Can a trader grow rich trading on CMC?

[JackB]

Hi

I 've watched this forum for a long time and have just joined. I posted this message on the CMC forum this avo but things are pretty quiet there.

I would love to know what people here think.


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I'm pretty new to CFDs. I try to read widely on the subject since this is such a growing area. The most negative thing I keep seeing is that CMC is a market-maker, and if the trader wins, CMC loses.

At the risk of looking foolish here is my question.

Imagine that a real gung-ho trader comes along. He bets BIG and he's almost always right. He clocks up profits approaching $500,000 - $1,000,000 in a year.

Would CMC somehow try and apply the brakes? Would he suddenely find trouble getting his orders executed? Would they simply tell him he was no longer welcome?

I would especially love to hear from a CMC person about this, but would love any comment.

Thanks guys.

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[RichKid]

Hi Jack, and Welcome!
There was a special report on CFD's in the July ed of Personal Investor mag, not as critical of CFD providers as I thought they should have been, but then again most of the ads in the mag were for CMC group so the mag couldn't exactly be too hard on them now could they?? I've heard stories elsewhere of dodgy dealings.
There is some existing discussion of CFD's on ASF, do a search to see if CMC is discussed specificlly.

 

[sam76]

Hi Jack,
If you wish to get involved in CFD's you should go to a Maquarie Bank CFD seminar. They are extremely transparent. I sent my mate who is with CMC along and he is sold on them.

I don't work or have any affiliation with Mac Bank although I'd like to be on their board one day! :

Good luck,

Sam

 

[mit]

I've heard third hand that people have found that their orders were slowed down and they were offered requotes a lot when they reached a certain size of trade, although I have had enough weird stuff happening to me at the size I trade.

I think that once you reach a certain size they would hedge you against the underlying market (They say they always do it, but I have never seen it for myself, I've actually bought the same offer multiple times) and so this would be probably the bigger issue for them. To make $1m you would have to generate a lot of commissions and interest so if they were fully hedged they would still make a lot of money out of you.

MIT

 

[JackB]

Thanks guys. It would be a nice problem to have, would'nt it.

Sam, yes I've heard Macquarie look good. Its good for traders that new entrants are popping up all the time, each trying to get an edge on one another.

 

[mit]

CMC's software seems to be getting worse. Seems almost everytime I log in my pending orders take 20 minutes to appear. Last weekend my contingent "if done" orders unlinked and didn't fire when the main order fired.

MIT

 

[kruupy]

HI all,

im new to CFD'S, let alone CMC. However I was wondering about the liquidity of CFD's? I mean, if CMC (for example purposes only) decided they didnt want to buy back my CFD's, wouldnt I be stuck with em until they were happy? - This sounds pretty horrible

From Kruupy

 

[mlennox]

CMC's software seems to be getting worse. Seems almost everytime I log in my pending orders take 20 minutes to appear. Last weekend my contingent "if done" orders unlinked and didn't fire when the main order fired.

MIT

i know how to fix that problem.

go to the java folder on your hard drive in program files and copy all those files into the market maker folder > jre folder

makes it load alot quicker. just make sure you update your java files first before copying them over http://java.sun.com

i've had alot of troubles with there software but i am starting to use it profitably now

 

[mit]

The problem was at the CMC end. The dealers admitted as much to me. I've since moved to Macquarie, which is basic but robust plus DMA.

MIT

 

[Santacy]

i know how to fix that problem.

go to the java folder on your hard drive in program files and copy all those files into the market maker folder > jre folder

makes it load alot quicker. just make sure you update your java files first before copying them over http://java.sun.com

i've had alot of troubles with there software but i am starting to use it profitably now

MM seems to have severe memory leakage problem and other issues. Any Java update would hardly make any difference. If you monitor response time you would notice that it is varying widely since the recent 'award winning' problem without any local network issues. With higher response time MM often freezes. I suspect these issues are deliberate and has been happening intermittently for last few years and is getting worse lately. Interestingly the timing of these issues pretty much coincide with very active market conditions. I feel that CMC has done visibily nothing except misleading clients with wrong information.

Another ongoing issue is funding of account with CBA credit cards. Everytime a credit card payment is made CMC's system is generating phantom transaction along with the correct one. The duplicates drop off the CBA's system automatically after 5 working days for the lack of validation. It simply blocks available credit for 5 days. Instead of addressing this issue CMC is involved in the blame-game with CBA.

I have serious concerns about CMC's business ethics.