t’s all cool, fun stuff, day trading. Anyone can do it.  

Just check out Tastytrade’s website if you don’t believe me. Cheery dudes and beaming women with model looks laugh amid pop art graphics with a young audience in mind.

Want some advice? Watch our Options Jive chatshow. “First time at the table?” Click here for a free tutorial.

No doubt it’s a great deal and IG will make a fortune. But making highly risky trading strategies so appealing for the man and woman on the street troubles me.

Every time you turn on your mobile, you’re hit by ads from Plus 500, IG and others trying to get you to join the trading party.

But the truth is, it’s not a party. 

Most players lose; on spread bets and CFDs, that’s 75% in IG’s case, 79% on CMC Markets, 76% on Plus 500.

IG is at the most reputable end of the broker spectrum. Risks are clearly laid out on its homepage. But even so, fees seem designed to make you lose and the broker win.  

Perhaps I’m biased: I had a flutter through IG on US chipmaker Nvidia a few years back. The share price rocketed, but I recently found my gains had been wiped out by charges levied because I hadn’t been trading my stock enough. 

Never mind the time-honoured truth that holding, long-term, is the best way to invest in shares.

The US is currently fretting over a broker called Robinhood, which has attracted huge numbers of youngsters to trade. Inevitably,  horrendous losses and misery have resulted.

IG assures us Tastytrade is no Robinhood. Investors in its futures and options products are sophisticated, very rich people. It’s highly regulated, they say.

All true, no doubt. But with an interventionist President in the White House, those regulators might clamp down on these jazzy brokers one day.  

It won’t be so much fun then.

Credit: Source link

Leave a comment

11 + fourteen =