When you trade the news it’s really easy to get the direction right and still lose money, but the answer to that is to learn to stop trading the news, not to learn to use a different sort of broker.
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I’m not sure that trading CFD’s is the reason why 70-80% of active traders are losing money. But I am pretty sure that the winning and losing percentages would not be reversed if traders went into non-derivative trading.
Most new traders have absolutely no idea what would be the first step in trading - which is of course, learning to trade.
If you like CFD trading but are bothered by high spreads, you might consider using fixed spread brokers.
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A fixed-spread broker obviously won’t tolerate news trading for long, if the customer shows them he can take their money that way (but very, very few people really can, and they’re futures traders anyway).
This, exactly!
I totally agree with you. But trader like me who cannot open account with FCA, ASIC or CFTC due to my country restriction and i have to choose other small island regulatory than brokers have free hand to scam their trader money easily.
I believe Non-Derivative are most trustworthy than derivative (Even the broker is regulated from FCA/ASIC/CFTC).
I am using Raw spread from ICmarkets Global. I find found any broker which have truly fixed spread.
What’s the part you don’t understand? They’re just telling you that they are a counterparty market-maker and you are betting against them, they are not acting as a “broker” (as some naive people might imagine). But I know from your earlier questions and posts that you know this already. So I’m not sure what confused you?
Yes, there is forex trading that allows you to own real assets rather than just derivatives. This type of trading is done through the spot forex market, where currencies are exchanged in real-time and ownership of the actual currencies is transferred. Many forex brokers offer spot forex trading, including well-known ones like OANDA, Forex.com, and IG.
Spot forex is considered non-derivative because it involves the actual exchange of currency pairs directly, without deriving its value from an underlying asset.
Term CFDs in Spot Forex
CFD is derivative and Spot Forex is non derivative. What does CFDs in Spot Forex mean
Oanda is CFD issuer not a spot forex. IG is also CFD
Sure, if there are legal restrictions on types of market access where a potential trader lives, the question is important. But for so many actual traders, it won’t make any difference to them what type they choose. Not being cynical but if they’re trading already and losing already, changing market access won’t make them winners.
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information from investopedia
What Is a Spot Trade?
A spot trade, also known as a spot transaction, refers to the purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date. Most spot contracts include the physical delivery of the currency, commodity, or instrument; the difference in the price of a future or forward contract versus a spot contract takes into account the time value of the payment, based on interest rates and the time to maturity. In a foreign exchange spot trade, the exchange rate on which the transaction is based is referred to as the spot exchange rate.
go to a bank in your country and exchange currencies
if you want to deliver cash use futures contract, CFTC regulation doesn’t guarantee delivery cash option.
I haven’t faced this issue yet, but perhaps you’re right. Different people have different experiences.
Can you name fixed spread forex broker?
But it takes lot of time to convert from one currency to another. Additionally no leverage and FX fees. Do you know any Forex broker which offers Spot Forex (with exchange market)
But it makes less manipulation. So, if price move in your direction atleast you make profit instead of loss.
Why don’t you learn to use Google rather than “challenging” other members on what they say?
It doesn’t work that way. It can’t work that way. If you still don’t understand why after being here for over 3 years, there’s not much point in trying to explain it to you. What you actually need to know was already said, above: a fixed-spread broker obviously won’t tolerate news trading for long, if the customer shows them he can take their money that way
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That is exactly what I say will not happen.
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There is no such thing like “Spot Forex Brokers”, spot exchange means physical delivery, as retail trader you can do it via bank, eventually futures contract. You can use CFD’s “as is” or don’t trade, you decide.
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TD365.com Australian fixed spread broker with off-shore facility (funds are held in escrow at Barclays London). Worth a look, used by Tom Hougaard.
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@Johnny1974 Information as displayed from an Australian IP connection…
TD365.com, Bayview House, 1st Floor, 308 East Bay Street, PO BOX CB-12407
Nassau, New Providence, The Bahamas
Service Office and Payment Processor: Trade Nation Financial UK Ltd, Floor 6, 14 Bonhill Street, London, EC2A 4BX, United Kingdom
Financial Spread Bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
TD365.com is a registered business name of Trade Nation Ltd (Registration Number 203493 B), which is authorised and regulated by the Securities Commission of the Bahamas, SIA-F216. As such TD365.com renders financial services to clients on behalf of Trade Nation Ltd. TD365.com is not a financial adviser and all services are provided on an execution only basis. The information on our website is for general informational purposes and does not take into account your objectives, financial situation or needs.
Not much Australian anything going on with TD365…
Edit: It’s payment Processor/Parent Company (Trade Nation) appears to be regulated via ASIC…
Trade Nation is a trading name of Trade Nation Australia Pty Ltd, a financial services company authorised and regulated by the Australian Securities and Investments Commission, ACN 158 065 635, AFSL No. 422661. Trade Nation Australia Pty Ltd. registered office is Level 17, 123 Pitt Street, Sydney, NSW 2000, Australia.
FYI… Level 17, 123 Pitt Street, Sydney, NSW 2000, Australia… Is a Co-Working Offices…
The usual tangled web that many Brokers currently have in place to keep them out of reach…
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I use Fxglory, but I recommend doing your own research on it because if the people discussing TD365 are not marketers from the platform itself, I still haven’t had time to write an article on the broker.
I think there is widespread confusion as to what CFDs actually are. Yes, it is a derivative, as the price derives from an underlying asset. However, every broker sets their own bid/ask prices. That is why these vary from broker to broker. At its core, a CFD trade is a bet. If you go long in a CFD, you are betting it will rise in price. The broker is betting the price will drop. There is no exchange or clearing house involved, the trade is between you and the broker. You are in a sense betting against the house (the broker), who also decides the terms (the spread). It is a bet on direction of an underlying asset, that’s it. To say that trading CFDs is not trustworthy is a simplification and generalization, it is the broker which is trustworthy or not. Some due diligence before selecting a broker is all it takes. The benefits of trading CFDs vs “non-derivative” alternatives is gearing. With a non-derivative you will in most cases need a fat bank account. CFDs make trading these instruments available to the masses. Futures and options are exchange traded and thereby standardized derivatives, more regulated, and universally priced (for the majority), while CFDs are derivative bets on direction. Just like in sports betting, where odds will differ, such is also the case with CFDs.
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