contracts for difference, page-63

re: real cost of dealing in cfd's ... milesg Hi Milesg ... you are right, I shouldn't complain.

I should tell you that CMC Group current incarnation was spawned from Deal4free which originated and still operates in the UK (www.deal4free.com) ... those who traded Deal4free here in Oz (their profit was from the spread) continue to find it annoying that UK residents continue to enjoy commission/tax free.

It is worth noting the real costs of dealing with CMC on say stocks.

Long Interest charge now ... 7.5%

Commission (swing trade) say 5.0%

Requotes/spreads .... estimate 2.5%

Depending on trading style costs could be closer to 15%.

Other CFD providors could be closer to 20%.

The mighty Warren Buffett only works on 20% and that is to beat the long run Market average of 8%.

Too easy for folks to be blindsided by the LEVERAGE HYPE and ignore the real costs.

Can I make money out of CFD's ... you betcha but I don't have to like them.

Cheers ... tight stops.


This is only my view ... read the red stuff.