I am thinking of going with IG for my CFD broker.
Has anyone had any experience with them?
I want to go with them because they are very reputable and have alot of choice in what I can trade.
Are there other things to consider that I and others visiting this thread might not be seeing from you more experienced in this?
I sometimes hear of CFDs on OTC - if anyone can add to that and what brokers offer such CFD trading, that could help.
With a better understanding from you more experienced at this, please add your experiences here....thanx
Before I give you my response to your question, might I direct anyone considering trading cfds to some very insightful comments on counterparty risks associated with cfd trading that may be found in the thread about ASIC's warning. In essence caveat emptor/vendor (buyer/trader beware).
I can only recount my experiences of trading with brokers and the opinions that I've formed. You will of course have to ultimately make your own decision about which broker (if any) is appropriate for your circumstances.
I was once very loyal to one cfd broker for years despite significant changes to their business practice (some of which happened to impact my trading activities at relatively short notice.)
I have used three different brokers for trading of overseas index cfd's including IG(IG index and subsequently IG markets), Commsec and City Index. My experiences with these brokers are somewhat varied and have at times highlighted the need for vigilance when trading cfds.
Whilst I still have an account with IG markets, I have not placed any trades with them since the end of the previous financial year when I decided to find another broker.
For this current financial year I have been actively (and profitably) trading with two other brokers.
I have had very positive experiences whilst trading with one of these brokers in particular (namely City Index). My trading account balance has been in an overall uptrend for this current financial year (mostly due to the success of my City Index trades). Consequently, I intend to continue trading with City Index for now. After all "the trading account balance never lies" and "if it ain't broke then don't fix it".
Should circumstances change then I shall revisit my decision and again review available options.
I have intentionally neglected to mention the direction of my trading account balance and the success/failure rates of my trading activities in the previous financial year.
Incidentally it was towards the end of the previous financial year that I decided to seek another cfd broker.
As you have probably guessed, the overall direction of my trading account balance in previous financial years and my decision to find another cfd broker were closely related.
Make of that what you will. As the old saying goes "where there's smoke..."
Each trader has their own preferred trading style and personality, i.e. one trader's instrument(or possibly broker) is another trader's waterloo, so you will of course have to make your own decision and be guided by your own trading experiences.
It may also be worth noting that it has been rumoured that some cfd brokers have been betting against the success of their clients trading activities by choosing not to fully hedge the resultant market exposure.
In my opinion, the implications of these rumours deserve serious consideration.
I apologise for being so long winded in my response and not speaking more plainly.
When I meet people in person I feel able to give answers that are blunt and straight to the point. In writing on public forums I feel the need to be a little more covert and tactful in my responses.
But if you can take the time to read between the lines you will see that there is a definite answer to your question herein.