Best Thread CMC Markets owner answers your questions

[gle101]

If everything goes through automatically, as CMC (and FXCM) promise, there shouldn't be any slippage or delays, but it seems you have to pay for the privilege in extra spread.

Yes this is the price you pay, if you look at CMC's current spread it is definitely not worth the price.

 

[tar]

If everything goes through automatically, as CMC (and FXCM) promise, there shouldn't be any slippage or delays, but it seems you have to pay for the privilege in extra spread.

u get slippage in real markets ...

 

[tar]

Yes this is the price you pay, if you look at CMC's current spread it is definitely not worth the price.

I think u guys exaggerate a bit about the spread thing ,yeah it is better but what is the difference between 1 point and 1.3 points ? it is not only about the spread it is about the whole service package , think how to make money not who is giving the lowest spreads !

 

[Ross Spur]

u get slippage in real markets ...

Yes, but with SB you're trading their market, so the slippage isn't real.

 

[gle101]

I think u guys exaggerate a bit about the spread thing ,yeah it is better but what is the difference between 1 point and 1.3 points ? it is not only about the spread it is about the whole service package , think how to make money not who is giving the lowest spreads !

Well, if there is a difference of 3 point spread on the Dow it will make a major difference for a day trader.

 

[Luc.Chase]

Do you know what makes me laugh the most with sb firms? It's their excuses about slippage. You are trading 'their' own market, not the actual market, so there's no excuse for ANY slippage. So if you see a sb bookie broker advertising 1 pip spread on the Dow, I can pretty much say they will be slipping you so the actual spread increases to whatever they feel like at that time, the robbers. It comes down to who you want to give the % they rob off you, if you trade the real market you will find hardly any slippage but no games like sb bookies, but you pay tax, but trade sb, you will again be giving a % of your money to them. The choice is yours.

What about slippage caused by too many on one side of their internal spread betting customer market. The causes of slippage do still exist within the bookmakers market. A rush is a rush.

 

[Luc.Chase]

If everything goes through automatically, as CMC (and FXCM) promise, there shouldn't be any slippage or delays, but it seems you have to pay for the privilege in extra spread.

Being automatic may reduce slippage because order will presumably be processed more quickly, but speed is still relative so it would not eliminate it.

 

[Luc.Chase]

Yes, but with SB you're trading their market, so the slippage isn't real.

Assuming they are not frigging with the rigging, it's just as real. They still need to match buyers and sellers. And if there is a rush or panic of market orders, then logically there must be some slippage if the other side is not matched by equally but oppositely enthusiastic betters.

 

[gle101]

Assuming they are not frigging with the rigging, it's just as real. They still need to match buyers and sellers. And if there is a rush or panic of market orders, then logically there must be some slippage if the other side is not matched by equally but oppositely enthusiastic betters.

Not necessarily so, usually there is a re-quote that will stop you getting a slippage in the first place. I said before, slippage is not a problem with SB (unless you just trade the news).

 

[gle101]

Being automatic may reduce slippage because order will presumably be processed more quickly, but speed is still relative so it would not eliminate it.

Being automatic (no re-quote) combined with really narrow fixed spread will probably increase slippage.

 

[PC at CMC Markets]

Hi everybody hope you had good weekend shame markets are not open weekends as wasn't lot else to do.
Thanks for the blogs so many views about spreads and slippage it is hard to know where to begin. All I would say is that just a bit more tinkering to do with technology in back end and you will be looking at tighter spreads early next year.
But to me what is just as important is execution and pricing. U get that with really tight spreads then you are away with the mixer. Watch this space coming next year I promise
Pc

 

[Ross Spur]

Assuming they are not frigging with the rigging, it's just as real. They still need to match buyers and sellers. And if there is a rush or panic of market orders, then logically there must be some slippage if the other side is not matched by equally but oppositely enthusiastic betters.

They don't need to match buyers and sellers because they are the buyers and sellers. All they have to do is keep their overall risk within limits and count the profits from the majority of punters who usually lose. Simples.

 

[Love 2 Trade]

Hi Peter. I use your new CMC platform and I prefer it to the old one. There seems to be a lot less companies available to trade than on the old system, can you tell me why this is?

 

[PC at CMC Markets]

Hi love to trade
We will be adding more companies and forex pairs and indices in january and February all in all around another 3000 instruments.
Glad u prefer new platform I love it
Best regards Peter

Hi Peter. I use your new CMC platform and I prefer it to he old one. There seems to be a lot less companies available to trade than on the old system, can you tell me why this is?

 

[Luc.Chase]

They don't need to match buyers and sellers because they are the buyers and sellers. All they have to do is keep their overall risk within limits and count the profits from the majority of punters who usually lose. Simples.

I really doubt it works like that. I would expect that they quickly match internal orders where possible and then hedge the balance only, on the external market (and that takes more time, may be manual and probably results in a re-quote).

 

[Ross Spur]

I really doubt it works like that. I would expect that they quickly match internal orders where possible and then hedge the balance only, on the external market (and that takes more time, may be manual and probably results in a re-quote).

I think we're saying the same thing here. With major indices and FX pairs, the tendency will be for the shorts and longs to balance out, so a SB won't need to hedge much unless they suddenly have clients putting large bets in the same direction.

 

[Luc.Chase]

i think we're saying the same thing here. With major indices and fx pairs, the tendency will be for the shorts and longs to balance out, so a sb won't need to hedge much unless they suddenly have clients putting large bets in the same direction.

ok

 

[Love 2 Trade]

Hi love to trade
We will be adding more companies and forex pairs and indices in january and February all in all around another 3000 instruments.
Glad u prefer new platform I love it
Best regards Peter

Thats great news Peter, thanks for your speedy reply.

 

[tim3]

Hi Peter

Thanks for taking time to answer our questions.

Look forward to the improvements in the new year have to admit I find myself going back to market maker at the moment but am hopefull this will change when the improvements come on board in the new year.

Have a nice Christmas.

Regards
Tim

 

[PC at CMC Markets]

Hi Tim
No problem with that . We have no plans to close market maker so you can use either platform
Good luck with your trading
Peter

Hi Peter

Thanks for taking time to answer our questions.

Look forward to the improvements in the new year have to admit I find myself going back to market maker at the moment but am hopefull this will change when the improvements come on board in the new year.

Have a nice Christmas.

Regards
Tim