Anyone use CMC??

betman

Junior member
33 0
I've used CMC for a while now.. I think they are pretty decent, although i haven't found a way to use a guaranteed stop!

Anyway, they have recently changed the way they calculated their carry costs! For trades i had on previously i was being charged about £5-6 a day but now they are more like £50 a day!!!

This is ridiculous. How can they change their method so dramatically..

Has anyone else found this?
 

counter_violent

Legendary member
11,282 3,005
I've used CMC for a while now.. I think they are pretty decent, although i haven't found a way to use a guaranteed stop!

Anyway, they have recently changed the way they calculated their carry costs! For trades i had on previously i was being charged about £5-6 a day but now they are more like £50 a day!!!

This is ridiculous. How can they change their method so dramatically..

Has anyone else found this?

Are you trading index's short?

If so, you need to take into account dividend debits. These can be hefty charges. If you were long, then these would be credits.
 

up-down

Member
63 3
I've been trading FX.. Mainly long positions..

Never trading FX with any spread betting account. IG, CMC, cityindex, capitalspreads and others all have very slow platform. Never use WebBased platform for serious trading.
 

Dr Nookey

Newbie
1 0
I used IG and CMC side by side for a while and stuck with CMC as I just preferred the interface.

Service has been very decent when I've needed to speak to them so can't really say anything negative.

That, I'm afraid, is this end of this exciting first post.
 

betman

Junior member
33 0
Yes, i cant fault thier service etc.. The user interface is great.

This is what they said about the carry cost calculation.. I dont know much about carry costs etc so am not sure if this is how all platforms calculate it ..

Previous Method:

Under the old model, FX Transaction Carry Cost was calculated based on the Reuters Zero Coupon rate, with the interest rate differential between the primary and secondary currency used as the Carry Rate. This was outside of typical market convention.

New Method:

To bring us in line with standard industry practice, we have moved to a model based on the Interbank ‘TomNext’ carry rate. The mechanics of this involve taking the TomNext carry points averaged across a predetermined period of time (the time period is unique to each base currency dependent on liquidity), and converting the points to a percentage, before a daily haircut of 0.00274% (1% annually) is applied.

Examples:

Spread Betting AUD/USD 18/02/2013 – 10pm Transaction Carry Cost

The TomNext rate (based on the calculated average of the data from the preceding 5 hours) in the underlying market was 0.027296 / 0.028005. Adjusted for the 1% annualised haircut, this gives a Carry Rate of 0.017296 / 0.038005.

So, for a client who sold £1 per point of AUD/USD earlier in the day at a price of 1.0305, they will pay a Transaction Carry Cost as follows;

(Notional position size (£10,305) x 0.038005) = £391.64 which is then divided by 365 (as this is the annual rate) to give a daily Transaction Carry Cost charge of £1.07.

If the same client had bought £1 per point of AUD/USD at the same price (1.0305), they will receive overnight carry as follows;

(Notional position size (£10,305) x 0.017296) = £178.23 which is then divided by 365 (as this is the annual rate) to give a daily carry receipt of £0.49.
 

x4x

Well-known member
465 61
I use IG and occasionally hold overnight positions - I usually reckon on a 1 point charge, which roughly fits with your above post. So to be charged £50 would suggest you're holding a £50 per point position, if you were previously only paying £5 or £6 on a similar sized position, you were doing very well.
 

betman

Junior member
33 0
What do you mean when you refer to a " 1 point charge? "

I guess i have been doing well when i have previously been charged £5 - 6 then.
 

x4x

Well-known member
465 61
What do you mean when you refer to a " 1 point charge? "

I guess i have been doing well when i have previously been charged £5 - 6 then.

I mean the o/n charge is usually equivalent to the point amount you are trading at, so if you are trading at £10 per point, the o/n charge should be around £10. If you are trading at £50 per point, the o/n charge should be about £50 etc.
 

Lumineux

Newbie
1 0
The founder of CMC Peter Cruddas, wrote a post that a launch of the next generation in Sweden was just some months ahead.

The post is fr.o.m. Sept 2011...not 2012

Why does a company invest a lot of resources in a first class platform and then ruminates when it comes to the launching of the platform?
 

instant

Junior member
37 1
Luminex

It is normally because of the issues of migration. Moving positions/cash/stops/orders etc from one system to another is quite hard and must be done right first time. This said, the New platform has been around for well over a year now which would seem to indicate other issues.

Maybe they have a few v large clients who do not want to move to the new system and so they have all been placed onto the Swedish platform (?) or maybe the system cannot take the load of all their clients (which would be a serious design fault if that was the case)(?)or perhaps they are just hedging their bets by retaining a live Market Maker platform just in case they need it (?)

It does seem odd that the old platform remains still in play
 

pboyles

Legendary member
8,072 1,303
The founder of CMC Peter Cruddas, wrote a post that a launch of the next generation in Sweden was just some months ahead.

The post is fr.o.m. Sept 2011...not 2012

Why does a company invest a lot of resources in a first class platform and then ruminates when it comes to the launching of the platform?

Peter got very busy 'fundraising', maybe he forgot.
 
 
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