Spread of 5p on each and every purchase

[Colevan]

Morning All
I know this was discussed way back
But having only found this group again recently.(Magic to be back).
Can I check that I am not being a complete ninny in just accepting that I should pay this spread each and every time I purchase
NWBD,SAN,GACA.etc

It is annoying to be penalized in this way and hopefully, someone had found something to reduce the pain.

an otherwise happy chappy

Jeremy

[Kr1ck]

Who are you with? I find the spreads vary by broker, sometimes you are better off phoning up and getting a trader to do the deal as they seem to be able to get within the spread (if you tell them that's why your calling them, some like the challenge of beating the online trading system) but bear in mind it costs more for dealer execution.
However, some fixed intruments have hopeless spreads (e.g. Investec), you literally have to write off the first payment to cover the purchase cost.

[BullDog]

Morning All
I know this was discussed way back
But having only found this group again recently.(Magic to be back).
Can I check that I am not being a complete ninny in just accepting that I should pay this spread each and every time I purchase
NWBD,SAN,GACA.etc

It is annoying to be penalized in this way and hopefully, someone had found something to reduce the pain.

an otherwise happy chappy

Jeremy

I have only bought and sold GACA previously on your list. A 5p spread isn't too unusual I would say. It might be best to try again to see if you get a better spread.

[Laughton]

Yes, that's my experience too - always worth phoning broker to get inside spread. Mind you, I'm with iDealing and they don't charge more for a 'phone deal.

[88V8]

...just accepting that I should pay this spread each and every time I purchase NWBD,SAN,GACA.etc

At ii, the screen spread for GACA just now was 116/118 but I could have bought £10k at 116.75

NWBD was 128/131 but the buy price for £10k was 129.74.

Depends how tight the market is, size, and perhaps the broker.

V8

[Dicky99]

...just accepting that I should pay this spread each and every time I purchase NWBD,SAN,GACA.etc

At ii, the screen spread for GACA just now was 116/118 but I could have bought £10k at 116.75

NWBD was 128/131 but the buy price for £10k was 129.74.

Depends how tight the market is, size, and perhaps the broker.

V8

Similarly on II STAB shows as being 97.5/102.2 but when previewing a trade of £10k the price is 98.4p.

[stockton]

Dealing on the basis of the quoted spread is not the sensible way to do things. It is far better to quote the price you are prepared to pay and wait.
How easy it is to do this depends on your brokers systems.

[Dod101]

Dealing on the basis of the quoted spread is not the sensible way to do things. It is far better to quote the price you are prepared to pay and wait.
How easy it is to do this depends on your brokers systems.

That is what I often do. Just leave an open order.

Dod

[1nvest]

I know of some (non UK) who continually leave orders at a wide discount (for buys, premium/sale) for a range of individual assets/selections, perhaps a 10% type discount (premium). Pretty infrequent but periodically they do get a hit where the market/prices have glitched (down/up) and seen their order filled and the price 'recovered', caught what others couldn't have generally captured. Often seems to occur at around the market open or close as books are balanced, but can also arise intra-day - such as a fat fingered trader having accidentally submitted a sell 1000 shares at 100p instead of selling 100 shares at 1000p - to moments later correct that. However I'm not organised enough to do that regular updating of filled/outstanding orders myself (too lazy).

As part of that some additionally use Options, buy/sell covered whatever's at the price they'd have sold/bought at anyway - that adds the time-value (interest).