Currency Conversion Fee

[teamtopgun]

Hi,
I just began to trade FX on CMC Markets (CFDs) and I currently think about the following problem:

I buy USD/EUR 1mio[EUR] at 1,39xx and sell 1mio[EUR] at 1,39xx+y. So my EUR-Position is flat, but I realized a USD profit.

On CMC markets, this results in a USD Equity position. If I want to convert this position into EUR, they charge 40pips. That is quite a lot in my opinion? Is it possible to bypass that fee?

The idea I just had is: Instead of opening my position in EUR, I could open my position by the inverted USD position (USD short). In case of a profit, the USD position would be flat and my profit is denoted in EUR.

Is anyone of you trading with cmc markets and can confirm my idea or suggest a different solution?

Thank you very much,
Michael

 

[gbp-usd]

Hello Michael

I traded FX and Spread betting with CMC before, normally the FX or FX(CFD) trades will be like this

Assuming you are a sterling account holder with CMC

When you place an order let's say buy long 100000 euro-usd pair， they will convent your money into euro first, from there, they will use the money to buy USD for you to finish your order。
When you closed the trades they will convent it back to sterling again， what ever left is your final profits or loss , they will charge quite big convension fee for both way

Personaly I don’t like them, I had very bad experience with them，although I am still make some money from this company , it is hard to withdraw money out, the software you are using may contain a unwelcome file very deep on your hard drive ,and it is very tricky and very slow, I don't know what is their intention.

hope it is useful for you

 

[teamtopgun]

So your final conclusion is: There is no way to bypass the conversion fee?!

Thank you very much for your comment anyway.

Michael