IG vs CMC in terms of trading against traders? | Forex Factory

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IG vs CMC in terms of trading against traders?

  • #1
  • First Post: Edited 5:26pm Jan 29, 2017 5:06pm | Edited 5:26pm
Hi

This has been making the rounds;
https://twitter.com/CharmerCharts/st...30974578434052

The blog posts she refers to here are:
http://charmertrading.co.uk/blog-fiv...a-bad-platform
http://charmertrading.co.uk/blog-fiv...latform-part-2
http://charmertrading.co.uk/blog-fiv...latform-part-3

There's not really any evidence provided there and it could just be some hot air, but might be legit.

I'm just wondering if she has a point and if other traders have had the same experience, and if so, what do you recommend?

I've read some stuff about IG vs CMC in terms of IG not hedging traders positions, so it's more profitable for IG when it's traders fail and lose money, so their prerogative is to work against you in terms of slippage and spreads. Is this true? Is CMC different in this regard?

The reason I ask, I trade with IG currently, and am wondering whether this is cause for switching, and if so, whom I should switch to (some broker that offers similar CFDs, I mostly trade forex, but sometimes indexes and commodities as well).
  • #2
  • Jan 29, 2017 5:39pm Jan 29, 2017 5:39pm
The proof is in the income statements. They posted GBP 245 million in trading profits for H1 FY17, which directly correlate to client losses. Compare this amount to what clients deposited, and it is clear, that they chew through clients at a rapid pace. Thats also why they have a huge marketing budget - they need to bring in fresh meat consantly to keep going. That is essentially the business model of firms like cmc, ig or plus500.

Is it a scam? No - they never claimed not to take the other side of the trade. And realistically speaking, they dont even need to pull shady stuff like artificail slippage and the like - if the clients press on the buttons often enough, they will lose on their own. Aggressive marketing + large leverage = lots of dead client accounts = lots of money in IG's coffers. Its really that simple.
  • #3
  • Jan 29, 2017 5:43pm Jan 29, 2017 5:43pm
Quoting shrike
The proof is in the income statements. They posted GBP 245 million in trading profits for H1 FY17, which directly correlate to client losses. Compare this amount to what clients deposited, and it is clear, that they chew through clients at a rapid pace. Thats also why they have a huge marketing budget - they need to bring in fresh meat consantly to keep going. That is essentially the business model of firms like cmc, ig or plus500. Is it a scam? No - they never claimed not to take the other side of the trade. And realistically speaking, they dont...
So is every client that makes money unprofitable to them then? If they had more clients making money than losing money, would they make a loss? Would they not want to kick out successful traders or increase their slippage or something?

What brokers do you recommend who do not do this?
  • #4
  • Jan 29, 2017 5:58pm Jan 29, 2017 5:58pm
Don't use IG for forex or for day trading.
You came here for the truth and let me unveil it for you
  • #5
  • Jan 30, 2017 9:52am Jan 30, 2017 9:52am
Thanks for posting this thread. I experience hundreds if not thousands of requotes per week...
  • #6
  • Jan 30, 2017 2:43pm Jan 30, 2017 2:43pm
What do you mean by trading against traders? How can they do that? I don't really understand. I've been trading with XTB. Can they do this when they are FCA regulated?
  • #7
  • Jan 30, 2017 3:14pm Jan 30, 2017 3:14pm
Quoting J2theFizzle
What do you mean by trading against traders? How can they do that? I don't really understand. I've been trading with XTB. Can they do this when they are FCA regulated?
It means they are market makers
  • #8
  • Jan 30, 2017 10:14pm Jan 30, 2017 10:14pm
Quoting meyoik
Thanks for posting this thread. I experience hundreds if not thousands of requotes per week...
What do you mean by this?

Quoting J2theFizzle
What do you mean by trading against traders? How can they do that? I don't really understand. I've been trading with XTB. Can they do this when they are FCA regulated?
As far as I understand, they are the counter-party to your trades, and don't hedge their exposure in the real market (of whatever it is you are trading). So your losses are their profits, and your profits are their losses. This creates an obvious conflict of interest.
  • #9
  • Jan 31, 2017 11:32am Jan 31, 2017 11:32am
Quoting Starcraftmaz
{quote} What do you mean by this? {quote} .
What do you mean....? Do you know what a requote is? Well, with IG (mt4) I have more than 200 this week alone...
  • #10
  • Jan 31, 2017 7:52pm Jan 31, 2017 7:52pm
Quoting meyoik
{quote} What do you mean....? Do you know what a requote is? Well, with IG (mt4) I have more than 200 this week alone...
No, I guess I don't. Would you mind explaining what is is, and what the repercussions are of so many of them?
  • #11
  • Last Post: Feb 1, 2017 3:50am Feb 1, 2017 3:50am
Quoting Starcraftmaz
{quote} No, I guess I don't. Would you mind explaining what is is, and what the repercussions are of so many of them?
Sure, this should explain it:

http://www.wingstarfx.webs.com/requotesmakethemstop.htm
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