As a novice, I've been having a play around with a demo cfd centurion account at kinetic securities. From what I've seen this looks pretty similar to other similar accounts from IG markets and CMC markets. (Is that an accurate call? Should I be using one of these or something else? I'm hoping to eventually be able to trade indicies such as the SPI, DAX and S&P)
Anyhow, I've noticed that when trading, the spreads on the futures markets are a lot larger than the cash markets. eg:
Germany 30 - 2 pt spread
Germany 30 Forward - 6 pt spread
US SPX500 ($50 mini contract) - 0.7 pt spread
US SPX500 Forward ($50 mini contract) - 1 pt spread
As I see it, the larger the spread, the harder it is to make a profit. Is there a reason I should be looking at trading the futures rather than the cash charts, when they are more expensive?
I realise these aren't cash charts as such - but are created by the market maker based on the cash charts - is that right too?