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Sam@ezeetrader.com

Spreadbetting versus Forex accounts…

I recorded this video for some of our clients asking about the differences earlier this week. Here’s the link in relation to the £100 towards the end of the training video – https://www.home.saxo/en-gb/accounts?cmpid=AF_Ezeetrader

18 Comments

  1. Craig-Reply
    July 20, 2018 at 6:39 am

    How does it work if I trade indices via spreadbetting but interested in using the spot method?

    Thanks

    • Charlie Burton-Reply
      July 20, 2018 at 6:48 am

      You would simply trade a cfd on an index within a forex account

  2. craig-Reply
    July 20, 2018 at 8:44 am

    Cheers mate.

  3. Richard Taylor-Reply
    July 20, 2018 at 10:10 am

    Hi Charlie, Good timing as I’m actually looking to switch brokers! What is the actual criteria that needs to be met for the £100 cash back with Saxo? Is there a minimum number of trades per month that have to be met, and is there a minimum volume / position sizing along with that? Would be good to know what the actual criteria is. Cheers!

    • Charlie Burton-Reply
      July 20, 2018 at 10:28 am

      Hi Richard, just 3 trades and that’s it…

  4. Richard Taylor-Reply
    July 20, 2018 at 10:58 am

    Great, thanks. Think I can manage that! 😉

  5. Michael-Reply
    July 20, 2018 at 11:07 am

    If my memory serves me well, when the Swiss authorities removed the “floor” on the CHF and it crashed through, many accounts were wiped out; however many of those who were with Market Makers only lost what was in their their accounts but those who had been put through directly to the market lost what was in their accounts and still more if their position losses weren’t covered by the money in their accounts! This was because they owed the market itself not a MM who was able to get out and protect positions better. In some cases this was a small fortune lost or saved if your broker was a MM. Am l right on this and if so, is this not an argument for smaller traders being with a MM whether Spread Better or even Spot? Thanks.

    • Charlie Burton-Reply
      July 20, 2018 at 11:43 am

      Hi Michael,

      That’s a good point but don’t forget IG bankrupted many of their clients and they are a MM. So although those in the real market would have taken a hit, those with MM’s did too but some MM’s that didn’t have a lot of exposure like ETX could absorb it as not many of their clients were trading swissie.

      The big point with that is that traders (yet again) were trading irresponsibly if trading the CHF as it was artificially pegged. So they set themselves up for failure there.

  6. Michael-Reply
    July 20, 2018 at 1:10 pm

    Thanks for the reply. Its true about trading irresponsibly or perhaps even just carelessly! We have to be aware at all times or we lose!

    • Charlie Burton-Reply
      July 20, 2018 at 1:11 pm

      yes exactly – same goes for all those people buying crypto’s at the highs. Greed and fear never change!

  7. Marc-Reply
    July 20, 2018 at 3:54 pm

    So ETX are fine now. That’s interesting because they weren’t on you’re video. Forex show ? If that’s the score I’d probably find you in the ETX booth because you switched again. Just cut it Charlie you’re not scoring any points, say you got confused and shouldn’t have said what you said and you’ll come out of this. Sometimes you’ve just got to admit you’re wrong as we all are at times.

    • Charlie Burton-Reply
      July 20, 2018 at 4:13 pm

      Let me make this clear. I’ve been happy to recommend spreadbetting over the years. Most people that follow the videos know that I do those trades on Saxo. I have recommended Saxo over the years when people have asked for a non spread bet broker. Earlier this year my broker at Saxo asked if I would formalise it and so offered us a fixed fee to recommend them. I used to recommend them anyway so I thought it would be nice to recommend them and split the money. I think that’s quite nice. That video was recorded earlier this week for some of our members who wanted to know about the differences. Do I think a straight Forex broker is better? Yes. Do 80% of our members spreadbet? yes. People do what they like, this was simply a video showing the other side of the argument. I believe that’s pretty transparent and helpful to people.

  8. roger-Reply
    July 20, 2018 at 4:06 pm

    Charlie, I understood that spreadbetting IS taxable if HMRC deem it your only or main source of income. Can anyone corroborate this?

    • Charlie Burton-Reply
      July 20, 2018 at 4:15 pm

      Yes it is…

  9. Manoj Chopra-Reply
    July 22, 2018 at 3:16 pm

    Hi Charlie, I tend to trade the indices mainly DAX and Dow Jones – predominantly short term day trades.
    Would there still be a difference between Saxo and a Spread better for this? Is there a “true ” market for indices in the same sense that you describe direct market access for Forex?

    • Charlie Burton-Reply
      July 23, 2018 at 6:35 am

      Yes you can trade the futures which is the real market but the commissions on those are high so best stick to spreadbets for that…

  10. Allan-Reply
    July 30, 2018 at 11:20 am

    Hi Charlie – really helpful video thanks! On that last point in the Q&A – as chance would have it I have started trading the Dow Jones through a “true ECN” account with a broker. They do not charge a commission and their spreads are similar to the spread betting spreads I used to pay. Does this run contrary to your experience of how the costs on such an account would be structured or how high they would be in practice?

    • Charlie Burton-Reply
      July 30, 2018 at 11:24 am

      it may be an ecn on forex but it won’t be on the Dow from what you’re saying. Just structured similar to a spreadbet/cfd in that they will be making commission out of the spread. I doubt it’s really going into the real market but that’s still ok…

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