CMC Markets - suggestions for alternatives wanted?

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rf74nz

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I recently signed up with CMC markets - who have just opened here in New Zealand, but I'm not entirely happy. Their prices don't mirror the real world, which means your stops can get hit even though the physical share didn't go anywhere near the price the CFD did.

Does anyone have any recommendations for CFD trading, that will take international customers?

Following is an example of what CMC markets do:

On 27 July 2006, the cfd for AGS (Aegis Group PLC, quoted on London Stock Exchange as AGS) opened at 132.78 and traded as low as 120.04 before closing at 123.76

However, according to data available from Reuters, the range on that day was only between 119.50 and 124.27

This is backed up by charts on finance.yahoo.co.uk (symbol AGS.L)

Something similar occurred the following day, when the CFD reached a low of 114.29 while the share in the physical market had a low of 120.25

In my opinion this is cheating on their part because if something isn't going their way, they can just go hunting for their client's stops.
 
rf74nz said:
I recently signed up with CMC markets - who have just opened here in New Zealand, but I'm not entirely happy. Their prices don't mirror the real world, which means your stops can get hit even though the physical share didn't go anywhere near the price the CFD did.

Does anyone have any recommendations for CFD trading, that will take international customers?

Following is an example of what CMC markets do:

On 27 July 2006, the cfd for AGS (Aegis Group PLC, quoted on London Stock Exchange as AGS) opened at 132.78 and traded as low as 120.04 before closing at 123.76

However, according to data available from Reuters, the range on that day was only between 119.50 and 124.27

This is backed up by charts on finance.yahoo.co.uk (symbol AGS.L)

Something similar occurred the following day, when the CFD reached a low of 114.29 while the share in the physical market had a low of 120.25

In my opinion this is cheating on their part because if something isn't going their way, they can just go hunting for their client's stops.
Click to expand...


Alot of it depends on what you're trading. If you're on UK stocks, go for Direct Market Access - that way there's no quote to skew around to take your stops out. IG and Man Financial both have DMA platforms and offices in Australia if not New Zealand - may be others as well.
 
always be wary putting stops in any market , they can get hunted out in direct markets , I've been caught in futures mkts before , I suspect the shrewder traders tend to keep thier stops close to thier chest , not left in the market.
 
henry766 said:
always be wary putting stops in any market , they can get hunted out in direct markets , I've been caught in futures mkts before , I suspect the shrewder traders tend to keep thier stops close to thier chest , not left in the market.
Click to expand...

If your trading shares on a DMA basis, this shouldn't matter; LSE doesn't support stops, so you can't leave them on screen. If you leave them with a broker, no-one else in the market can see them, nor profit from your being taken out.
 
well I'm considering moving to IG or Man financial - thanks ns1000. They're both available to NZ residents so no problems there. Just have to decide between the two!
 
rf74nz said:
well I'm considering moving to IG or Man financial - thanks ns1000. They're both available to NZ residents so no problems there. Just have to decide between the two!
Click to expand...
GFT seems to have a load of CFD equities on offer at decent rates. www.gftuk.com. Best of luck wherever you end up!
 
where is ur money held?

ns1000 said:
Where is my money held if I open an account?
Click to expand...


Equitrade hold accounts with IG, man financial and etrade. So you are pooling your money with equitrade's money but into the account of any of the three you use above. In my case, I was trading with Etrade. So I opened an account with equitrade. They called etrade and told etrade to reduce my commission down to what I negociated with Equitrade. It was a seamless change over.. No hassle at all...You still use the same platform and account that you opened with whoever you are originally with , be it etrade or man financial. If you are an active trader, my advice to you all is shop around. When I started with Etrade, they were trying to get me to pay 20bps a trade for DMA stuff or £10 for the quote driven CFD stuff. Im paying 10bps now on a small enough account balance. Maybe your average trade size is larger than what I do so you should go lower again...What do CMC charge on their quote driven cfds?
 
Dear ns100 , It's not as simple as you seem to imply , if you leave your stop with your Broker and for example the spread widens without the mkt actually moving , as the stop is then "hit" as it were you've hunted down your own stop which could be a very bad fill indeed ,I stand by my statement that experienced traders , tend ,( not all but most) to be wary of putting in stops !!
 
Advisory CFDS

I also opened an account with CMC the word "CROOKS" comes to mind anyone giving an advisory service and market making their own price is not worth looking at. Any ideas of a good cfd advisory broker that follows the live market price ?
 
GNI touch is a brilliant CFD broker, the only issue you may have is that they are execution onlu, not advisory. However, when you open an account with them you get assigned your own personal account handler who you can chat with and discuss your trades, the markets, your account etc. So almost an advisory service but not quite. Its all free, and all clients get the service. As it is not advisory, the commissions will be far lower, and on top of that you will get Direct Market Access and therefore not get screwed over by re-quotes and widening of spreads.
Check out their new website GNI Touch - Contracts For Difference
 
bobmiller said:
GNI touch is a brilliant CFD broker, the only issue you may have is that they are execution onlu, not advisory. However, when you open an account with them you get assigned your own personal account handler who you can chat with and discuss your trades, the markets, your account etc. So almost an advisory service but not quite. Its all free, and all clients get the service. As it is not advisory, the commissions will be far lower, and on top of that you will get Direct Market Access and therefore not get screwed over by re-quotes and widening of spreads.
Check out their new website GNI Touch - Contracts For Difference
Click to expand...

GNI is right now a division or you can call it a trading name of MF Global (Man Groop).Good luck.
 
CFD's don't resemble the price of the stock exactly.They are OTC through market makers not through an exchange.They can often go quite a way from the actual stock price.Its like people betting on what the price of the stock will be.
If you analyze the stock and trade the CFD you will often find big problems.
Analyze only the CFD data itself.
CFD"s on index's the same.
Its similar to the DJI and YM.
Sometimes YM goes miles away from the cash.
CMC I don't like because they have a huge button on there website that says "Top up your account".
And they have no huge button that says "Make withdrawal".
Which can only mean they never plan on you making withdrawals only putting in more money to lose.
 
Dr_Jones said:
CFD's don't resemble the price of the stock exactly.They are OTC through market makers not through an exchange.They can often go quite a way from the actual stock price.Its like people betting on what the price of the stock will be.
If you analyze the stock and trade the CFD you will often find big problems.
Analyze only the CFD data itself.
CFD"s on index's the same.
Its similar to the DJI and YM.
Sometimes YM goes miles away from the cash.
CMC I don't like because they have a huge button on there website that says "Top up your account".
And they have no huge button that says "Make withdrawal".
Which can only mean they never plan on you making withdrawals only putting in more money to lose.
Click to expand...

1. If you apply CFD trading account through MM not DMA, you are possibly right. But when generally talking about CFD, the product has been listed in Stock exchange in ASX and next year will be listed in LSE as well. We cannot say it is a OTC product since this year.
2. For the mispricing, if there is a big distance between MM's price and underlying price, congratulation. Please PM me which product,when,at which platform.I will buy you a drink when I taking profit from it. No one can make a price above or below all the time.
3. For all aggressive marketing activities,did you see any service provider ask consumer do not buy any products from their hand?:p
 
RF Be prepared to get fleased/ripped of.
Come on how can one trade with such an out fit ?
 
TomTom said:
RF Be prepared to get fleased/ripped of.
Come on how can one trade with such an out fit ?
Click to expand...



lol

Now your just showing off and making yourself look like a silly billy.:LOL:

If you ever need some advice (and I think you do) on how to make money from Spreadbet Companies, I will give you one free lesson.:smart:

That way, you wont have to keep complaining like a cry baby bumkin.

For all others, just take a look through this guys posts and you'll see the tears he sheds on a daily basis, go easy tom tom, your hair will fall out with stress...:LOL:

First lesson in trading: Dont get stressed or your hair will fallout.:)

Lets all give tom thumb a big hug....lol
 
How Much do you get to pump up SB companies ?

Err hate to disapiont you Lee I deffo dont need any lessons in trading.

I could allways show you how to work a DMA platform instead ?
 
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