Best broker for trading DAX futures from UK - Reviews of Brokers and Data Feeds | futures io social day trading
futures io futures trading


Best broker for trading DAX futures from UK
Updated: Views / Replies:19,665 / 23
Created: by DAX trader Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 1  
 
Thread Tools Search this Thread
 

Best broker for trading DAX futures from UK

  #11 (permalink)
Trading Apprentice
London UK
 
Futures Experience: Intermediate
Platform: IG
Favorite Futures: Futures
 
Posts: 16 since Jan 2014
Thanks: 1 given, 5 received


GFIs1 View Post
There is "leverage" of a certain derivative and there is "security" where you put your initial funds.
As there are SB companies that are doing well - there are as well a lot of grey opponents (and yes - YOUR
opponents as well) and then there are a lot of bucket shops... never putting your money into the markets...

Thanks for the info GFIs1

I’ve tried quite a few SB companies in UK and one was really bad. I closed that account. Some others are ok - not perfect, but nothing very bad.

I was looking for something better and must say I was a bit misled by some other traders’ claims about direct access brokers imo. Maybe it’s my mistake (misunderstanding), but somehow I thought if I chose a decent direct access broker I would all of a sudden improve my profitability (no spreads - buying bid and selling offer, no intervention in between etc.)

It seems as if some of them are not direct access brokers. Some of them are, but try to catch you with all sort of different charges ( commissions, software charges, currency conversions, funds withdrawals, fund deposits etc.) Some of them have big slips for whatever reasons. If I understood correctly, most of them have clause where they can change margin requirements at will (of course finding some excuse - like market is falling too much or whatever). I wouldn’t be very happy being stopped out of my position for a loss (and also charged for it) because of a sudden changes in margin requirements.

There are some that make funds withdrawals difficult and slow. With some of them I don’t feel comfortable transferring any money to them really (in UK it is different - there is consumer protection with regulated companies)

Quite a few of them have poor customer service.

Because of all this, I find it difficult to justify opening an account with them in order to reduce my spread from 1 point to 0.5 (it’s even questionable if they can execute it fast enough to take advantage of it). So in order to get a questionable 0.5 point reduction I need to have more than 11,000 euros on my account instead of 500 pounds to trade only one contract without ability to scale down, transfer a big amount of money abroad thus suffering all sort of different charges (exchange rate, bank charges etc.) and also risking it (no protection from UK)

On top of this I need to pay for data feed, charting software, platform , commissions, cancelled orders, brokers exchange rates when profit is in different currency, withdrawals, put up with poor customer service etc.

I know SB companies are not perfect, but the alternative looks really bad from what I’ve researched so far


Last edited by DAX trader; January 13th, 2014 at 05:50 PM.
Reply With Quote
The following user says Thank You to DAX trader for this post:
 
  #12 (permalink)
Market Wizard
Switzerland
 
Futures Experience: Intermediate
Platform: Investor/RT
Broker/Data: IB / DTN
Favorite Futures: Futures
 
Posts: 4,107 since Feb 2012
Thanks: 3,774 given, 7,602 received
Forum Reputation: Legendary


DAX trader View Post
I find it difficult to justify opening an account with them in order to reduce my spread from 1 point to 0.5

The spreads and the given price at time is ONLY showed by the sb company.
If you are playing at the real markets - pricing can be followed on every data-feed live or historically.
Looking only at your sb provider - things may be distorted. In this case having a spread of 1 or 0.5
is NOT evident here.

GFIs1

Reply With Quote
 
  #13 (permalink)
Trading Apprentice
London UK
 
Futures Experience: Intermediate
Platform: IG
Favorite Futures: Futures
 
Posts: 16 since Jan 2014
Thanks: 1 given, 5 received



GFIs1 View Post
The spreads and the given price at time is ONLY showed by the sb company.
If you are playing at the real markets - pricing can be followed on every data-feed live or historically.
Looking only at your sb provider - things may be distorted. In this case having a spread of 1 or 0.5
is NOT evident here.

GFIs1

That's what I fail to understand GFIs1 - maybe I need to study some more?

The way I see it - if I wanted to buy up to 8 contracts (based on attached order book), I can only do so at 9444.50 (using market order). If I wanted to sell up to 3 contracts, I can only sell at 9443.50 at that moment.

So difference is 1 point (same as SB prices). How can I buy/sell at different price at that moment
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Last edited by DAX trader; January 13th, 2014 at 05:13 PM.
Reply With Quote
 
  #14 (permalink)
Market Wizard
Switzerland
 
Futures Experience: Intermediate
Platform: Investor/RT
Broker/Data: IB / DTN
Favorite Futures: Futures
 
Posts: 4,107 since Feb 2012
Thanks: 3,774 given, 7,602 received
Forum Reputation: Legendary


DAX trader View Post
The way I see it - if I wanted to buy up to 8 contracts (based on attached order book), I can only do so at 9444.50 (using market order). If I wanted to sell up to 3 contracts, I can only sell at 9443.50 at that moment.

To make it more precise
About spreads: SB companies are widening spreads around 15 minutes before and 15 minutes after a major event.
These spreads can go up 5 to 15 points in the Dax. So if you are in a position and want to get out ahead this event you
need to be very cautious to do it early enough to not lose many points of your trade.
Not so if you trade the future - you might get out seconds before the event and spreads are then still 0,5 to 1 point.
About margins: We should not compare apples with pears here. You are showing a 8 Dax future trade in the order book
which means given today's margin one initial margin of 11'143 for the first car (with Interactive Brokers) plus 7 cars
at 8'915. Totally we need a margin of 73'548 for this intended trade. Given a max of 1% putting at risk means a
base of funds of 7,3 million for this deal. I am not (yet) trading in this category.
Another question about the margins and possibility in a SB company if you would try to invest the same 73'500 in one trade with them... I need some more input here from your part.

GFIs1

Reply With Quote
 
  #15 (permalink)
Elite Member
Birmingham UK
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: IG/eSignal
Favorite Futures: Dax
 
ratfink's Avatar
 
Posts: 3,336 since Dec 2012
Thanks: 11,276 given, 7,089 received

I have found that trading the daily Dax cash market quotes (Germany 30 on IG, Germany 30 DFT on Finspreads) gives a one point spread throughout the day with no noticeable manipulation and fast fills. I stay away from major events or overnight holds in the futures.

There will always be some rotten companies but many of the good ones get a bad reputation simply because we are bad traders in need of an excuse (works for me.)

Travel Well
Reply With Quote
 
  #16 (permalink)
Trading Apprentice
London UK
 
Futures Experience: Intermediate
Platform: IG
Favorite Futures: Futures
 
Posts: 16 since Jan 2014
Thanks: 1 given, 5 received


GFIs1 View Post
To make it more precise
About spreads: SB companies are widening spreads around 15 minutes before and 15 minutes after a major event.
These spreads can go up 5 to 15 points in the Dax. So if you are in a position and want to get out ahead this event you
need to be very cautious to do it early enough to not lose many points of your trade.
Not so if you trade the future - you might get out seconds before the event and spreads are then still 0,5 to 1 point.
About margins: We should not compare apples with pears here. You are showing a 8 Dax future trade in the order book
which means given today's margin one initial margin of 11'143 for the first car (with Interactive Brokers) plus 7 cars
at 8'915. Totally we need a margin of 73'548 for this intended trade. Given a max of 1% putting at risk means a
base of funds of 7,3 million for this deal. I am not (yet) trading in this category.
Another question about the margins and possibility in a SB company if you would try to invest the same 73'500 in one trade with them... I need some more input here from your part.

GFIs1

SB companies I use have 1 point fixed spread on DAX irrelevant of major events, news etc. The biggest stake I used was £50 per point which is a bit bigger than 2 contracts. I haven’t experienced problems with the entries.
The minimum stake starts from £1 per point with most of them. One of them offers 0.20% margin for DAX for stake up to £914 per point. 0.20% is roughly less than £400 margin required for one contract. Smaller companies limit the max stake up to £300 per point. Even with that limit one can trade 9 contracts.
You always buy at Ask and sell at Bid. That’s the only charge you are supposed to pay for.


Last edited by DAX trader; January 15th, 2014 at 08:36 AM.
Reply With Quote
 
  #17 (permalink)
Market Wizard
Switzerland
 
Futures Experience: Intermediate
Platform: Investor/RT
Broker/Data: IB / DTN
Favorite Futures: Futures
 
Posts: 4,107 since Feb 2012
Thanks: 3,774 given, 7,602 received
Forum Reputation: Legendary


DAX trader View Post
..One of them offers 0.20% margin for DAX for stake up to £914 per point. 0.20% is roughly less than £400 margin required for one contract.

Looking at a initial margin of £400 and a gain/loss of £914 per point - this leverage looks interstellar

Then you say you can trade a maximum of 9 contracts. With your given margin this would be 9x£400 or
a maximum investment of £3600 with that broker. (My attempt was what do you do with a total investment
of €73'000?)

Finally if you can get with a SB investment of £3'600 a gain of 9x£914 = £8226 per point the BIG question is:
WHY are you searching for a broker that handles futures and gives you only €25 per point?

GFIs1

Reply With Quote
 
  #18 (permalink)
Trading Apprentice
London UK
 
Futures Experience: Intermediate
Platform: IG
Favorite Futures: Futures
 
Posts: 16 since Jan 2014
Thanks: 1 given, 5 received


GFIs1 View Post
Looking at a initial margin of £400 and a gain/loss of £914 per point - this leverage looks interstellar

Then you say you can trade a maximum of 9 contracts. With your given margin this would be 9x£400 or
a maximum investment of £3600 with that broker. (My attempt was what do you do with a total investment
of €73'000?)

Finally if you can get with a SB investment of £3'600 a gain of 9x£914 = £8226 per point the BIG question is:
WHY are you searching for a broker that handles futures and gives you only €25 per point?

GFIs1

You may have misunderstood me GFIs1 and jumped to all sort of different conclusions in no time

Maybe I didn’t explain properly - I trade it every day, so wrongly assume that people know about it.

I’ll try to explain calculations step by step:

0.2 % margin requirement is valid for the stake of up to 914 pounds per point (that is 1099 euros per point or roughly 44 FDAX contracts)

So if you trade with them anything up to 44 FDAX contracts (equivalent), margin requirement is 0.2% of the value traded (the way they calculate it).

For example if you trade 1 DAX contract you have to have on your account 403.27 pounds based on the current DAX value of 9700.

Explanation:

Eurex: 1 point change in 1 FDAX contract = 25 euros ( 20.75 pounds)

SB company:

1 pound per point = 9700 pounds (if DAX is 9700)

Margin requirement for 1 pound per point = 0.2% of 9700 pounds = 19.4 pounds

Margin requirement for 20.75 pounds per point = 20.75 x 19.4 = 402.55 pounds

So in order to trade equivalent of 1 FDAX contract, you need 402.55 pounds on your account.

The above example is if you traded 20.75 pounds per point.

Maximum you can trade and have 0.2% margin requirement is 914 pounds per point (with that particular SB company). That is roughly equivalent to 44 contracts.

If you traded equivalent of 44 contracts, you would need to have more than 17,712 pounds on your account.

I hope this would help you when comparing to other brokers (if you are after a good margin rate)


Last edited by DAX trader; January 15th, 2014 at 11:52 AM.
Reply With Quote
 
  #19 (permalink)
Trading Apprentice
London UK
 
Futures Experience: Intermediate
Platform: IG
Favorite Futures: Futures
 
Posts: 16 since Jan 2014
Thanks: 1 given, 5 received


DAX trader View Post

I hope this would help you when comparing to other brokers (if you are after a good margin rate)

1 DAX contract with some futures' brokers = more than 11000 euros

equivalent from SB company = 400 pounds ( 482 euros)

22 x 482 = 10604

So you can trade equivalent of more than 22 contracts with SB company if you have 11000 euros on your account.

With futures' broker you can trade only 1 if you have more than 11000 euros. Also if it moves a bit like today (assuming you were trying to catch the top) and you don't have enough money and still hoping it may come back from all time high, they will stop you from that single contract as soon as it goes 1 cent above the requested level and charge you for that

PS Don't forget charges for changing euros into dollars. Also withdrawal, deposit, data, charts and platform fees. There are commissions to pay as well. There are probably some other regular charges like maintenance etc.


Last edited by DAX trader; January 15th, 2014 at 01:06 PM. Reason: error
Reply With Quote
The following user says Thank You to DAX trader for this post:
 
  #20 (permalink)
Trading Apprentice
London UK
 
Futures Experience: Intermediate
Platform: IG
Favorite Futures: Futures
 
Posts: 16 since Jan 2014
Thanks: 1 given, 5 received



DAX trader View Post
Also if it moves a bit like today (assuming you were trying to catch the top) and you don't have enough money and still hoping it may come back from all time high, they will stop you from that single contract as soon as it goes 1 cent above the requested level and charge you for that

At least thatís my impression (Iíve never used any other broker apart from SBs and may be wrong about it). Maybe they try to help their clients and let them stay in trades, or call them and ask for some extra funds and wait for few days for the money to arrive

Reply With Quote

Reply



futures io > > > > Best broker for trading DAX futures from UK

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

Dec 7

Linda Bradford Raschke: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Dax Futures - trading for a small income Disciple Elite Trading Journals 47 January 8th, 2015 03:08 PM
Your broker allow equities as margin for futures trading? silver99 Reviews of Brokers and Data Feeds 6 January 2nd, 2013 10:23 AM
UK SIPP and US Futures? RTR1701 Reviews of Brokers and Data Feeds 3 October 10th, 2012 05:25 PM
European/UK Futures brokers keymoo The Elite Circle 4 May 11th, 2012 07:49 AM
Futures Broker v CFD Provider for trading futures rcampbell Reviews of Brokers and Data Feeds 3 January 5th, 2012 01:53 PM


All times are GMT -4. The time now is 11:37 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-11-21 in 0.16 seconds with 20 queries on phoenix via your IP 54.144.57.183