(I apologise in advance if I am stating something really obvious on this thread.)
I have been trading for a while and I am and have used a number of brokers in the UK and the US. Something is becoming clearer and clearer to me in regard to CMC Markets and I would like to know if I am seeing this correctly - and thus invite comments from other traders and also CMC if they have representation on T2W.
Slippage is common regardless of the markets I trade - fx, commodities, indices.
It seems that with CMC [trading the CFD platform] I only have ever slippage that works against me - with other brokers, such as FXCM, I get slippage both ways. In at least 200+ trades with CMC, I don't recall ever having slippage in my favor.
Meeting with FXCM in person, they explained to me that they pass on the slippage (whether good or bad) to the clients, and in the long-run this averages out - I think they did an analysis on some 12 million executed retail trades.
I have done some testing by using identical orders across CMC and FXCM. With CMC my profit was 18 pips (as expected), with FXCM the profit was 22 pips, because there had been slippage in my favor on the closing of the trade.
Obviously CMC would make a lot of profit from this tactic - just think of 10 million executed trades - and say that 2 million have some slippage - 50% are positive and 50% are negative. CMC passes the negative ones to the client, and keeps the positive ones in its own book. This would add up to a huge amount over time, and is a fairly risk-free profit to CMC.
Am I seeing this correctly?
