re: contracts for difference ... milesg
Hi Milesg ... had a look as you suggested ...
"I trade ETO's and on a $5k (50k x say $0.10) pozzie will pay around $45.00/trade brokerage (Avcol) whereas with CMC here I would have to pay on a comparable position $100 commission which is an extra $110 both ways or 122% more."
My point was a $5k ETO position would cost me $45 which at equivalent 5% CFD margin ($5k) would equal a $100k pozzie @ 0.1% commission = $100.
Say a couple of trades/week could be $20k in commissions over 12 months given the UK Deal4free will do it for free.
I might attempt to open an account in the UK and the (www.deal4free.com) bet is that CMC will close down that loophole and fast.
I am spewing really because I see a number of positives with CMC over ETO's ... e.g. liquidity ... I posted some time back showing the differences in the 'carry costs' of CMC over ETO's which also favoured CMC.
A downside is that like a futures contract your downside liability can be more than your investment so stop losses would be critical ... not a problem for me.
