Best Thread CMC Markets owner answers your questions

[PC at CMC Markets]

hi leerees.
can I add you to my Christmas card list ha ha.
come on give us a try you know it makes sense

peter

To be honest I have to say CMC's graphical interface is totally awesome, better than anything I've seen elsewhere.

I would have loved to have opened a stock trading account with them but I found better spreads elsewhere. If CMC sorted out their spreads on the UK markets I would open an account tomorrow.

I ended up going with MFGlobal and I'm very happy (due to the tight spreads) however I do sometimes wish the interface was like CMC's.

I noticed some people in the thread criticising CMC's platform for being slow but it ran fast on mine, probably because I invested in a decent PC.

 

[PC at CMC Markets]

done me like a kipper

one nil to you.

pc

Ha ha, I really got you going on that one. When it comes to SB CMC is quite an unwritten story, at least for me. This story will unfold on this thread in the years to come.

 

[PC at CMC Markets]

hi gle101
have to admit I am beginning to give up on trying to convince you that head line spreads against fast accurate execution on precision pricing no requotes etc are not the way to calculate money on the table. how do you know that you are getting the best spreads when there is fill or kill, ticket time out etc. with others.
think I will rest my case with you.
pc

No totally I do not have all these things, the only thing I got more compared to trading with CMC is money left in the pocket. Sorry Peter, spreads are important, and will continue to be so for many SB traders.

 

[Black Swan]

Can't think of the last time I didn't take a trade because "the spread was too big.." Taking that logic (or lack of it) to extremis you'd never trade GY because the spread is 3- 5 pips bigger than EU...

The last thing I consider when I pull the trigger is what is the spread? Other than the fact you should know (roughly) what the spread of your broker/SB firm is, you surely only then look to see what price you got filled at once in the trade? If that fill is consistently near to the best market price at the time of pulling the trigger than all's good.

Would I care if CMC were (on the face of it) 1 pip more expensive than IG? Nope, not if I enjoyed the CMC experience more. And heh, why not place a limit of 101 instead of 99 if you're that 'bovvered' by a single pip spread...?

 

[gle101]

hi gle101
have to admit I am beginning to give up on trying to convince you that head line spreads against fast accurate execution on precision pricing no requotes etc are not the way to calculate money on the table. how do you know that you are getting the best spreads when there is fill or kill, ticket time out etc. with others.
think I will rest my case with you.
pc

Ok, lets move on, I have had my say on this important part of a service. No really, it will be interesting to see how you will perform, we haven,t heard anything yet, besides your encouraging words. But it is definitely easier to offer excellent execution performance with wider fixed spread. Sorry, there I slipped again, I hope you forgive me.

 

[PC at CMC Markets]

hi gle101
You are forgiven, I know you just cannot stop yourself and I can live with that. Actually not just my encouraging words but lots of support from bloggers on this thread. also you have heard me on more than one occasion talking about three times more business than under old gen. So lets get the facts right even if we disagree on the spreads issue.

cheers pc

Ok, lets move on, I have had my say on this important part of a service. No really, it will be interesting to see how you will perform, we haven,t heard anything yet, besides your encouraging words. But it is definitely easier to offer excellent execution performance with wider fixed spread. Sorry, there I slipped again, I hope you forgive me.

 

[PC at CMC Markets]

Hi Black swan, where have you been thought you had emigrated or something.
crickey be careful we do not want common sense to prevail on this blog will be confusing for a few...

tks pc

Can't think of the last time I didn't take a trade because "the spread was too big.." Taking that logic (or lack of it) to extremis you'd never trade GY because the spread is 3- 5 pips bigger than EU...

The last thing I consider when I pull the trigger is what is the spread? Other than the fact you should know (roughly) what the spread of your broker/SB firm is, you surely only then look to see what price you got filled at once in the trade? If that fill is consistently near to the best market price at the time of pulling the trigger than all's good.

Would I care if CMC were (on the face of it) 1 pip more expensive than IG? Nope, not if I enjoyed the CMC experience more. And heh, why not place a limit of 101 instead of 99 if you're that 'bovvered' by a single pip spread...?

 

[gle101]

hi gle101
You are forgiven, I know you just cannot stop yourself and I can live with that. Actually not just my encouraging words but lots of support from bloggers on this thread. also you have heard me on more than one occasion talking about three times more business than under old gen. So lets get the facts right even if we disagree on the spreads issue.

cheers pc

Great thanks, what a relief.

 

[PC at CMC Markets]

you see we are all heart around here at CMC Markets.

Great thanks, what a relief.

 

[PC at CMC Markets]

hi gle101

I thought you and chris spur were on the ball. You didnt notice that our US30 spread got reduced last week. thought you would have been all over it. You must be losing your touch


pc

Ok, lets move on, I have had my say on this important part of a service. No really, it will be interesting to see how you will perform, we haven,t heard anything yet, besides your encouraging words. But it is definitely easier to offer excellent execution performance with wider fixed spread. Sorry, there I slipped again, I hope you forgive me.

 

[Ross Spur]

hi gle101

I thought you and chris spur were on the ball. You didnt notice that our US30 spread got reduced last week. thought you would have been all over it. You must be losing your touch


pc

My long lost brother, Chris, might have noticed, but not me. If the US30 spread is now 1pt, as per F**spreads, I'll sign up today.

 

[Ross Spur]

Can't think of the last time I didn't take a trade because "the spread was too big.." Taking that logic (or lack of it) to extremis you'd never trade GY because the spread is 3- 5 pips bigger than EU...

The last thing I consider when I pull the trigger is what is the spread? Other than the fact you should know (roughly) what the spread of your broker/SB firm is, you surely only then look to see what price you got filled at once in the trade? If that fill is consistently near to the best market price at the time of pulling the trigger than all's good.

Would I care if CMC were (on the face of it) 1 pip more expensive than IG? Nope, not if I enjoyed the CMC experience more. And heh, why not place a limit of 101 instead of 99 if you're that 'bovvered' by a single pip spread...?

Perhaps it's my Scottish ancestry, but I often don't make trades because the spread is too wide. On illiquid shares particularly the spread can make a huge difference, but even on major FX and indices it's important. Frinstance, if I make 50 trades on a 1pip spread market and average 1pip/pt profit on each one, that's quite a good result, as I'll be among the elite 10% or whatever who win. But if I do the same thing with a 2pip spread, I instantly become part of the 90% who lose. If the 1pt SB always slipped, then that might be a good reason to use CMC instead, but they don't.

 

[SpreadBeta]

Peter, moving the thread on away from just the spreads & offers talk, I wondered what your views on the following are (I am talking from the perspective of the typical UK Spreadbetter / CFD Trader....) :

You have said that if you are to also going to be using the Nextgen for CFD Trading as well as spreadbetting..what will differentiate the Nextgen CFD Platform from the Nextgen Spreadbetting one? , will they have the same Instruments, prices, tools etc.. ? i.e. Why should I use one CMC product over the other in your opinion ?

On the subject of the normally quoted SB Tax advantages, a lot of discussion has taken place on these boards over the years regarding Tax, HMRC and spreadbetting and the "best" consensus, from what it’s worth, seems to be that Spreadbetting is always tax free i.e. from both Capital & Income tax.

You must have a more informed view than most on this, are there any circumstances you are aware of that a UK Spreadbetter would/has be required to pay tax on winnings, and so may be better using CFDs instead ?

 

[PC at CMC Markets]

hi spreadbeta

next gen cfds will have a lot of different functionality and some of it is going to really move cfds up the ladder as a financial product. sorry cannnot tell you exactly but you will see in next month or so when we launch but it is very exciting.

sb and cfds are two different products. primarily you bet on one and buy on the other. obviously sb is cgt free and as far as I know will continue to be so. profits are at the moment free of cgt. In my personal opinion I see no reason for the government to change this. in effect they are getting paid tax on spread betters trading on the levy built into the prices and performance of spread betters. they are collecting tax but from us not you and primarily it is based on the spread and performance of spread betters. you dont see the tax because it is all built into the spread etc. what the Government have to do is work out if they would make more money by charging cgt on client winnings and I dont know the answer to this but with spread betting they are making constant money each month. also if they change it for financial spread betting they would have to change it for sports betting etc. so in my humble opinion and without any knowledge what so ever about what the government is thinking I suspect they will leave it alone.
They are collecting tax on spread betters but you do not see it because it is all built into the spread as well as commissions etc. in effect you spread bet on a net price including commissions, clearing fees, our fee, tax, market spread. what you see is what you get.

hope that helps
thanks for your blog good question
pc

Peter, moving the thread on away from just the spreads & offers talk, I wondered what your views on the following are (I am talking from the perspective of the typical UK Spreadbetter / CFD Trader....) :

You have said that if you are to also going to be using the Nextgen for CFD Trading as well as spreadbetting..what will differentiate the Nextgen CFD Platform from the Nextgen Spreadbetting one? , will they have the same Instruments, prices, tools etc.. ? i.e. Why should I use one CMC product over the other in your opinion ?

On the subject of the normally quoted SB Tax advantages, a lot of discussion has taken place on these boards over the years regarding Tax, HMRC and spreadbetting and the "best" consensus, from what it’s worth, seems to be that Spreadbetting is always tax free i.e. from both Capital & Income tax.

You must have a more informed view than most on this, are there any circumstances you are aware of that a UK Spreadbetter would/has be required to pay tax on winnings, and so may be better using CFDs instead ?

 

[PC at CMC Markets]

ah so gle101's name is Chris. thanks for the info.

pc

My long lost brother, Chris, might have noticed, but not me. If the US30 spread is now 1pt, as per F**spreads, I'll sign up today.

 

[Ross Spur]

ah so gle101's name is Chris. thanks for the info.

pc

Sorry, I don't know what his name is, but he's Swedish, so I doubt it's Chris. He might have been in Abba once, though.

 

[Benny Dorm]

Hi Peter,

I am struggling with your charts at the moment so I am looking forward to the upgrade. Can you please look at being able to put moving averages on a chart in relation to the high or low of a bar or candle? I would also like to shift them forward as is possible on other platforms. The ability to change their colour would be good as well. Currently, I have pink and purple on one of my charts. Ugh!

There also doesn't seem to be much space for charts. Any chance of undocking and sending to a second screen? May not be possible, but I thought I'd ask.

Hopefully the zooming in to get a clear picture of the last few bars or candles will not alter the time frame in the next version.

Regards, BD

 

[SpreadBeta]

sb and cfds are two different products. primarily you bet on one and buy on the other. obviously sb is cgt free and as far as I know will continue to be so. profits are at the moment free of cgt. In my personal opinion I see no reason for the government to change this. in effect they are getting paid tax on spread betters trading on the levy built into the prices and performance of spread betters. they are collecting tax but from us not you and primarily it is based on the spread and performance of spread betters. you dont see the tax because it is all built into the spread etc. what the Government have to do is work out if they would make more money by charging cgt on client winnings and I dont know the answer to this but with spread betting they are making constant money each month. also if they change it for financial spread betting they would have to change it for sports betting etc. so in my humble opinion and without any knowledge what so ever about what the government is thinking I suspect they will leave it alone.
They are collecting tax on spread betters but you do not see it because it is all built into the spread as well as commissions etc. in effect you spread bet on a net price including commissions, clearing fees, our fee, tax, market spread. what you see is what you get.
pc

Thanks for your answer but in that case I wondered what your view of John Whiting (UK Goverment Tax Guru / tzar) statement on the BBC that Spreadbetting *IS* taxable by HMRC for example if it is your sole income that year !! (See Q16 at http://www.bbc.co.uk/news/10294803)

As I took redundacy last year but have continued to Spreadbet I was wondering if Nextgen CFD's may be more appropriate if I was in danger of suddenly being taxed if I were to make money SBing this year !!?

Do you know of any cases where SB's have had to pay tax (in reality) ?. If SBing is not ALWAYS tax free it would surely impact the SB industry as it is one of its main selling points of SB over CFD's

 

[gle101]

hi gle101

I thought you and chris spur were on the ball. You didnt notice that our US30 spread got reduced last week. thought you would have been all over it. You must be losing your touch


pc

I thought you said we should move on, ha ha. Yes a matter of fact I did, I notice it was, I believe 2 point something, closer to 2 point I think. CMC is finally shaping up, still, some distance to go. No really, I think 2 point spread on the Dow is OK, but it shouldn't be more. There is one company with lower spread, and they have caught my interest after 6 month of observing, didn't think they would stick to it, but they have. So I signed up and are at the moment happy with the service they provide.

 

[gle101]

Sorry, I don't know what his name is, but he's Swedish, so I doubt it's Chris. He might have been in Abba once, though.

Ha ha, that was a good one.