Best Thread CMC Markets owner answers your questions

[tar]

Hi Peter,

Can you explain the pricing in Brent Crude at the moment?

August Futures are 114. CMC cash price is 118!!

Backwardation in occuring but not to that level.

I told u guys , the average trader will not know the real fair value for cash oil on an intraday level , cash oil is the worst way to speculate on oil prices .

 

[PC at CMC Markets]

Hi Nigel,

thanks for your post. What do you think it should be. let me have your calculation and I will pass it onto our quants.

I can assure you that there are no hidden costs in rolling cash commodities. we brought in rolling cash to make betting easier for clients. you have rolling cash bullion so why not rolling cash oil. it is not that difficult to offer this.

tks pc

Hi Peter,

Can you explain the pricing in Brent Crude at the moment?

August Futures are 114. CMC cash price is 118!!

Backwardation in occuring but not to that level.

 

[PC at CMC Markets]

Good morning twinj.

I love this question because it is the right sort of question to be asking.
Our minimum spreads are available through out the day when markets are open or closed depending on liquidity. Our typical spreads you can follow on our spread charts, in demo or live platform. We are looking at publishing our typical spreads because we have compared them to our major competitor and we see better typical spreads from us through out the day and we need to get this message across.

many thanks for post
regards Peter

Hi Peter,

Are the new lowest spreads typical spreads say between 7am to 4pm UK time? Or the typical spreads are higher and the spreads can become as low as the advertised figures?

 

[tar]

Hi Peter,

Can you explain the pricing in Brent Crude at the moment?

August Futures are 114. CMC cash price is 118!!

Backwardation in occuring but not to that level.

Ok , the brent/wti spread is now more than 23 $ with CMC's cash oil , but with front month futures Brent(Aug)/Wti(Jul) it is around 19 $ only .

 

[Ross Spur]

Hi Ross, I have got it working across chrome. are you talking live or demo account
pc

Your helpdesk people advised against using Chrome or Firefox. Anyway, I tried the demo on Chrome again today for ten minutes and it was OK (apart from being very slow), so maybe an update has fixed it? On other browsers the problems (can't select orders to drag) usually start if you leave the platform running, so possibly it's something to do with memory usage?

Good to see the narrowed spreads, btw. That's what will rake in new customers!

 

[Shakone]

Yep Spreads do look good now. Surprised to see Dow lower than 1 though.

For spread comparisons, I suppose you could feed your live FX spreads into FXIntel, which has quite a few brokers. Not sure if you want to compare with brokers though, or only compare with spreadbetting firms.

 

[PC at CMC Markets]

Hi Ross,
yep agree re narrow spreads. already raking them in but as I keep saying
it is not about high line spreads it is about typical spreads and ours are also extremely good. but minimum spreads are doing good job for us already.

cheers pc

Your helpdesk people advised against using Chrome or Firefox. Anyway, I tried the demo on Chrome again today for ten minutes and it was OK (apart from being very slow), so maybe an update has fixed it? On other browsers the problems (can't select orders to drag) usually start if you leave the platform running, so possibly it's something to do with memory usage?

Good to see the narrowed spreads, btw. That's what will rake in new customers!

 

[PC at CMC Markets]

Hi Shakone,

Actually we compare our spreads to the underlying markets and we are incredibly competitive now especially on forex and indices. These spreads are maintainable because the new next gen infrastructure we have build including dynamic pricing, no re-quotes and automated execution. in effect you are trading with a computer that generates a dealing price from the underlying markets.

remember make sure you understand the risks of spread betting you could lose more than your initial deposit.

regards peter

Yep Spreads do look good now. Surprised to see Dow lower than 1 though.

For spread comparisons, I suppose you could feed your live FX spreads into FXIntel, which has quite a few brokers. Not sure if you want to compare with brokers though, or only compare with spreadbetting firms.

 

[Shakone]

Hi Shakone,

Actually we compare our spreads to the underlying markets and we are incredibly competitive now especially on forex and indices. These spreads are maintainable because the new next gen infrastructure we have build including dynamic pricing, no re-quotes and automated execution. in effect you are trading with a computer that generates a dealing price from the underlying markets.

remember make sure you understand the risks of spread betting you could lose more than your initial deposit.

regards peter

Definitely competitive. Agree with others (and yourself), would be great to see the data of how the spread typically changes over the day for the majors and the any other popular instruments.

 

[PC at CMC Markets]

Hi Shakone,
you can already see this on our demo or live platform. just select spread charts and you can follow our spreads throughout the day and go back over time to see the consistency.
Typical spreads we are very proud of because we have always based our business on consistency not head line spreads. However, we realised that we needed good head line spreads to get the attention of clients so we reduced them and to be honest we should have done it earlier but we have been working on our pricing engine and wanted to make sure that can cope with all market extremes. Once we got that right we reduced spreads. you never know we might reduce them some more. wait and see.
we do plan to publish the typical spreads in an easier format maybe even put them on our web site but thinking about this. We are big believers in typical spreads because it is what happens during the day when markets are up and down that counts. sure it is easy to quote narrow spreads during calm markets but when markets pick up that is when you need your provider to offer tight spreads. I am happy for anybody to monitor our typical spreads throughout the day. we have all the data and will publish it in due course but for now follow the spread charts or monitor our spreads yourself on our demo platform.

regards peter

Definitely competitive. Agree with others (and yourself), would be great to see the data of how the spread typically changes over the day for the majors and the any other popular instruments.

 

[2George]

Hi Peter,
There are too many topics to scan through them all BUT I do remember you comparing actual purchase of shares against CDF and SB. I am introducing my son to trading so I needed to give him proper advice.......
I wondered if you'd give a brief comparison of the ongoing costs of either a 'buy' CDF, or placing a buy order for Spread betting, both for 1 month with no break.
I understand there are ongoing costs of (approx) 2.5% (per roll over day) for CDF (not sure about SB).
The comparison is against a £1000 purchase of a UK stock for a month which will cost circa £37.
I'd appreciate your input.
Thanks.
George

 

[twinj]

Hi Peter,

I have had a look at the demo. I was amazed to see 1pip spread on the GBPUSD. I think this is a huge step forward provided the live execution is without requotes or errors.

However, as has been discussed recently, I prefer the market orders to be placed more easily. I saw the video demo and I tried it myself and it takes too many clicks. Perhaps deciding on the direction first may be helping you to provide these tighter spreads so this I can tolerate ( but I would certainly prefer not to disclose my direction before execution) but the confirmation bit is time consuming. My experience with the old platform was that I had not set up the default to get rid of the confirmation and when it came for me to exit (desperately), the mouse pad froze and I could not move the cursor to the confirm button in time and I had lost the opportunity to exit at a decent time. This sticks in my mind because it coincided with a huge increase in spread. So I would really like true one-click execution.

 

[tar]

Perhaps deciding on the direction first may be helping you to provide these tighter spreads so this I can tolerate ( but I would certainly prefer not to disclose my direction before execution) but the confirmation bit is time consuming. .

 

[PC at CMC Markets]

HI george,
You can find most of this information out if you scan through our platform. However, if you want to find out more please attend one of our seminars and you can ask lots of questions there. even bring your son along.
you can find out dates etc on our web site. sorry just too long an answer for this forum.
regards Peter

Hi Peter,
There are too many topics to scan through them all BUT I do remember you comparing actual purchase of shares against CDF and SB. I am introducing my son to trading so I needed to give him proper advice.......
I wondered if you'd give a brief comparison of the ongoing costs of either a 'buy' CDF, or placing a buy order for Spread betting, both for 1 month with no break.
I understand there are ongoing costs of (approx) 2.5% (per roll over day) for CDF (not sure about SB).
The comparison is against a £1000 purchase of a UK stock for a month which will cost circa £37.
I'd appreciate your input.
Thanks.
George

 

[PC at CMC Markets]

Hi Twinj
You can disable the ticket conformation in preferences.
for us whether you select buy or sell it makes no difference. the system is not angled towards knowing whether you are buyer or seller before you trade it is to make it easier for clients to buy or sell. remember this is betting product. the prices and execution are all generated via computers and algorithms. the computer does not read your position before you trade to see whether you are long or shot.

you can also trade using stop entries, trailing stops etc.

tks pc

Hi Peter,

I have had a look at the demo. I was amazed to see 1pip spread on the GBPUSD. I think this is a huge step forward provided the live execution is without requotes or errors.

However, as has been discussed recently, I prefer the market orders to be placed more easily. I saw the video demo and I tried it myself and it takes too many clicks. Perhaps deciding on the direction first may be helping you to provide these tighter spreads so this I can tolerate ( but I would certainly prefer not to disclose my direction before execution) but the confirmation bit is time consuming. My experience with the old platform was that I had not set up the default to get rid of the confirmation and when it came for me to exit (desperately), the mouse pad froze and I could not move the cursor to the confirm button in time and I had lost the opportunity to exit at a decent time. This sticks in my mind because it coincided with a huge increase in spread. So I would really like true one-click execution.

 

[2George]

That is what one of your staff told me (too complex) so I presumed it was not beneficial for either CDF or SB.
My son lives on the other side of the world so that is not possible at any event.
Regards
George

HI george,
You can find most of this information out if you scan through our platform. However, if you want to find out more please attend one of our seminars and you can ask lots of questions there. even bring your son along.
you can find out dates etc on our web site. sorry just too long an answer for this forum.
regards Peter

 

[forker]

FFS, you couldn't be more obvious if you tried. On commission now? T2W should be ashamed of it'self to let blatent advertising like this go on. Must think it's readership are complete morons.

Peter

Re my questions you never answered, here's a new one. You want to compare fills with other brokers? Do it properly, right from seeing the price you want to enter on to opening your multiclick platform and time wasting confirmation steps and compare with other decent SB platforms with 1 click entries. I will save you time, (pardon the pun) you will lose miserably. That was my whole point you and your boy wonder black goose decided to ignore and deviate from.

Why don't you try getting a life sometime? You're petty arguments are no different than watching attention seeking footballers pretend they're hurt.

 

[nigelpm]

Hi Nigel,

thanks for your post. What do you think it should be. let me have your calculation and I will pass it onto our quants.

I can assure you that there are no hidden costs in rolling cash commodities. we brought in rolling cash to make betting easier for clients. you have rolling cash bullion so why not rolling cash oil. it is not that difficult to offer this.

tks pc

Ermm. well the spread in the Brent/WTI per futures is $19 but $23 per CMC - clearly something has gone badly wrong with your calcs - How can the cash price be a full $4 ahead of the futures - it does NOT make any sense.

If it is simple - a brief calc of how it is worked out would be most appreciated.

And if it isn't simple I'd suggest your guys are overcomplicating it!

It's absolutely hopeless to try and trade if the cash price bears no resembalance to the futures - I would be MUCH better off trading the futures.

 

[Black Swan]

Why don't you try getting a life sometime? You're petty arguments are no different than watching attention seeking footballers pretend they're hurt.

I put the sad, bitter, paranoid troll (and a few others on this thread) on ignore a week or so back. I dunno, early days on this thread a big subject was "when you gonna cut the spreads then Peter?"

This thread in particular attracts a lot of bitter, bitter ranters, perhaps it's envy..maybe they're sock puppets for a different SB firm, perhaps the bitterness is because they need someone to blame their failure on, but let's be honest here, if you're making cash (on whatever platform or method of trading) you don't moan, you do just do the job and take the cash out of the market. It's tiresome though as when I've looked in on this thread this week from time to time the quality of posting and intelligent questions had really been elevated..

Now I only trade the Euro these days and as you know I only swing and or position trade so I can cope OK with the odd poor fill, bit of slippage etc, it's not that crucial to me measured over the year, but tax advice I'm getting is to spread bet only and 0.9 with decent fills is very attractive given I actually like the platform etc. and here we have the COO of the company prepared to have a *live* chat re. any issue you may have and these guys only see the negative side, fook me they must be a barrel of laughs eh?

I've stated before that I see a situation were you only have 3-5 really strong SB firms competing for your business, I can see a situation were you're getting genuine 0.5 spread on the Euro and FTSE and IG CMC City and CS are doing all they can to get your business taking the SB industry to new heights of respect, compliance and customer experience, only thing they can't do is take the trades for you despite providing excellent chart packages, seminars, videos, strategies..and therein lies the troll dilemma..they just can't 'do the job' no matter what you give them

 

[Ross Spur]

Ermm. well the spread in the Brent/WTI per futures is $19 but $23 per CMC - clearly something has gone badly wrong with your calcs - How can the cash price be a full $4 ahead of the futures - it does NOT make any sense.

If it is simple - a brief calc of how it is worked out would be most appreciated.

And if it isn't simple I'd suggest your guys are overcomplicating it!

It's absolutely hopeless to try and trade if the cash price bears no resembalance to the futures - I would be MUCH better off trading the futures.

Totally loony, as was pointed out here ages ago. Maybe CMC just don't want oil traders?