CMC Markets - Trading Standards & Alleged Fraud

gle101 said:
If something is based on the underlaying market you do not create your own fictional price movement. They don't profit from clients losses, they profit from the spread, whether it is losses or client profit doesn't matter. The only time SB has problem is when they don't have enough time to hedge or the fixed spread differs too much from the underlaying asset.

____________
"Take control with Risk & Money Management"
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if you place 100bets @£1 spread, but end the day £10up
the net result to the sb co is that they have lost £10
 
gle101 said:
I was actually refering to trading the futures with IB for example, which is much cheaper. The only reason to trade Prospread is for tax reasons, nothing else as I see it.

____________
"Take control with Risk & Money Management"
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IB are an American company who don't offer SB, the only reason traders SB rather than for example futures is purely for tax purposes.....thanks for clearing that up for us all, I'm sure it came as quite a shock to others as it did to me :clap: :clap: :clap: :clap: :clap: :clap: :clap:
 
scose-no-doubt said:
Point is you wouldn't say william hill rips you off. Suppose the difference is the fixed odds but you see my point?
Click to expand...

Your completely right, William Hill don't rip you off because it's impossible to change or alter football scores/horse races....SB providers who are market makers have the ability to change prices, cause slippage etc etc
 
Emini-mouse said:
if you place 100bets @£1 spread, but end the day £10up
the net result to the sb co is that they have lost £10
Click to expand...

Exactly! which if in turn you reverse the result, you've made the loss, and the SB provider has made the winnings....
 
What I was getting at is that they don't have to rip you off to make money, they just allegedly rip people off for further ill-gotten gains. It comes down to a matter of trust, I think, and probably size too. I can't see them p1ssing about to much for £1/2 a pip. People trading those stakes (like me lol) are likely to lose all on their own as they're probably still learning.

However, for CMC to spend the amount of money they say they've spent on systems... my inner tinfoil hat is telling me they could probably, if they were that way inclined, alter each and every individual's positions etc rather easily.
 
DJS1 said:
IB are an American company who don't offer SB, the only reason traders SB rather than for example futures is purely for tax purposes.....thanks for clearing that up for us all, I'm sure it came as quite a shock to others as it did to me :clap: :clap: :clap: :clap: :clap: :clap: :clap:
Click to expand...
Precisely, I was referring to them, comparing prices they are cheap compared to trading with Prospreads. Trading SB is not only for tax reasons, also for more options regarding entry level stake size leverage and so on.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html
 
scose-no-doubt said:
What I was getting at is that they don't have to rip you off to make money, they just allegedly rip people off for further ill-gotten gains. It comes down to a matter of trust, I think, and probably size too. I can't see them p1ssing about to much for £1/2 a pip. People trading those stakes (like me lol) are likely to lose all on their own as they're probably still learning.

However, for CMC to spend the amount of money they say they've spent on systems... my inner tinfoil hat is telling me they could probably, if they were that way inclined, alter each and every individual's positions etc rather easily.
Click to expand...

Your right, they don't have to rip people off, this doesn't stop them from doing so unfortunately....
 
gle101 said:
Precisely, I was referring to them, comparing prices they are cheap compared to trading with Prospreads. Trading SB is not only for tax reasons, also for more options regarding entry level stake size leverage and so on.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html
Click to expand...

Yes of course entry level stakes, leverage etc are also reasons for trading SB, however if you are comparing to IB and trading futures, then yes, costs may be cheaper, however you have to pay 40% on your capital gains tax....do the maths, know which one i'd certainly prefer!
 
gle101 said:
Really, if you are so well informed about the annual reports show me this statement.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html
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Do some proper due diligence yourself gle and go research it.....as I said before, naive!! Looking through your previous posts all you seem to do is disagree with people and look to create arguments! Suggest you spend more time looking into the facts rather than making wildly off the mark assumptions such as 'a market maker' doesn't create a synthetic market....hello, MARKET MAKER!?!? In the title isn't it? :sleep:
 
gle101 said:
If that was the case it would be much more losers trading SB compared to traders trading futures. From what I understand it is about the same percentage on both.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html
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the SBcos just provide you with a game where you have a less than evens chance of winning due to spread , slippage etc etc.
a bit like the casino providing the game of blackjack
with both only a few will turn the odds in there favour
these few will then be dealt with separately
 
gle101 said:
I think you have to look at the spread you pay as a price you pay to get into the trade. It is like a commission you pay to a future broker.

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html
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Well yes obviously this is the case! Think your missing the point of what i'm getting at here...a DMA provider such as ProSpreads or FP Markets is far better for me and like minded traders (big boys who know what they are doing and what they are talking about) as we know we aren't going to get fisted with a 10inch rod up the a***! I'd prefer to pay that little bit extra, safe with the knowledge that the only reason I may lose money is down to my own errors, rather than my provider being dodgy
 
DJS1 said:
Well yes obviously this is the case! Think your missing the point of what i'm getting at here...a DMA provider such as ProSpreads or FP Markets is far better for me and like minded traders (big boys who know what they are doing and what they are talking about) as we know we aren't going to get fisted with a 10inch rod up the a***! I'd prefer to pay that little bit extra, safe with the knowledge that the only reason I may lose money is down to my own errors, rather than my provider being dodgy
Click to expand...
SB have it's advantages so does DMA, both have got their place and followers. If you can't make it trading SB you won't make it with DMA. If you feel like that after trading SB I understand if you don't like trading SB. I however do not feel that way, but what do I know after 15 years of trading, as I am not part of the "big boys" league.:)

____________
"Take control with Risk & Money Management"
http://www.trade2win.com/boards/pla...140296-visualrmm-interactive-new-concept.html
 
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