CMC markets -legal action

[counter_violent]

At the moment i am already claming over 130k from CMC, which is nothing to do with legal case. one deal they have cost me over 130k. they closed one of my position due to 5k marjin shortfall but they have had 60k my money in their own account. By thet ime of marjin call they denied they have the money in their account but in the morning they admitted the mistake and accepted that money was in their account. but during the night my position moved so much, amount became too much to refund it.

You know what they said, "sometimes money vanishes from our system". This company is a joke. They were basicly lying. They knew money was there to cover all my positions but intentionaly denied that until they can close the position and in the morning, they thought they could get away with a simple sorry.


This is just one of the problem i had with CMC. First they have closed my SP account without any notice and any reason at all. after that i managed to get a CFD account. They hoped that i will lose the money but after two weeks, They slowed my system and delayed all my trades regardless of size amount or instrument. Last few weeks they have tried to freze my screen two, tree times in a day, so i cant get the price update or trade.


these are just few of the problems i had. I knew they were trying to stop me.

 

[RPEX]

they all attacked me and telling me i have secret agenda. That realy annoyed me and i have managed to get over 15% shareholders support in few months to prove them that directors were lying. Four days after i send a fax to co to call for AGM asap. They declared insolvent. If they didnt, there was a good chance, they could have end up in a city cell.

Do you attract trouble or what? lol.

In order of hilarity my favourite moments have been:

i) The rich victim complex & Arguments as grammatically sound as the argument itself.
ii) The hundreds to millions strategy.
iii) The ROI that would allow 1m to displace a middle eastern sheik.
iv) This guy has 100k with an SB...trading through their in house 'platform for girls'.
v) Attack on dating sites, whilst trying to arrange a tete-a-tete in Brighton.
vi) CMC ate my hamster

I had a CMC account and have the typical story: i won on my first load of trades, then it was like they noticed, every subsequent trade suffered a re-quote (and loss). However, i didn't have as much luck as some of the other guys, they wouldn't refund me anything. I didn't try kicking and screaming mainly cos it was only small, but also i see spreadbetting as you would a bookmakers, so the parallell market has very little to do with the underlying, it will definately be in the T&C that they can do what they want.

I think a better way to get people who can corroborate your experiences would be to PM people already complaining, or email guys on all the other forums (they're ripping people off everywhere)

It's your cash, so good luck to you if you go ahead.

 

[Vaco]

one mill,

my system freeze lasted until i noticed and restarted the software, had to be restarted about 3 times before it stayed live, this happened just before the us open.

Alan 'Very amusing. The point I was making is that RT market price should be bang in the middle of any reputable SB's quote.'

This simply is not the case, if you take a look at the capital spreads thread simon has openly said that the price feed goes through their systems first gets adjusted by whatever formula they have applied to it and then gets passed on to clients. This creates a bit of a lag when prices move sharply. some Clients with a real time data feed then use this to make money at the sb comps expense, when this is noticed the accounts are either frozen/shutdown or some say the the sb will screw you over to get their money back.

As for slow fills, I have traded direct access as well as with cmc and anyone who thinks fills are instant on direct access hasn't used it, remember a real person has to want to buy/sell to you at the given price, if your entry is at the extreames of support or ressistance you will struggle to get filled with large, remember everyone else can also see what you see.

 

[A Dashing Blade]

Very amusing. The point I was making is that RT market price should be bang in the middle of any reputable SB's quote.

Rubbish, clearly you havn't got a clue about market-making.

 

[arabianights]

You've, obviously, never had an account with CMC otherwise you wouldn't make such a juvenile comment. Open an account with them and make several trades. Then check your CMC fills against a real time data feed. You might get an unpleasant surprise!!

You've obviously never read any of my comments

I do have a CMC account, but I only opened it because they were giving you money to open it at the time so it doesn't really count.

AFAIK CMC have absoultely no obligation whatsoever to match the real market except on the expiry of the bet. The only reason it would be sensible for them to do so is because if they were consistently way off they'd be arbed to buggery. Therefore they can't be much out much of the time by more than a few ticks... and if a few ticks matter to you then you shouldn't be spread betting, surely?

 

[superspurs]

where is buggery,can,t seem to find it in the thomas cook brochure?

 

[new_trader]

For example, £100 per pt is the equivalent of 40 mini Dow contracts. Even with a broker, you'll be lucky to get all 40 contracts absorbed at the same price.

40 contracts is a drop in the ocean, they would easily get 'absorbed' and more at the same price. This is why DA is professional and S/B is non-professional...do you see or do you not see?

 

[grantx]

Around 1997-98, acting as market-makers, CMC were one of the first fx players to offer spot to the retail market and their quotes were equal to the touch price (on Reuters) 95% of the time.

Do you think CMC’s (or any other SB’s) real-time quotes are derived from Thomas Cook’s tourist rates on Teletext ? I reckon their IT infrastructure and pricing algorithms are a little more sophisticated. At a guess , I would say at the very least it would identify breaches of the ‘no-arbitage’ condition and adjust prices accordingly.

“Lags” with today’s technology? I can’t see how this is possible. Unless it is a variation of the ‘bait and switch’ method, eg give the impression of system weaknesses that can be exploited by the ‘sophisticated’ who will pile in with ever greater size, then one day... oops.

For SB’s software, look here:

MT4 Brokers' Virtual Dealer Plug-In

And for a discussion:

Forums - IRONY: Metatrader4 forgot to shred this document..evidence of scam

Grant.

 

[Lee Shepherd]

grantx,

Good stuff mate, needs bringing to the attention of others, including people that complain about the companies that use this, including the ones who defend them without knowledge of this.

I knew this existed but couldn't find any info on it.

Now I have it.

Thanks.

 

[onemillion]

My problem is not whether CMC giving MP or not. They dont give the market price but they have to keep it close to mp.. i am not going to say it is same for after hours price. After hours they do play with the price, sametime way off instrument's future price for a short time then they move it back.

What is the reason they move after hours prices more than instrumen's future price? i dont know but i am guessing, doen anyone know that?

Think, if you can play with the price any way you want to, even few ticks, you can make other people lose and make easy killing.

Second, why does CMC delay executing the trades longer than it should be. When they take your order, they delay and see how the market moves in next 10-30 seconds. i seen market crash in 20-30 seconds. As long as price moves they make money, becouse you dont get if the price moves in your favour but you will be offered new price if it moves against you. What happens the difference, it goes to CMC. Who is taking the risk and with who#s money, YOU. If you ask CMC why are they delaying your trades, you wont get an answer.

This is illigal under FSA rules and relavent Consumer Acts. CMC is not free to do what ever they like. Can i prove that? If i can acces their books and account details. That's why CMC have no balls to go to Court. They are manipulating market prices and by controling the trading system they are trying to gain from their client's illigaly and unfairly.


Even bookies cant change the winning horse or price after the race. Wouldnt that be nice, change the horse and price after the race, we can all be millioners! What CMC is doing, is exactly that, changing the price to make easy money from their clients.

 

[alan5616]

Rubbish, clearly you havn't got a clue about market-making.

I do have more than a clue about market making. Perhaps, you'd care to enlighten us before dismissing the statement which I made.

If you're trading an index, for example, the price is the price. There are no market makers!!!! The relevant exchange transmits the current price of those indices tick by tick. Equities, Forex and Commodity markets, primarily, do have market makers. I repeat the statement which I made previously. Any reputable SB should position their spread either side of the current price. Live prices are transmitted directly from the relevant exchanges and are there for all to see.

 

[gooseman]

the spread better is the market maker......they can price where they like. if you're daft enough to deal on it then that's your choice. any sensible punter has a few accounts so can arb if there is an opportunity..

 

[arabianights]

I do have more than a clue about market making. Perhaps, you'd care to enlighten us before dismissing the statement which I made.

If you're trading an index, for example, the price is the price. There are no market makers!!!! The relevant exchange transmits the current price of those indices tick by tick. Equities, Forex and Commodity markets, primarily, do have market makers. I repeat the statement which I made previously. Any reputable SB should position their spread either side of the current price. Live prices are transmitted directly from the relevant exchanges and are there for all to see.

Why should their spread have the same midpoint as the market price? There isn't actually any good reason for that and it will lead to huge distortions on figures too. Even worse if you take the last trade price.

 

[gooseman]

if they work like options market makers they will have strike risk too so they can massage their prices around where they have risk...

 

[onemillion]

the spread better is the market maker......they can price where they like. if you're daft enough to deal on it then that's your choice. any sensible punter has a few accounts so can arb if there is an opportunity..

just read what i said before making stupid coments. And read some of rules and regulations about SB or CFD companies. They certainly have the right if they are market maker to give any price but they have to offer that price to all other market participents. If they do that in open market, they will be wiped out by other players in very short time.

You certainly have no idea how market making works and under what regulations.

By the ftse100 is offered under 6000 at the moment, 100 points below the market. Go and see if you can do few trades. Dream on.

 

[A Dashing Blade]

I do have more than a clue about market making. Perhaps, you'd care to enlighten us before dismissing the statement which I made.

If you're trading an index, for example, the price is the price. There are no market makers!!!! The relevant exchange transmits the current price of those indices tick by tick. Equities, Forex and Commodity markets, primarily, do have market makers. I repeat the statement which I made previously. Any reputable SB should position their spread either side of the current price. Live prices are transmitted directly from the relevant exchanges and are there for all to see.

Apols for being too "forthright" alan . . .

Lets take an index as an example

say it's value is 1000

say I, as a market maker, make a price 995-1005

say I get hit and lifted but in unequal amounts

eg 5 units gets sold to me at 995, 100 units get bought from me at 1005

I'll then adjust my price to reflect the fact that I'd rather buy than sell compared to other MM's (MM's attempt to keep a flat book and simply cream in the bid/ask spread)so my next price will be something like 998-1008 even tho' th market hasn't moved.

Enlightened?

(pretty sure I've got all that the right way round)

Oh yeah, forgot the bit about the instrument MM's would use to hedge their position, in the case of an index, it'll be the future rather than the actual index value itself, but we'll leave that for another time

 

[Vaco]

By the ftse100 is offered under 6000 at the moment, 100 points below the market. Go and see if you can do few trades. Dream on.

Not on my screen its not admittidlly i'm on a cfd account but you said u switched to cfd lowest today is 6040

 

[arabianights]

Is your complaint that CMC are offering you entirely different prices to those they are offering different clients?

If so why don't you just arbitrage this?

 

[gooseman]

just read what i said before making stupid coments. And read some of rules and regulations about SB or CFD companies. They certainly have the right if they are market maker to give any price but they have to offer that price to all other market participents. If they do that in open market, they will be wiped out by other players in very short time.

You certainly have no idea how market making works and under what regulations.

By the ftse100 is offered under 6000 at the moment, 100 points below the market. Go and see if you can do few trades. Dream on.

you're quite correct-i have no idea how a spread better works mate-i'm just giving my point of view on an open forum. i stay clear of bookies for the precise reason that this sort of thing happens. fair play to them-they've taken a hundred grand off you....

i will take exception to your comment 'You certainly have no idea how market making works '. you have no idea who i am or what i do but i can tell you that this statement is so far wrong it's unbelievable.

you carry on with your whinging mate-i look forward to reading your court case in the papers.

 

[onemillion]

Not on my screen its not admittidlly i'm on a cfd account but you said u switched to cfd lowest today is 6040

sorry mate, i was just trying to make a point that SB or CFD companies cant give any price they like. ftse100 is not 100 points below the market price.