CFD trading - anyone playing?

cepheus

Davidee wrote: »

Most people who play that game loses to be honest.

Further more, many brokers are Market Makes who take the other side of their clients trades and actively bet against their customers and want to see their customers lose.

The two most important things to look for in a CFD provider is where they are based, who regulates, them and the way they execute their client's trades...

Good luck

IG Index should be quoting the same prices as the main market and return the same dividends. You should also be able to insert orders between the buy and sell orders on the SETs orderbook and potentially obtain better fills than through a conventional stockbroker, but without the stamp duty. Commission and Financing are the costs to consider as with spread betting which is very similar in practice.

Most people lose due to frequent trading and not sticking to a coherent strategy which works! People often claim backtesting a strategy is no use, the truth is people often haven't even bothered to test their strategy at all! If it doesn't work on past prices, chances are it won't work on future prices!

sabretoothtigger

Has anyone heard from Galvan signing people up to a CFD account and then taking power of attorney to take trades at your cost.

Seems a terrible idea but they suggest a managed account can close trades and afford you the time of managing it DIY

spida505

Very smooth-talking salesman phoned out of the blue (I should have known better, I know...) but the bank rates were rubbish and I thought why not... Well, here's why not. As I was "inexperienced" and likely to do poorly on my own, I was offered a hand to hold in the shape of an "experienced Galvan trader" whose superior knowledge and strategies would help me to "learn". So, I signed up, thinking that a limited account (smallest account size is £2,500) with guaranteed stop-losses and the guidance of an experienced trader would ease me in gently. Yes, it meant providing a POA for that account. Yes, I thought that was a bit odd but I was under no illusions. CFD trading is a form of gambling and it's risky. I made about £300 in the first fortnight, lost it in the next fortnight and then lost £1,900 of my original stake over the next month. Yes, the market had been volatile. Yes, nothing was performing as predicted. In fact, there were no predictions and the loss was sudden and unexpected. My trader was apologetic and sympathetic. I sat tight for a while, was persuaded to take another punt and, despite being a few quid up after commission, I was stop-lossed out again, losing a further £20. I have closed my account, lesson learnt.:( The point is that Galvan take commission on every trade, both on buying and on selling whether or not you make any money. They use IG Markets as a trading platform (regulated by the Gambling Commission...) They can't lose. You can. I did. BTW, if you are in this situation, make sure you close your IG account as they charge a monthly fee on non-funded accounts after 2 years. Easy to forget that...

JohnRo

spida505 wrote: »

They can't lose. You can.

To be fair the whole financial services industry is run on broadly the same principle albeit with varying degrees of regulation and recourse.

kpmoneysavingexpert

mrposhman wrote: »

Fancy telling us what you did to lose 70% in 3 days? I'm not doubting, just interested.

This thread has been posted here in public interest.

Galvan are the advisory CFD provider who charges .5% foropening a trade and same for closing the trade. This way they always make moneybut this is not the end of the sufferings here. Their most of the advice do notwork; I lost around 75% of my money within 2-3 months.

CFDs are anyway very risky because of the leveraged producthowever with so much commission and bad advice by Galvan, it is almostimpossible to make any money.

May be if you want to make any money just following theopposite of what Galvan suggests. They also have a sister concern calledFaraday they provide the tips on stock and for those reports they charge money.Though Galvan are the advisory services they also made me to buy this tipsservices by Faraday. More money gone....

I would suggest be careful of using Galvan.

kpmoneysavingexpert

This thread has been posted here in public interest.

Galvan are the advisory CFD provider who charges .5% foropening a trade and same for closing the trade. This way they always make moneybut this is not the end of the sufferings here. Their most of the advice do notwork; I lost around 75% of my money within 2-3 months.

CFDs are anyway very risky because of the leveraged producthowever with so much commission and bad advice by Galvan, it is almostimpossible to make any money.

May be if you want to make any money just following theopposite of what Galvan suggests. They also have a sister concern calledFaraday they provide the tips on stock and for those reports they charge money.Though Galvan are the advisory services they also made me to buy this tipsservices by Faraday. More money gone....



I would suggest be careful of using Galvan.

sabretoothtigger

This kind of trading is for advanced investors, they are obliged by law to stress that and check you have experience.
A broker making money while promoting deals that may not be useful or profitable, thats expected

There are worse out then this