CMC Launches Commission-Free Futures Trading

Link

Do you think it will challenge IB and other futures brokers or just be another Commission-Free trick?

Hayek said:

Link

Do you think it will challenge IB and other futures brokers or just be another Commission-Free trick?

Click to expand...

How do they make their money, if not for brokerage fees?, Do they add it onto the price of the commodity?

yiros said:

How do they make their money, if not for brokerage fees?, Do they add it onto the price of the commodity?

Click to expand...

Yes, you are right. I see from their website they give euro fx a 2-pip spread and so on.

I suspect this ploy is to enable CMC to attempt to enter the US market. At the moment CFD's and spreadbetting are unlawful in the US, and so there is a huge un-tapped potential clientele over there that they just can't keep their hands off. How they will pay for it will clearly be in wider spreads or by simply spread trading themselves, or perhaps they'll have some sort of offset price offering that moves within a larger band than the true futures market, just as they do with their indices products currently.
With the deals available through genuine direct access brokers such as IB you would really wonder who would be tempted to trade futures with a bookie?
I would imagine that it is this type of "punter" that CMC would love to get their hands on!
Cheers
Quercus