Is CMC Market still a bad company to spread bet with?
ClassicPete
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+1 on this.
Just opened a demo account with them. Platform's very sleek, prices quoted for my underlying market (DAX30) seem almost spot on. What downfalls are there?
Could anyone using this company throw in their 2p? Thanks.
Just opened a demo account with them. Platform's very sleek, prices quoted for my underlying market (DAX30) seem almost spot on. What downfalls are there?
Could anyone using this company throw in their 2p? Thanks.
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timsk
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In this day and age, I suspect all companies - regardless of sector - have to do exactly this to a greater or lesser extent if they want to survive - let alone prosper. I've not used CMC for many years, but don't remember any particular issues with them when I did. Each firm has its own characteristics and peculiarities, (like IG's spread on the Dow is 0.8pt wider than everyone else's and the only reason I don't use them), but most of the big players who have been a around a long time will be getting most of the basics right most of the time. Almost certainly that includes CMC, IMO.
Tim.
ClassicPete
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Thanks for your reply.
Which company would you recommend for fixed spreads (1 point or less), low margins and DMA if possible? I'd be spread betting DAX 30 and FTSE 100.
Which firm are you using?
Thanks for your time.
Which company would you recommend for fixed spreads (1 point or less), low margins and DMA if possible? I'd be spread betting DAX 30 and FTSE 100.
Which firm are you using?
Thanks for your time.
timsk
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Hi smellymoney,
I'm not sure if your post was aimed at me specifically - but I'll answer it anyway.
Personally, I wouldn't recommend anyone open an account (or not open one) based on the recommendation of someone else. I know lots of people who use IG and have recommended them to me most enthusiastically. And I like the look of them, all boxes are ticked apart from the one marked 'spread'. However, in your case, if you don't touch the Dow and only trade FTSE and DAX - they could be fine. On the other hand, you might not like their charts, platform or customer service etc. So it really is horses for courses and a broker loved by one trader will be loathed by another. So, if I were you, I'd shortlist all the firms that tick your key areas of concern and then open demo accounts with them. Sure as eggs are eggs you'll like the charts or platform (or whatever) of one more than another.
In answer to your question, I use ETX Capital. Been with then since 2008 and I like them. Would I recommend them? Yes. Are they right for you? Not necessarily.
Tim.
Hi timsk, I too closed my CMC account many years ago, but unlike you, this was largely done not so much because I didn't then warm to the forced switch from MM to their newer 'next gen dream' but was moreover owing to the accumulated intolerance of many, many... ahem.. 'varied issues', over the years, which I'd best not go into nowadays, for the very reasons you've given. In other words, the irks, I experienced, might indeed be irrelevant by now. Nonetheless, since saying 'adios', I've experienced no similar problems with all three other SB firms I've been using.
But yes, indeed, maybe they have changed for the better, as you're absolutely right to put forward, owing I, too, might agreeably suspect, to the increasingly competitive marketplace/survival factor; but alas, for me, please know that it is, was and likely always will be - a case of 'many times bitten, forever shy'.
timsk
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Hi peakoil,
This is completely understandable and I'm sure that the majority of members who've been in this game for any length of time will feel exactly as you do, me included!
Tim.
peto
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The CMC platform is good, and regularly improved, the latest addition is an optional one-click trading facility. Charts are interesting with automatic pattern recognition and showing my trade, take profit and stop levels.
Spreads for dax, ftse and dow are reasonable at dax 1 (7am to 9pm), ftse 1 and dow 1.4. Spreads for other instruments seem too high, so I don't go there. No re-quotes ever.
Fills are maybe 100ms, looks pretty instant to me. Slippage is whatever happens in that time, generaly nothing, positive slippage is equally as likely as negative.
Spreads for dax, ftse and dow are reasonable at dax 1 (7am to 9pm), ftse 1 and dow 1.4. Spreads for other instruments seem too high, so I don't go there. No re-quotes ever.
Fills are maybe 100ms, looks pretty instant to me. Slippage is whatever happens in that time, generaly nothing, positive slippage is equally as likely as negative.
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ClassicPete
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Thanks all for your input.
How do I establish what the correct mid price is? I've lined up few charts from different providers (Intertrader, IG, CMC, Capital Spreads and ETX) next to each other indicating DAX 30 mid price and they are all different. In some cases almost 2 point difference.
1 minute chart candles are all slightly different looking as well.
Sorry to OP for somewhat hijacking his thread..
How do I establish what the correct mid price is? I've lined up few charts from different providers (Intertrader, IG, CMC, Capital Spreads and ETX) next to each other indicating DAX 30 mid price and they are all different. In some cases almost 2 point difference.
1 minute chart candles are all slightly different looking as well.
Sorry to OP for somewhat hijacking his thread..
Emini-mouse
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timsk
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Hi smellymoney,
Arguably, the only 'correct' mid price is the one displayed by the spread betting broker you trade with. And that will be different to other spread betting providers and be very different to the actual price in the underlying market. Spread bet firms make their own prices and will vary from one to the next, just as the odds on a horse winning a race will vary slightly between different bookies.
The debate as to whether a trader should trade off real market prices or those offered by their SB broker rages on. It's horses for courses at the end of the day. Certainly, if your trading method can't easily accommodate the discrepancy, then your only real option is to switch to a direct market access broker and trade real shares or futures.
Tim.
peto
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Thanks emouse, 1.4 is correct, from about 7am to 9.15pm. I have amended my original post.
Hi Tim.
As a matter of interest, what difference is there , normally, between, for example, Finspread's FT quote (my dealer) and CMC and any other?
I ask because I have not changed dealers in more than a decade and make no comparisons. I just do it on trust because, if there is no trust one might as well not do 1t, at all. I would like to know, though, whether, this difference is more than a few points, or what the opinion is.
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timsk
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Hi Split',
In answer to your question - pass. Sorry!
I assume (but I may be wrong) that they all have their own bespoke algorithms which skew the price from the underlying source. I doubt it's more than a point or two at any one time - but could be considerably wider following major data releases such as NFP. If you're interested to observe it for yourself, many SB firms display the prices of the most popular instruments on their respective homepages, so you could get some idea by watching those perhaps?
Tim.
According to LLSS in "The Other Side of the Screen", the SB firms are so plentiful and competitive, nowadays, that it is dangerous for one of them to deviate from the market too much. I thought that he put a good case and made me feel a bit easier about this matter.
I make some and lose some to the extent that I have no, real, evidence to refute him.
Indices are more difficult to check, but forex has one or two sites where prices can be checked against your SB.
CityMasterTrader
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All providers will have offer different things, which will in some cases not be attractive to you but may well be attractive to others. This is the reason so many use multiple providers depending on what they are trading. It also shows that you need to research who’s out there before just jumping on board. The advert that attracts your attention should be one to get you research the industry not just start trading immediately. Know the competition. Otherwise I agree, in terms of the basics, not much should separate them.
yellowfloyd
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I used CMC many years ago and too be honest I didn’t have the greatest experience with them. Lots of ‘spikes’ being stopped out here, there and everywhere in somewhat dubious price movements, at the time I was very inexperienced and didn’t really understand the product I was trading so took their explanations as truth. However, as I mention that was many years ago (about 7 to be more accurate) and I’m sure things are different now, especially with the increase in regulation these days.
I did open a demo account at CMC a few months back now and I really did like the platform, it’s smooth, looks good but I’m still dubious about using them again. I currently us IG markets who similarly have a good platform, very simple to use and easy on the eye. I haven’t had a bad experience with those guys, well nothing that I haven’t caused myself .
As I say, I’m sure things have changed at CMC and with the regulators monitoring more closely they would be foolish misbehave but for me t’s a case of once bitten twice shy.