Anyone use CMC??

[betman]

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?

 

[WR1]

possibly one of the reasons Mr CMC is a Billionaire

 

[counter_violent]

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.

 

[betman]

I've been trading FX.. Mainly long positions..

 

[up-down]

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]

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]

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]

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]

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.

 

[kalott]

In sweden we still use the old marketmaker

Vilken Marketmaker passar dig? | CMC Markets

 

[x4x]

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]

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]

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

 

[Vasco da Banana]

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?

Which first class platform are you talking about? You can't mean Next Gen, surely?!

 

[pboyles]

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.

 

[coxylad]

Has anyone had problems with cmc after withdrawing part of your winnings??

I made a withdrawal and since then I cant win anything.

Strange things are happening, its as if some one is trying to claw back the profit that I made.

Your thought on this please, have you experianced this or something similar.

Any way of finding out ifthey are dealing against me.

Thanks in advance for your thoughts

 

[hacks]

Has anyone had problems with cmc after withdrawing part of your winnings??

I made a withdrawal and since then I cant win anything.

Strange things are happening, its as if some one is trying to claw back the profit that I made.

Your thought on this please, have you experianced this or something similar.

Any way of finding out ifthey are dealing against me.

Thanks in advance for your thoughts

No problems with withdrawing winnings for me.

Is your strategy anything they 'don't like' such as scalping?

 

[coxylad]

No problems with withdrawing winnings for me.

Is your strategy anything they 'don't like' such as scalping?

Yes i scalp

im gunna change and try UFX markets see what they are like,

Anyone had any dealings with them ???

 

[brettus]

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.

This isn't bad. Capitalspreads charged me £1.51 for every £1 I have on, being short AUDUSD. IG is just as bad.

I'm not sure why you were getting only 5 gbp charges opposed to 50 gbp now. I don't know what size you're trading. It depends on the currency pair. It also depends on your stake size and whether you are long or short. I assume you know this. Tomnext rates are just based on the interest rate differentials.

For example if you are long AUDUSD at 1.000, say 10$ a point. Then you are positive 100k AUD and negative 100k USD. Effectively, you earn interest on the AUD overnight and pay interest on the USD holding overnight.

Its interesting how they do it though. Take the yearly tomnext rate then add and take off 1%. Effectively they take 0.27 pips on the carry. That's not too bad. We used to add 0.20 pips on the carry, but we would never turn a negative carry into a positive or positive into negative. Capitalspreads are adding 0.7, which is roughly 2.5%.