CMC Markets

[tomaz55]

Hello everyone

Just wanted your opinions on opening a spreadbetting account with CMC Markets (Deal4Free) to daytrade the USD majors.

They have the tightest spreads around for cable (3 pips). Have there been any problems in the past concerning execution, limit orders not being filled, etc? Are they a reliable spreadbetting firm? Which other spreadbetting firm would best better suited for currency day trading?

All comments wellcome!

Thank you very much

 

[Slapshot]

Welcome Tomaz55,

If you search this site for CMC, D4F, Deal4Free you'll find plenty of comments/reviews...some good, some not......

Personally I've not had too many problems with them but read the reviews.

 

[Trader/God]

Three issues that I've heard about the firm:
1. Technical issues - many more than most brokers will have. Crashing, error messages, etc.
2. Negative balance - Most brokers will prevent you from having a negative balance, AFAIK CMC will allow you to run a negative balance, which means you could owe them a substantial amount of money if the market moves against you.
3. Spreads - They may display 3 pips on GBP but they are either shading you or only filling on wrong side of the market. No way that kind of firm can fill at that level.

Trader/God

 

[kbay]

HI
I use CMC and find them ok, however when i close a spread it is almost always 1 pip less than on the screen, so when using tight margins can be frustrating.
Anyone else find this?

 

[tomaz55]

Three issues that I've heard about the firm:
1. Technical issues - many more than most brokers will have. Crashing, error messages, etc.
2. Negative balance - Most brokers will prevent you from having a negative balance, AFAIK CMC will allow you to run a negative balance, which means you could owe them a substantial amount of money if the market moves against you.
3. Spreads - They may display 3 pips on GBP but they are either shading you or only filling on wrong side of the market. No way that kind of firm can fill at that level.

Trader/God

Hi Trader/God

What do you mean they are 'shading' or 'only filling on wrong side of the market'? Why cant a firm like that give a 3 pip spread on cable?

Could someone also know what difference would it make if it is the same to bet £10 or £300 per pip with them regarding execution, limits/stops being filled, etc?

If I bet £500/pip on cable, and put a stop 30 pips away, would they 'know' the stop was there and run the price through it?? Would this leverage call attention? What is their maximum leverage anyway?

Thanks a lot

 

[jezza888]

Do they allow up to 500 pp? I know CS only allow 100 pp on forex.

 

[tomaz55]

Do they allow up to 500 pp? I know CS only allow 100 pp on forex.

CS?

 

[kbay]

I wouldn't have thought £500.00 a pip would be a problem, however you would need £75,000.00 capital for you to place it

 

[jezza888]

CS?

Capital spreads.

 

[ERA]

One of the best ways to improve the spread you pay is to monitor a regular fx broker as well, I use Oanda with CS, often when I am looking to get into a position I will watch the dealing rates of both, I find Oanda has quick response time compared to CS so a jump or move will show up on Oanda usually a split seconds before CS which is more than enough time to enter there, this is no good for scalping but helps reduce costs when taking a position, I often find when the fill comes back I am already up a pip or two when the lag re-adjusts. So instead of treating it as a 3pip spread I paid I see it now as a 2 or 1 pips spread paid.

 

[tomaz55]

One of the best ways to improve the spread you pay is to monitor a regular fx broker as well, I use Oanda with CS, often when I am looking to get into a position I will watch the dealing rates of both, I find Oanda has quick response time compared to CS so a jump or move will show up on Oanda usually a split seconds before CS which is more than enough time to enter there, this is no good for scalping but helps reduce costs when taking a position, I often find when the fill comes back I am already up a pip or two when the lag re-adjusts. So instead of treating it as a 3pip spread I paid I see it now as a 2 or 1 pips spread paid.

I repeat my question, can you bet at 200 or 300 punds/pip without any problems? Will they 'hunt' my stops?

 

[JonnyT]

If you want to bet in that size I wouldn't even consider placing stops...

Thats even if a spreadbet company will take your order without adding to the spread in the first place.

You can certainly do that size with Interactive Brokers on IdealPro where the current liquidity is over 4,000,000 on EUR for the bid and ask (i.e. you would get an instant no slip fill for $400 per pip) and 3,000,000 for the GBP.

As IB are a broker any stops would probably stay on their system and not be visible to the market providers to be manipulated.

I would suggest you need to have £1m's liquid to trade in such size.

JonnyT

 

[jezza888]

Does anyone have any experience/actually tried trading over 100pp on Forex with a SB company?

 

[tomaz55]

If you want to bet in that size I wouldn't even consider placing stops...

Thats even if a spreadbet company will take your order without adding to the spread in the first place.

You can certainly do that size with Interactive Brokers on IdealPro where the current liquidity is over 4,000,000 on EUR for the bid and ask (i.e. you would get an instant no slip fill for $400 per pip) and 3,000,000 for the GBP.

As IB are a broker any stops would probably stay on their system and not be visible to the market providers to be manipulated.

I would suggest you need to have £1m's liquid to trade in such size.

JonnyT

JonnyT,

Thank you for your answer. I just wanted to test the field in terms of maximum number of pounds per pip with spreadbetting companies.

I understand for what I have been hearing that in no way will I ever trade at 200 pouns/pip with CMC, but I think up to 100 pounds/pip there wouldnt be a problem. More than that, and I would use a proper broker wher, as you say, the stops would be invisible to the market manipulators, a crucial fact nowadays.

Have checked Oanda, they only charge 3pip spread with cable, and 1.5 with eur/usd.

Is it possible to simply open a US account with Oanda as a EU citizen (my profits I will not be taxed), and simply wire the funds to a UK bank, thereby avoiding taxes? Is there any sort of control over this? In reality, it would be a simple wire transfer between 2 banks, right?

 

[jezza888]

Does IB have a limit amount pp?

 

[Finlayson]

Tomaz

u can open account with aonda in many currencies.....it is simple wire transfer from your bank to theirs( JPmorgan in london if u open GBP account) u can did it via your internet banking if thats what u do, very painless.

one thing ....if u are doing this u are required to complete initial wiretransfer form that requires 'swift' number for international accounts......u can simply put in your uk bank sort code & number ...but put note on to let them know or could be delayed sometime

jay

 

[tomaz55]

Finlaysson

If I open a GBP with them (JP Morgan in London), will I be taxed on my profits??

If so, spreadbetting is definitely the way to go...

 

[Finlayson]

Tomaz

it is best to speak to a professional for tax advice....oanda is not a SBetter & yes SB is classed as tax free

there are pro's & cons to both, so it is best to evaluate this against your style of trading & financial plans & thenu can make a proper decision

Jay