cmc closing acccount for us residence

[schrott]

Quote from watchdaride:

did she try to get you to open an account in UK or just said you have to close the account ?

No...she was indifferent to whether I continued maintaining an account with CMC. When asked whether I could transfer my account to the UK, she said I had to send them an inquiry / make a new application.

Closing down CMC in NYC seems odd, considering until last month they were offering incentives of up to $150 for folks to open new accounts.

 

[watchdaride]

Quote from cabletrader:

I think they're focusing more on CFD's, which was apparently Goldman's motive for their $300m 10% stake in CMC.

I don't think they'd have too much of a problem putting $20m into the US office if they needed to, it might be they just don't want to for some reason.

How effective this task-force will be remains to be seen, just another gesture I imagine, either way it shouldn't worry the honest shops.

cabletrader, I talked to them and it sounds like the 20 million is the reason . I am thinking of joining the UK firm . Do you think its a solid company. They have been around for years and they just got all this cash from goldmans. Do you have any concerns about them financialy?

 

[cabletrader]

Quote from watchdaride:

cabletrader, I talked to them and it sounds like the 20 million is the reason . I am thinking of joining the UK firm . Do you think its a solid company. They have been around for years and they just got all this cash from goldmans. Do you have any concerns about them financialy?

Honestly I have no worries about their financial status, if I did then I would take my money out right now! The Goldman deal was worth a reported £140m, I would imagine Goldman are more astute than to invest in an ailing business and will have had CMC's books scrutinized.

I was invited to their offices in London a few weeks ago to test-drive the 'new improved' platform (least said about that the better but at least they gave me £70 for my time!), there were no signs of a company about to go into liquidation from what I could see, although I'm not sure how I'd tell exactly!

I don't know whether non-UK residents are covered by the FSA or the Financial Services Compensation Scheme but as a UK resident my funds are segregated and covered 100% up to 35k (it may actually be 50k now) and then a percentage above 35k, it would be worth asking them if non-uk get the same protection.

It seems like they are remodeling or improving their business model/plan, they've cut jobs in several offices and are closing the US office, but I don't think it's because they're in trouble financially. It might have been better if they had made it clear why the changes are being made instead of leaving it to speculation, it doesn't take a lot to get clients nervous nowadays!

Let us know what they say about protection of funds please.

 

[watchdaride]

Called cmc uk to see about setting an account but seems like alot of redtape and salesrep didnt seem too excited about signing me up. So i am going to try GFT . There spreads are higher but platform seems pretty advanced . I do daytrade so a 20-40% increase in spreads is alot. I will keep posted on the benfits of them .

 

[rsikit]

Hey Watch I am thinking of going to GFT as well. I have been doing my research the past few weeks on firms. Its tough cause every firm out there has been called a scam by many people. I know every firms as there issues but anything good you hear about GFT. I like the platform and chartiing. I am at tradestation right now just becuase I have myy futures account with them but I dont like there commissions on top of the spread. So any advice will be helpful thanks

 

[watchdaride]

A friend of mine uses them and says they are good. The only thing he says is stay away from big news trading days you get the worst fills. But that happens with all of them . They added 2 traders that give daily analysis ( that was big news to them). I use esignal charts that cost alot so i will try convert my indicators if posible. What seems good about them the have one of the highest deoposits in the nfa capitol deposits.

I think anything is better than cmc platform but i like sticking with thing that work and have to go through the learning curve of the platform and tricks . gft has alot going on there platform . I like things basic .

 

[rsikit]

Thanks for the reply. I use tradestation for charting also which id pretty decent. I think I will give it a go at GFT. TS is just horrible when it comes to forex. But it was a good palce to learn

 

[galiano]

Quote from cabletrader:


I would imagine Goldman are more astute than to invest in an ailing business and will have had CMC's books scrutinized.

At least better than Refco, Bear, and all other finance-related scrutiny.
just couldnt pass that up.

 

[watchdaride]

Well my first day with gft . I closed a position on euro and it wasnt a fast moving market , I did a market close and it put it as a working order and then closed it with a 10 pip slippage . WOW .
I will call them tomorrow. The thing with CMC they will give you the option to accept the slippage or not . I hate learning new software or platforms and all the BS these brokers use .

 

[MrAngry]

Here is a report from a few weeks back about CMC laying off staff - it currently has free access..

http://www.euromoneyfix.com/Article.aspx?ArticleID=1993121&PageID=3449

There have been rumours for a while about how the relationship with GS going. CMC will fall short of the CFTC's net adjusted capital requirements. It could easily afford to meet this, so you have to asume that it simply does not have the customer base in teh US to justify it.