CMC Markets – have you got any confidence in them...?

[Drone]

Taxation a problem???...I'd say that was fortunate since most people lose on CFDs anyway....

Haha perhaps...

If you can make money trading shares you can money make trading CFDs IMHO. Without wanting to sound like I'm selling anything they have low financing costs, the same spreads as the underlying market and comparatively low commisions.

My experience anyway.

and to be clear - I don't work for CMC (or know anyone who does).

[Technical.Trader]

Sure, I agree, you can make money if you know what you're doing, but to many traders have no idea about risk management. I have been an advisor for several years now on CFDs, ETOs, equities futures and FX and am setting up a boutique broking firm oferring these products, but I can tell you first hand that winners are few and far between... but to keep the pipe dream alive, I have seen some poepl make some pretty decent money as well.

[CJ]

Oh, forgot to mention the one biggest problem with CFDs and CMC - the ird views it as a "financial arrangement" and therefore your profits are taxable.

CFDs are for traders therefore you would be taxable anywah. If you have using CFD for long term positions, a margin account might be a better way as it would avoid the tax treatment of financial arrangements.

[STRAT]

, but I can tell you first hand that winners are few and far between... .

Thanks for confirming what I already suspected TT.
Seeing the adds on TV aimed at joe public was a sure fired warning bell to me. Perhaps those adds would be better suited to a different time slot, say between the informercials for "Ab-Queen Poo" and " TXT Dirty to Hot Girls now"

[Steve]

I must admit that trading FX thru CMC has not made my lifestyle as good as what the ads show on the tv, YET...

[groovejet]

Thanks for this thread it has been interesting reading. Ive been trading cfd's for a long long time but have made very few posts, so even though I may have newbie status I may have actually traded more than most people. I have been with CMC since they first appeared in NZ (must be about 2005 or 2006). I remember they were still setting it all up anyway. Point is I have made literally thousands of trades with them (mostly in AUS as NZ market is too small and you will really get your bum kicked if you try). Do I trust them? No. Do I have confidence in them? No I think they are confidence tricksters. Would I recommend them? No way, never never never. Why? Read on...
There is an excellent book which is one of the top traders books ever written, its called Reminiscences of a Stock Operator and its about legendary trader Jesse Livermore. Written in about 1924. Anyway these CFD things are not new. They were around in the 1900's US and were known as 'bucket shops' where most people actually lost money (Livermore was the exception so they banned him). So that is the aim of the CFD provider? Pure and simple its to profit from its customers in its own virtual world that it can manipulate itself. Think about that before you open an account. So stop hunting, not filling orders, requotes, incorrect prices etc. etc. yes it all goes on. Ive been around too long to think otherwise. I even got one of their punk traders to admit it. He said 'its our market so what you going to do about it?' I may still have that dialog (which you can only screen print they wont let you cut and paste - eh strange that) - also the transaction logs which are supposed to be on your pc are not there so if you think you placed an order and it didn't get filled there is no way of checking.
Anyway, stay away! Be warned. If you've got a spare 10 grand sitting around take the kids to Disneyland. Do not give it to these b*stards.
By the way. Your probably thinking oh he's just bitter and twisted cos he lost all his money. Not quite. You'll be shocked to know I still have an account and still trade. I have never put any more money into my account. I am just extraordinarily careful now and focussed. I've learned the hard way what works and what doesn't (I've tried just about everything). I'm not into giving tips but if you do still go ahead bear in mind 100:1 leverage is poison, esp. in these volatile times.

[AMR]

I'm not into giving tips but if you do still go ahead bear in mind 100:1 leverage is poison, esp. in these volatile times.

Exactly...

The broker doesn't need to do any funny business, he can simply give huge leverage and wait for the client to blow themselves up.

[Drone]

Exactly...

The broker doesn't need to do any funny business, he can simply give huge leverage and wait for the client to blow themselves up.

I'm quite not sure why the broker would want people to blow up, given that they earn income when clients trade, which is not something clients tend to do when they are "blown up" so to speak.

Cheers

[POSSUM THE CAT]

Drone CMC Markets are esentially bookmakers

[George]

Thought I would start this thread again after a year when
markets have gone down and are now on the way up.
What are the experiences with CMC over this period?
I am considering opening a small ($1k) account and trade very
small positions both long and short on ASX stocks and hold for
1-10 days. Having both long and shorts (1-2 trades each) would
protect me if another Sept 11 occurred and would also reduce the
amount of overnight interest paid, so with $10 buy/sell commission
seems a cheap way to get back into trading mode.

My slight problem is don't have a computer with huge resources
needed for their Marketmaker platform so was going to simply trade
manually over the phone - anyone see a problem with that?

Will not be using stops as my position size will be such that they
will not be needed - if something bad happens to one of the trades
will simply pay what's required and move on.

Thanks
George