Best Thread CMC Markets owner answers your questions

[Ross Spur]

Thanks Ross,

Don't want to stray too much off topic, but I did double check with another GFT operator just now. Would have been useful for me for stocks I'm trading via GFT Can display (dynamic) horizontal lines of buy and sell prices, but only plot the sell price.

See what you mean, uchiki, but buy/sell lines were all I wanted with a candlestick chart.

 

[tommac]

Just been playing with demo. Couple of points about layout
Can you move charts/ watchlist to second screen and can you resize UI for various screen resolutions.
Sorry if old ground but can`t find it. tks

 

[nigelpm]

Brilliant.

A few questions for Mr Cruddas.

1) Will you reintroduce quarterly bets - these were a great way to hold longer term positions but avoid UK Taxation!

2) IGIndex are starting to beat you at your own game i.e. offering tight spreads and a great range of markets - what do you plan to do to win the market back?

3) Will you offer an Android App for Marketmaker? Your iphone app might be the best in the world but not everyone wants to spend silly money on an inferior phone!

 

[GramTrader]

Brilliant.

3) Will you offer an Android App for Marketmaker? Your iphone app might be the best in the world but not everyone wants to spend silly money on an inferior phone!

I agree... why does CMC not have Android application?? Today opened up IG Markets account which support Android use. Not that I should be making decisions whilst on my phone.. but nice to have if you are away from computer during the day.

SO.. if CMC markets is a spread betting firm.. do CMC markets make money if I chose the wrong side of the market? Silly me thought I was trading this last year... not betting.

Also.. I read earlier that profits are not taxable? Can this be true?? Seems like I have been trying to get CMC to work on my mobile for too long today and am reading incorrectly...

 

[PC at CMC Markets]

what even after a heavy night drinking or with a heavy cold
ha ha
:cheesy:

fixed even in violent times

 

[PC at CMC Markets]

Hi tommac

yes you can resize UI for various screen resolutions already.
You can also move charts and watch lists to second screen. We will also be releasing some tabs so you can have more than one page available. not sure when tabs will be released but coming to a computer near you soon.

regards Peter

Just been playing with demo. Couple of points about layout
Can you move charts/ watchlist to second screen and can you resize UI for various screen resolutions.
Sorry if old ground but can`t find it. tks

 

[PC at CMC Markets]

hi gram trader.
android application is coming along with ipad.

I agree... why does CMC not have Android application?? Today opened up IG Markets account which support Android use. Not that I should be making decisions whilst on my phone.. but nice to have if you are away from computer during the day.

SO.. if CMC markets is a spread betting firm.. do CMC markets make money if I chose the wrong side of the market? Silly me thought I was trading this last year... not betting.

Also.. I read earlier that profits are not taxable? Can this be true?? Seems like I have been trying to get CMC to work on my mobile for too long today and am reading incorrectly...

 

[GramTrader]

hi gram trader.
android application is coming along with ipad.

THanks for reply. Can't wait! Beats trying to run it in web browser on my smart phone.

 

[uchiki]

Hi Peter,
Not such a happy customer this morning.
I have two points - variation of spread vs underlying market and accuracy of CMC spread charts. These follow on from my previously complimentary comments about consistency of spread and usefulness of spread charts.

Got stopped out on my FRES position at 1435.93 at 08:03 hrs. I expect some of my stops to be hit, it's just the manner of this one I'm uneasy about.
DMA (interactivebrokers) low print was 1445.5. Prices at the low on a CMC 10 sec spread chart captured soon after were 1439.41/1451.59, suggesting my 1439 stop wasn't quite reached.
Your normal spread for this stock is between 4 and 6p. If the buy price on the spread chart was correct, then combined with the price I was stopped at, the spread was 15.66p. I understand that as the spread widens in the underlying market that this is reflected in your spread, so I have no issues with some widening of your spread, but this seemed a bit extreme.

According to your spread chart plotted soon after the event, my stop (1439) was not reached. I was stopped out 3p lower. The price I was stopped out at was 9.5p below the lowest print on the underlying market at the time (although the underlying market subsequently went to 1338 at 12:29 hrs). If CMC had a valid bid/sell print below 1139, I have no qualms about being stopped out, it just seems a bit questionable, based on the underlying market.

I have subsequently plotted a new spread chart (1 min) and it now says the spread at 08:03 hrs was 1456.89/1463.09. So the spike down at that time has now disappeared. Spikes up or down are obviously important for stop setting. Seems like the spread charts need checking and not currently safe for setting stops against.
I'd welcome your comments...

 

[PC at CMC Markets]

Hi Mr Nige

Thanks for your posting.
Firstly, what is brilliant ?That was your first word on the post.

To answer your question:

No, we will not introduce quarterly bets because there is not much demand for it amongst our clients
and with daily rolling cash spread bets you can keep the bet open for as long or short a time period as you want.

Regarding spreads, we believe we have the tightest most consistent spreads and we publish second by second spread
charts so you can monitor our performance. There are some companies that offer tighter head line spreads but we believe
that over a period of time our spreads are the most competitive. There has been a long debate about this on this forum.
We have automated the process of execution and pricing and there are no requotes, no ticket time outs, no fill or kill and no dealer referral
on betting. it is 100 percent automatic.

Spread Bets, CFDs and FX are margined products. Losses can exceed your initial investment. They may not be suitable for everyone so make sure you understand the risks.

No we will not offer android app for market maker. We will be releasing shortly an ipad application so you are not dependent on iphone.
We will also be releasing android version of next gen in due course. not sure when though.

Many thanks for your posting.

Regards Peter

Brilliant.

A few questions for Mr Cruddas.

1) Will you reintroduce quarterly bets - these were a great way to hold longer term positions but avoid UK Taxation!

2) IGIndex are starting to beat you at your own game i.e. offering tight spreads and a great range of markets - what do you plan to do to win the market back?

3) Will you offer an Android App for Marketmaker? Your iphone app might be the best in the world but not everyone wants to spend silly money on an inferior phone!

 

[PC at CMC Markets]

hi uchiki
thanks for your posting let me look into it and get back to you.
regards peter

Hi Peter,
Not such a happy customer this morning.
I have two points - variation of spread vs underlying market and accuracy of CMC spread charts. These follow on from my previously complimentary comments about consistency of spread and usefulness of spread charts.

Got stopped out on my FRES position at 1435.93 at 08:03 hrs. I expect some of my stops to be hit, it's just the manner of this one I'm uneasy about.
DMA (interactivebrokers) low print was 1445.5. Prices at the low on a CMC 10 sec spread chart captured soon after were 1439.41/1451.59, suggesting my 1439 stop wasn't quite reached.
Your normal spread for this stock is between 4 and 6p. If the buy price on the spread chart was correct, then combined with the price I was stopped at, the spread was 15.66p. I understand that as the spread widens in the underlying market that this is reflected in your spread, so I have no issues with some widening of your spread, but this seemed a bit extreme.

According to your spread chart plotted soon after the event, my stop (1439) was not reached. I was stopped out 3p lower. The price I was stopped out at was 9.5p below the lowest print on the underlying market at the time (although the underlying market subsequently went to 1338 at 12:29 hrs). If CMC had a valid bid/sell print below 1139, I have no qualms about being stopped out, it just seems a bit questionable, based on the underlying market.

I have subsequently plotted a new spread chart (1 min) and it now says the spread at 08:03 hrs was 1456.89/1463.09. So the spike down at that time has now disappeared. Spikes up or down are obviously important for stop setting. Seems like the spread charts need checking and not currently safe for setting stops against.
I'd welcome your comments...

 

[Pat494]

Just as a matter of interest

1. Do you/your office workers sometimes have a punt on the strength of a bet by your most profitable clients on the same stock etc. ?

2. Does your company offset some of the bigger bets with other SBs ?

 

[Ross Spur]

Regarding spreads, PC, please explain why the US30 is apparently set at 2.1pt? If your prices are really that precise, ie, more precise than the underlying YM future, it would make sense to quote something like 1.8pt, slightly beating the majority that offer 2pt, if still twice as wide as available through the opposition.

 

[tar]

Regarding spreads, PC, please explain why the US30 is apparently set at 2.1pt? If your prices are really that precise, ie, more precise than the underlying YM future, it would make sense to quote something like 1.8pt, slightly beating the majority that offer 2pt, if still twice as wide as available through the opposition.

1 point spread on the YM is not reasonable , the futures trade will cost 1 point - sometimes 2 points for the spread + 0.6 point for the commission this is 1.6 - 2.6 points = 2.1 points on average

 

[gle101]

1 point spread on the YM is not reasonable , the futures trade will cost 1 point - sometimes 2 points for the spread + 0.6 point for the commission this is 1.6 - 2.6 points = 2.1 points on average

So how come that a well known SB company have had it for almost 1 year? I agree it is a quest how they can manage it without playing games with you. I myself thought that it would be a short term offer, but I have proven to be wrong in this case. To me they have said they will stick to it, but as said before, one never knows with market makers. 2 point spread is Ok as well on the Dow, but why should I trade with a double up cost if I get good service where I stay? CMC might offer good prices on some other instruments, but on the Dow they are simply not the best at the moment, whatever Peter is trying to tell us.

 

[tar]

So how come that a well known SB company have had it for almost 1 year? I agree it is a quest how they can manage it without playing games with you. I myself thought that it would be a short term offer, but I have proven to be wrong in this case. To me they have said they will stick to it, but as said before, one never knows with market makers. 2 point spread is Ok as well on the Dow, but why should I trade with a double up cost if I get good service where I stay? CMC might offer good prices on some other instruments, but on the Dow they are simply not the best at the moment, whatever Peter is trying to tell us.

well they also can offer some markets with zero spread as well ! Worldspreads did , but is it reasonable ? , i dont think it is reasonable to ask SB firms to offer tighter spreads than the underlying market , especially that their prices is available to every client to trade on with the same spread , imagine if many clients hit the bid at the same time , the SB firm will pay from its own pockets to hedge this risk in the underlying market ...

 

[gle101]

well they also can offer some markets with zero spread as well ! Worldspreads did , but is it reasonable ? , i dont think it is reasonable to ask SB firms to offer tighter spreads than the underlying market , especially that their prices is available to every client to trade on with the same spread , imagine if many clients hit the bid at the same time , the SB firm will pay from its own pockets to hedge this risk in the underlying market ...

0 point spread is another issue altogether, I agree it is just not possible by any means. You buy your products where you get the best price and service. On this particular instrument no other SB can compete at the moment, and you do get a satisfactory service to go along with a very low price, at least this is what I have experienced trading with them.

 

[PC at CMC Markets]

Hi Uchiki

Thanks for this post. As your query involves your personal account I have sent you a private email.

Many thanks Peter

Hi Peter,
Not such a happy customer this morning.
I have two points - variation of spread vs underlying market and accuracy of CMC spread charts. These follow on from my previously complimentary comments about consistency of spread and usefulness of spread charts.

Got stopped out on my FRES position at 1435.93 at 08:03 hrs. I expect some of my stops to be hit, it's just the manner of this one I'm uneasy about.
DMA (interactivebrokers) low print was 1445.5. Prices at the low on a CMC 10 sec spread chart captured soon after were 1439.41/1451.59, suggesting my 1439 stop wasn't quite reached.
Your normal spread for this stock is between 4 and 6p. If the buy price on the spread chart was correct, then combined with the price I was stopped at, the spread was 15.66p. I understand that as the spread widens in the underlying market that this is reflected in your spread, so I have no issues with some widening of your spread, but this seemed a bit extreme.

According to your spread chart plotted soon after the event, my stop (1439) was not reached. I was stopped out 3p lower. The price I was stopped out at was 9.5p below the lowest print on the underlying market at the time (although the underlying market subsequently went to 1338 at 12:29 hrs). If CMC had a valid bid/sell print below 1139, I have no qualms about being stopped out, it just seems a bit questionable, based on the underlying market.

I have subsequently plotted a new spread chart (1 min) and it now says the spread at 08:03 hrs was 1456.89/1463.09. So the spike down at that time has now disappeared. Spikes up or down are obviously important for stop setting. Seems like the spread charts need checking and not currently safe for setting stops against.
I'd welcome your comments...

 

[PC at CMC Markets]

hi pat494

to answer your questions it is no to both.
firstly we do not prop trade and take positions for the company. we manage client flows and their risks. we never instigate a trade based on our view of the markets.

staff are not allowed to trade for their own accounts.

we do not work with other spread bet companies.

tks Peter

Just as a matter of interest

1. Do you/your office workers sometimes have a punt on the strength of a bet by your most profitable clients on the same stock etc. ?

2. Does your company offset some of the bigger bets with other SBs ?

 

[Ross Spur]

1 point spread on the YM is not reasonable , the futures trade will cost 1 point - sometimes 2 points for the spread + 0.6 point for the commission this is 1.6 - 2.6 points = 2.1 points on average

Depends what you mean by 'reasonable'. Trading the future, you can also effectively get zero spread with buy/sell at bid/ask, and the commission can be less than half a point on YM.
I reckon SBs can offer 1pt spread partly because the client has to buy or sell at the quoted 'house' price, and has no option to back out, partly because the majority will lose, anyway, whether the spread is 5pt or 0pt.