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Preferred CFD Providers

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YOUNG_TRADER

YOUNG_TRADER

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Hi there,
Have been looking @ CFD's for awhile now am considering giving them a go.

I have beend looking at the main 4 providers,

IG, CMC, Macquarie and Man Finanacial

As far as resource stocks go, Macquarie requires a margin of between 10% - 45% (45% almost defeats the purpose of leverage), but are obviously secure because they are backed by Macquarie and offer DMA with some GSL and shorting,

CMC seem to be the most flexible ie very little margins required, huge leverage allowed (ie lose more ) Stop losses?
They creat their own market spread? so not DMA, I gather that this is bad as they will always construct the spread so that they win long term.

I really like the look of IG markets, Very low margins on resource stocks I like, much better thnn Macquarie and they allow GSL (with slight premiums)
How have people found IG Markets, especailly their L2 DMA System?



Don't know much about Man Financial


I would be interested to know how others are finding their CFD providers, how realiable is the software, how realiabe is the provider, how quickly do they transfer funds etc etc


Thanks in advance
 
Re: Prefered CFD Providers

YOUNG_TRADER said:
Hi there,
Have been looking @ CFD's for awhile now am considering giving them a go.

I have beend looking at the main 4 providers,

IG, CMC, Macquarie and Man Finanacial

As far as resource stocks go, Macquarie requires a margin of between 10% - 45% (45% almost defeats the purpose of leverage), but are obviously secure because they are backed by Macquarie and offer DMA with some GSL and shorting,

CMC seem to be the most flexible ie very little margins required, huge leverage allowed (ie lose more ) Stop losses?
They creat their own market spread? so not DMA, I gather that this is bad as they will always construct the spread so that they win long term.

I really like the look of IG markets, Very low margins on resource stocks I like, much better thnn Macquarie and they allow GSL (with slight premiums)
How have people found IG Markets, especailly their L2 DMA System?



Don't know much about Man Financial


I would be interested to know how others are finding their CFD providers, how realiable is the software, how realiabe is the provider, how quickly do they transfer funds etc etc


Thanks in advance
Click to expand...

I use IG markets and find them to be good.I use the L2 system now (just the last week) and when I place a trade, within seconds they match your order in the depth, which is a plus as it helps the price in your direction, maybe only a slight help but we need all the small advantages we can when using CFD'S.

I haven't tried to get any of my money out yet, I have heard some horror stories about IG, whether true or not I don't know, time will tell.
 
Re: Prefered CFD Providers

"I haven't tried to get any of my money out yet, I have heard some horror stories about IG, whether true or not I don't know, time will tell.":eek:


Please tell us more ?
 
Re: Prefered CFD Providers

I heard macquarie offers guaranteed stops, i dont know maybe the others also offer this..

And i agree YT 45% leverage is a joke...

But with all those 4 CFD providers u can only get leverage on top300 companies?
 
Re: Prefered CFD Providers

nizar said:
I heard macquarie offers guaranteed stops, i dont know maybe the others also offer this..

And i agree YT 45% leverage is a joke...

But with all those 4 CFD providers u can only get leverage on top300 companies?
Click to expand...


IG Offers guaranteed stops (GSL's at a premium) I prefer Macquarie's security but also prefer CMC's tradeability/flexibility/leverage, IG seems to be a good equilibrium, ie GSL's, DMA, Good Leverage, Low Margins etc

I think I'll go with IG
 
Re: Prefered CFD Providers

I started with IG early last year, then opened with Man shortly after, when they became available.

Negatives for IG - non DMA, hard to use platform, at times of hi volatility they won,t allow trades. Eg, someone could't take OXR @ 2.94 open, IG refused last week. (I took it on Man, currently 3.50 or so)

Positives for IG - GSLO - for a premium

Positives for man - ease of use, big reputable co.

Negatives for Man - no GSLO, $10k starting cap (may be $5k now)

If talking to IG, grill them on the volatility issue, both long and short. This is where cfd's are supposed to have a big advantage, to be told no trades is not good.
 
Re: Prefered CFD Providers

phoenixrising said:
I started with IG early last year, then opened with Man shortly after, when they became available.

Negatives for IG - non DMA, hard to use platform, at times of hi volatility they won,t allow trades. Eg, someone could't take OXR @ 2.94 open, IG refused last week. (I took it on Man, currently 3.50 or so)

Positives for IG - GSLO - for a premium

Positives for man - ease of use, big reputable co.

Negatives for Man - no GSLO, $10k starting cap (may be $5k now)

If talking to IG, grill them on the volatility issue, both long and short. This is where cfd's are supposed to have a big advantage, to be told no trades is not good.
Click to expand...
Sorry but whats DMA & GSLO mean ? please.
 
Re: Prefered CFD Providers

DMA is Direct Market Access

GSLO is Guaranteed Stop Loss Order.

regards,

Rod.
 
Re: Prefered CFD Providers

YOUNG_TRADER said:
IG do offer DMA via their L2 platform
Click to expand...

What does DMA matter? AFAIK it is part of the provider's risk management system, not something that affects the prices you receive. As long as I receive market prices (+/- spread) then I don't care how the provider hedges.

:confused:
 
Re: Prefered CFD Providers

chemist said:
What does DMA matter? AFAIK it is part of the provider's risk management system, not something that affects the prices you receive. As long as I receive market prices (+/- spread) then I don't care how the provider hedges.

:confused:
Click to expand...

I disagree there Chemist.

Having IG match your order in the depth must have an effect on the price of the underlying share.It won't effect the price for you, but will effect the price thereafter as "real" shares have been purchased or sold.
 
Re: Prefered CFD Providers

HI all

I am interested in learning about trading CFD any good sites you can recommended

thanks

Michael
 
Re: Prefered CFD Providers

Porper said:
I disagree there Chemist.

Having IG match your order in the depth must have an effect on the price of the underlying share.It won't effect the price for you, but will effect the price thereafter as "real" shares have been purchased or sold.
Click to expand...

Hello Porper,

Can you elaborate more on your obove comment regarding effect on Real share price please.

Bob.
 
Re: Prefered CFD Providers

Bobby said:
Hello Porper,

Can you elaborate more on your obove comment regarding effect on Real share price please.

Bob.
Click to expand...

No problem Bobby.

I can only comment on how IG Markets works, so here goes.

With their basic platform let's say you buy 20,000 shares as a CFD in company XYZ. IG only quote the exact same prices as in the underlying share.so you buy 20,000 at the ask which is $1.00,neither you nor IG have bought any shares in XYZ, you are merely entering a contract with them.How they hedge against this I don't know, when I asked they said they try and match buyers with sellers ?? anyway going off topic now.

So in the above example you have not influenced the underlying share price one bit.

Now with their L2 dealer system (direct market access).Same scenario.You buy 20,000 shares in XYZ as a CFD, difference is this time as soon as you press the buy button they will put an order for 20,000 shares in XYZ , so you will see a buy order for a dollar in the buy depth.Obviousy this now effects the share price directly.

This is merely the point I was making in response to Chemists post.
__________________
The best way to save money is not to lose it.
 
Re: Prefered CFD Providers

Porper said:
No problem Bobby.

I can only comment on how IG Markets works, so here goes.

With their basic platform let's say you buy 20,000 shares as a CFD in company XYZ. IG only quote the exact same prices as in the underlying share.so you buy 20,000 at the ask which is $1.00,neither you nor IG have bought any shares in XYZ, you are merely entering a contract with them.How they hedge against this I don't know, when I asked they said they try and match buyers with sellers ?? anyway going off topic now.

So in the above example you have not influenced the underlying share price one bit.

Now with their L2 dealer system (direct market access).Same scenario.You buy 20,000 shares in XYZ as a CFD, difference is this time as soon as you press the buy button they will put an order for 20,000 shares in XYZ , so you will see a buy order for a dollar in the buy depth.Obviousy this now effects the share price directly.

This is merely the point I was making in response to Chemists post.
__________________
The best way to save money is not to lose it.
Click to expand...

Sure, the provider's activities may create a market impact. In fact any exposure they can't hedge internally is likely to be hedged externally (either in the physical market or via derivatives) and therefore create a market impact. How many shares in an ASX200 company would they have to buy/sell for that impact to be significant? More than the average asf forumite deals in, I reckon.

cheers,
Chemist
 
Re: Prefered CFD Providers

Porper said:
No problem Bobby.

I can only comment on how IG Markets works, so here goes.

With their basic platform let's say you buy 20,000 shares as a CFD in company XYZ. IG only quote the exact same prices as in the underlying share.so you buy 20,000 at the ask which is $1.00,neither you nor IG have bought any shares in XYZ, you are merely entering a contract with them.How they hedge against this I don't know, when I asked they said they try and match buyers with sellers ?? anyway going off topic now.

So in the above example you have not influenced the underlying share price one bit.

Now with their L2 dealer system (direct market access).Same scenario.You buy 20,000 shares in XYZ as a CFD, difference is this time as soon as you press the buy button they will put an order for 20,000 shares in XYZ , so you will see a buy order for a dollar in the buy depth.Obviousy this now effects the share price directly.

This is merely the point I was making in response to Chemists post.
__________________
The best way to save money is not to lose it.
Click to expand...

Hello again,

Thanks for that Porper, understand so far. :)

Stuffed why they have both -??

Basic Platform
L2 dealer System

What I mean is why do they run both ?
Just can't understand how they protect themselves on the basic System ?

Regards Bob.
 
Re: Prefered CFD Providers

hello,

i dont believe they hedge, these terms DMA, L2 dealer platform are all "glossy" descriptions to compliment the CFD package

how CFD's, options, futures etc can be called financial instruments or be of any use to an "investor" is beyond me

having said that, to a punter, they provide an opportunity to "punt" on shares, indices etc.

getting back to CFD providers,

I used IG Index for some time and had tuff time getting money out second time round

thankyou
robots
 
Re: Prefered CFD Providers

robots said:
hello,

i dont believe they hedge, these terms DMA, L2 dealer platform are all "glossy" descriptions to compliment the CFD package

how CFD's, options, futures etc can be called financial instruments or be of any use to an "investor" is beyond me

having said that, to a punter, they provide an opportunity to "punt" on shares, indices etc.

getting back to CFD providers,

I used IG Index for some time and had tuff time getting money out second time round

thankyou
robots
Click to expand...
Robots hi,

This is very important to me & others , Why did you have a tuff time getting your money out of them.

Don't hold back please .

Bob.
 

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