Best Thread CMC Markets owner answers your questions

[PC at CMC Markets]

Morning gle101 on the train to Paris to officially open our new office. Thanks for your comments
Regards pc

I would say like I suggested to PC, offer micro lots (on the new coming CFD's platform as well). This would for sure attract a lot of new clients who like to try out their platform, and if service is as good as he says they will stay on. This constant promotion talk by PC is frankly starting to get quite boring and it is not a good way to promote the new CMC nextgen platform, at least this is my viewpoint on the matter.

 

[PC at CMC Markets]

Morning lance
Sorry not biting today but nice try
Have a nice day
Peter

Hi Peter,
Before going around and telling people that they are not smart enough, you need to understand that they are smarter than you think.

People believe in what they see and your overnight charges are... pathetic. Where on your website you specify your overnight charges on cash commodities?

Rumour on the streets... you laid off people in sales and marketing teams. Is it because they have conscience and can’t stand such high overnight charges or platform doesn’t sell? :clap:

 

[PC at CMC Markets]

Hi Ross
Would have to disagree with your comments.
Based on stats last month was record month on next gen. But thanks for your posting
Regards Peter

I tend to agree with the last few posts, PC. No-one seems to like the charts or the cash commodities much, but you keep insisting that clients will come round to your way of thinking. Meanwhile, there's still a distinct lack of comment from live next gen users.

 

[6am]

there is no benchmark to compare your commodities prices with , in other words there is no transparency , anyway goodluck .

Is that bad? There might be an arbitrage opportunity if their prices are not correct. I do not know how to explot it though.

 

[tar]

Is that bad? There might be an arbitrage opportunity if their prices are not correct. I do not know how to explot it though.

Agree , but 98% of cmc's clients wouldnt exploit these opportunities , no benchmark = no transparency = it will be easier to hunt stops "if they want to , i am not accusing CMC " , and lets say cmc price is 10 cents off the fair value ,if u try to arb u will lose most of the 10 cents in spread costs , commission , slippage , execution risk ... it is not worth it ...

 

[Ross Spur]

Agree , but 98% of cmc's clients wouldnt exploit these opportunities , no benchmark = no transparency = it will be easier to hunt stops "if they want to , i am not accusing CMC " , and lets say cmc price is 10 cents off the fair value ,if u try to arb u will lose most of the 10 cents in spread costs , commission , slippage , execution risk ... it is not worth it ...

Most SBers couldn't be bothered trying, but it would be ironic if arbing caused CMC to backtrack on only offering cash markets.

 

[nodga2000]

Hi Peter, can you answer this one for me - just so I can put it to bed!

Thanks

Hi Peter, thanks for your response. So that I am 100% clear you apply +2% to the interbank rate even if you are short as per my example?

Sorry to labour the point and thanks again!

 

[Black Swan]

Rumour on the streets... you laid off people in sales and marketing teams. :clap:

Perhaps they fancied a change and moved to Paris.

 

[gle101]

Morning gle101 on the train to Paris to officially open our new office. Thanks for your comments
Regards pc

You're welcome. Good luck with the new office in Paris and your effort to charm the french trading community.

 

[scose-no-doubt]

Il ne va pas etre bienvenue a paris

 

[Jack o'Clubs]

Hi Tar

cash commodities are then next big thing in trading. Commodities are really seeing a massive increase in business around the world. I know of at least one major bank that is developing cash commodities. Because their clients are demanding it.

Also our biggest product on next gen spread bet is cash commodities. The spreads are extremely tight, you only pay cost of carriage on a daily basis, the contract does not expire and the cash markets are open longer than the futures markets.
also we are bringing commodities in line with bullion and forex trading.

You will see more and more providers offering cash commodities in the very near future. this time next year you will not be asking this question.

just remember you heard it here first and CMC Markets were the first spread bet firm to offer cash commodities.


tks pc

Peter - the FSA are getting really worried about commodity ETFs that retail punters are piling into without realising that the futures curves are basically eroding the upside that investors are expecting as the contracts are rolled forward - cue much potential for wailing and gnashing of teeth. While the ETF providers covered by their small print which makes it clear they're buying derivatives you can see where it's all going to end up.

This all seems comparable with the situation around cash commodities spreadbets. I would guess the average spread-betting punter is not that sophisticated when it comes to understanding the nuances (say, on a par with a typical ETF investor: oil is going up, I'll buy this Oil investment product to benefit). The ones on this thread are probably more sophisticated than average and they're getting tied up in knots over it. Do you not think these cash-commodities have enormous potential to come back and bite you in the bum from a compliance / FSA perspective?

 

[tar]

not to mention the financing costs , 2.53% annualized for WTI oil doesnt matter short or long ...

 

[lancenicolase]

Perhaps they fancied a change and moved to Paris.

I think they didn't fancy a move to Paris so trying to change the job

 

[Black Swan]

I think they didn't fancy a move to Paris so trying to change the job

No idea what you're on about..but carry on with your rumours..if that's your thing..

 

[nigelpm]

FWIW, I don't want to trade Cash Commodities - it just causes more problems than it's worth through the silly financing costs due to the current huge contango in the market.

I'd recommend CMC stick to offering futures bets via the much better older platform.

 

[PC at CMC Markets]

vous aviez tors mon ami.

Il ne va pas etre bienvenue a paris

 

[PC at CMC Markets]

Hi Gle101
Nice offices along Champs Elysee, bit too near to Chanel for my liking but wife happy.
Got really nice office there and good team. should be very successful
lets see how it goes but already doing good biz there.

thanks peter

You're welcome. Good luck with the new office in Paris and your effort to charm the french trading community.

 

[PC at CMC Markets]

Hi Jack
Thanks for posting.
I hear what you are saying but I honestly believe that cash commodities will have the opposite effect to what you say.
They are vanilla products and really we are pricing them the same as gold and forex. I know of at least one very big investment bank trying to offer cash commodities. They are very interested in what we have done and want to replicate it for their clients.

There is a lot of noise around our cash commodities which is good because it shows there is interest. Like I said cash commodities are our biggest trading product on next gen.

tks pc

Peter - the FSA are getting really worried about commodity ETFs that retail punters are piling into without realising that the futures curves are basically eroding the upside that investors are expecting as the contracts are rolled forward - cue much potential for wailing and gnashing of teeth. While the ETF providers covered by their small print which makes it clear they're buying derivatives you can see where it's all going to end up.

This all seems comparable with the situation around cash commodities spreadbets. I would guess the average spread-betting punter is not that sophisticated when it comes to understanding the nuances (say, on a par with a typical ETF investor: oil is going up, I'll buy this Oil investment product to benefit). The ones on this thread are probably more sophisticated than average and they're getting tied up in knots over it. Do you not think these cash-commodities have enormous potential to come back and bite you in the bum from a compliance / FSA perspective?

 

[gle101]

Hi Gle101
Nice offices along Champs Elysee, bit too near to Chanel for my liking but wife happy.
Got really nice office there and good team. should be very successful
lets see how it goes but already doing good biz there.

thanks peter

Yes I would imagine your wife fancy that, I know my daughters would run all over the place.

 

[andyhawes]

Well I've taken the plunge and submitted my details for the live CMC (next gen) account.

I've been watching the demo prices like a hawk for weeks and placed several Forex & Index trades, even during volatile times, and I have to admit so far I'm pretty impressed.

Assuming the live account works the same, then I'm very happy with the overall spreads and execution, with very few exceptions. Really great not to see that "requote" box that I had so often on the MarketMaker platform.

I still don't like the charts, but I'm a stickler for my MT4 charts & indicators, saves me lots of line drawing every day

And you know I'll be the first to moan if you stiff me on the live platform spreads, so watch this space!

Have a great weekend.