Following a recent release of the new trading platform by CMC Markets we reviewed the platform and found out that traders were quite happy with it. It’s a bit slow but it’s surely different from others.
Now we decided to dig deeper and pay attention to the overnight financing. It’s a known fact that financial spread betting is a margined product where you trade on margin, thus borrowing money from your broker. As a margined product it incurs overnight financing charges on every position held overnight.
To check overnight financing with CMC Markets we tried their demo account and bought £1 of Brent Crude and £1 of US Crude. It was quite a surprise to find out that CMC Markets charged me the total of £8.34 for holding the two positions for one night. That is absolutely shocking and totals almost 4% a day for the overnight financing. I guess we know who is paying for the new platform now?
Latest development looks very strange as CMC Markets are cutting their sales and marketing teams. With those profits I’d expect them to hire more people. We hope the customers will realise those hidden charges and leave CMC Markets in flocks… sorry Mr Cruddas.