CmC Markets - question regarding WTI-Cash (West Texas Oil contract)

[acertablet]

i found a WTI-Cash contract on cmc markets broker, also trading around $11.09, live chat with them but after more than an hour, the representative did not reply, i assumed he ignored my question, so i have no choice but create a thread here.

Nymex Dec 2020 contract price is around $34, while cmc markets broker price is $11.09, not sure what is going on, anyone? if trader holding the position overnight, there is a -222.5% swap charges, applicable for both buy and sell

 

[acertablet]

@Deltoid88

 

[Deltoid88]

Nymex Dec 2020 contract price is around $34, while cmc markets broker price is $11.09

This broker obviously using same LP like Tickmill, and that LP obviously has WRONG model of pricing WTI spot price. That price has nothing to do with real WTI spot price, and no connection with futures prices since it is 3 times smaller then December Futures price. Gap at the moment of real December Futures price and price Tickmill and CMC markets offers is more then 23$, and that gap is going to be even larger if December Futures price continue to rise. That is proof that model is completely WRONG, and that is so obvious to any trader or broker. Broker is obligated to change their LP immediately, because if they keep transmitting this fake and invalid price it is fraudulent activity! Total scam! True price action for WTI in this model LP provides is completely crippled and fake. No profit can ever be made due to swaps .

Duty of broker is to change this LP right now!

 

[4evermaat]

.......

Duty of broker is to change this LP right now!

Duty of the client is to change brokers NOW! And stop trying to outsmart the bucket shop.

 

[Deltoid88]

Duty of the client is to change brokers NOW! And stop trying to outsmart the bucket shop.

That is not even a question, of course these kind of scam brokers are going to be changed! Point is, how to solve ongoing issue with them when you still have opened positions and you are not able to close those positions on correct price?! That is the point!

 

[bartek1985]

Hello,



We are looking for people that had or have WTI cash positions on CMC markets around March – April.

Our positions were “caught” during this large oil brake down and our upkeep was changed from day to day from 22,5% to 225% with additional daily contango. So, from 1000PLN we got 10000 PLN day lost of upkeep of our open positions.

They have also changed reference index to December contract but till today (22-05-2020) they are not leveled out and oscillating around 11$ where December futures are 34$ (28$ by that time)

We are preparing joint lawsuit against them to recover our money and we are supported by one of the biggest lawyer company in Warsaw.

If anybody on this forum have similar experience with or have on going lawsuit process, please contact us!

We want to gather as much people and information around it as our lawyer confirmed this practice is nothing else than a Scam / fraud.

 

[Deltoid88]

I also experience same scam from Tickmill. Will contact you.

 

[marco_mmbiz]

I think it's not a broker problem. It's more an exchange and bank (liquidity provider) problem.

 

[acertablet]

The OP has invited the company to this discussion on May 25, 2020 at 1:23 PM

 

[Deltoid88]

think it's not a broker problem. It's more an exchange and bank (liquidity provider) problem.

Of course it is broker's problem too. Brokers willingly transmits wrong prices offered by LP which uses wrong model to make those prices. For us traders it is irrelevant where from those fake prices come from, is it LP or broker, we just want correct price to trade. Since we trade with broker, not LP, it is broker's fault. This is huge SCAM what is happening right now in WTI market, and it must be stopped.