Spread betting CMC with US Stocks

[Mild_Mannered_Jeff]

Hi

Is anyone spreadbetting USA (DJIA, Nasdaq) stocks from the UK with CMC or anyone else? My obsevation is that compared with UK stocks the spreads seem enormous. E.g.

MSFT Microsoft on CMC Markets 19/02/2008 @ 9am GMT
$28.37 = Bid
$28.87= Offer
Thats 50 points in cold blood before you even start to make money

Compare that with:
RBS Royal Bank of SCotland on CMC Markets 19/02/2008 @ 9am GMT
573.57 = Bid
575.43= Offer
Thats just 1.86 points before you start....I can live with that.

Or have I got it all wrong?

 

[timsk]

Hi MMJ,
I used to use CMC to trade U.S. equites but I've now moved to D.A. While CMC spreads will - of course - be a lot wider than direct access, they shouldn't be anything like as wide as you mention in your post. They're normally only that extreme pre and post market - is that when you noticed the MSFT spread? The first half hour or so will also produce wide spreads, as will obvious periods of volatility, e.g. when some key figures are released or BB is making a speech etc. Certainly, I would have thought that MSFT would be one of the stocks with a tighter spread than most on account of it's size (i.e. amazing liquidity) and the fact that it's less volatile than many of its Naz 100 bedfellows. If you're attempting to day trade using CMC, you're going to have your work cut out but, the experience will stand you in good stead and you'll have a lovely treat in store if/when you move on to D.A.!
Tim.

 

[timsk]

They're normally only that extreme pre and post market - is that when you noticed the MSFT spread?

MMJ,
I just re-read your post and clocked that the MSFT spread is quoted at 9.00am GMT. There's your answer. Check it again at 3.00pm this afternoon when the U.S. is open and you'll find it'll be something altogether more agreeable!
Tim.

 

[Mild_Mannered_Jeff]

Thanks for the Advice Timsk............I will have another look after the US markets open..............

One other thing you could perhaps clarify for me.........It seems to me that there are on whole pips with USA stocks ....which are £££pounds in CMC speak. Whereas with UK stock they show the 2 places to the right of the decimal point.

 

[arabianights]

Thanks for the Advice Timsk............I will have another look after the US markets open..............

One other thing you could perhaps clarify for me.........It seems to me that there are on whole pips with USA stocks ....which are £££pounds in CMC speak. Whereas with UK stock they show the 2 places to the right of the decimal point.

Yeah, I wish they'd make this clearer.

You can see
http://www.cmcmarkets.co.uk/legal_documents/uk/cmc_markets/spreadbet/CMCM_SB_Dealing_Guide.pdf for what a "point" is on each market.

 

[jamesbk]

Just noticed for your info; Microsoft on Capital Spreads is 28.38 - 28.43. This seems a lot better than CMC.

 

[timsk]

Just noticed for your info; Microsoft on Capital Spreads is 28.38 - 28.43. This seems a lot better than CMC.

An improvement James, but not quite as good as D.A.
MSFT at 13.12 EST
Bid @ $28.65
Ask @ $28.66

Tim.

 

[howard0181]

With DMA its an instant fill. With CMC you will not be filled quickly unless the price goes against you.

It could take 15 or 30 seconds for the fill on CMC or you could get a requote to a higher price.

 

[davidnmfarrell]

Hey Jeff,

I don't normally trade the US stocks but my advice would be if you are going to trade intraday, you would ideally look to avoid any share that has a spread greater than 0.5% spread % = 100 -(bid/offer)*100. So in the example of microsoft you gave, the spread would be something like 1.3%, which I think is quite high. However I know US stocks tend to be more volatile so it may work out OK.

David

 

[Joe da Wizard]

Does anyone here know which spread betting company offers the most US stocks to trade with?

 

[lucas_king]

Does anyone here know which spread betting company offers the most US stocks to trade with?

IG tend to have quite a wide range of stocks on their spread bet account, however their range on the CFD account is much wider.