Spread betting &/or CFD's are NOT a good substitute for long term shareholding?

[lemur]

Hi Lemur,

What sort of stocks are you talking about? UK, US, Irish? I have a client who is in Ireland, actually in Merrion Street. He buys Irish and UK stocks through me. I give him something like 1% because he is a good client. Also I have clients in US who trade US options, US & UK stocks also at 1%. They use me because they say US brokers don't know anything (as if I do)
I use CIBC in London to trade US stocks. This is not cheap as you pay brokerage in a net price (i.e. 15 contracts COP options, gross $9 net $9.10 (bartered down from $9.15)) plus my commission of 1% So that's around £150 all in.
You can of course use London MMs to trade US stocks but this is even more expensive.
I might add we clear through Pershing so the currency trades are really cheap.
I only know one Irish broker that's Davy. Presumably there is a standardish commission structure in Ireland?
How do you trade exactly?

You are clearly acting as a middleman and charging nice fees for it. I use a couple of American brokers. I buy direct. $8 commission for 1000 shares and $1 per option contract. Also use IG mkts in the UK 2c/share for CFd's.

 

[charttrader]

The problem with the discount brokers is that though nominally they charge a lower commission they get you with a wider spread than a full service broker. So the discount broker concept is a largely a con. The only cheap way to buy shares on a conventional purchase is to have a US account where you can buy 1000 shares for less than $10 commission with the online brokers. The cheapest one is IB.

I'm referring to online brokers like IB, Ameritrade, etc. Spreads and executions are much better than spread betting firms, who are not competitive if you are day trading. For holding periods of days/weeks, etc, SB firms are fine.

 

[och aye]

Has anyone any idea on actual performance through a stockbroker managing a portfolio of shares in an advisory capacity ?
Stockbrokers dont publish such performances, I wonder why?

 

[lemur]

Has anyone any idea on actual performance through a stockbroker managing a portfolio of shares in an advisory capacity ?
Stockbrokers dont publish such performances, I wonder why?

Well, obviously it depends on the broker. But most Irish brokers have terrible performance as they dont know how to trade.

Most of them are glorified salesmen.