Trading the S&P Cash Index with CMC

[Trader01]

Hi All,

I am new to site, so please forgive if I post in wrong section.

I trade the E-mini Es with IB and E-signal data feed.I have opened an account for CFD trading with CMC in UK, and have tried out their Marketmaker Software.

I was just wondering if anyone here is trading the S&P Cash Index with CMC, as I would like to get some feedback before I lodge funds into account.My simulated trading during live market hours - while comparing quotes to real time prices with e-signal - has shown me some very strange things at times - eg - major move in S&P on news annoncement, but no move in CMC quotes for several minutes.This of course could be viewed as either an advantage or disadvantage, depending if you had a trade on at the particular time, or not.

Just thought I would see if anyone here has any real live experiences with CMC & CFD trading in relation to US Stocks and Indices.If so, maybe they could outline the advantages and disadvantages that they have come across to date.

Thanks.

Trader01

 

[wysinawyg]

Do bear in mind that the "cash" indices don't follow the cash really. They are hybrids of futures and cash quotes so will move more approximating to the futures than the cash.

I'm guessing you're from overseas so there aren't really any advantages (maybe leverage? or dealing small size?) of dealing through CMC. For UK nationals it is popular when starting out (because of the small size and low minimum account size) and more generally because we can open spread bet accounts which are tax free. With an IB account though I would have thought you were better off just trading e-minis.

wysi

 

[fudgestain]

One of my accounts is with CMC so I use the D4F platform for the Dow; I like the live 'prices meter' as I call it. The D4F platform appears to be well rated here at T2W.

What you actually need, Trader01, is a thorough comparison of all the UK spreadbet internet trading platforms/facilities.

 

[Trader01]

Thanks for reply guys.

My price comparisons were against the S&P Futures - near month - with E-signal.Having daytraded Nas Tech Stocks - sector based trading - I can see an advantage in using CMC Marketmaker for my style of trading - which is primarily 2 Day High/Low Breakouts.Main advantage is margin requirements and short selling.Main disadvantage is of course trading with only 1 market maker, i.e CMC.I have looked at the SSF's, and I may now trade same due to the recent rise in liquidity, as all stocks in my basket are now SSF traded.

My current view is that it may be more beneficial - on an intraday basis - to trade the SSF's or the E-minis on Globex.I would think that the spread difference with CMC negates the commission free aspect - and that your chances of taking money out of the market with CMC on a daily basis, compared to normal live trading, is greatly diminished.

It would be nice to hear from any traders who may be trading Nas Tech Stocks or the S&P Index( while monitoring the S&P futures ), with a CFD account only.For myself, real time data feed is still required for trading decisions, and CMC would only be used for order entry.There is no way I would call a trade without real time data, eg Level II,T&Sales,etc.

One other nice feature about CMC is the interest rate paid on deposit, which is very good compared to what the likes of IB offer.


In relation to Tax Concessions, I live in Ireland, so I am not sure if the same rules apply here or not, in relation to CFD trading.As all my trading is in US issues, stamp duty is not an issue.The only tax consideration is 20% capital gains tax for individuals, with different rules if operating as a business of course.

The point about comparing all available Spreadbet Platforms is good advice, as there may well be a more suited application for my particular styles.Any links to same will be appreciated.

I have read through some of the posts on this site, and it is nice to see that the advise been given by traders here is realistic and correct.A lot of people underestimate how hard this game really is, and when you have spent a year or more fulltime at it, you experience a lot of the pitfalls involved in trading as a career, and there is really no substitute for experience.On the other hand, all the experience in the world is of no use, if the system that you decide to use does not put the odds of winning in your favor, a good deal of the time.My little bit to offer for the moment - to people considering trading as a fulltime career - is that 1) you must use a system that puts the odds of winning in your favor a good deal of the time, and 2) you must be prepared to spend some money to gain the experience in the markets that is required in order for you to see the results and believe in the system that you are trading ( this is the hard bit of course, for everyone is different and the the time required will be different for everyone).Everyone thinks that full time traders make a fortune trading - the real truth of course is that some do, but very few.Those that do are at it for many years, and have a wealth of experience.Most people, if shown exactly how to trade by these people, would still fail, due to lack of live experience and the emotional requirements needed for the trading arena.However, the main point that I have found is to really believe that you can do it, for if not, you will not last long fulltime trading, as it is one setback after another, for a long period of time, from the day you decide to sit down every day and trade.

These are just my thoughts of course, and one should never base their decisions in life on any one else.The only person that really matters is yourself - no one else can make it work.

Regards,

Trader01

PS: I like the spell check feature, I have not seen it done that way before.

 

[Niall]

Hi there.. from Ireland also.. never found many other traders from ireland.. nice to know I am not completey alone!

I have had a deal4free account for over two years now and have mixed feelings about them but cant quite close my account.. I did try to use them for nasdaq stocks and also for the spx but compared to IB, which I also have an account at, its not really viable for intra day trading. Having said that.. I am trying a spell at swing trading now and for this purpose they seem pretty good.. the spread and the execution delays matter less than for quick trades.. and also in my case wanting to work with a basket of stocks it is excellent to ease into that my not feeling obliged to trade min 100 sizes per position as I would do using IB..

I should say that I trade the cfd's only.. never spreadbetting..

good points about trading there that you wrote.. its harder than anyone could imagine before they start on it.. you need to really LIKE it to have any chance of success I think.. to be able to perservere and hope one day to thrive..
learn adapt and try to find the style and methods that suit yourself..


All the best
Neil

 

[drivethru]

Trader 01 there are advantages to spread betting even when the spread has been taken into account.
Day trading the various indices has become much narrower recently
You can trade the whole book in one currency and dont have to pay exorbitant exchange rate costs when paying or receiving funds.
You can trade a vast array of products on one platform etc...
A new SB company looks like being launched in the very near future www.capitalspreads.com and might be worth a look.

Bye
Dillon

 

[Trader333]

drivethru,

With regard to using SB companies You said one of the advantages is that: "You can trade the whole book in one currency and dont have to pay exorbitant exchange rate costs when paying or receiving funds. You can trade a vast array of products on one platform etc..."

That also applies to using IB so where is the advantage ?


Paul