Hi PeterEuler wrote: (1) Transaction costs, lower on Betfair.
Not sure I'd agree, particularly if you're paying the premium charge.
If you're trading EUR/USD, the spread is just 1 pip with Capital Spreads.
True, but to what extent does that help your trading? If you were trading a particular horse, would you focus purely on what's happening with that horse, or would you look at other horses?Euler wrote:(2) All Betfair markets are framed at 100%, that doesn't happen on financials.
I think the main advantages of Betfair are that:Euler wrote:I'd still favour spread betting on Betfair
A. You can act as a market maker by offering money to the market, rather than taking the available price.
B. The number of races per day gives a skilled trader the opportunity to rapidly grow their bank.
But with the financial markets, as there's virtually unlimited liquidity, the potential earnings are higher.
And IMHO, financial markets and Betfair markets are fundamentally similar in the way they operate. This quote (by John W Henry) applies as much to Betfair as to the financial markets:
I don’t believe that I am the only person who cannot predict future prices. No one consistently can predict anything, especially investors. Prices, not investors, predict the future. Despite this, investors hope or believe that they can predict the future, or someone else can. ... We rely on the fact that other investors are convinced that they can predict the future, and I believe that’s where our profits come from. I believe it’s that simple.
Jeff