IG Vs D4F

Chart Forum » Reviews » Online Brokers » IG Vs D4F

«« « Previous Next » »»

Thread Start New Thread
Last Poster Posts Pages Last Post

Author

Message

seahound

Member

Post Number: 19
Registered: 12-2002

Rating: N/A
Votes: 0


Monday, June 30, 2003 - 05:59 pm:

Which is the better out of IG Markets and Deal for Free, particularly for trading short?

Can anyone share their comparison?

Or, what was the primary reason you choose one over the other?

Any comment, however brief, would be gratefully received.

Seahound

stan

Member

Post Number: 25
Registered: 10-2002

Rating: N/A
Votes: 0


Tuesday, July 01, 2003 - 03:07 pm:

g'day seahound

DFF require 5% margin
IG requires 10% margin.

DFF charges daily interest on long positions,
currently at the rate of 4.75% per annum.

IG charges 0.5% of the position on open,
PLUS daily interest.

They both pay interest on short positions.

DFF CFDs are cheaper with greater leverage, compared to IG-CFDs.

hoo roo
stan.

seahound

Member

Post Number: 20
Registered: 12-2002

Rating: N/A
Votes: 0


Tuesday, July 01, 2003 - 03:24 pm:

Stan

A big thanks for sharing those perspectives.

Would it be fair to say you would choose D4F over IG as a provider, primarily based on it being cheaper?

Regards

Seahound

mosaic1996

Member

Post Number: 41
Registered: 01-2003

Rating: N/A
Votes: 0


Tuesday, July 01, 2003 - 03:38 pm:

I have only had a cursory glance at both offerings.

The main advantage that IG has is the stocks covered. ASX200 (D4F) versus some 300-odd stocks (IG Index). If you want to take a position in these other stocks, then IG may have the advantage.

stan

Member

Post Number: 26
Registered: 10-2002

Rating: N/A
Votes: 0


Tuesday, July 01, 2003 - 03:39 pm:

Yeah, as long as we're talking CFDs.
IG as a spread-betting provider is another story.

riz

Member

Post Number: 4
Registered: 03-2003

Rating: N/A
Votes: 0


Wednesday, July 02, 2003 - 04:05 am:

Their is a HUGE difference between the two, primarily deal for free, is free, you trade the cfd's for free. And IG will charge you per trade for each CFD you trade.
OR you can trade their spread betting, but then the spreads are allot bigger than what you can get with CFD's.

stan

Member

Post Number: 27
Registered: 10-2002

Rating: N/A
Votes: 0


Wednesday, July 02, 2003 - 08:56 am:

g'day All

I just realised my comments were out of perspective because mosaic hit the POST button just before me.

I chose DFF cfd's over IG cfd's because of
the 0.5% transaction cost that IG imposes.
Access to the ASX300 was not important in the decision - the ASX200 has plenty of opportunity for me with US Market in the pipeline.

hoo roo
stan.

gretel

Member

Post Number: 1
Registered: 07-2003

Rating: N/A
Votes: 0


Tuesday, July 15, 2003 - 03:52 pm:

You guys are missing a BIG point here. IG charge a comm but Guarantee you mkt price of the share.

CMC in their brochure state 'The real time dealing prices provided by CMC’s dealing platform are CMCs own prices. CMC’s prices for its CMC Products may not be the same as those in the underlying market on which the CMC Products are based. ' (Introduction) Furthermore, the spreads in the CMC Products may not be the same as those available in the underlying market.

There lots of threads been written about fills away from the mkt. They do not have to give you mkt price - and if you pay a couple cents away from market you are paying for their service. Dont kid yourself you are not paying for this.

They also claim to 'deal inside market spreads'. If they do they wld be the only people in the world to do so. Their profit last year of Sterling 14mill suggests they make money somewhere. Gee I wonder it might come from.

Do you remember the bucket shop futures houses in the early 80s? My advice before you deal is to read the docs extra carefully and know what you are getting into.

i_claudius

Member

Post Number: 517
Registered: 11-2002

Rating: N/A
Votes: 0


Tuesday, July 15, 2003 - 04:32 pm:

Gretel

I completely disagree

I have 2 windows open continually one being the ASX live feed and the other CMC (Deal4Free)

Apart from times when their system goes down (regrettable but not the point under discussion) their bid/ask prices are a perfect reflection of the ASX and change instantaneously with the ASX and exactly reflect the ASX.

There may be one case in many thousands where this is not so but I've yet to experience any discrepancy against the ASX in ANY of my trades.

I regard your reflection on the integrity of the CMC Deal4Free marketmaker software as highly unfortunate to say the least.

As far as I am concerned CMC demonstrate great integrity and accuracy with their pricing .. perhaps that is a key ingredient in their financial success.

Integrity is essential in financial dealings and in my opinion Deal4Free display exactly that

With Best Wishes

Claudius

i_claudius

Member

Post Number: 518
Registered: 11-2002

Rating: N/A
Votes: 0


Tuesday, July 15, 2003 - 04:45 pm:

Hello again Gretel

A further indication that CMC rely on the actual ASX live feed is that they will be charging a small monthly fee to clients for their ASX access, while still charging no commission on trades.

Yes they are financially successful and they make no secret of their interest charge on overnight long positions (as well as paying interest on any short positions you may have).

As for the bold letter "escape clause" that you typed ... I am sure it is there purely as understandable legal protection in the event that their software fails or slows down ... which as I have already said has not affected their live quoting for me as I've perceived it ... when their system is up.

I am giving no guarantee of perfection by CMC ... but as software goes their's seems to make every effort to reflect the market well. I would be interested to know if anyone has experienced the contrary.

Claudius

(Message edited by I_Claudius on July 15, 2003)

riz

Member

Post Number: 16
Registered: 03-2003

Rating: N/A
Votes: 0


Tuesday, July 15, 2003 - 05:08 pm:

I also deal with cmc, my experience is that they are good when you initially start out. And yes on screen their prices do match those of the ASX. But when you place an order with them they tend to requote you more often than not, they wait till the market changes and then requote you. And to anyone who deals with them i recommend that you check all your stops after they have been filled.

I am a day trader and throughout the week EVERY WEEK i get filled at the incorrect price at least 5 times a week, but this is fixed up when you show them their error over the phone, and they do reverse their mistakes, so that is good.

The only reason i am still with cmc is because their is no one else to go to, no competition for them, IGIndex is not really their competition, because IG charge a price to deal, if their were other CFD firms within Australia i would have changed a long time ago (Allot of my friends in the UK who play the US markets have changed to other CFD firms) If anyone has tried day trading the US markets with them it is almost impossible to day trade them without using stops. As their initial spread may be 5 points to start with, then as a stock gains momentum their spreads increases to 20points even up to 70points spread i have seen, and this is on liquid stocks like EBAY, then when you place the trade, they wait about 10seconds, by then the market has moved at least 10-15pts in a fast moving market, and they requotes you 10 more points away, so you are getting entered 20 - 30points away from where you wanted your entry, and this is not a one off thing, try dealing with them any night on the US, it happens pretty much every night to me with any market orders in a fast moving market, so i do not use market orders when i trade US, i only use stop orders.

I feel cmc are good for longer term traders but for day traders they always try and rip you off a couple of points here and their either by requoting you or filling you at the incorrect price and hoping you dont check it etc (its happened way to often to me for it to be a mistake), But sometimes i understand why they do it, because they are in it to make money, so yeh thats how they make it i guess.

But maybe they just dont like me, Anyway this is my experience with them, and i advice people to try them their selves before making an opinion on them either way.

riz

Member

Post Number: 17
Registered: 03-2003

Rating: N/A
Votes: 0


Tuesday, July 15, 2003 - 05:21 pm:

Gretel yes you are guaranteed market price with IGIndex, but look at the size of their commission. They charge like 0.5% or something, if you trade 1000 shares of a $30 stock, that accumulates to $150, now do you know what that is if you convert it to a spread. Well if your position is 1000 shares then you are 10/point, so $150 is equivalent to paying a spread of 15points, now cmc has NEVER quoted me 15points away from the market on the ASX (On the US yes they have, but on ASX no).

And you can get the market price with cmc if you use a stop to enter. A stop will get you in at market price if sold their.

Personally i dont like cmc to much, but they are cheaper to deal with than IGIndex, no doubt about it from my calculations. In the future i do hope other CFD firms come into Australia in competition to cmc, i will be one of the first to swap over.

bundy

Member

Post Number: 68
Registered: 03-2003

Rating: N/A
Votes: 0


Tuesday, July 15, 2003 - 09:22 pm:

Claudius,

I would have thought a man of your esteem would have been a bit more wordly.

DFF do not always mirror ASX prices - simple as that.

The fact that you haven't seen breaches doesn't mean they don't exist - you can't possibly monitor 200 stock all the time to confirm your claims.

In the last 2 days I have been thwarted 4 times by DFF manipulating the spread on stocks - both volatile stocks on the move - CSR and MBL.

In once case the ASX spread was 1 cent - a bonus when dealing with stock like CSR - but DFF never reduced the spread to less than 5 cents. That immediately gives them a trading advantage - precisely why they manipulate the spread.

This has nothing to do with software problems - it's a simple matter of a bookmaker shortening the odds on a favorite.

The matter of them charging for ASX data is irrelevant to the question of whether they mirror the ASX spread - they filter the data and change the bid/offer prices to reflect the state of their books.

On that point, I have my own data feed and I find it objectionable that I should have to take a data feed from them and also pay for it. it would be a simple matter for them to let people opt out of this if they choose.

I have written to them on that point - but received no reply.

I don't hold the firm in the same high regard as you - when the going gets tough................. they tell you to go jump.

As for the "escape clause" - this has nothing to do with software failing or slowing down - as you would be able to conduct transactions by phone in such an eventuality - but they would seek to preclude even that.

No - the reality of it is that it is the final escape for DFF - to protect the company in the event of a market situation developing that would be extremely financially damaging to the company and against which it could not protect itself adequately with on-market operations.

Claudius - me thinks the grapes you have ingested may have fermented and affected your judgement and objectivity.

---
Bundy

i_claudius

Member

Post Number: 519
Registered: 11-2002