Best Thread CMC Markets owner answers your questions

[PC at CMC Markets]

Hi Ross,
well it wasnt like that in 2008.
but back in 1996 when I first launched on line trading it was.

pc

So we weren't paranoid, after all, if that's how it used to be.

 

[PC at CMC Markets]

hi Ross

just checked our web site for our spreads last week. We publish our daily typical spreads for the week.

From 4th to 9th September
Our minimum spread was 0.7
our weekly typical spread was 0.889.

I leave you to do the maths.

pc

The war has started... CS are hitting back with fixed 1pt EU spread in all market hours.

 

[uk dave]

hi Ross

just checked our web site for our spreads last week. We publish our daily typical spreads for the week.

From 4th to 9th September
Our minimum spread was 0.7
our weekly typical spread was 0.889.

I leave you to do the maths.

pc

Can you provide a link and is this research independant? And no I haven't had any price improvements as yet, just the prices I trade would be good enough

 

[Ross Spur]

hi Ross

just checked our web site for our spreads last week. We publish our daily typical spreads for the week.

From 4th to 9th September
Our minimum spread was 0.7
our weekly typical spread was 0.889.

I leave you to do the maths.

pc

Hi PC

If that's the case, why not fix them at 0.8pt, say, and grab back the business from CS?

 

[the hare]

hi gle101,
also we publish our daily typical spreads and they are very strong. pc

I think the only solution if you want complete transparency is to publish details of the outliers too. If someone gets 30 pips negative slippage, then customers need to be aware that they could experience similar. Likewise, if someone gets 30 pips positive slippage then that should be published too.

Of course if 3 customers trading at $1000 a point are slipped by -5, that obviously isnt balanced by 3 customers slipped by + 5 who are trading chump change. FXCM have quite rightly been pulled on this particular point when they tried to pull the wool over customers eyes with their slippage stats claiming the NUMBER of instances of positive slippage is balanced by an equal NUMBER of instances of negative slippage.

Technically I suspect that there's no reason why you couldnt provide the daily distribution in spread (although I suspect commercially you probably wouldnt want too, and even if you did, I supect people would not trust the source of the data)

At the end of the day, its up to the individual trader to monitor this stuff, and either they get what they need or if they dont, then they need to seek alternatives. To be blunt, I dont care what typical spreads are, or average spreads, I only care about the fills that I get, not the average of a quarter of a million other punters.

 

[pboyles]

PC,

Why do you not seek NFA registration for your FX business? NFA has recently announced that they are auditing all their FX firms for dishonest slippage practices.

Surely you would benefit from a clean bill of health from NFA (I'll assume for now that it is clean). This wouldnt cover the SB side of things but surely it would be a step in the right direction.

 

[PC at CMC Markets]

hi Dave,

For compliance purposes I cannot provide a link to our .co.uk web site.
But if you decide to go there yourself then if you seek our typical spreads under spreads link there you will see our weekly typical spreads.


tks pc

Can you provide a link and is this research independant? And no I haven't had any price improvements as yet, just the prices I trade would be good enough

 

[PC at CMC Markets]

hi the hare,
thanks for your posting. Our weekly typical spreads take into account all prices published with the spreads. In essence what we are trying to do is demonstrate that our prices are constantly tight to our head line spreads.
head line spreads can be mis leading if the average spread is nowhere near the head line spread.

I agree with you that you need to see what price you are getting when you trade. of course this also applies to prices you are not getting. not just by being slipped but by being killed on a fill or kill service. no point in chasing the markets if you keep getting killed on a ticket. we do not offer fill or kill ours is fill or fill

tks pc

I think the only solution if you want complete transparency is to publish details of the outliers too. If someone gets 30 pips negative slippage, then customers need to be aware that they could experience similar. Likewise, if someone gets 30 pips positive slippage then that should be published too.

Of course if 3 customers trading at $1000 a point are slipped by -5, that obviously isnt balanced by 3 customers slipped by + 5 who are trading chump change. FXCM have quite rightly been pulled on this particular point when they tried to pull the wool over customers eyes with their slippage stats claiming the NUMBER of instances of positive slippage is balanced by an equal NUMBER of instances of negative slippage.

Technically I suspect that there's no reason why you couldnt provide the daily distribution in spread (although I suspect commercially you probably wouldnt want too, and even if you did, I supect people would not trust the source of the data)

At the end of the day, its up to the individual trader to monitor this stuff, and either they get what they need or if they dont, then they need to seek alternatives. To be blunt, I dont care what typical spreads are, or average spreads, I only care about the fills that I get, not the average of a quarter of a million other punters.

 

[PC at CMC Markets]

hi pboyles,

we have tried twice to operate out of the u.s and both times it has proven commercially not worth it.

for a start you cannot offer cfds out there. you can only offer on exchange type products. forex is good product to offer out there but there are other more lucrative places to do business. Cfds is our main product.

Would be nice to operate in U.S but when you take on the exchanges with otc products it is like pushing s++t up hill

tks pc

PC,

Why do you not seek NFA registration for your FX business? NFA has recently announced that they are auditing all their FX firms for dishonest slippage practices.

Surely you would benefit from a clean bill of health from NFA (I'll assume for now that it is clean). This wouldnt cover the SB side of things but surely it would be a step in the right direction.

 

[gle101]

At the end of the day, its up to the individual trader to monitor this stuff, and either they get what they need or if they dont, then they need to seek alternatives. To be blunt, I dont care what typical spreads are, or average spreads, I only care about the fills that I get, not the average of a quarter of a million other punters.

Yes correctly, trading live is what counts, and personal monitoring of the actual fills you get is what decides whether you are happy with them or not.

 

[twinj]

Hi Peter,

is it possible to cancel an attempted execution of a trade? You have said that execution is fast but supposing there is an exceptional circumstance and it is taking longer than normal. The price is moving away from the entry you wanted.

 

[PC at CMC Markets]

hi twinj

I presume you are having a laugh. this is fast moving market. if you click buy or sell there is nothing to do to stop the trade going through once we receive it.

I thought you wanted fast execution :cheesy:

pc

Hi Peter,

is it possible to cancel an attempted execution of a trade? You have said that execution is fast but supposing there is an exceptional circumstance and it is taking longer than normal. The price is moving away from the entry you wanted.

 

[uk dave]

hi Dave,

For compliance purposes I cannot provide a link to our .co.uk web site.
But if you decide to go there yourself then if you seek our typical spreads under spreads link there you will see our weekly typical spreads.


tks pc

You forgot to say whether or not the typical spread information is independent..

 

[PC at CMC Markets]

hi Dave,
No, we compile it ourselves but if we publish it on our web site then it has to be true and compliant. Mind you not a bad idea to get it independently verified. I would agree to that if our competitors did the same. then we could get one firm to compare all of the industry's typical spreads. I am not sure our competitors would agree to that. I wonder why.

Not sure why our competitors do not publish their typical spreads. I know of only one competitor who does. Do you know why?:cheesy:

tks pc

You forgot to say whether or not the typical spread information is independent..

 

[tar]

Not sure why our competitors do not publish their typical spreads. I know of only one competitor who does. Do you know why?:cheesy:

tks pc

Hi PC

Take for example IGindex and Oanda they do publish their spreads , others like Cityindex and Capitalspreads have fixed spreads so they don't need to publish anything .

 

[PC at CMC Markets]

hi tar,
Yes have seen their typical spreads. I rest my case.
with regards to cityindex and capital are they fixed spreads right across the board on all products. I dont think so.
we are fixed spreads on most indicies. with forex we are variable that is why we publish our typical spreads
tks pc

Hi PC

Take for example IGindex and Oanda they do publish their spreads , others like Cityindex and Capitalspreads have fixed spreads so they don't need to publish anything .

 

[tar]

.
with regards to cityindex and capital are they fixed spreads right across the board on all products. I dont think so.

Yes fixed , forex and indices ...

 

[PC at CMC Markets]

hi tar,
just going through city web site but cannot find that they are fixed on forex.
pc

Yes fixed , forex and indices ...

 

[tar]

hi tar,
just going through city web site but cannot find that they are fixed on forex.
pc

You can find their spreads here , bear in mind they have the right to widen their spreads if they want , but it is fixed not variable ...

http://www.cityindex.co.uk/sb_livePricing.pdf

 

[PC at CMC Markets]

hi tar,
what, they are either fixed or they are not. now you are moving the goal posts....


pc

You can find their spreads here , bear in mind they have the right to widen their spreads if they want , but it is fixed not variable ...

http://www.cityindex.co.uk/sb_livePricing.pdf