDs) are a versatile and powerful investment tool for experienced investors. Unlike over-the-counter (OTC) CFDs, which are contracts traded between you and a provider, ASX CFDs are traded on a regulated public exchange, the Sydney Futures Exchange Limited (SFE) which is a member of the ASX Group of companies known under the brand Australian Securities Exchange.

 

[Wysiwyg]

Re: Comsec as CFD provider????

I'm with a dedicated CFD/DMA provider so I can't vouch for the turnover of ASX CFD's. Here is the market depth on the S&P/ASX 200 CFD. The spread might be tighter during market hours. A dedicated CFD provider allows 24 hour trading of indices.

 

[skc]

Re: Comsec as CFD provider????

Hi all

Impressive forum.

I am new to CFD trading but have been investing in shares for quite some time, I am doing as much reaseach as possible into CFD's before i get my feet wet.
I am basically looking at trading in index CFD's only (as i see them as a safer option, correct me if i am wrong) till i get my confidence up, nothing huge.

Basically want to know peoples opinion on Comsec as a CFD broker and liquidity of Index CFD's

Apparently Comsec use the IRESS platform and by doing a bit of reading on this forum it sounds like IRESS is ok??? the main reason i am asking about Comsec is because i already trade my shares through them, but no one on here seem to be using them, why is that????

My next question is about the liquidity of Index CFD's, basically how liquid are they??? and peoples thoughts in gerneral about Index CFD trading

Any thoughts or advice would be much appreciated

I wouldn't use Comsec. Expensive brokerage overall, and with ASX CFDs, bad spread and liquidity. Any old CFD providers will top them on various measures.
There is no benefit for using Comsec just because you are trading shares with them, is there?

Unless you are only trading 3 times per year, I would go with someone else. Plenty of threads here on various providers. DYOR

 

[investorpaul]

Re: Comsec as CFD provider????

I would read up on the difference between asx Cfds and over the counter cfds (market makers).

I think u will find that asx cfds (as offered by Commsec) are harder to trade due to the smaller volume. With index cfds you can be in and out of a trade every quickly and if the buyers/sellers are not there (with the asx cfds) you may get stuck.

 

[aferguson15]

Re: Comsec as CFD provider????

Thanks for the replays everyone, deffinately answered a few of my question.

Still a fair bit of homework to do but i think ill stay away from Comsec
and might have a look at a DMA CFD broker.

Thanks everyone

 

[jono1887]

Re: Comsec as CFD provider????

I trade ASX CFDs with Comsec, they do have low liquidity but theres enough for me to trade with.

 

[aferguson15]

Re: Comsec as CFD provider????

jono1887: how is the trading platform to use???? everyone on here bags the hell outa Comsec but im still thinking it might be the way to go just to start off with before moving to someone else in the future.

 

[cutz]

Re: Comsec as CFD provider????

jono1887: how is the trading platform to use???? everyone on here bags the hell outa Comsec but im still thinking it might be the way to go just to start off with before moving to someone else in the future.

Commsec's platform is not really designed for traders, don't like the trading password and an my case the lack of spread orders is a real pain.

 

[wellborn]

Re: Comsec as CFD provider????

Hello

can someone tell me what is the difference between Commsec ASX CFDs and Commsec OTC CFD ?

as I read the previous replies , it seems that when you trade ASX CFDs you have to wait your order to execute , but via OTC CFD your order will execute as soon as you click the button , is that right ?

also it seems that when you trade ASX CFDs with Commsec , you will trade via CommsecIress , but if you would like to trade the OTC CFDs they will provide you another software to trade with , is anyone here had any experience with Commsec OTC CFDs as well as Commsec ASX CFDs ?

what is the difference between for instance Commsec and Macquarie Prime , CityIndex or IG as a CFD broker rather than just the brokerage ?

aren't you more confident when going for commsec or macquarie rather than other brokers for CFDs ? (assume they are more bigger and popular like blue chips ?)

thanks in advance for your replies

 

[SmellyTerror]

Re: Comsec as CFD provider????

ASX CFDs are traded kinda like shares. That's the problem: not many people are interested in them, so it can be hard to get in and out (note that I last looked at them quite a while back, and they may be a lot better now).

OTC CFDs are created by the provider the moment you make the order. They're just a bet with the provider, so the liquidity is up to the provider's policy - usually roughly simulating the liquidity of the underlying share.

ie. when you trade OTC, 1000 BHP, you'll get a fill (roughly) when 1000 BHP trades at that price on the "real" market. If you trade 1000 BHP on the ASX CFD book, you'll get a fill only when someone else comes along and wants to trade 1000 BHP CFDs.

(...and if you trade DMA, when you order a CFD for 1000 BHP, your provider actually puts that trade on the real market, so it's filled exactly like a share trade. That's why DMA costs more).

All the brokers you've mentioned have, to the best of my knowledge, subtly different policies to encourage you to lose your money. Some won't let you place an initial stop at the same time you put in a triggered order, some won't ever let you place stops "too close" to the price, most won't let you put a limit on a triggered order (so you have to go in at-market).

All, AFAIK, charge a LOT of interest on margin, and always force you to take 100% of the value on margin, regardless of free equity. All have different lists of tradable markets, and those lists will change with no warning.

So my advice is to start some demo accounts, learn the particular bastardry each one has, and decide which you can work around. some of this stuff isn't really in the documentation - you need to get stuck in and play around on demo.

For the record, I though IGM had the nicest interface, but had some unbelievably poor fills. WebIRESS is a steaming turd, but may be improved "any day now". CMC works pretty well for me once I got my head around the interface - effectively very similar to IGM, but it seems to have better fills (must try to run parallel trades to test them some time...)


...but as long as you're going long most of the time, and 50% margin is enough, you're better off with a real broker / real trades. IB seems to be the favourite around here (and is certainly mine).

 

[wellborn]

thanks for your answer , I went with IG market because I would like to trade commodities most of the time so I think the only Commodities CFD provider is IG market , let me know if I am wrong
regards

 

[So_Cynical]

I'm wondering what sort of CFD's did Sonray trade in before they collapsed? arn't all MM, OTC CFD's just like placing a bet with a bookie?