Marketech CFDs

[markrmau]

I have no connection with Marketech other than having an account with them.

I have found them to provide excellent service, answering numerous questions I had before taking up an account with them, and quickly resolving a slight problem I had with a trade (MD on phone to resolve problem within 1/2 hour).

The costs are very competitive ($10 each way, below $10k & .1% each way above $10k). Long/Short interest rates are basically +/-1% overnight cash rate.

 

[Joe Blow]

Re: Marketech CFD's

Marketech are good friends of ASF and support us by sponsoring the stock tipping competition.

Andrew and the guys there are always willing to answer any questions you might have about their service or CFD's.

 

[mit]

Re: Marketech CFD's

You have got my attention. They seem to have an asx200 Index. Is this matched to the SPI or asx200 or some wierd thing like cmc does with the Aussie200?

MIT

 

[markrmau]

Re: Marketech CFD's

I'm prety sure it is directly based on XJO

Last quote I have for symbol ASXSP200.I is 4377.15/4380.15

At 4pm the XJO was 4379

I am looking at this after hours, and so not sure exactly what the value the XJO was at for this spread quote - also I don't think this quote is updated for the after 4pm market matchup.

But you can easily find the number on www.marketech.com.au and they will clear it up for you.

The only caveat is that you don't get direct info on market depth. I currently use comsec pro-trader for this.

 

[PoINT5]

Re: Marketech CFD's

I have a marketech account also, im new to trading/investing and have found it very good, 1 problem i find though is the chat on the platform whenever i ask any sort of question i get the reply please call the office, kind of gets annoying even when the question seems so simple. now i find myself not wanting to ask them anything on the chat/help or to even bother walking down the stairs going around the corner up some stairs to the phone inside and calling them. when i can just find the info on the internet (most of the time), other then this marketech seems alright.

 

[markrmau]

Re: Marketech CFD's

I think the chat seems to be used for them to send simple messages/suggestions to users, not for extended discussions.

im new to trading/investing

If you don't mind me saying so, please be careful not to abuse the margin (10x). When most people start out, they lose money (I lost $3k in the first month). I guess that could have been $10k if I was learning with cfd's.

On these forums, some have known of people to lose $45k+

 

[mit]

Re: Marketech CFD's

I thought that you had to be an "experienced" investor to trade CFDs. I admit that I could have lied about my experience and the questions they asked were pretty basic.

MIT

 

[PoINT5]

Re: Marketech CFD's

thanks for the headsup markmau, yes im extrmemely careful with margin, i used the demo of cmc and also marketech for about 1 to 2 months before opening an account, and once it was open i basically watched stocks for a week and a half before getting involved with any orders.

mit, i answerd all questions honestly, i can look at myself in the mirror, even with the demo i still wrote down ive had no experience with the product. demo mirrors the market but still its not real money so i didnt count it. mit admitting u could of lied would have gotten you where ?

 

[mit]

Re: Marketech CFD's

No, I didn't have to lie as I had experience with shares and warrants before I signed up for CFD. I just meant that someone could have written anything. I had the impression (this was in 2003) that I couldn't sign on if I hadn't enough experience of financial instruments. Maybe it has improved or maybe even then they would have accepted novices.

By being here PoINT5 you are doing the correct thing and can learn heaps about position sizing and money management and should give yourself a better chance. Some CFD & FOREX providers worry me as I think they are geared towards attracting people who like to gamble.

MIT

 

[It's Snake Pliskin]

Re: Marketech CFD's

Has anybody had experience with IG Markets? They are a CFD provider but seem a little expensive compared to Marketech.

What risks should I be aware of with CFD's?

Thanks in advance

 

[sam21poddy]

Re: Marketech CFD's

markrmau,

What I find annoying about trading CFDs with CMC is that they only take the 10% for the trade, leaving the rest of my cash sitting there. Whereas with my margin lender, they use my cash first before dipping in to lend me on a trade. I prefer to use my cash first because I don't know how many days I will be in a trade so I don't want to be accumulating an interest debt. I actually do better with my margin lender even though the broker costs are higher.

 

[mit]

Re: Marketech CFD's

markrmau,

What I find annoying about trading CFDs with CMC is that they only take the 10% for the trade, leaving the rest of my cash sitting there. Whereas with my margin lender, they use my cash first before dipping in to lend me on a trade. I prefer to use my cash first because I don't know how many days I will be in a trade so I don't want to be accumulating an interest debt. I actually do better with my margin lender even though the broker costs are higher.

The other difference is that with CMC as your shares grow your interest grows as well. Where with a Margin Lender you only owe what you original borrowed.

Horses for courses really. I did run a medium term system with CFDs and did okay but have changed to Margin now.

CFDs are good for people with low capital or for short term systems with tight stops to take advantage of the leverage.


MIT

 

[mikeg]

Re: Marketech CFD's

I trade CFD's with IG. They have higher commission rates-.02%, but there is no spread, and you have direct market access.

I was thinking of using CMC and downloaded there Trading Platform, looked at the spread for the share that I was interested in, it was .05c more than I could buy from IG. That might not sound like much, but with size trade that I wanted to place, it would have cost an extra $1000.00.

So for me I would rather pay a bit more in fees and have the benefit of direct market access.

 

[kefa]

Re: Marketech CFD's

how's their stop loss functionality? do they have a guaranteed version?

i'm interested in marketech's CFD platform because they have the lowest interest rate spread +1/-1 i've seen.

 

[markrmau]

Re: Marketech CFD's

No, they don't have a guaranteed stoploss. (For any others that may be reading, some CFD providers have a guaranteed stoploss that means you are protected even if the trade gaps past your stoploss. You have to pay extra for this hedging of course.)

Unfortunately I'm not sure if you can even set any stoploss - but you better ring them to find out.

 

[RichKid]

Re: Marketech CFD's

markrmau,

What I find annoying about trading CFDs with CMC is that they only take the 10% for the trade, leaving the rest of my cash sitting there. Whereas with my margin lender, they use my cash first before dipping in to lend me on a trade. I prefer to use my cash first because I don't know how many days I will be in a trade so I don't want to be accumulating an interest debt. I actually do better with my margin lender even though the broker costs are higher.

Are there any CFD providers who use your cash first before resorting to lending for the remainder? Why pay interest when you don't have to?

 

[markrmau]

Re: Marketech CFD's

I see cfd's as a way to make money from short term volatility - I wouldn't use them as a long term investment. When the volatility is a few percent over a few days, the long interest rate (1%+ONCR) is pretty meaningless.

The reason they are not suitable for long term investment:
i) No franking credits on DIV.
ii) Pay interest on current balance (eg. if you margin lent and bought BHP @ $10, you pay interest on amount at $10. With cfd's, you would currently be paying interest at $20)
iii) If held for over 1 year, CGT would NOT be reduced by 50% (my understanding, but see your accountant)
iv) No voting rights (maybe not an issue)

 

[troll]

Re: Marketech CFD's

Marketech are a whitelabel of SAXO bank, all of your money ends up in Denmark. I had an account with them which i closed and it took over a week for me to get my money back, i was on the verge of flying to Perth to get it myself.

I have since found out that there are also only 3 people that work at Marketech, no wonder they werent answering my phone calls. Everyone else was probably complaning about the same thing and block up their 3 telephone lines, hardly the infrastructure of a top CFD provider.

If you want to trade CFDs only go with a core provider and only trade DMA. There are only 3 DMA core providers in Australia

- Macquarie Bank
- Man Finaicnal
- First Prudential Markets

 

[Bobby]

Re: Marketech CFD's

Marketech are a whitelabel of SAXO bank, all of your money ends up in Denmark. I had an account with them which i closed and it took over a week for me to get my money back, i was on the verge of flying to Perth to get it myself.

I have since found out that there are also only 3 people that work at Marketech, no wonder they werent answering my phone calls. Everyone else was probably complaning about the same thing and block up their 3 telephone lines, hardly the infrastructure of a top CFD provider.

If you want to trade CFDs only go with a core provider and only trade DMA. There are only 3 DMA core providers in Australia

- Macquarie Bank
- Man Finaicnal
- First Prudential Markets

Thanks for the information about Marketech, can you tell more about the problems you had ?

Bob.

 

[MichaelD]

Re: Marketech CFD's

Some CFD & FOREX providers worry me as I think they are geared towards attracting people who like to gamble.

MIT

Dragging up an old quote here, and I have no experience with trading FOREX, but IMHO CFD providers are online casinos. Anyone who thinks otherwise is destined to lose their money.

Why?

1. Margin. To safely trade on margin requires a positive expectancy trading plan with a known maximum drawdown %. In my opinion, you then need to leave a safety buffer on the presumption that your maximum drawdown is yet to come. Expanding this to CFD providers, you can easily get 85% margin across a wide range of equities. To trade this safely, your system would need a maximum drawdown of 15% / 2 - 7.5%. No system I have seen to date has such a low maximum drawdown in all market conditions. Ergo, CFD systems are set up to maximize your risk of ruin.

2. A little bit here, a little bit there. CFD providers also bleed you to death by charging interest on your entire position, not just the margin %. Pyramided positions, when closed, attract a commission charge for every individual parcel with the CFD provider I use (in contrast to equities where the holdings are consolidated into one parcel).

3. Spread on equities. Some CFD providers make their own markets - i.e. stack the odds in their favour. Those that don't vigorously apply principle 2 to milk your account dry.

4. Slot machine platform. Flashy graphics = temptation to impulse trade. Impulse trade = nett losing trader in the long run.

5. Open profits available to be reinvested. What better way to increase your risk exposure (and hence increase your risk of ruin).


Can this omnipotent risk of ruin system be beaten?

I believe it can be, but not by playing by their rules.