FT100 vs FDAX – Futures vs Cash – IG vs IB vs Saxo

• 02/26/2024 at 11:02 PM #228788
  inverse

  Hi All,

  Wondering whether Cash CFDs offer reasonable liquidity when compared to DMA Futures (intraday, morning and afternoon session, before COB, no overnight)?

  Fills on ~10lots, across micro through full sized contracts.

  Feedback across but not limited to the mentioned providers is genuinely welcome.

  Trying to fit a possible solution for a younger family member looking to jump in with there own funds.

   

  Cheers,

  inv

  

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  02/29/2024 at 2:15 PM #228996
  justisan

  hi,

  below is related to dax, cfds with IG, with experience of more than 10 years, and I have comparison only with dax futures with IB since some 6 months.

  I would say CFD “liquidity” is reasonable, except right after releases of major economic data – there one might be surprised a lot by slippage of 10-20-50 or more points, while futures complete same movement much smoother.

  good luck for your younger family member!

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  inverse

  

  justisan

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  03/02/2024 at 3:21 AM #229065
  inverse

   

  Hi Justisan,

  Thanks for the feedback.

  What you say adds up and I’m leaning Futures trading for them because I’m an old dom person, more old than anything else!

  There won’t be ‘news-trades’ but there could be news affected trades re: stops etc, so the ability to work around stps vs market maker price movements is making me think harder – appreciate your feedback.

  How are finding IB?

  From memory ‘some’ brokers will go with 25% of the Maintenance Margin during ‘news’ periods, pre and post news for 10-15min, I think, can’t remember who exactly, could be AMP or Ninja.

  Her experience could be a factor in opening an acc. with IB even though she’d be copy trading pop while on her edu journey. She’s also a FT Uni student but she IS keen.

   

  Cheers,

  inv

   

   

   

   

   

  

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  03/02/2024 at 9:47 AM #229072
  inverse

   

  Looks as though with IB you can’t be a student and receive Intraday margins (fair enough):

  • In addition retail natural person clients will not be granted a margin account if their occupation is either retired or unemployed or student.

   

  So cash accounts are full margin? with them and I think there might be limits of frequency of trades, although not of the pattern day trader type because we’re in AUS.

  https://www.ibkrguides.com/kb/article-4370.htm?Highlight=cash%20accounts

   

  https://www.interactivebrokers.com.au/en/index.php?f=40539&hm=au&ex=au&rgt=0&rsk=1&pm=0&rst=040404010101080101#:~:text=Cash%20accounts%20and%20IRA%20accounts%20(both%20cash%20and%20margin%20type)%20are%20not%20afforded%20intraday%20margin%20rates.

   

   

   

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  GraHal

  

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  03/02/2024 at 9:54 AM #229073
  inverse

  Forgot to add that Cash acc. is of the T2 type with IB.

   

  https://ibkrcampus.com/glossary-terms/cash-account/#:~:text=Cash%20from%20the%20sale%20of%20stock%2C%20options%20and%20futures%20becomes%20available%20when%20the%20transaction%20settles%20(for%20example%2C%20US%20stock%20%E2%80%93%20three%20days%2C%20German%20stock%20%E2%80%93%20two%20days%2C%20US%20options%20%E2%80%93%20one%20day).

  

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  03/04/2024 at 10:42 AM #229173
  justisan

  hi,

  regarding extreme price movements/gaps after news release in connection with exit stops: there CFDs with IG offer very nice (amazing!) solution which is not available for futures: so called guaranteed stops. since they are are not cost-free, one has to think/calculate if it’s worth using them long term. in general I think it depends on trading frequency and especially on how big are the movements one tries to catch with particular strategy. and if one also keeps positions overnight and even more – over weekends. for my part I use them for some of the strategies, I like to sleep and spend my weekends without worying about open positions…

  one of the most annoying things with CFDs/IG is that IG implements temporarily so called minimum distances for entry/exit stop orders some time before and after major news realeases. there IG “tells” you at which price level (distance from current level) you are allowed to enter your stop entry/exit orders (it affects also minimum distances for (guaranteed) exit stops temporarily). from my perspective it’s total manipulation, and it shows what kind of “market” CFDs in reality are. I am not trading news but when trading plenty of systems they happen from time to time to place stop entry orders arround those news releases where minimum distances are being implemented and so those systems are stopped automatically by IG, I am missing some entries again and again – which is a bit of desaster. this is one of the strongest motivations for me to move more and more of my algos to futures/IB.

  with IB I am ok so far,  but as mentioned, I have only some six months of experience. few rather small issues I experience are more PRT related, not the broker.

  can’t tell anything about IB’s margin requirement changes around news releases, until now I did was not conciously observing this in particular.

  regards

  justisan

  

  justisan

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  03/05/2024 at 1:07 AM #229211
  inverse

  Thanks Justisan.

  You have confirmed a few things, between what you have said here and what’s been said in other threads, I won’t ask you to repeat yourself again, other than to say thanks for hitting this and the other thread – it covers most things.

  https://www.prorealcode.com/topic/minimum-distance-for-this-market-is-x/page/2/

  Many thanks to everyone who contributed to that thread.

  bst rgds,

  inv

   

  

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  03/20/2024 at 9:26 AM #230086
  inverse

  justisan wrote:

  one of the most annoying things with CFDs/IG is that IG implements temporarily so called minimum distances for entry/exit stop orders some time before and after major news realeases.

   

  Just wanting to confirm whether this is also seen with Index ‘Futures’ (HMUZ) as well on IG (even though still a CFD).

  I’m asking because of the bigger difference in spread and perhaps with it (there profit) being baked in there, maybe they treat  HMUZ-like products a little different. I’m leaning they don’t (cake and eating all of it) but thought to pose the question because other brokers who widen spreads kinda leave it there or perhaps widen a bit further rather than imposing / blowing out stop- limit minimum distances etc.

  Back in the day it’d be normal to see futures spreads widen with brokerone or mfg (which was workable), so keen to hear from anyone with this experience with IG or others, IB, Saxo etc.

  A spread of 6.2 amto on IG with DAX JUN-24 and ‘closing only’ for AUS 200 MAR-24 (spread 4)( last trading day is 21/3 (tomorrow)).

  Cheers,

  inv

   

   

  

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  03/20/2024 at 2:10 PM #230120
  justisan

  hi,

  did not ever trade futures-cfds with IG, so no experience. yet I am looking right now into “market info” for DAX futures-cfd I read that for this contract like for other cfds there is a standard min stop distance of 5 points and min 10 points for the “guaranteed stop”, so I assume all the issues with temporar “min distances” (also for entries) one would have here as well. anyway, today before FED rate announcement there is a perfect chance to check it live 😀

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  justisan

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