CFDs with CMC Group

[nikblack]

Hello,

I would like to hear from anybody about experiences in using CMC Group for CFD trading. They seem promising and cheap ($9.95 a trade) and have been advertising on CNBC a lot recently. I have just setup an account with an initial deposit as an alternative to options trading on E*TRADE.

Cheers,
Nik

 

[JetDollars]

Re: CFD's with CMC Group

I have read about CMC Group in regard to CFD, the down side is you have to pay the monthly fees for data from ASX. But their data is not direct from ASX so there is a margin where the market maker make from you.

But I still consider it's quite cheap for $10 commission for trade up to $10K. I am also considering open an account with them as well.

The other site that you can trade CFD is IG Markets:
www.igmarkets.com.au, the commssion is more expensive, but free live trading account with data direct from ASX.

 

[phoenixrising]

Re: CFD's with CMC Group

Also Man Financial has just arrived in Oz

www.manfinancial.com.au

0.25% commission with frequent trader discounts

There platform costs $99.00 per month

Importantly they say no requoates ever from asx

Cheers

 

[clowboy]

Re: CFD's with CMC Group

Hey guys,

I too have become very interested in CFD's.

Jetdollars, I cannot find where it says that you have to pay for data from CMC, It does state that at IG though.

From what I have seen so far it would seem that CMC is the better option.

The biggest thing I would say with the CFD's (whoever you may end up going with) is research it first. Some big dollars can be lost quite quickly I should think.

As this post is a little old keep us up to date if you went ahead and opened an account


cheers

 

[Purple rock]

Re: CFD's with CMC Group

To clarify, you pay a $38.95(I think that is the figure) a month for use of the software feed with CMC, unless you do 5 trades a month, then the fee is waived.
So, 2 and a half trades in a month and no other fee's.

I agree with your comments though, CFD's do give great leverage, but remember they are a form of margin loan and margin calls can be made!!

I will more than likely use CMC in a few month's when I have a better feel for the market.

PR

 

[troll]

Re: CFD's with CMC Group

Dont touch them with a barge pole, they are a market maker and rip you off by widening the spreads.

Allways trade DMA, there are only 3 core DMA providers in AUS
- Macquarie Bank
- MAN finacial
- FPmarkets

Im traing with FPmarkets becuase the are the cheapest and all orders are hedged by Merrill Lynch, the biggest investment bank in the world, they also have the largest range of CFDs in AUS.

 

[TraderPro]

Re: CFD's with CMC Group

Note what troll says... CMC is a market maker.

I was recently watching their EUR/USD chart and I saw this discrepancy in the currency trade price.

Alright to deal with, need more improvement on the customer service side of things. They are excellent at selling their services though - considering their massive growth over the last few years.

 

[Bobby]

Re: CFD's with CMC Group

Note what troll says... CMC is a market maker.

I was recently watching their EUR/USD chart and I saw this discrepancy in the currency trade price.

Alright to deal with, need more improvement on the customer service side of things. They are excellent at selling their services though - considering their massive growth over the last few years.

I want to know the whole story on this if this is for real CMC whats your story please ?

Bob.

 

[coyotte]

Re: CFD's with CMC Group

I am currently Short MCC with CMC

I am presuming they have some large liabilities in this stock , because late friday
I was running MedVed on one screen & CMC on the other

There was a consistant .03c discremincy in CMC's favor on the Offer

Although I have been with them since they launched in Oz and overall I have no real gripes --- but have learned the had way NOT to set auto-stops -- they seem to hunt them out

 

[Bobby]

Re: CFD's with CMC Group

I am currently Short MCC with CMC

I am presuming they have some large liabilities in this stock , because late friday
I was running MedVed on one screen & CMC on the other

There was a consistant .03c discremincy in CMC's favor on the Offer

Although I have been with them since they launched in Oz and overall I have no real gripes --- but have learned the had way NOT to set auto-stops -- they seem to hunt them out

Tell us more about why you don't like setting ---- stops ?
And your thoughts on the .03 diff there way ?

Bob.

 

[coyotte]

Re: CFD's with CMC Group

bobby:

It's not that I don't like setting Stops -- I do, but on Close & Sell/Buy the next day --- with an Auto-Stop with CMC i would be stopped out during the day only to see the price move in my favour & Close away from the Stop.

What happened with MCC was the Bids (cmc) where starting @ 4.60 & moving down .01c -- the Offer was allways a min of 4.63 or greater up to 4.65 -- Whilst on MedVed Offer was @ 4.61 then moved up to 4.65 Close

Will check out Troll's post about FPmarkets -- probably switch as they do the asx500 whilst cmc is only the asx200

 

[TraderPro]

Re: CFD's with CMC Group

coyotte:

can you please clarify how you set stops?

This is how I make of it: You only place stops near the end of a session - just in case of a gap on open? and you don't place an active limit order (stop) during the day?

 

[coyotte]

Re: CFD's with CMC Group

coyotte:

can you please clarify how you set stops?

This is how I make of it: You only place stops near the end of a session - just in case of a gap on open? and you don't place an active limit order (stop) during the day?

I'm basically a Position trader (hence Short with CFDs )

I use a trailing Count Back with ATR

If the Indicaters are diverging I reduce the ATR ratio from x 2.7 to x 1.0

The Stop is only triggered if the Close is below(L)/above (S)
Then regardless I drop the position around 11pm the next day, except if Long and the next day is a Friday , then wait untill Monday -- but still out of the position

Usually Gaps are not a problem because the diverging rule will have taken effect
Yes the Stop may have to be adjusted daily (after Close) if a new High/Low occures, ATR changes or divergences begin to appear


Cheers

 

[TraderPro]

Re: CFD's with CMC Group

Thanks Coyote...

A very technical description - but i'll certainly look into it.

Is there a book or a website that would give me more information abou tthe way you trade?

 

[coyotte]

Re: CFD's with CMC Group

TraderPro :

Leon Wilson's 1st two books describe in detail about using "Count-Back" for entery & exits and applying ATR to the CB

They would by far be the best I have read for a simple & clear definition of indicators and their users

His 3rd book is starting to get a bit over the top for my style of trading and you would need a programable charting package to make full use of it --- I use incredible charts for my charting and find more than adequate for trend trading

If I have a position which is showing divergencers I watch the prices from around 3.30pm, if it becomes obviuse that a Doji ,shooting star, etc is going to form I often jump ship --- more wins than losses


Cheers

 

[TraderPro]

Re: CFD's with CMC Group

I see now... so you use a combination of that technique with candlesticks...

cool. thanks for the answer coyote

 

[coyotte]

Re: CFD's with CMC Group

Tried to attach a chart -- don't know if i have

When OXR stated getting toppy, I switched from 21d to 14d indicators
you may be able to see as OXR is making higher highs -- the ADX has crossed the D+ line which is now in decline

Twiggs Money Flow is diverging Down

5d Volume is declinling

ATR was also declining --- signaling a possible big move ( up/dn )

Only Positive was OBV

The 1st of 3 Doji was my exit signal that afternoon May 10

If wrong , could have allways re-entered -- only costs brokerage

This certainly is NOT the magic recipe for picking tops & bottoms --- but it's usually a good guide

Note: under C/B rules OXR has never been a long since it gaped down !