Editor: Firstly I would like to thank Tom Miller for taking the time out of your busy schedule to answer these questions for us. It is very much appreciated by me and I'm guessing many others.
Please introduce your company to our readers and tell us a little about the founders' background and the company's history.
Tom: MF Global Ltd. is the leading broker of exchange-listed futures and options in the world. It provides execution and clearing services for exchange-traded and over-the-counter derivative products as well as for non-derivative foreign exchange products and securities in the cash market. Its worldwide client base of more than 130,000 active accounts ranges from financial institutions, industrial groups, hedge funds and other asset managers to professional traders and retail clients.
MF Global operates in 12 countries on more than 70 exchanges, providing access to the largest and fastest growing financial markets in the world. It is the leader by volume on many of these markets and on a single day averages six million lots, more than most of the world's largest derivatives exchanges.
Because its business is uniquely diversified across products, trading markets, customers and regions, MF Global is able to adapt quickly to changing market conditions and client needs and maintain its market-leading position.
GNI Touch is a trading name of MF Global UK. In 1998, GNI touch were the first company to introduce equity Contracts for Difference (CFDs) to the wider market. Allowing CFD clients to trade both long and short with leverage, has caused an explosion of popularity in the product.
Editor: GNI was the first to introduce CFDs to private clients allowing them to trade via the internet directly into the London Stock Exchange. How does it feel to be first to launch a product that was destined to start the CFD Revolution?
Tom: Having pioneered CFD trading online, we have built up an extremely strong brand name. We are now in a position where we are one of the market leaders and most recognized CFD brokers around. As we were one of the first to build a CFD trading platform, our trading platform has benefited from over 10 years of development.
Editor: Could you walk us through GNI Touch CFDs products? Do you offer trading on UK sectors (food & drug, construction, etc)?
Tom: It is possible to trade a whole number of different Equity CFDs on the GNI touch platform. Clients are able to trade on the UK, European and North American markets. We also give access to a range of Far East and Developing markets over the telephone. For a full list of products please visit the website at GNI Touch CFDs.
GNI touch also gives clients access to CFDs on Indices and Exchange Traded Funds (ETFs). These ETFs should give you access to the sectors you mentioned above.
Editor: What dealing platform do you use? Is it proprietary? How different is the platform today from what it when you launched in the late 1990's?
Tom: GNI touch has its own in house platform that it developed back in 1998 when it was the first company to introduce equity CFDs to the retail trader. Over the years we have continually developed and updated it in accordance with the needs and requirements of traders. If you would like a demo of the system, please visit the website at GNI Touch CFDs.
Editor: What is the procedure for opening an account? How much do I need? Is there a minimum/maximum deposit? What are the minimum/maximum trade sizes?
Tom: If you would like to open an account, please visit our website, www.GNITouchCFDs.com where you can complete an application form. We have a minimum initial deposit of £5,000. Alternatively, clients are able to lodge existing share holdings with us, where appropriate. There is no min/max trade size if you trade using the GNI touch® on-line platform.
Editor: What does your one-way commission amount to? Is there a minimum commission?
Tom: We have a standard commission structure and an active trader commission structure. Please refer to the website and click on the 'Pricing' tab for further details. For increased volumes we are open to negotiation, so please call our sales desk on +44 207 144 5678.
Editor: Is interest paid on the balance of the accounts? Any other perks or account benefits which our readers should be aware of?
Tom: Your account will be credited interest on all monies deposited in your CFD account as long as your credit balance is above £10,000.
Editor: Do your products involve telephone or online trading, or both? Is there a cost difference if both are offered?
Tom: We provide both online trading as well as trading over the telephone with either your personal account handler or any one of the brokers. There is no extra cost to trading over the telephone.
Editor: How do you classify clients - intermediate or private customers - as we know classifying clients as intermediate indicates a certain degree of knowledge and experience on the clients' part?
Tom: In accordance with our FSA responsibilities all clients are classified at the time of account opening. Clients are classified as either retail, professional or ECP.
Editor: Are the prices quoted by GNI Touch CFDs Level 2 (i.e. real-time) or do offer a spread-driven platform?
Tom: GNI touch offers CFDs based on real-time market prices.
Editor: What level of leverage do you offer as standard?
Tom: The level of leverage depends on the liquidity and market capitalization of the stock. The largest, most liquid stocks will have a 10% margin (10 times leverage), whilst the indices offer even more. As the size and liquidity of the stock decreases, so does the amount of leverage available. For further information on current margin rates please visit the website www.GNITouchCFDs.com.
Editor: Please explain how you handle re-quotes and order confirmation times. If I place an order will the price be re-quoted?
Tom: GNI touch live market prices on the platform. We will be executing directly into the market place and therefore will not have to worry about re-quotes.
Editor: Do you offer stop entry and stop loss orders? Also, can stops be moved when the markets are closed and are there any restrictions on how close to the underlying a stop can be placed?
Tom: Stop entry and stop loss orders are both available. For a period before the market opens, Clients are able to amend and move their stop orders. There is no restriction to where the stop is placed from the stock's price.
Editor: What research, analysis and information services do you offer clients?
Tom: We offer bespoke research which is exclusive to our clients. We provide a UK morning report, European Report and US Report freely available on our website. All other research is exclusively available to active GNI touch clients only.
Editor: Do you welcome International clients?
Tom: Absolutely, we have many individual and corporate clients who are based overseas.
Editor: Do you actually have any fund managers trading with you (as institutional clients)?
Tom: We have many clients, retail, corporate, institutional and fund managers.
Editor: Are there any virtual trading facilities?
Tom: It is possible to trial the GNI touch CFD demo platform. The demo platform is identical to the live platform, with the only difference being that the orders you execute on the demo do not go directly into the market place. Clients are provided with a notional balance of £10,000 to invest with.
Editor: Why should clients choose GNI Touch CFDs as their contracts for differences provider of choice?
Tom: The combination of our bespoke research and our pioneering GNI touch CFD platform provides clients with an abundance of information with which to trade. All clients are assigned their own personal account handler when they open an account. This provides a direct point of contact to trade over the telephone, and for any issues or questions regarding their account. Furthermore, they will be able to benefit from the many years of experience that the account handlers have.
This concludes our interview with Tom Miller of GNI Touch CFDs. Please feel free to browse other articles on this site and come back next week for our next exciting interview.