Best Thread CMC Markets owner answers your questions

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uk dave said:
I get slipped on most and yes it eats in to my profits like paying tax actually...
Click to expand...
So why do you trade with them? Quite a few SB offering better average spread on the EUR/USD (or any other pair), if that is really what you are getting from CMC.
 
PC at CMC Markets said:
hi Dave,
we use every exchange out there plus bank feeds. but these things happen across
banks and exchanges, especially the banks. You would not believe the quality of bank data feeds. Their answer is just to widen the spreads if there is large volatility. I think that is because they have lots of computerised trading system logged onto their platforms to try and hit them if there is a price disparity. we do not we only accept retail flows so we can sanity check the process a lot easier. also we need to maintain a high level of service to our clients. I can tell you on forex for example that during a volatile period for the most part we offer better quotes than we receive from the banks. A classic example was when the Swiss National Bank put a floor on euro/chf of 1.20. the bank feeds went crazy (so did ours) but for the most part we offered our clients a better spread than we were receiving.

tks pc
Click to expand...

What about DAX, FTSE, US30, etc? I take it that these markets are never suspended as, unlike FX, they have a definite underlying price.
 
hi Dave,

We do not close the markets. this is a wording issue on the ticket.
the markets are open. this type of message is when there is a price corruption
so all you have to do is click again. it is rare event.
tks pc

uk dave said:
So because the banks widen their spreads as you claim, is that why you close your markets?
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hi g.o.a.t
I can tell you that doesnt happen.

pc

G.O.A.T said:
So if I understand correctly, You take up to 20 trades a day and get slippage of 1 to 2.5 pips each trade? so the minimum slippage is 20 pips a day and a max of 50 add to that the spread of 0.7+ that amounts to around 34-64 pips just to breakeven??
Click to expand...
 
hi ross,
yes I have never seen this but some times their is price latency at clients end and that applies to everybody.

I will say it again.
There is no system to slip any body on any trade. we just execute every trade at our price when we receive the order. This can be for or against the client.
If there is price corruption then you get the market suspended ticket but we will change the wording. the majority of our trades go through seamlessly and quickly.

we do not operate fill or kill service. we want our clients to execute at our price every time. there is no reading of client positions. you click and you trade and you get our latest price every time.

stops we are looking at the way they are configured. limits the same. we are giving out lots of price improvement on limits primarily because we always give the best price when you place limit.

tks pc

Ross Spur said:
What about DAX, FTSE, US30, etc? I take it that these markets are never suspended as, unlike FX, they have a definite underlying price.
Click to expand...
 
PC at CMC Markets said:
hi ross,
yes I have never seen this but some times their is price latency at clients end and that applies to everybody.

I will say it again.
There is no system to slip any body on any trade. we just execute every trade at our price when we receive the order. This can be for or against the client.
If there is price corruption then you get the market suspended ticket but we will change the wording. the majority of our trades go through seamlessly and quickly.

we do not operate fill or kill service. we want our clients to execute at our price every time. there is no reading of client positions. you click and you trade and you get our latest price every time.

stops we are looking at the way they are configured. limits the same. we are giving out lots of price improvement on limits primarily because we always give the best price when you place limit.

tks pc
Click to expand...

I think you previously confirmed that you did not have a system in place to create asymmetrical slippage. Some years ago I attended a seminar at your offices, I was a bit surprised to hear that every order had to be accepted manually by a CMC dealer. Has that practice been superseded by improvements in technology?

It was actually Dave Jones who mentioned this, another younger guy was also there, I cant recall his name but he used to be on TV occasionally back in 2008.
 
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There are too few bad reports on this thread in order to take some of these guys seriously. Without giving some kind of evidence of this going on a consistent basis. So far they seem to have some kind of issue going on, unless they can deliver some trustworthy proof I am bound to discard them.
 
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hi pboyles,

not sure that is true but there was a lot of manual intervention
primarily because the system couldn't cope with the volumes and volatility. next gen is fully automated. dealers do not execute trades manually. it is all automated. also pricing is calculated automatically. dealers now just manage net risk of the book if required.
also some sales trading but even sales trading trades have to be put into the system and executed at the prevailing price. dealers cannot quote a client one price (on phone sales trading) and then deal at another price. there is no system for them to capture any additional profits from a trade.

pc

pboyles said:
I think you previously confirmed that you did not have a system in place to create asymmetrical slippage. Some years ago I attended a seminar at your offices, I was a bit surprised to hear that every order had to be accepted manually by a CMC dealer. Has that practice been superseded by improvements in technology?

It was actually Dave Jones who mentioned this, another younger guy was also there, I cant recall his name but he used to be on TV occasionally back in 2008.
Click to expand...
 
Hi lutz,

I agree especially on forex. I have seen forex spreads widen during volatile periods to ridiculous levels. I am talking about forex spreads from the World's leading forex providers. Maybe we need to know what the perimeters are around trading.

Good luck to them though. anything that brings down the costs of trading I am all for, being the pioneers of this in the industry.

cheers pc

Jimmy Lulz said:
Fixed spreads make me nervous. It is what it is, how can the spread be fixed?
Click to expand...
 
PC at CMC Markets said:
hi pboyles,

not sure that is true but there was a lot of manual intervention
primarily because the system couldn't cope with the volumes and volatility. next gen is fully automated. dealers do not execute trades manually. it is all automated. also pricing is calculated automatically. dealers now just manage net risk of the book if required.
also some sales trading but even sales trading trades have to be put into the system and executed at the prevailing price. dealers cannot quote a client one price (on phone sales trading) and then deal at another price. there is no system for them to capture any additional profits from a trade.

pc
Click to expand...

So we weren't paranoid, after all, if that's how it used to be.:)
 
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