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CMC Markets calling me up to open a CFD account with them

Discussion in 'Brokers' started by warakawa, Feb 23, 2011.

  1. warakawa

    warakawa

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    I open a cmc share trading account last month because of their low brokage fee. I now have this Chinese guy named William calling me up all the time asking me to open a cfd account with them. He said that I can keep all the profit however if there are any loses in the first five consecutive days cmc market will reimburse any of the loses. The minimum amount require to open the account is $500, cmc market will give me $100 on top of that.

    I don't know any thing about cfd, I don't even have a stable income as I am still a student.

    Should I open the cfd account with them, do you know if there are any catches or if cmc is even good for cfd?
     
  2. luke256

    luke256

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    The details of the promotion should be on cmc's website. Better to read it carefully on their website then have some guy pump up the deal over the phone.

    Last time they had that deal you could only take small trades in their index cfd. Trades were closed out when the market closed. So you have to day trade it. Sounds like WOFTAM to me. I have not used there services so im not having a go at cmc in general, just think the promo has limited benefit to new traders.


    IMO if your interested in CFD's or derivatives paper trading for a few months would be better than 5 days of cmc safety net trading.
     
  3. cogs

    cogs

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    CMC is a market maker, unless you have many years of experience in trading derivatives it certainly would not be a wise move to sign up for a CFD trading account. In my experience you should have at least 5 years experience in share trading prior to trading derivatives, CFD's and many years more if you get tempted at FX.

    This guy calling you is a salesman, he wants your money and will use many enticements to try and get you on board. These $100 credits on sign ups etc. are plain rubbish. Read the fine print as luke256 mentioned.
    Reimburse losses? Think about it. As a beginner, you will lose, they know this, all it is is delying when you make another deposit by 5 days, if you even trade for those days.

    I have just taken a case to the F.O.B for exactly this and won. You may not, or may not be patient enough to wait for their help once they bleed you dry.

    No stable income and a student + CFD's = Sucker and disaster!

    Sorry for the harsh words, but I have been there with CMC and others.
     
  4. skc

    skc Goldmember

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    No. You should not open a CFD account with them, or with anyone else for that matter. You don't have the skill or the money to trade CFDs by the sound of it.

    The bonuses and gimmicks are pointless as you will very quickly give it all back and then some after the first 5 days.

    It's a bit like the casino giving you free drinks, free parking, tickets to the show and $50 in chips. How many people can come out on top at the end?
     
  5. warakawa

    warakawa

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    what if I put in $500 get the $100 and take my $600 and close the account? Instant profit.
     
  6. luke256

    luke256

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    This is the risk I see for a new trader taking up the '5 days no loss' promo:

    1. Person new to trading opens account with $500 plus $100 cmc bonus.
    2. They trade the 5 days and are lucky and make money say $150
    3. Now the trader is over confident and the salesmen says "wow you made a 25% gain in five days you should think about putting more cash in the account"

    4. Trader puts in money to top the account to $5000.
    5. With no trade ristrictions and over confidence they buy 75k of CFD's. It goes down 5% after a few days for a loss of ($3,750).

    They give you $100 bonus money and $150 in profits but when you trade after the no loss period they could make $3,750 in my example. A profit of 3500 for them plus they'll charge you a commission.
     
  7. skc

    skc Goldmember

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    Check the fine prints on if and when you can withdraw that money.

    Sometimes they give you stuff like 'trading credit' which is basically a casino chip that you can't cash in.
     
  8. Market Depth

    Market Depth

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    I took CMC up on this deal about 6 months or so ago, but I only filled out the paperwork at first (Online) then got lazy and didn't bother to follow it up. After reading a few horror stories on the interweb, I thought was happy enough to just go long on my trades:D.

    Then the young sales rep gave me a call one day, nice chap, Daniel I think his name is? Asked me nicely why I hadn't continued with my application. I was polite and explained that I'd read many a bad things about how CMC were 'Bucket Shop' 'Market Makers' , and I wasn't too keen on handing over my money to a bunch of 'Bookies' to trade against. I did mention however, I did like the amount of products they offer and the low commisions, all from the one platform. He did ask me how long I'd been trading, and I told him 20+ years. I knew what CFD's were and how they work, but wasn't really that keen on using leaverage, as I didn't have to. And with that our phone call quickly ended.:D

    Then a couple of weeks latter, or what seemed like a couple of weeks, probably just a few days, Daniel called me again. Well, his timing was spectacular, as he caught me on a good day, and I finished my application, and had a 'new account' opened the next day. he sent me an email to remind me of there 'Free Trading week' and I began to look for all the setups I could find that were approching being ready to trade. Then I made the call. Got it all up and running, and made about $600 profit for the week. And to my surprise CMC kept to their word and let me keep the profits. I haven't added any more money to the account, just the original $500. I just do an evening session on the Aussie Index 200, every know and then when the set up is right, and just pocket a couple of hundred bucks, I don't 'BET BIG', and keep my positions small, it's just a bit of fun, CMC have been good so far, Haven't had an issue as yet. I think the secret though is just keep your positions small. Start betting big against CMC and they might give you trouble, as when you win CMC actually lose. I'll just take my little piece of cheese when I can and withdraw my profits regularly, and keep a small account with CMC, but at the first sign of trouble I"M GONE!
     
  9. tothemax6

    tothemax6

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    So like 10 years before you trade a currency :eek:?
    I started with FX - gives you the benefit of trading as small a position as you want, with the only cost being the spread.

    And CMC better not call me about no CFDs :mad:. I'm only in it for the cheap brokerage.
     
  10. cogs

    cogs

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    tothemax,

    I am not a professional advisor of any kind, purely passing on some friendly advice.
    There lies one of the traps.
    FX is easy to get into sure that's one of the reasons they have microlots is to get the average sucker/beginner in. No experienced serious trader uses such small lot sizes. The microlots are targeted at beginners, and sure anyone can get in and trade, but if you want to be profitable, that's a different story. The only real successful way to trade FX is with one of the manipulators.

    Ridiculous. They won't allow that, read the fine print. If it were the case, why wouldn't everyone just sign up and then even anonymously and milk them dry.
    Don't be so gullible.
     
  11. warakawa

    warakawa

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    lmao, I email William yesterday, asking if he provide me with the link to the bonus $100 offer, he replied and I quote "This is verbal offer only. You will not be able to find that on the website." Hahaha, I ain't falling for that ****.
     
  12. Alpha_Bet

    Alpha_Bet

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    Hi cogs. Could you please clarify this for me. Left me confused.
     
  13. oneagainstthem

    oneagainstthem

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    Please , Please , Please don't touch CMC at all,they are all smoke and mirrors, definetly not for beginners, they'll skin you alive, trust me because I don't want your money!!!!!!!!!!!
     
  14. ajaoz

    ajaoz

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    Don't bother emailing CMC as they just will not respond to emails.


    They have lost my bank details which were successfully added to the cmc markets cfd tracker platform after a great amount of difficulty (they lost twice the paper application I sent them: successful after the 3rd go).

    Now the account remains unfunded and I refuse to trade with them until the problem is fixed: I now trade with IG markets and interactive brokers who do respond fast and with detailed responses.

    I recommend to anyone do not fund the account until you know that your bank details have been securely added.

    A cynical person may say that they intentionally try to trap money in these no interest paying accounts so that they can get your interest; I believe however that their customer service is just quite literally useless.

    I don't understand these organisations that make it very difficult for you to pay them?


    ps. Nabtrade offers a high interest account which is linked to your trade account (you can transfer money instantly from one account to another): the rate is 4% currently on every dollar. A better place to put your money while you are waiting to trade.
     
  15. PKScreamer

    PKScreamer

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    If you're a beginner CFD is not for you! They will milk you dry and leave you with nothing but a big gigantic debt with no way of paying it off. If it isn't listed on their website then it's your word against his - don't fall for it! If you want to make some money stick to non derivative products like Stocks - much safer!
     
  16. georgey

    georgey

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    Warakawa,
    As MD says, trade tiny positions, they make it easy to do this now, eg Aus 200 can be as small as 0.1 (or smaller) so a move of 100 pts is only $10 up or down, shouldn't get into any trouble doing that. Do this for say 2 years or until you 'get it'. Better than paper trading. Soon you would understand the two edged sword that is LEVERAGE and be thankful you weren't trading bigger.
     
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