Yes I have had a look at it, to be black background it felt kind of clean. Sorry Peter, not meant to advertise for them on your behalf.
Best Thread CMC Markets owner answers your questions
- Thread starter PC at CMC Markets
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PC at CMC Markets
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hi gle101
no problem happy for you to comment on competitors on this site although I prefer to keep it for CMC matters but that is your choice.
tks pc
no problem happy for you to comment on competitors on this site although I prefer to keep it for CMC matters but that is your choice.
tks pc
Thanks.
arabianights
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*cough*
(bp was trading 481p when I wrote that, btw. And idea is you would tie up entire £481 so there wouldn't have to be any financing)
Think how much money is in ISAs. Then imagine how much people would WANT to put in ISAs. CMC could have all of that. If you did that you wouldn't just be the largest spread betting company - you'd be the largest retail financial institution.
You could also offer the equivilant of a cash ISA and allow people to spread bet on unit trusts etc to complete stocks n shares ISA equivilant... basically help us get around tax. Would be beautiful
arabianights
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I realise that looks a bit unclear... for a cash isa, for example, you could permit non leveraged spread betting on an ultra short gilt... You could even make these synthetic instrumetns yourself....
presumably such a product would predominantly interest equity clients, in which case how do they hedge?
option 1.) if they use cfds to hedge they are paying away funding to their brokers, but receiving none from the client = loss
option 2.) if they trade cash they tie up an enormous amount of cash that they may or may not have available, but which regardless they would otherwise be earning on, so on anything other than short term positions (which would defeat the whole purpose of what you're suggesting) = loss
option 3.) they don't hedge. all of the business from 100% funded clients would be buy and hold, and they end up permanently short the market long term (long term losing strategy).
complete non starter IMO - as evidenced by the fact they have wound down their AIM business - one can only assume their margin payable to their underlying brokers relative to the spread received on execution from clients made it an unprofitable business for them (especially since the fsa's enforcement of the client money rules...)
option 1.) if they use cfds to hedge they are paying away funding to their brokers, but receiving none from the client = loss
option 2.) if they trade cash they tie up an enormous amount of cash that they may or may not have available, but which regardless they would otherwise be earning on, so on anything other than short term positions (which would defeat the whole purpose of what you're suggesting) = loss
option 3.) they don't hedge. all of the business from 100% funded clients would be buy and hold, and they end up permanently short the market long term (long term losing strategy).
complete non starter IMO - as evidenced by the fact they have wound down their AIM business - one can only assume their margin payable to their underlying brokers relative to the spread received on execution from clients made it an unprofitable business for them (especially since the fsa's enforcement of the client money rules...)
PC at CMC Markets
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do you want a job...
I am lost for words. Do you have a spy in the camp.
pc
I am lost for words. Do you have a spy in the camp.
pc
*cough*
(bp was trading 481p when I wrote that, btw. And idea is you would tie up entire £481 so there wouldn't have to be any financing)
Think how much money is in ISAs. Then imagine how much people would WANT to put in ISAs. CMC could have all of that. If you did that you wouldn't just be the largest spread betting company - you'd be the largest retail financial institution.
You could also offer the equivilant of a cash ISA and allow people to spread bet on unit trusts etc to complete stocks n shares ISA equivilant... basically help us get around tax. Would be beautiful
PC at CMC Markets
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hi shortsell
smart guy. but you are not correct in all of your assumptions. but you will have to wait for next gen cfds to find out how we tackle some of the problems.
why do you think we called our technology next gen.
cheers pc
smart guy. but you are not correct in all of your assumptions. but you will have to wait for next gen cfds to find out how we tackle some of the problems.
why do you think we called our technology next gen.
cheers pc
arabianights
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yeah go on then
PC at CMC Markets
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probably couldnt afford you.
pc
pc
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Here is the list of upcoming improvements to the Charting Package. This work is scheduled to be completed within a month or so.
1. Ability to save chart preferences - Each time a client loads up a new chart it will load with the time frame, chart type and technical tools they specify.
2. When scrolling the time period using the mouse scroller clients will have the option to lock the interval setting
3. Save, Copy and Print Functions - Print function will have the option to print in white.
4. Multiple New Drawing Tools -
Add Text to charts
Vertical Line
Triangles Boxes
Circles/Ovals
Dynamic Line (Set at current market price)
Rotating Arrows
Buy Sell icons
Fibonacci Fan
Fibonacci Arc
Fibonacci Time Extensions
Pitchforks
(possibly more)
5. We are also building in the ability to add drawing tools to the studies section of the chart
6. New Value Box - This will show all values including Open/High/Low/Close, Percentage Change, Change and Technical Levels
7. Extend chart past the most recent data point to create a workspace for predicting future movement
8. New Indicators - Ichi Moko Clouds & Pivot Points
9. Increase Study Options - For example change overbought and oversold levels on RSI and multiple other studies
10. Candlestick Charts based off Bid and Offer Prices (currently only available on the mid price)
cheers Peter
1. Ability to save chart preferences - Each time a client loads up a new chart it will load with the time frame, chart type and technical tools they specify.
2. When scrolling the time period using the mouse scroller clients will have the option to lock the interval setting
3. Save, Copy and Print Functions - Print function will have the option to print in white.
4. Multiple New Drawing Tools -
Add Text to charts
Vertical Line
Triangles Boxes
Circles/Ovals
Dynamic Line (Set at current market price)
Rotating Arrows
Buy Sell icons
Fibonacci Fan
Fibonacci Arc
Fibonacci Time Extensions
Pitchforks
(possibly more)
5. We are also building in the ability to add drawing tools to the studies section of the chart
6. New Value Box - This will show all values including Open/High/Low/Close, Percentage Change, Change and Technical Levels
7. Extend chart past the most recent data point to create a workspace for predicting future movement
8. New Indicators - Ichi Moko Clouds & Pivot Points
9. Increase Study Options - For example change overbought and oversold levels on RSI and multiple other studies
10. Candlestick Charts based off Bid and Offer Prices (currently only available on the mid price)
cheers Peter
i'm a bit confused by this response as this is not a technological issue. i was responding to arabian's suggestion re: fully funded equity positions in a tax free wrapper. the logisitcs of why you wouldn't be able to offer this are not technology-related.
Peter,
Nice to see the chart improvements you've listed.
I have had a live nextgen a/c open for the last week or so. Also opened a GFT a/c at the same time as they have wider range of US equities.
Just traded one instrument on nextgen so far, FRES.L . For the time being, I'm using GFT charts for intraday, however I do find your spread chart useful for setting stops. You seem to have a consistently tighter spread of @1p better than GFT on this stock. You have half the margin requirement, keep the margin based on the original price and have better overnight financing. So far, I'm a happy customer.
As a general point with SB, avoiding paying the stamp duty on UK stocks makes the spread even tighter than interactivebrokers.
Will the 3000 odd extra instruments planned for release on nextgen be at the same time as the charting release or sooner?
I also agree with arabiannights about being able to choose your leverage level. 20 to 1 is a lot more than I'm used to...
Based on the fact that your financing charges net off the non-margined amount, if someone chose zero leverage, your financing charges should work out at zero.
Nice to see the chart improvements you've listed.
I have had a live nextgen a/c open for the last week or so. Also opened a GFT a/c at the same time as they have wider range of US equities.
Just traded one instrument on nextgen so far, FRES.L . For the time being, I'm using GFT charts for intraday, however I do find your spread chart useful for setting stops. You seem to have a consistently tighter spread of @1p better than GFT on this stock. You have half the margin requirement, keep the margin based on the original price and have better overnight financing. So far, I'm a happy customer.
As a general point with SB, avoiding paying the stamp duty on UK stocks makes the spread even tighter than interactivebrokers.
Will the 3000 odd extra instruments planned for release on nextgen be at the same time as the charting release or sooner?
I also agree with arabiannights about being able to choose your leverage level. 20 to 1 is a lot more than I'm used to...
Based on the fact that your financing charges net off the non-margined amount, if someone chose zero leverage, your financing charges should work out at zero.
PC at CMC Markets
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Hi uchiki
Thank you for this posting this will make gle101 and ross spur happy because they have been waiting for live trading customers to give their feed back. Thank you very much for your positive comments and I think you prove the point that consistent competitive service and spreads is very important. I think it is good you have assessed our service along side another company. It shows where the consistency is. we are happy to stand up and be counted but lets do the maths against real trading accounts no head line rates.
Lots and lots of new products coming. I cannot say what they are exactly because the team still working through them but they will be the major shares and other new products including new indices. Not sure if they will be at same time as charts but they be around the same time. we plan to launch next gen cfds so might be just after this launch or at same time. Lots of releases coming over the next four to 10 weeks.
We are also working on a new financing model that I think will please cfd traders but I am not sure we can apply it to spread betting due to the spread bet rules. This will pan out in time. but some exciting new finance tools coming. sorry cannot give the game away at moment but it is very exciting.
You are just getting a taster of what is to come. I never thought about using spread charts for placing stops but excellent idea and well done for that and will pass that onto the team.
many thanks for a real client feed back on the systems. Lets get more trading clients on here to see their feed back...good or bad..
cheers pc
Thank you for this posting this will make gle101 and ross spur happy because they have been waiting for live trading customers to give their feed back. Thank you very much for your positive comments and I think you prove the point that consistent competitive service and spreads is very important. I think it is good you have assessed our service along side another company. It shows where the consistency is. we are happy to stand up and be counted but lets do the maths against real trading accounts no head line rates.
Lots and lots of new products coming. I cannot say what they are exactly because the team still working through them but they will be the major shares and other new products including new indices. Not sure if they will be at same time as charts but they be around the same time. we plan to launch next gen cfds so might be just after this launch or at same time. Lots of releases coming over the next four to 10 weeks.
We are also working on a new financing model that I think will please cfd traders but I am not sure we can apply it to spread betting due to the spread bet rules. This will pan out in time. but some exciting new finance tools coming. sorry cannot give the game away at moment but it is very exciting.
You are just getting a taster of what is to come. I never thought about using spread charts for placing stops but excellent idea and well done for that and will pass that onto the team.
many thanks for a real client feed back on the systems. Lets get more trading clients on here to see their feed back...good or bad..
cheers pc
PC at CMC Markets
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hi gle101 and ross spur see posting 833 live client feed back
cheers pc
cheers pc
PC at CMC Markets
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hi shortsell
sorry for the confusion. If you look back over the thread you will see that next gen is not just about technology but new products and some new features. this is what I meant about next gen, it is not just technology but new products and tools as well, like margin stop losses, precision pricing, placing stops from charts, seeing trades on charts and the new releases we have coming up.
the next release of next gen specifically on cfds will have a lot of added features and will answer some of the points you mentioned. however, you have to wait for the releases before you see what they are
thanks for your posting
regards peter
sorry for the confusion. If you look back over the thread you will see that next gen is not just about technology but new products and some new features. this is what I meant about next gen, it is not just technology but new products and tools as well, like margin stop losses, precision pricing, placing stops from charts, seeing trades on charts and the new releases we have coming up.
the next release of next gen specifically on cfds will have a lot of added features and will answer some of the points you mentioned. however, you have to wait for the releases before you see what they are
thanks for your posting
regards peter
arabianights
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no problem PC.
What I'm trying to get at is that i don't think the point I've raised has anything to do with your platform/product offering.
Let's take an example.
An IB comes onto your dealers and says that each of their 100 underlying clients wants exposure to 1m shares of Vodafone VOD LN ( I know - you wish ), and each want to put cash up front and pay 0% funding.
that's a combined notional position of c£180m.
now i don't know what you charge, but let's say for a decent IB it's 5 basis points in and out.
so on this trade, you are grossing £180k in spread.
now obviously you can't run this naked, so either you tie up £180m which you don't have, thereby incurring finance charges from your bank (assuming you have that depth of facility with them) to cover the position, or you hedge using CFDs with your broker, thereby incurring funding. i imagine you probably pay c0.5% over 1mlibor, let's say 1.1% total.
now this is a cost to you of c£200k per annum that you're not recouping. in addition you are probably paying away 1-2bps in comm on the cfd, let's say 1, so that's another £36k round trip.
if the clients decide to run this position for 2 years your P&L would be -£256k - not accounting for the cost of having the infrastructure in place to handle the business!
THIS is what i mean about the product not being viable on the scale arabian suggested.
no amount of 'next gen' developments gets around this, but as ever if i am wrong i would love to be corrected.
What I'm trying to get at is that i don't think the point I've raised has anything to do with your platform/product offering.
Let's take an example.
An IB comes onto your dealers and says that each of their 100 underlying clients wants exposure to 1m shares of Vodafone VOD LN ( I know - you wish
), and each want to put cash up front and pay 0% funding.that's a combined notional position of c£180m.
now i don't know what you charge, but let's say for a decent IB it's 5 basis points in and out.
so on this trade, you are grossing £180k in spread.
now obviously you can't run this naked, so either you tie up £180m which you don't have, thereby incurring finance charges from your bank (assuming you have that depth of facility with them) to cover the position, or you hedge using CFDs with your broker, thereby incurring funding. i imagine you probably pay c0.5% over 1mlibor, let's say 1.1% total.
now this is a cost to you of c£200k per annum that you're not recouping. in addition you are probably paying away 1-2bps in comm on the cfd, let's say 1, so that's another £36k round trip.
if the clients decide to run this position for 2 years your P&L would be -£256k - not accounting for the cost of having the infrastructure in place to handle the business!
THIS is what i mean about the product not being viable on the scale arabian suggested.
no amount of 'next gen' developments gets around this, but as ever if i am wrong i would love to be corrected.
PC at CMC Markets
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cant have you on a higher salary than me... ha ha
nah... city index couldn't... I'm sure we could come to an arrangement
PC at CMC Markets
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hi shortsell
okay this is hypothetical question but good one.
simple answer is that if the client pays full cash up front we would buy physical to hedge their position and not hedge it as cfd (no stamp duty involved for us as registered exchange member) we would then make our money from the commission or maybe some of the spread depending on the product and liquidity.
we might still hedge it as cfd providing the counterparty provided cfd hedges as not leveraged product, which is possible.
on the face of it this does not look as profitable as margined product but if we are talking about tapping into bigger market then it makes sense but of course this is all hypothetical.
think I covered the points. if not let me know
tks pc
okay this is hypothetical question but good one.
simple answer is that if the client pays full cash up front we would buy physical to hedge their position and not hedge it as cfd (no stamp duty involved for us as registered exchange member) we would then make our money from the commission or maybe some of the spread depending on the product and liquidity.
we might still hedge it as cfd providing the counterparty provided cfd hedges as not leveraged product, which is possible.
on the face of it this does not look as profitable as margined product but if we are talking about tapping into bigger market then it makes sense but of course this is all hypothetical.
think I covered the points. if not let me know
tks pc
no problem PC.
What I'm trying to get at is that i don't think the point I've raised has anything to do with your platform/product offering.
Let's take an example.
An IB comes onto your dealers and says that each of their 100 underlying clients wants exposure to 1m shares of Vodafone VOD LN ( I know - you wish
that's a combined notional position of c£180m.
now i don't know what you charge, but let's say for a decent IB it's 5 basis points in and out.
so on this trade, you are grossing £180k in spread.
now obviously you can't run this naked, so either you tie up £180m which you don't have, thereby incurring finance charges from your bank (assuming you have that depth of facility with them) to cover the position, or you hedge using CFDs with your broker, thereby incurring funding. i imagine you probably pay c0.5% over 1mlibor, let's say 1.1% total.
now this is a cost to you of c£200k per annum that you're not recouping. in addition you are probably paying away 1-2bps in comm on the cfd, let's say 1, so that's another £36k round trip.
if the clients decide to run this position for 2 years your P&L would be -£256k - not accounting for the cost of having the infrastructure in place to handle the business!
THIS is what i mean about the product not being viable on the scale arabian suggested.
no amount of 'next gen' developments gets around this, but as ever if i am wrong i would love to be corrected.
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