I think it's telling that this issue has stirred up a complete lack of response here. Does anyone really care about CMC UK any more, much less use them?
The commission change takes CMC back to their 8 gbp minimum commissions on UK equities (for example) that they dropped in November 2008. It seems like a retrograde step to me and as commissions in the industry are generally more competitive now than they used to be, so it looks like they want to milk the stragglers who haven't left yet for all they can. What does this say about the health of their business?
I'm one of the stragglers because even though I've long since switched to someone else I kept CMC as a backup in case my main provider went down and I needed to effectively close out positions by hedging. Along the way I've still dabbled with the account with sub 10k positions and it's just dreadful in my opinion. My experience over the last couple of years is that trades are often held and quotes are regularly outside the market spread on certain stocks even with volume on Level 2. I have a spreadbet account that often ends up being cheaper than CMC's CFDs - where's the sense in that?
With CMC UK looking for all the world like they don't want customers, what scares me is what happened to MF Global. I had a very small account there which was in cash when they went under, and because I didn't really use it I didn't follow the story fully when they imploded. I just figured I would get the money back soon enough because the cash was in a ring-fenced account. How wrong I was. Six months later I've received 25% of it back and the rest is being argued about by the UK and US administrators and God knows who else.
The MF Global situation makes a mockery of the rules and shows that even cash in supposedly ring-fenced bank accounts can be held for months and maybe even years while court cases go on, while you waste time filling in forms and chasing administrators. I don't want to repeat the experience with CMC but the UK operation seems to be sending out all the wrong messages. Maybe they're doing better overseas.
Anyway, I'm closing CMC now, a decision that's long overdue really.
I trade using the CMC CFD tracker account and haven't received an email from them about re-introducing a minimum commission. Can you provide anymore details, a screenshot of the email etc, as a Google search is yielding nothing about this change you mention?
Ok I've spoken to the live help on the CMC CFD tracker platform and here's the conversation which clears this up:
Me: Is CMC introducing a minimum charge on CFDs? CMCMarkets: All our commisions are built into the price. CMCMarkets: Is there anything else I can help with? Me: It has been stated on a forum that CMC is introducing a minimum charge per trade. CMCMarkets: That does not apply to the Next generation platform. Me: The poster stated they'd recieved an email about the introduction of minimum charges which I have not. So I'm trying to find out if it's true or false? CMCMarkets: That is true for our old Market Maker platform, but not the Next Generation platform, which is the platform this account is held with. Me: thankyou for your help CMCMarkets: If you have a Market Maker account, please contact the Market Maker team on 020 3003 8588 choosing option 2 for more information.
So they are not introducing a minimum charge if you use the Next Generation platform which has the fractional position sizing and adjustable leverage, which imo is very important for a trader with a small account as it allows precise position sizing which I haven't found with any other UK platform.
Hi Morris, thanks for that. It looks like you have the old Market Maker account that the CMC helpdesk guy mentioned then. So I'd imagine all you need to do is to get them to change it to the new Tracker platform to continue to get no minimum charge as the charges are built into the the spread on that platform. And also as you said you are looking around for a broker for small trade sizes you should look at the fractional ownership that the Tracker platform has, as you can put on tiny positions if you want, as little as 1/1000 of a unit and also use zero leverage too if you want, which is really good for a small trader imo as it reduces your risk and gives you the chance to do proper money management.
UK spreads are ok, but US spreads are very good I find. Attached is the current prices of some of the UK and US stocks. Also I think they are identical in the demo, so maybe try that to see if it has what you want.
We're talking very small account size of £2000 or so and no commission per trade. With a real broker or ecn I'm imagining you need to trade much bigger position sizes and pay a fee on both sides of the trade? Plus in the UK trading costs are much higher here.
Also there's no additional daily financing costs or rollover period as it's a continuous price with no expiry. You only have to pay financing if you choose to use some leverage, but if you use no leverage then there's no extra costs on the positions and you receive the dividends too.
I don't like the charts particularly on the new platform, not as good as others as they are trying too hard to be flashy imo, but they aren't necessary for me, as I use a different EOD software for those anyway.
So I just use the platform for trade execution and monitoring the portfolio which is good, and they keep adding new products on regular basis. Like the various US treasuries that appeared last month, and quite a few more commodities like orange juice and lumber etc.
I'd say give the demo a go as it's free and that's the best way to see if it has what you need and compare to the other UK brokers CFD products.