Preferred CFD Providers

markrmau · 2 May 2006

Re: Prefered CFD Providers

robots said:
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

Of course the cfd provider hedges your position in the market.

cfd's have thier uses, but 'investment' is absolutely not one of them.

They are good for experienced traders looking for a large exposure to short term market movements.

Unfortunately, they have been marketed to the masses.

Porper · 2 May 2006

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

I have live data from another source and I can assure you that they do buy / sell the shares when you put in an order, I have watched this happen numerous time now.

I also agree that you can not "invest" in CFD'S as there is too much against you (interest the main one).However they are not only good for a "punt" either.Used for short term momentum trades they can give extremely good profits for little risk using guaranteed stop losses.

I would also like to hear anybody's experiences trying to get money out of IG Markets.I have heard from a few people that this is the negative with them.As I'm about to give them a bigger chunk of my capital it would be good to put these rumours to bed.

chemist · 2 May 2006

Re: Prefered CFD Providers

markrmau said:
...
Unfortunately, they have been marketed to the masses.

Isn't that a good thing? I mean, someone has to do the losing...

cheers,
Chemist

Seaking · 2 May 2006

Re: Prefered CFD Providers

I would also like to hear anybody's experiences trying to get money out of IG Markets.I have heard from a few people that this is the negative with them.As I'm about to give them a bigger chunk of my capital it would be good to put these rumours to bed.

I have just organised a transfer of some capital out of my IGM CFD ac back to my main trading acount and all it took was a 30 second phone call. I would be intereasted in any bad experiences as well..

robots · 2 May 2006

Re: Prefered CFD Providers

hello,

opened account with IG Index late 04(spread betting)

only small amount of money

traded DOW and SPI going short and long, mostly monthly contracts on SPI and combination of day and month contracts on DOW

checked records and this is how it went:

1. had two wins one loss, but ahead $1,000, requested money and was sent pronto

2. then a couple of months later, 7 wins & 2 losses, ahead $1,100, requested all money and took approximatelty 2 weeks, repeated phone calls

first time money was sent, my balance on the computer went to zero immediately,

second time, kept getting on logging in and balance was still there, telephoned "we will fix it up", still nothing happened

this went on for around 2 weeks

finally got onto Mathew who seems to be the spokesperson for IG, and balance went to zero immediately.

the impression I got was they wanted you to continue to "bet"

went and signed up with Tricom Futures Services, traded SPI a couple of times and have since stopped trading futures

oh yeh, I found there price would have these massive jumps now and again, around opening or closing of the SPI,

I would have 200 point stop losses to cover this

thankyou
robots

mlennox · 2 May 2006

Re: Prefered CFD Providers

Porper said:
I have live data from another source and I can assure you that they do buy / sell the shares when you put in an order, I have watched this happen numerous time now.

I also agree that you can not "invest" in CFD'S as there is too much against you (interest the main one).However they are not only good for a "punt" either.Used for short term momentum trades they can give extremely good profits for little risk using guaranteed stop losses.

I would also like to hear anybody's experiences trying to get money out of IG Markets.I have heard from a few people that this is the negative with them.As I'm about to give them a bigger chunk of my capital it would be good to put these rumours to bed.

interest definately isn't against you when going short

i don't agree that CFDs are not investing, for someone with a small bank CFDs are the only way to invest. Using managed risk they are very safe if you know what you're doing. And never trade 100% of your bank like you would shares.

mlennox · 2 May 2006

Re: Prefered CFD Providers

chemist said:
Isn't that a good thing? I mean, someone has to do the losing...

cheers,
Chemist

It is an excellent thing. CFDs make up 50% of investment done in the UK.

There going to become massive over here too. Once people really start hearing about how simple they are.

mlennox · 3 May 2006

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

i would suggest you check out some of the new players on the market. They're offering some really good deals at the moment to get people onboard.

you can find a list of these here http://cfdtools.com/au/content/view/53/50/

YOUNG_TRADER · 3 May 2006

Re: Prefered CFD Providers

mlennox said:
i would suggest you check out some of the new players on the market. They're offering some really good deals at the moment to get people onboard.

you can find a list of these here http://cfdtools.com/au/content/view/53/50/

All ready up and running with IG Markets

phoenixrising · 3 May 2006

Re: Prefered CFD Providers

Requested IG withdrawl, after 2 days nothing, so rang again.
Was asked who I spoke to, I couldn't remember.

Re-applied again, had the money straight away.

Make carefull note of who takes the call and let the person know that you have should work.

YOUNG_TRADER · 3 May 2006

Re: Prefered CFD Providers

phoenixrising said:
Requested IG withdrawl, after 2 days nothing, so rang again.
Was asked who I spoke to, I couldn't remember.

Re-applied again, had the money straight away.

Make carefull note of who takes the call and let the person know that you have should work.

Didn't you get an account manager?

I did, I only talk to him about all matters,

mlennox · 3 May 2006

Re: Prefered CFD Providers

YOUNG_TRADER said:
Didn't you get an account manager?

I did, I only talk to him about all matters,

i'm guessing he signed up online..

phoenixrising · 3 May 2006

Re: Prefered CFD Providers

YOUNG_TRADER said:
Didn't you get an account manager?

I did, I only talk to him about all matters,

Actually didn't use the account for a while (using another cfd account) so lapsed in the non use sense. The account manager relationship dropped away.

Cheers

chemist · 5 May 2006

Re: Prefered CFD Providers

mlennox said:
It is an excellent thing. CFDs make up 50% of investment done in the UK.

There going to become massive over here too. Once people really start hearing about how simple they are.

CFDs got big in the UK because they have a tax advantage there over direct shares: no stamp duty. Stamp duty on shares was abolished in Australia in 2001 so there is no such tax advantage.

I doubt very much that CFDs will "become massive over here" under the current taxation regime.

cheers,
Chemist

mlennox · 17 May 2006

Re: Prefered CFD Providers

chemist said:
CFDs got big in the UK because they have a tax advantage there over direct shares: no stamp duty. Stamp duty on shares was abolished in Australia in 2001 so there is no such tax advantage.

I doubt very much that CFDs will "become massive over here" under the current taxation regime.

cheers,
Chemist

Last time i checked CFDs are classified under gambling so therefore tax free, i may be wrong though...

RichKid · 17 May 2006

Re: Prefered CFD Providers

mlennox said:
Last time i checked CFDs are classified under gambling so therefore tax free, i may be wrong though...

Where exactly did you check that? It'll be big news if it is, all I know is that it's hotly disputed atm in Australia, like 'spread betting'.

noirua · 17 May 2006

Re: Prefered CFD Providers

Hi everyone, This is the answer on taxation of CFDs, I will leave it to RichKid to explain it all.

http://law.ato.gov.au/atolaw/view.htm?locid=txr/tr200515/nat/ato#p11

chemist · 17 May 2006

Re: Prefered CFD Providers

mlennox said:
Last time i checked CFDs are classified under gambling so therefore tax free, i may be wrong though...

You should check again. According to the ATO it's all income, unless your trading is non-commercial recreational, which would be pretty hard to pull off.

cheers,
chemist

phoenixrising · 17 May 2006

Re: Prefered CFD Providers

CFD's are gst free on commission, not to be confused with tax free.

Last I heard cfd tax issue was under review, comparing it to gambing, but moving it to similar to futures.

btw apparently futures has gst on commissions, go figure

chemist · 18 May 2006

Re: Prefered CFD Providers

phoenixrising said:
CFD's are gst free on commission, not to be confused with tax free.

Last I heard cfd tax issue was under review, comparing it to gambing, but moving it to similar to futures.

btw apparently futures has gst on commissions, go figure

If you bothered to read the links posted to the ATO website you'd know TR 2005/15 is not a review, but a ruling, and that CFD profits are taxable as I stated.

Chemist

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