Biggest Rip Offs in History
I have been to their headquarters about 5 years ago, I used to work closeby. They have a particular desk which looks at all the current positions from traders and calculates the risk towards the firm, they has a bias control that can move the market in their favour and take people out, this is common practice and happens all the time. The people that win usually have positions or stops to far away and are saved, I call this the 'Window Wiper' Scenario.
They also have 2 other key desks. One desk has a guy sitting there looking at all the traders that win all the time. When a trade for this person comes through the firm copies him/her and tries to make money for the firm. The money they use is reconciled from all those people that have lost, so basically its a recycling process, 'Make Money For Free'.
The other guy sits at another desk looking at all the loosing trades coming through. Usually the loosers trade massive stakes so he/she will hedge half the postion if the order is too big. He/she is allowed to take a certain % risk everyday, and the more he makes the bigger the car he will get at the end of the year.
Generally 95% of the people loose money so the firms hedge less and less and pocket the money, They hedge less and less because over the years they have accumulated so much money from 'loosers' they have their own 'pool of money' which can be used to pay money inn and out...
Many people do not understand the 'DEEP GAME' the firms are basically out to get you.
Most of the front line staff are not very clever and are generally rude/inexperienced, when they put the phone down they swear at the customers!
I have been asked by CMC Staff a few time "You are on the online trading platform why are you phoning us"?
I have to explain to an 18 year old that the reason I am calling is because I need a particular price and am getting rejections from the trader at a certain level so have given up on the online platform, also on level 2 there is much volume so why are you not filling me? I also have to advise the trader that they are there to perform a duty and need to satisfy the customer however they can within reason, and his comments are not an attractive way to invite business...its ridiculous really! They give you whatever price they want to give you.
The review by Vispatel below is also very good, this is a true reflection.
The spreads also seems tight but are a lie, they purposely have programmed engines that add +-2 to exits so in real terms you get a bad deal upon exit.
All firms perform this action they want to bankrupt you asap and then advertise again and get the next sucker in. Please hedge your positions and you will smash it!
I hit cmc hard and do massive trades out-of-the-blue, you need to be aggressive with the traders who are on about £30k but think they are on £100k+ when they are not. When I loose with CMC they are not aware I am betting elsewhere and only loose small amounts as I do sector bets. But they are catching on because the money going into the account is weird numbers like 1038.57p as I balance the books.
I get massive delays on my account because they are looking at what I do and copy me. I know this for sure, because when I bet on level 2 a precise chuck gets filled.
A friend traded the interest rate cut a few weeks ago, they said "We could not fill the order as it is exceptionally busy"! What?!!!!basically they got shafted and did not want to make the fill. I have advised this person to take it to the FSA it is a 'Compliance issue'
I would love if a group of traders got together and constituted a account with CMC and traded as a co-op basically there are ways you can make risk free profits if you have £200k in cmc account. The orders also need to be telephoned through to make sure it happens!
People should be very very careful to trade with cmc, just imagine someone setup a betting exchange between traders and no middle man like bet fair! This would be great.
The people who are serious traders should not use this broker, there is much competition and you can find alternative easily.
Firms give you a free £250 bet you can use this and close account. There is now law against this.