Best Thread CMC Markets owner answers your questions

[PC at CMC Markets]

Hi kalott

Thanks for comments back office was big area of improvement for us and makes it easier for clients to see their positions and adjust trades.
Also bets are kept open at their original execution price so clients can see their entry levels. There is daily finance bet charge instead of rollover. Nice thing also is that all balances are netted off so you only pay finance on net borrowings. I believe we are only spread company that does this.

Yes cfd spreads will be the better spreads this is to encourage clients to use next gen.

Thanks for your comments
Peter

Now I have looked into the "next gen" and an improvement over the market maker is that you have a better overview of open positions and the ability to adjust these in the chart and trailing stop

I assume that the spread will be the same for CFD with "next gen" as an example 1.3 for Germany 30 instead of 2?

 

[Ross Spur]

Yes cfd spreads will be the better spreads this is to encourage clients to use next gen.

Thanks for your comments
Peter

It would encourage a lot of people to try next gen SB if the spreads were better. We need 1pt DAX/FTSE/EU, 2pt or bett on US30!

 

[Proverbs]

Hello,

For a trader considering moving from IG Index to CMC Markets, what would you say are the main advantages of trading with CMC Markets over IG Index?

P.S. I've also sent you a private message about this.

 

[gle101]

It would encourage a lot of people to try next gen SB if the spreads were better. We need 1pt DAX/FTSE/EU, 2pt or bett on US30!

Yes, the client is king, a lot of good SB companies around today in which IG is the leader I guess. CMC knows all this of course. If they want to be a serious contender they have to adjust and I am quite sure they will. It will cost to take market share, in an industry in which CMC do not have a strong position. CFDs might be another matter but SB clients demands a good platform and narrow spread, otherwise they will not succeed.

 

[Black Swan]

Yes, the client is king, a lot of good SB companies around today in which IG is the leader I guess. CMC knows all this of course. If they want to be a serious contender they have to adjust and I am quite sure they will. It will cost to take market share, in an industry in which CMC do not have a strong position. CFDs might be another matter but SB clients demands a good platform and narrow spread, otherwise they will not succeed.

If publically traded I'd be going long on them, if Goldman Sachs know they have a bullet proof blueprint for success (they took 10% of the company) then that gives you all the info. you need to know re. their future success, maybe they'll (g.S.) link up CMC with Facebook . 'Tis a bit like the Carlyle Group taking an interest in you if you make arms/pharms etc...

As for 1 pip spreads or zero pip they're (in mostly the wrong hands) a gimmick looking to woo the gullible..

 

[gle101]

If publically traded I'd be going long on them, if Goldman Sachs know they have a bullet proof blueprint for success (they took 10% of the company) then that gives you all the info. you need to know re. their future success, maybe they'll (g.S.) link up CMC with Facebook . 'Tis a bit like the Carlyle Group taking an interest in you if you make arms/pharms etc...

As for 1 pip spreads or zero pip they're (in mostly the wrong hands) a gimmick looking to woo the gullible..

The industry leader is IG, spreads has to be in line what they are offering. We will see how Goldman is doing with Facebook, I am not entirely sure about the success of that deal in the long run. Facebook is not Google, although they like to give the impression they are just as important for the user.

 

[Black Swan]

The industry leader is IG, spreads has to be in line what they are offering. We will see how Goldman is doing with Facebook, I am not entirely sure about the success of that deal in the long run. Facebook is not Google, although they like to give the impression they are just as important for the user.

I don't see IG's place as permanent. As for the G.S.>Facebook>CMC link up that's just *me* having some fun..

Repeated ad nauseum but here we go; any spread better concerned re. a one pip spread difference is trading all wrong. If I was a scalper (a proper scalper; by definiton exploiting price discrepancies/mistakes) that spread becomes important, in fact crucial. But for spread betters, who should be operating of nothing lower than half hour TFs, if spread betting, it's irrelevant. What is far more important is speed of execution, litle slippage (good fills), huge range of products, cracking back up service, good charting/link up etc..etc..etc..Oh and my own personal issue/crusade; education, education, education, as a way to really look after your customers.


These 1 pip spread offers are lost leaders, like cheap booze in Tesco. IMO the industry really needs to have a conversation with itself regarding the real long term value of these offers. Anyhow, let's keep this on thread and relevant to CMC, with G.S.'s backing they can be anything they cumulatively want to be in this industry, heh, they could buy out IG before tomorrow morning's breakfast...

 

[gle101]

I don't see IG's place as permanent. As for the G.S.>Facebook>CMC link up that's just *me* having some fun..

Repeated ad nauseum but here we go; any spread better concerned re. a one pip spread difference is trading all wrong. If I was a scalper (a proper scalper; by definiton exploiting price discrepancies/mistakes) that spread becomes important, in fact crucial. But for spread betters, who should be operating of nothing lower than half hour TFs, if spread betting, it's irrelevant. What is far more important is speed of execution, litle slippage (good fills), huge range of products, cracking back up service, good charting/link up etc..etc..etc..Oh and my own personal issue/crusade; education, education, education, as a way to really look after your customers.


These 1 pip spread offers are lost leaders, like cheap booze in Tesco. IMO the industry really needs to have a conversation with itself regarding the real long term value of these offers. Anyhow, let's keep this on thread and relevant to CMC, with G.S.'s backing they can be anything they cumulatively want to be in this industry, heh, they could buy out IG before tomorrow morning's breakfast...

This is nothing new, why pay more than what you don't need to, it is just plain foolish, if you get same execution and service with others. The new generation platform is excellence (had to look it up), some new innovations for sure, and to tell you the truth I like it very much. But it is not enough if the spread doesn't follow. We are not asking for much, just the same pricing as a bunch of other SB's. With their wide spread IG let the smaller SB companies take market share for years . They eventually did wake up and I am quite sure CMC will not make the same mistake.

 

[Black Swan]

This is nothing new, why pay more than what you don't need to, it is just plain foolish, if you get same execution and service with others.

Got to go but just think on that for a mo' eh? Perhaps in relation to other *things* (services perhaps) that you buy, sell, use..or abuse...

 

[PC at CMC Markets]

Hi Blackswan

Sanity is starting to prevail in the spread bet industry at last.
Your summing up about what is important in this industry is spot on.
I was beginning to think the whole industry was going potty when I saw one company offering zero spreads. But at least there are some clients out there that understand the markets, spreads, execution and what you should be looking for in your spread bet company.

We are working on all aspects of our service including education, tighter spreads, execution and there is always room for improvement. so watch this space.

Now can we get into debating what is really important in the financial spread bet industry namely speed of execution, consistent spreads, execution during volatile periods, pricing, back office, support services, ticket cancellation, speed, re-quotes. If we can focus on these issues then together we can improve the standard of the whole industry. thanks for your excellent blog.

Cannot possibly comment on facebook/Goldmans/cmc but to be mentioned in the sentence as them is an honour in itself.

thanks for taking the time to blog.

regards Peter

I don't see IG's place as permanent. As for the G.S.>Facebook>CMC link up that's just *me* having some fun..

Repeated ad nauseum but here we go; any spread better concerned re. a one pip spread difference is trading all wrong. If I was a scalper (a proper scalper; by definiton exploiting price discrepancies/mistakes) that spread becomes important, in fact crucial. But for spread betters, who should be operating of nothing lower than half hour TFs, if spread betting, it's irrelevant. What is far more important is speed of execution, litle slippage (good fills), huge range of products, cracking back up service, good charting/link up etc..etc..etc..Oh and my own personal issue/crusade; education, education, education, as a way to really look after your customers.


These 1 pip spread offers are lost leaders, like cheap booze in Tesco. IMO the industry really needs to have a conversation with itself regarding the real long term value of these offers. Anyhow, let's keep this on thread and relevant to CMC, with G.S.'s backing they can be anything they cumulatively want to be in this industry, heh, they could buy out IG before tomorrow morning's breakfast...

 

[gle101]

Hi Blackswan

Sanity is starting to prevail in the spread bet industry at last.
Your summing up about what is important in this industry is spot on.
I was beginning to think the whole industry was going potty when I saw one company offering zero spreads. But at least there are some clients out there that understand the markets, spreads, execution and what you should be looking for in your spread bet company.

We are working on all aspects of our service including education, tighter spreads, execution and there is always room for improvement. so watch this space.

Now can we get into debating what is really important in the financial spread bet industry namely speed of execution, consistent spreads, execution during volatile periods, pricing, back office, support services, ticket cancellation, speed, re-quotes. If we can focus on these issues then together we can improve the standard of the whole industry. thanks for your excellent blog.

Cannot possibly comment on facebook/Goldmans/cmc but to be mentioned in the sentence as them is an honour in itself.

thanks for taking the time to blog.

regards Peter

Sorry I don't buy this for a minute. Black Swan is an old friend of CMC I guess. We are talking of what is standard in the industry, not about zero spread. If you have 2 stores with a similar product and just about the same service, you buy the item where you get the better price, simple as that. I think you are downgrading the average spread better, he knows very well what kind of service he is after in order to progress in his/hers trading. CMC can start by giving a promise that CMC new generation platform will not manipulate a client by putting him on referral to a dealer, then you for starters get a bright shining star in my book.

 

[PC at CMC Markets]

Hi Gle101
I have never met black swan as far as I know and I do not even know if he has trading account with us. He is not connected to CMC Markets. I thought his assessment was balanced and fair and tried to take the issues to another level./
Have you tried trading on next gen. because if you have not then it is hard for you to give the opinion you have given. Let me explain why. We automate all execution, there is no dealer intervention, there are no re-quotes and we publish our spreads on a chart so you can monitor our spreads through all types of markets. so with that in mind I guess we get your bright shining star.

I do not accept your analogy of the spread bet industry.
if you have two stores they have to offer the same product and then you can compare the price, but firstly you have to get the same products/service twice and that is where I think your analogy does not work.
I do not think other spread betters in this industry offer what we offer. Namely..

100 percent automated execution.
Precision Pricing to sometimes four decimals places.
Millisecond execution.
no re-quotes
no dealer referrals
no dealer intervention on pricing and execution.
Tight competitive spreads throughout any market.
Published real time spread charts throughout the day.
Rolling cash commodities.

If you can find another spread bet firm that offers this then you can compare the spreads and then your analogy stands up. I do not know of another spread bet firm that offers this service. If there is can you tell me who they are please then i can compare the spreads and service.
This is the type of debate we should be having, lets stop messing around discussing head line spreads and zero spreads. if you want to talk about service and compare us to others then lets please do it on a fair basis by comparing all of the above.

Many thanks for blogging. thanks Peter

Sorry I don't buy this for a minute. Black Swan is an old friend of CMC I guess. We are talking of what is standard in the industry, not about zero spread. If you have 2 stores with a similar product and just about the same service, you buy the item where you get the better price, simple as that. I think you are downgrading the average spread better, he knows very well what kind of service he is after in order to progress in his/hers trading. CMC can start by giving a promise that CMC new generation platform will not manipulate a client by putting him on referral to a dealer, then you for starters get a bright shining star in my book.

 

[Ross Spur]

I think gle has the right idea.

Not mentioning any names, but in the last six months or so, I've found that the SB company generally offering the tightest spreads has also had the best trade execution. The platform isn't brilliant, but it works quickly and reliably, and has most features you need.
Given that my losses are at least 90% my fault, what is the incentive to try CMC next-gen, which at the moment has spreads twice as wide or more in some cases?

 

[geewcee]

Does CMC cover the AIM shares market yet?

 

[gle101]

Hi Gle101
I have never met black swan as far as I know and I do not even know if he has trading account with us. He is not connected to CMC Markets. I thought his assessment was balanced and fair and tried to take the issues to another level./
Have you tried trading on next gen. because if you have not then it is hard for you to give the opinion you have given. Let me explain why. We automate all execution, there is no dealer intervention, there are no re-quotes and we publish our spreads on a chart so you can monitor our spreads through all types of markets. so with that in mind I guess we get your bright shining star.

I do not accept your analogy of the spread bet industry.
if you have two stores they have to offer the same product and then you can compare the price, but firstly you have to get the same products/service twice and that is where I think your analogy does not work.
I do not think other spread betters in this industry offer what we offer. Namely..

100 percent automated execution.
Precision Pricing to sometimes four decimals places.
Millisecond execution.
no re-quotes
no dealer referrals
no dealer intervention on pricing and execution.
Tight competitive spreads throughout any market.
Published real time spread charts throughout the day.
Rolling cash commodities.

If you can find another spread bet firm that offers this then you can compare the spreads and then your analogy stands up. I do not know of another spread bet firm that offers this service. If there is can you tell me who they are please then i can compare the spreads and service.
This is the type of debate we should be having, lets stop messing around discussing head line spreads and zero spreads. if you want to talk about service and compare us to others then lets please do it on a fair basis by comparing all of the above.

Many thanks for blogging. thanks Peter

Thanks for your answer. I was just teasing you and Black Swan with my remark. Thanks you for not having any dealer referrals on CMC next generation platform. I take that as a personal promise by you, very good indeed, if that proves to be the case in real live trading. Yes there are quite many good SB companies around these days. The industry have been improving a lot in the last years, no doubt about it. We as traders compare the service given by the different companies. Spreads are an important part, as well as the other features you are mentioning. I don't think it is a good idea to get into names, you know them all and what they offer. It is very good that you deliver the features and services in your list, but you cannot live up to them all, namely the most important one, the spread. I understand that some of the services mention cost spread. But I at least am not at the moment prepared to pay for them by increased spread. However, if CMC offer the same spread as the top 5 SB companies, I am prepared anytime to try out CMC next generation platform in real live trading. Please do not imply that I don't understand what you are offering, I have been around for quite some time and know what to look for in a trading platform.

About the platform. I had a very quick run through. I understand the tremendous work that have been put into it. I personally like the fact you have included a user predefined stop loss in points, also the features of moving the stop loss and target directly on the charts are great. The platforms looks very promising indeed. I have not been able to find one click execution without the need for confirmation, and without having the order window ticket open. The icons on the lower left side on the screen, I like to remove them (except for account icon) but find no setting for it. Only one order ticket open on the same instrument. I like have at least two open simultaneously to be able to have different stop loss and target. I have a few other things I could mention. Some part of the layout, not all people like black background (included me) although the design work is overall nice. I am not too fond of fading windows and big buttons. All other top SB offers all these features besides being able to move stop loss and target directly on the chart (important feature, no doubt about it), that is neat, for which I think you are alone to offer (MT4 maybe). It is definitely a new and important feature for SB.

However, as said before, competitive spreads have to come along as a part of the whole package, at least for me, in order to start spread betting with you.

 

[Ross Spur]

Agree again. If you make, say, fifty trades a week and pay twice the spread every time, that's fifty or more pts/pips down the drain. Hardly insignificant.
Incidentally, GFT and IG (Deal Thru) also have direct chart trading, gle, although IG's was unusable, I found. Maybe it works now, but I don't want to use my money finding out.

 

[PC at CMC Markets]

not yet but coming
tks peter

Does CMC cover the AIM shares market yet?

 

[gle101]

Agree again. If you make, say, fifty trades a week and pay twice the spread every time, that's fifty or more pts/pips down the drain. Hardly insignificant.
Incidentally, GFT and IG (Deal Thru) also have direct chart trading, gle, although IG's was unusable, I found. Maybe it works now, but I don't want to use my money finding out.

Ok, I have not been trading with these two guys (other than the demo a couple of years back). They both have a "standard" spread, and good platforms.

 

[PC at CMC Markets]

Hi GLE101
Thanks for your response. It is interesting the way you describe the spreads as being important feature, which I agree but few people seem to take zero spreads seriously. If spreads are that important then why do other spread bet firms exist when spread betters can now trade on zero spreads (on some products)

You know and I know that firms have to make money. If spreads are being squeezed then some how the firm has to make money. You need to work out for yourself how a firm that is offering really tight spreads makes their money. we have decided that we are going to offer tight consistent spreads with fast automated execution and complete transparency (by publishing our spreads on a real time to chart)

Also if you look at spreads I guess it depends what you trade. many of our spreads are the best in the markets our rolling cash commodities spreads are pound for pound the best out there.

Anyway I think our spreads coupled with automated execution, fractional pricing, complete transparency, no dealer intervention are the best out there, but we can argue about this all day. What is important is that we continue to deliver a high calibre service and what we are doing now I think is setting new standards for the spread bet industry.

I can promise you 100 percent that all spread bet deals done on the platform are automatically executed by the system. Dealers cannot override prices and there are no re-quote facilities and no dealer intervention or referral. Also I should add that if you deal on the phone with us the dealer has to quote the price on the system and the deal is executed on the system at the price being automatically generated. There is no facility for the dealer to quote you one price and put the trade through on the platform at another price to read you on the bet. The dealer can only execute the trade on the price being generated by the platform, the same price that all other clients are trading at regardless of whether they are buyer or seller. any other firm you know that does that. so when do we get our shining star.

Thanks for your comments re platform. if you want one click trading including turning off margin stops and profit take go into preferences on the desk top platform, top right hand corner and select orders you can turn off stop loss and order confirmation buttons. then you will just get one click trading.

I still think any spread better should give us a try on real trades before judgement is passed on our spreads, because we are offering the most transparent spreads and execution in the markets today. Other spread bet firms are offering low spreads to attract business and whilst spreads are important you have to ask yourself how are they making their money. If you look at our platform and the way we execute spread bets then I believe we are the only spread bet firm that offers institutional type execution. However, in a lot of cases this is lost on the spread bet community because spread betters are attracted by the low head line spreads. This is a shame because I think overall it drags down the industry when this is superb industry and should be better. we are trying to separate execution and spreads from the head line spreads. I believe we are the only firm doing this and you have to decide what type of firm you want to work with.

I rest my case.

thanks for taking the time to blog and best wishes
peter

Thanks for your answer. I was just teasing you and Black Swan with my remark. Thanks you for not having any dealer referrals on CMC next generation platform. I take that as a personal promise by you, very good indeed, if that proves to be the case in real live trading. Yes there are quite many good SB companies around these days. The industry have been improving a lot in the last years, no doubt about it. We as traders compare the service given by the different companies. Spreads are an important part, as well as the other features you are mentioning. I don't think it is a good idea to get into names, you know them all and what they offer. It is very good that you deliver the features and services in your list, but you cannot live up to them all, namely the most important one, the spread. I understand that some of the services mention cost spread. But I at least am not at the moment prepared to pay for them by increased spread. However, if CMC offer the same spread as the top 5 SB companies, I am prepared anytime to try out CMC next generation platform in real live trading. Please do not imply that I don't understand what you are offering, I have been around for quite some time and know what to look for in a trading platform.

About the platform. I had a very quick run through. I understand the tremendous work that have been put into it. I personally like the fact you have included a user predefined stop loss in points, also the features of moving the stop loss and target directly on the charts are great. The platforms looks very promising indeed. I have not been able to find one click execution without the need for confirmation, and without having the order window ticket open. The icons on the lower left side on the screen, I like to remove them (except for account icon) but find no setting for it. Only one order ticket open on the same instrument. I like have at least two open simultaneously to be able to have different stop loss and target. I have a few other things I could mention. Some part of the layout, not all people like black background (included me) although the design work is overall nice. I am not too fond of fading windows and big buttons. All other top SB offers all these features besides being able to move stop loss and target directly on the chart (important feature, no doubt about it), that is neat, for which I think you are alone to offer (MT4 maybe). It is definitely a new and important feature for SB.

However, as said before, competitive spreads have to come along as a part of the whole package, at least for me, in order to start spread betting with you.

 

[PC at CMC Markets]

Hi Ross
so I guess by your reckoning that the firm offering offering zero spreads is also offering best execution. planet and what spring to mind.

peter

I think gle has the right idea.

Not mentioning any names, but in the last six months or so, I've found that the SB company generally offering the tightest spreads has also had the best trade execution. The platform isn't brilliant, but it works quickly and reliably, and has most features you need.
Given that my losses are at least 90% my fault, what is the incentive to try CMC next-gen, which at the moment has spreads twice as wide or more in some cases?