CMC Markets - Help required

[zellers_077]

hello mates,
I am a novice CFD trader. I have an account with CMC markets, mainly because I am trading low volumes at the moment.

I have a problem with CMC in the way they execute limit/stop orders. The orders are executed at the median price rather than bid-offer price. For example, today (21-03-2006) morning I put a limit buy order for AAL at 2020. The time was 8:21:12 AM. The share price went down to 2015 at sometime around 8:45.

I would expect my order to be executed, but it was not. It b'cos CMC activates the order only when the order matches the median price, not at bid-offer.

This is just one incident. But every day, I see at least 4-5 of my orders not being executed by CMC.

I dont know about others, particularly experienced master traders, but for me this is ridiculous, as it is impossible for me to predict what would be the median price at any given time.

Now, I would be grateful, if any of you can suggest some other CFD provider who executes the order at bid-offer price rather than median price.

Thanks in advance,
Nat

 

[hungvir]

Have you tried uswitch.com I also have a CFD account with CMC but have never traded so sorry I can't help. But there're so many companies out there offering CFD and if CMC can't serve you the way you want it to, it may be time to switch.

 

[BlueChip Trader]

hello mates,
I am a novice CFD trader. I have an account with CMC markets, mainly because I am trading low volumes at the moment.

I have a problem with CMC in the way they execute limit/stop orders. The orders are executed at the median price rather than bid-offer price. For example, today (21-03-2006) morning I put a limit buy order for AAL at 2020. The time was 8:21:12 AM. The share price went down to 2015 at sometime around 8:45.

I would expect my order to be executed, but it was not. It b'cos CMC activates the order only when the order matches the median price, not at bid-offer.

This is just one incident. But every day, I see at least 4-5 of my orders not being executed by CMC.

I dont know about others, particularly experienced master traders, but for me this is ridiculous, as it is impossible for me to predict what would be the median price at any given time.

Now, I would be grateful, if any of you can suggest some other CFD provider who executes the order at bid-offer price rather than median price.

Thanks in advance,
Nat

Hi,

CMC fill orders at bid/offer. However, if they haven't then just phone them and they will honour the fill provided their price transacted at that bid/offer.

IHTH

 

[The Baptist]

Hi,

CMC fill orders at bid/offer. However, if they haven't then just phone them and they will honour the fill provided their price transacted at that bid/offer.

IHTH

providing traded at bid offer in sufficient volume (To further amend)

 

[JTrader]

Hi zellers
Why trade CMC CFD's when you can trade CMC spreadbet and make tax free profits. I would be surprised if there is much difference, if any difference at all, in terms of service between these two forms of derivatives at CMC..........

 

[zellers_077]

Thanks for all the replies. As I said, I am trading only low volumes (means few 1000's) comparing with serious traders, and that's the reason I am keeping with CMC.

I had a clarification from CMC that they execute the limit/stop orders only the next available price AFTER the order is breached. That is to say if I put a stop order at 100, my order is executed only after 100 is breached, say even if it is 50. This is applicable to limit order as well, but most of the time, it would be not favorable to you. (just my experience, need not be correct).

And jtrader, mate, I am not very comfortable with spread betting. I have a betting account with IG, which bets on futures. For me, its pretty difficult to guess the price of something in next 3 months, at least I am not ready for that right now. may be later!

 

[Jack o'Clubs]

Just for info Zellers, the CMC Spreadbet platform works in exactly the same way as the CFD platform, as far as I've been able to tell the prices are absolutely identical.You run a daily position which is rolled over with financing calculated exactly as it is with their CFD. Except that profits are not taxable. When I spoke to one of the guys at CMC when I was opening accounts with both sides of the business, he said the only reason they are on different platforms was because from a regulatory perspective there are tighter rules on who they can let open a CFD account - they can open a 'gambling' account for pretty much anyone. Have a look at it - it could save you some money if you're sticking with CMC anyway.

 

[the blades]

Thanks for all the replies. As I said, I am trading only low volumes (means few 1000's) comparing with serious traders, and that's the reason I am keeping with CMC.

I had a clarification from CMC that they execute the limit/stop orders only the next available price AFTER the order is breached. That is to say if I put a stop order at 100, my order is executed only after 100 is breached, say even if it is 50. This is applicable to limit order as well, but most of the time, it would be not favorable to you. (just my experience, need not be correct).

And jtrader, mate, I am not very comfortable with spread betting. I have a betting account with IG, which bets on futures. For me, its pretty difficult to guess the price of something in next 3 months, at least I am not ready for that right now. may be later!

Hello Zellers,

For info, you aren't betting on the price in 3 months;

If you take todays Market price and spread, and a spread of between 0 - 0.5% (with CMC), and apply 4.75% annual interest (just factor in the expiry of the bet, so 3 months to expiry would be a quarter of this), reduce the price for any dividends due then you've got the CMC quarterly quote.

If you only want to hold for a day or two, take the rolling bet which has a smaller spread (almost the same as the market) but has an annualinterest charge of around 7.5%, I believe.

Don't be put off by the negative press - if it was named something else (eg CFD, or something more professional sounding) none of this BS would arise. If you are paying tax on your gains, it's a no brainer

Take a look at the thread "cost of spreadbetting" and you will see my ongoing examples of this.

All the best,
UTB

 

[zellers_077]

Once again, thanks for all the information. Much appreciated.

I have to look into CMC's spread betting offer, and what exactly is the product I am betting on. I had a betting account with IG Markets, but that was betting on Futures. Apparently, my skills on predicting Future prices were crap, so I made some losses.

But with CFD, I am really doing fine, despite doing low volumes. That's the reason, I am sticking with CFD. But if CMC or any one provides betting on Shares rather than futures, I will give it a try. After all, I don't want to pay boat load of tax anyway.

Cheers,
Nat

 

[zellers_077]

And about the way CMC fills limit/stop order, this is the explanation.

The Limit/Stop orders becomes active when the share trades at the given price. But note that they only become active, but not executed. The execution takes place at the next available price.

The is, your limit order is at 100, and the share hits 100, your order becomes acitivated, but not executed. They will try to get the best next available price and execute the order.
This is the reason for my orders not getting executed.

 

[TraderAli]

And about the way CMC fills limit/stop order, this is the explanation.

The Limit/Stop orders becomes active when the share trades at the given price. But note that they only become active, but not executed. The execution takes place at the next available price.

The is, your limit order is at 100, and the share hits 100, your order becomes acitivated, but not executed. They will try to get the best next available price and execute the order.
This is the reason for my orders not getting executed.

Zellers,

I am not sure if you are still with CMC, if not then please let us know if you have found a better broker. Can you tell me how much spread do they charge you for Nasdaq equities in normal market conditions other then the original market spread and if that varies with position size?

many thanks.