46 replies to this topic

[Hit & Run]

Their withdrawal works excellent. You can complete a withdrawal request online and if you do it early in the morning you will have your money the next working day. Just send them a copy of a cheque now so one day when you want to do a withdrawal they have your banking details on file.

I was always with PFG for all my trading and investing. As I said they were just too expensive. As of last month I opened an account with IG markets for all my cfd trading. Working well so far but hay I haven't done a withdrawal yet so lets hope!!

IGs charts are excellent not that I use intraday for my cfd trading!!

[HDB]

I was always with PFG for all my trading and investing. As I said they were just too expensive. As of last month I opened an account with IG markets for all my cfd trading. Working well so far but hay I haven't done a withdrawal yet so lets hope!!

IGs charts are excellent not that I use intraday for my cfd trading!!

 

HDB what platform do you  use for intraday charts?

 

I will appreciate any suggestions.

[Banco]

HDB what platform do you  use for intraday charts?

 

I will appreciate any suggestions.

 

 

PSG just too expensive ...

[HDB]

PSG just too expensive ...

PSG offer live pricing but say they don't offer intra day charts?

[Investor1]

PSG offer live pricing but say they don't offer intra day charts?

[BBW]

Stay away from IG Markets! - See my post under Alsi trades. I don't think they're to be trusted.

[HDB]

Exactly as per Jse then ...93.51  /  94.00      So they do not work on spreads but actual bid/sell prices

 

be carefull what you post BBW as incorrect info can lead to heart attacks

 

Now it's 50; sure it was 150 earlier? Sorry again! 

[BBW]

Now it's 50; sure it was 150 earlier? Sorry again! 

[HDB]

What is your bid and sell on fbr right now??

Sorry, maybe it's just me being stupid - I know too little exactly about how these things work - and is that just the real difference between bid and ask prices, i.e. 150 point in the case of FBR?

[BBW]

Sorry, maybe it's just me being stupid - I know too little exactly about how these things work - and is that just the real difference between bid and ask prices, i.e. 150 point in the case of FBR?

[HDB]

BBW I do not trade with IGI but am in process of opening an account. Please advise me why you say there is a big spread for cfd shares as I was told by IGI that for cfd share tradingthey use  bid and sell at  market rates and not spreads???

 

can anyone else please advise if they work on spreads or bid and sell as  I think BBW may be wrong..

 

Did anyone notice how extremely wide IG Markets make their spread on popular trading stock, like CML and FBR today? Surely that's just not cricket!?

[BBW]

Did anyone notice how extremely wide IG Markets make their spread on popular trading stock, like CML and FBR today? Surely that's just not cricket!?

[moyes]

Saxo Bank are one of the new brokers to get into the South African market. They are similar to IGmarkets in that they offer the same services and also are well known overseas. Since they are relatively new in South Africa, has anyone had any experience with this new broker??

 

I tried to gather more info about them and this is what I came up with; Saxo Capital Markets SA provides a suite of online trading platforms to enable efficient and reliable trading solutions to both private investors and institutional clients. Through Saxo Capital Markets SA clients can access a diverse range of financial instruments; from FX, CFDs and ETFs, to Stocks, Futures and Options. Clients can trade over 13,000 stocks in more than 30 international markets and exchanges. Clients will also be able to access value-added services such as live prices and real-time conversations with professional traders.Saxo Capital Markets SA is a subsidiary of Danish-based Saxo Bank. An EU-regulated investment bank founded in 1992, Saxo Bank announced its annual results on 8 March. The Bank’s operating income increased 6% in 2011 to reach DKK 3.53 billion. The Bank continued to invest in developing the business which meant that staff costs and administrative expenses increased 12%. Thus, net profit was DKK 618 million, down 4% from the previous record year.

Saxo Bank’s co-founder, Lars Seier Christensen, joined Saxo Capital Markets SA when the new Johannesburg office was launched.

[BBW]

IG Markets: Where does this "Stock Borrowing" cost now suddenly come from??! - An example of how they change their T's & C's just as they see fit! 

[forward curve]

Hi Contango

Nice reply. I'm with IG and happy in general with the 0.2% commission paid on share CFD's.

However, I'm not happy with the way they treat ALSI clients in SA. They offer a total spread of 1.8 pips on the DOW (index value of 14400ish) vs the 10 pip spread on the ALSI (index value of 35500) if you are lucky. The spread is mostly closer to 16 points and a standard 30 after hours.

In addition to this I got a notification yesterday that they will increase interest rates on overnight positions on the Micro (R2) and Mini (R10) contracts to 3% above SAFEX. The interest rate is already 2.5% above SAFEX rates.

If you don't scalp this adds up. If you go for the bigger moves and hold a position for 2 weeks, you pay in excess of R1000 interest on 1 mini contract (Index value x R10 x 7.75%)/365. That is the equivalent of 100 points. This is countered by the divvie you get each Friday, but some weeks, like this one, it is only 17 points.

I have replied to 2 different surveys and will repeat my recommendations here: Increase the margin per contract to cover yourselves, but reduce the bloody spread to 6 pips! I am sure they will increase intra-day scalping by 300% by doing this.

They have a trading sentiment and activity section on their website. It seems like the number of ALSI traders is around 300, based on the fluctuation around the 250 level of activity (sometimes 51-250, other times 251-500). I am willing to bet that the majority of these traders are scalpers.

 

Good points. I only really trade the Dow, currencies and commodities on the UK platform site. I agree with your suggestion on the margin and spread. Have you been to see them to discuss this. I'm sure they will listen as they are keen to build the business here in SA.

[CJV002]

I could be completely wrong but IGM confirmed to me that CFD trading on equities is direct market access and that NO spread is applicable. All quotes are directly as per actual market prices. ive also compared this with my SSF account at PSG and the prices were the same for given stock at the same time. Im busy moving from PSG to IGM due to the much higher commissions at PSG. 

One thing about IGM that i want to check with them tmwr is that their charts are off and does not reflct the correct end of day prices ie PPC ended today up at 3300 but the graph shows a lower closing balance which results in an incorrect candle formation. PSG does not have adequate charting either and coupled with the higher commission is the main reason why im moving.

Edited by CJV002, 04 April 2013 - 01:21 AM.

[JJBen]

contango wrote on Wed, 27 March 2013 08:44

I believe that IG is a very fair platform in terms of the spread offered. All their global positions from South Africa, Australia, Europe etc. are booked to a global book which is managed out of London. This means that if I'm short 10 contracts of WTI Crude oil and someone in Australia is long 10 contracts then IG itself has a net zero position in WTI and they do not need to go into the market to hedge any exposure. They make their money on the spread between the bid shown to me at the time and the offer shown to the Australian at the time. Where they have a net position they clearly need to go to market to offset the position. When you're trading currencies or share indices or commodities there is no brokerage and IG only makes it's money from the spread shown to you and the price they achieve in the market to hedge their position.

Hi Contango

Nice reply. I'm with IG and happy in general with the 0.2% commission paid on share CFD's.

However, I'm not happy with the way they treat ALSI clients in SA. They offer a total spread of 1.8 pips on the DOW (index value of 14400ish) vs the 10 pip spread on the ALSI (index value of 35500) if you are lucky. The spread is mostly closer to 16 points and a standard 30 after hours.

In addition to this I got a notification yesterday that they will increase interest rates on overnight positions on the Micro (R2) and Mini (R10) contracts to 3% above SAFEX. The interest rate is already 2.5% above SAFEX rates.

If you don't scalp this adds up. If you go for the bigger moves and hold a position for 2 weeks, you pay in excess of R1000 interest on 1 mini contract (Index value x R10 x 7.75%)/365. That is the equivalent of 100 points. This is countered by the divvie you get each Friday, but some weeks, like this one, it is only 17 points.

I have replied to 2 different surveys and will repeat my recommendations here: Increase the margin per contract to cover yourselves, but reduce the bloody spread to 6 pips! I am sure they will increase intra-day scalping by 300% by doing this.

They have a trading sentiment and activity section on their website. It seems like the number of ALSI traders is around 300, based on the fluctuation around the 250 level of activity (sometimes 51-250, other times 251-500). I am willing to bet that the majority of these traders are scalpers.

[forward curve]

I think it's important to realise the differences between CFD platforms like IG Markets, GT247 and share trading platforms such as your bank's platform or PSG online etc.

CFD's allow you to trade shares, indices, currencies and commodity futures etc. They make their money on their "spread" when you get in and out of a trade. With CFD platforms you don't have to put up the full amount to buy a share which means you can significantly gear up your trade for higer profits (or losses).

Share trading platforms charge a brokerage fee but you will be dealing at the market i.e. if you want to buy you will deal at the prevailing offer. You will also have to pay stamp duty and other charges. But you then own the share and can collect dividends etc.

As a simple example, let's look at a hypothetical example of Anglo American.....

On my share trading platform (RMB) the bid:offer spread is likely to be 245.35 / 245.85. If I wanted to buy 10 shares I would have to pay (10 * 245.85) = 2458.50 + around R110 brokerage and other charges. Then I would be the owner of Anglo American stock and entitled to dividends, attendance at shareholder meetings etc.

On IG Markets, I see the current bid and offer are 24510 / 24600 i.e. the spread is slightly worse than the market spread. If I wanted to buy 10 CFD's I would have to pay around R120 brokerage plus risk some margin from my cash holdings. I would then have a position on Anglo American but not be a shareholder. However, I have not had to put down much cash and also CFD trading is largely tax-free. My immediate mark to market position would be negative though because if I wanted to sell my position I would only be able to sell it at IG Market's bid price i.e. my MTM position would be (24510 - 24600) * 10 = -R900.

I far prefer trading on a platform such as IG Markets. Yes, you have to hold onto your trade to work through the spread but if you get it right the gearing means you can make significantly more profit with far less cash at risk. This is where discipline comes in because if you get it wrong you need to exit quickly because the same gearing can kill you.

I believe that IG is a very fair platform in terms of the spread offered. All their global positions from South Africa, Australia, Europe etc. are booked to a global book which is managed out of London. This means that if I'm short 10 contracts of WTI Crude oil and someone in Australia is long 10 contracts then IG itself has a net zero position in WTI and they do not need to go into the market to hedge any exposure. They make their money on the spread between the bid shown to me at the time and the offer shown to the Australian at the time. Where they have a net position they clearly need to go to market to offset the position. When you're trading currencies or share indices or commodities there is no brokerage and IG only makes it's money from the spread shown to you and the price they achieve in the market to hedge their position.

[BBW]

boerboel wrote on Tue, 26 March 2013 09:31

We have a deal with a number of online platforms-a lot cheaper and 100% reliable.

More info please, Boerboel!

[Mad Max]

boerboel wrote on Tue, 26 March 2013 09:31

We have a deal with a number of online platforms-a lot cheaper and 100% reliable.

Boerboel, what do you mean by "we" ?