4DFX: If not spread betting what is it?

My inbox is sizzling hot…

Loads of questions coming in about my new 4DFX strategy and service.

I thought I’d answer some of the common ones here, just in case you’ve been pondering over them too.

NOTE: Places for 4DFX are available at the time of writing but the doors will close on Thursday 16th May, or once full capacity is reached, whichever comes first.

Just click here to get all the details.

1) You say 4DFX isn’t spread betting so what exactly is it then?

With 4DFX we trade via an ECN (Electronic Communications Network) broker that lets you access the Forex marketplace directly.

I suggest using someone like IC Markets. That way you’ll have direct access to interbank/hedge fund/institutional liquidity and it means you’ll often see zero spread between the bid/ask prices.

I do think spread betting has its place, but not for this more precise way of trading.

The artificial spread inserted by the SB broker to line their own pockets can mean missed fills on entries and exits when trading this methodology. By inserting this spread they’re ensuring they make THEIR money but it can cost YOU winning trades!

There’s less chance of this happening with our ECN broker and it puts us in the most advantageous position possible. We secure the best trading conditions for ourselves.

Also for the avoidance of any doubt I want to make it clear that neither Canonbury or I make any referral or commission from the brokers that I suggest for 4DFX.  I suggest them purely because I think they are the best to use for this form of trading.

2) If it’s not spread betting does that mean I’ll have to pay tax on my profits?

Even though the ‘tax free’ status of spread betting for UK citizens is attractive, when the broker actively makes it harder to secure those profits in the first place (see above) a point of diminished benefit can quickly be reached.

It’s no use saying ‘I don’t have to pay tax on my winnings’ when the broker has already snagged a huge chunk of those potential winnings for themselves!

You would have to make provision but paying tax is a ‘nice’ problem to have. It means you’re making profits!

The most tax efficient structure would depend on your other sources of income.  Why not test 4DFX to get an idea of its potential first. And before you go ‘big’ see an accountant. They’d be able to give you specific and individual professional advice on setting things up in the best way.

3) I’ve already got an account with [Spread Betting Company X] will that be ok?

It depends who your current broker is and what they offer. But I really do think an ECN broker can give you a much more efficient trading environment.

Apart from the business of the extra spread sneaked-in by the SB broker, here’s something else to consider…

Back in 2018 bureaucrats in Europe tightened-up regulations for spread betting firms.

AKA: ‘The ESMA regulations.’

Not a bad thing in itself. There were a few bad apples in this industry NEEDING a bit of stricter discipline as far as I’m concerned. But it did have a big impact on the type of trading spread betting could offer thereafter.

It means they can’t offer the same leverage on trades anymore.

So spread bets limit your trading size. It affects the number of trades you could have running at any one time which dampens your potential profits.

It’s another of the reasons why, for this strategy, I recommend you DO NOT use a spread betting firm.

4) How many trades will we do a day/week?

During my testing and research I tried a number of different approaches. Just to see which ‘settings’ could offer the most consistent returns.

Some weeks I’d be aggressive with the trades. I’d seek more action.

Some weeks I’d be more conservative. I’d be less ‘busy’ with activity and choosier on which trades to include and which ones to filter-out.

I found the happy balance and I’d say to expect around 5-7 trades to trigger in a ‘regular’ week.

It does all depend on the markets of course. If the markets are really quiet we might only get a small handful of trades. If the markets are moving faster we’d obviously get more opportunities.

5) Will I learn how to do these trades myself?

With 4DFX trades I use free flowing organic analysis to tune-in to current market conditions as it develops. It is a systematic approach but we’re not left ‘boxed-in’ by any indicator signals or chart patterns.

It means there isn’t a formulaic tick box ‘system’ I can give you. It’s too restrictive.

Here’s what we’ll do instead…

I’ll find the trades, share them daily, and then provide a weekly video review that explains the reasoning behind the trades. This will provide a valuable stream of education directly alongside the trades themselves.

This way, your own analysis skills absolutely can build over time.

And absolutely nothing beats the firsthand experience of seeing the trades actually work while you’re learning about them.

= = =

Okay, I think that just about covers the most common questions.

But if you need to know anything else drop me a line: rich@tradersnest.com

I’ll get right back to you but don’t hand around… the launch offer is only available until Thursday.

Here’s the link again so you know the full details: https://4dfxtrader.com/launch-offer/

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