CMC Markets Review 2020

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Overview

CMC Markets is one of the well known and most popular UK based brokers, founded in 1989. This platform offers more than 10,000 trading instruments across traditional CFD assets, and it offers fully developed spread betting solutions. Under these two categories, the traders can trade Forex, cryptocurrencies, indices, shares, treasuries, and commodities. CMC Markets offers its proprietary trading platform and also Metatrader 4 trading platform, which shows its commitment to the traders so that they can take full advantage of its offered services. CMC Markets provides tier-1 liquidity, and it is a regulated broker in the trading market.

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What is CMC Markets?

  • CMC Markets stockbroking was established to provide services in Forex and CFD through an online trading platform. Their asset portfolio has more than 10,000 trading instruments of different CFDs. It covers a wide range of trading instruments, such as indexes, bonds, stocks, and commodities. 
  • CMC Markets is a well-reputed online broker, and it is a member of the FTSE smallcap index. Some of the top-tier regulatory authorities regulate this broker, and it is listed on the London stock exchange. It offers its services to retail clients and also to institutional clients like brokers, banks, trading desks, and hedge funds.
  • This broker is trusted globally, and it provides excellent services for the traders by offering more tradable assets, competitive pricing, and the Next-generation trading platform (CMC’s proprietary trading platform), which comes fully packed with good quality research, powerful charting, and innovative trading tools.

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Features

Let us discuss some of the features offered by this platform – 

  • CMC Markets stockbroking is a well-known and established broker known for its competitive CFD trading, and it also offers spread betting solutions. This broker is regulated in the UK, and it is listed on one of the most prestigious stock exchanges, the London stock exchange. CMC Markets provides a good database of some of the tradable assets and its resources by making it the best choice for U.K traders.
  • With regards to commission and fees, it depends on the type of account and the specific asset class chosen by the trader for trading. Simply put, we can say that the CMC market is one of the best online brokers which offers some of the most competitive fees in the industry.
  • As per our CMC Markets review, we can say that this broker’s retail clients can benefit from excellent educational packages created by well-experienced professionals. 
  • The assets offered by this broker are great, and it offers well-diversified asset portfolios by offering very low trading cost. Irrespective of the trader’s experience level, or if they are an institutional client, CMC Markets provides a full spectrum of services for the broker’s different trading needs.
  • As per our review, CMC Markets is very transparent in its operations regarding the various costs involved, which are listed clearly on the website. The traders can buy or sell the trading platforms’ assets to find all the applicable costs listed for various services.
  • This broker charges inactivity fees of £10 every month if there is no trading activity for 12 months. It also charges market data fees for specific CFD shares. It does not charge any non-trading fees from the user.
  • CMC Markets offer an award-winning, proprietary trading platform called a Next-generation platform and an industry-leading Metatrader 4 trading platform. Next-generation trading platforms can be accessed through a browser.
  • CMC Markets offer a mobile app, and it is developed to help users to trade on the go, irrespective of the experience levels. The mobile app comes with 115 technical indicators, 12 chart types, 70 chart patterns, and it allows the traders to trade directly from the chart. It also offers a Reuters news feed and an economic calendar built-in, which is also available in the mobile app.

Is CMC Markets regulated broker?

As per our CMC Markets review, this broker is regulated by various financial conduct authority globally. Some of them are given below – 

  • UK financial conduct authority (FCA)
  • Canada’s investment industry regulatory organization of Canada (IIROC)
  • Australia’s Australian securities and investment commission (ASIC)
  • New Zealand’s financial markets authority (FMA)
  • Singapore’s monetary authority of Singapore (MAS)

Pros and Cons of CMC Markets

Let us discuss a few pros and cons of this broker – 

Pros

  • CMC Markets is a regulated broker in the UK
  • This broker is listed on the London stock exchange
  • It offers advanced risk management tools for its traders
  • CMC Markets offers more than 10,000 trading instruments to trade
  • It offers its proprietary trading platform as well as Metatrader 4

Cons

  • This broker does not accept U.S clients
  • CMC Markets provides MetaTrader 4 only for desktop 

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Is it safe to trade with CMC Markets?

  • As per our review, we can say that CMC Markets is one of the most recognized, and it is a market leader in CFD trading. CMC markets in 1996, launched the first online Forex trading platform. It also launched its Sydney office in 2002, and ASIC had licensed CMC Markets Asia Pacific Pty Ltd in 2004. 
  • This broker has won an award for the highest overall client satisfaction, best customer service, best platform features, best educational programs/materials, Best value for money, and several more in the past year. Also, CMC Markets has won Australia’s best value broker award consecutively for 9 years.
  • CMC Markets Asia Pacific Pty ltd provides excellent stockbroking services for its customers. CMC Markets Asia Pacific Pty ltd also provides trading services in CFDs, securities through their trading platforms.

Risk warning – CFD and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of the retail investor accounts lose money when trading CFD and carrying out spread betting with this provider. You should always consider whether you understand how CFDs and spread bets work and whether you can afford to take the risk of losing your money.  

Benefits

Let us discuss some of the benefits offered by the platform –

  • Traders can have access to more than 10,000 safety instruments, which allows them to trade on several assets starting from forex, Bitcoin, Gold, and several more.
  • CMC offers global trading with several clients worldwide, attracting more customers for the services offered.
  • Several regulatory authorities regulate CMC Markets, and it is listed in the UK stock exchange.
  • It has received several awards for its outstanding business performance, and it is recognized as one of the best platforms which offer excellent educational materials and dedicated customer service.
  • This broker does not need a minimum deposit for trading.
  • CMC Markets offer low price, which also includes tight spreads and low leverage; the margin requirements are also very low
  • The traders can customize their mobile and desktop platforms as per their convenience.
  • CMC Markets offer a wide range of sophisticated trading tools, which include pattern recognition, chart forums, analytic insights, price movements, and several more.
  • CMC Markets provides an in-depth learning academy and offers several webinar tutorials, courses, videos, and written trading resources.
  • CMC Markets also offers a completely free demo trading account, and it is fully functioning for the benefit of its users. Besides, it also provides a chat forum where the traders can share their ideas in the forum to help each other.

Fees

As per our CMC Markets review, we can say that this broker’s earnings are generated from commissions, spreads, or a combination of both, depending upon the asset traded by the user. Spreads on Forex start with 0.7 pips, which is very competitive, commissions are charged. For equity trading, it starts from 0.10%; there are also other trading costs, such as a small premium for guaranteed stop-loss order, where it will be refunded if the order is not executed. There are also overnight holding costs, market data feeds, and swap rates. This broker charges account inactivity fees of £10 a month.

Assets offered for trading

As per our review, this broker offers more than 10,000 trading instruments over 6 asset classes such as Forex, cryptocurrencies, indices, shares, commodity, treasuries, ETFs, and several more. Further, experienced traders and beginners find the asset offering of this broker more comprehensive as CMC Markets continues to expand its asset base. Besides, the trading assets are all listed on the website of CMC Markets, and the trader can easily navigate the trading platform to find the asset they choose to trade.

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Order Types

  • This broker also offers a wide range of advanced order features that can be accessed through the desktop platform where the trader can use it. 
  • One of the most advantageous features of this platform is, the user can trade from the charts, and they can view the charts directly, which includes opening, modifying, and closing their orders. If you want to use this feature, you should have a large screen monitor to use these features more effectively.

Currently, CMC Markets provides its support for the below-given order types for trading securities and Forex. They are listed below-

  • Stop-loss order
  • Guaranteed stop-loss order
  • Market order
  • Partially close trade order
  • Limit and stop entry order
  • Take profit order
  • Trailing stop-loss order

Demo Account

As per our review, this broker offers a demo account free of charge. To access the demo account, the trader needs to provide their email address, and they should choose a very strong password. When this is done, they need to select whether they want to try CFD or spread betting. When the trader uses a demo account, they will be using the CMC Markets proprietary trading platform. This helps the traders familiarise themselves with the platform’s features and functionalities with virtual money without risking their funds.

Deposits and Withdrawals options

  • The broker’s options are bank wires, credit cards, and debit card transfers concerning deposits and withdrawals. Even though other brokers offer several transfer options, we can consider this as an impediment from this broker.  
  • Since these are all the only options offered by the broker, it does not charge any fees for withdrawals and deposits; but the traders should note that there are third-party bank charges.
  • Deposit and withdrawal charges are commission-free, but 1% is charged on the various credit cards; debit card charges are 0.6%. If you are depositing a large sum of money, the fees could be more substantial.

Some of the accepted deposit and withdrawal methods are – :

  • Debit card
  • Credit card
  • Bank transfer
  • BPAY
  • PayPal

Charting

CMC Markets offers great charting tools, and the tool selection is huge. The trader can choose from several technical indicators and editor tools. It also offers an extra feature like automatic trendline drawing tools, and the trader can have an option to save their preferred one.

CFD Trading

As per our review, the CMC market is one of the most popular and leading platforms that offers CFD trading in the form of assets such as treasuries, stocks, commodities, cryptocurrencies, and several more. Further, every instrument can use leverage and should be following ESMA regulations for the retail traders. The trader can short sell their assets on the platforms.

Spread Betting

CMC Markets offer several financial instruments that are available to trade along with spread betting facilities. The benefit of using spread betting on the preferred choice of assets is that the trader can benefit from tax-exempt profits and make money. However, the trader should check with a qualified tax professional regarding this tax-exempt, which might differ as per the country of residence.

Risk warning  – CFD and spread betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of the retail investor accounts lose money when trading CFDs and carrying out spread betting with this provider. You should always consider whether you understand how CFDs and spread bets work and whether you can afford to take the risk of losing your money. 

Account Types

  • As per our review, this broker offers a free demo account and a live account without a minimum deposit. The trader has a choice to choose the trading platforms to trade. Metatrader 4 trading platform allows trading only in commodity, forex, and index trading. If the trader is interested in trading with other assets they have to choose CMC’s  Next-generation platform.
  • CMC Markets provide the below given three types of account for its traders such as – 
    • CFD account
    • Spread betting account
    • Corporate account
  • Even though the above-mentioned accounts have more similarities, they differ in other ways. For example, all the above-mentioned accounts have the same features, but some of the instruments differ from the trader’s type of account.
  • The account opening process is very easy and effortless, and it can be carried out on the CMC Markets website. It is a simple step-by-step process that helps the traders set up trading accounts quickly and start using the trading platforms for live trading.

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Account opening process

The account opening process with CMC Markets is easy and quick, and the online application can be downloaded from the website. After opening an account, the trader can start with live trading or proceed with the demo trading as per their choice; but the trader should submit some of the documents required to satisfy the regulators’ KYC requirements. These documents might take time to submit, but it guarantees every trader’s safety once it is done.

Step 1. Registration:- For registering, the trader should proceed to the homepage of CMC Markets and they need to download the registration form and fill in the basic details such as full name, address, contact details, and date of birth. The trader should also provide some of the information like their tax status and in some cases, this broker asks for a national insurance number from their client.

Step 2. Financial information:- The trader should provide some information about their financial status, which is mandatory as the broker asks. They also need to state their employment status and the industry they work for and give details about their annual income and their experience in trading securities online. They should also answer some of CMC markets’ multiple-choice questions to understand the trader’s knowledge in trading. Moreover, the traders will be questioned about their knowledge of risk undertaking and applying leverage.

Step 3. Verification process:- Any UK Forex broker such as CMC Markets is required to identify their customers who use their services because they comply with anti-money laundering regulations. They should adhere to the licensing conditions asked by the FCA. For this, the trader should manually provide the supporting documents to this broker. Also, they need to include a clear copy of a proof of address and a government-issued ID to this broker.  

Step 4. Depositing funds:- If you are using a demo account, there is no need to deposit funds as the account is already provided with the account’s virtual funds. This broker allows its traders to deposit or withdraw funds through bank transfer, debit cards, and credit cards. There is no minimum amount to deposit on the platform, and it is fine to start with a very small amount to start trading.

Step 5. Live trading:- After adding a minimum deposit, the trader can proceed with the live trading. To start live trading, the trader needs to go to the website of CMC markets. Login to the trading platform, which is very easy to use, and the trader can easily find the asset they are looking for. Further, the trader can use the search box and specify the instrument they are looking for to have quick access. It permits users to customize the layout completely, which is one of the best features offered by CMC Markets.

Trading Platforms

  • CMC Markets stockbroking provides two options of trading platforms for the benefit of its traders. The first option would be Metatrader 4, which is fully supported by CMC Markets. It only covers the CFD and Forex trading aspect and not the spread betting. The second option is, the trader can use a proprietary trading platform offered by CMC Markets. 
  • Irrespective of any of the trader’s platforms, this broker allows the user to trade through their main desktop website. This means the trader needs not to download any software; besides, the trader can use CMC Markets mobile trading app.
  • CMC Markets provides a trading platform that helps traders carry out their trades and spread betting through mobile trading apps. The mobile app can be downloaded from the CMC Markets website, or they can directly download it from the Google play store or Apple app store.

Withdrawal Fees

The withdrawal fees of CMC Markets vary depending upon the withdrawal method chosen by the trader. Every broker has their preferred withdrawal rules on how they can withdraw their funds from their trading accounts. It also offers several withdrawal methods and processing fees; their processing times might vary as per the method chosen. CMC Markets allows the traders to withdraw their funds to a Payoneer account and a bank account through a wire transfer. 

Cryptocurrency CFD Trading

CMC Markets offers cryptocurrency trading as the most popular asset class. Cross cryptocurrency trading is not available. This broker offers several pairs along with competitive spreads. Some of the USA crypto pairs that are offered are Bitcoin, Ethereum, Bitcoin Cash, Neo, Ripple, and several more. Further, the spreads are wider than any traditional currency pairs because of the high-risk involved in the volatile market.

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Research

  • CMC Markets offers a top-class research department that provides insights on fundamental news along with key insights and the market developments that are being posted on the site every day. Every publication posted on the website contains several research and analyses the development and its impact on certain markets.
  • CMC Markets hosts several educational videos. If you are a new trader, you can make use of it. Moreover, it also hosts regular webinars and gives a chance to the traders to ask questions to expert traders any time as per their convenience.
  • As per our review, this broker offers a well-structured economic calendar; this calendar is incorporated into Thomson Reuters and it provides some of the most recent development and latest news daily. Each news is analyzed to identify whether it has a market impact on the financial markets. The traders can access these events daily, or country wise where the impact is seen. Also, the traders can set alarms separately for these events.

Newsfeed

Both Thomson Reuters and CMC Markets offer newsfeeds, and it is available on the web platform. The trader can easily find CMC news and analyze blogs on the website, and Thomson Reuters can also be located on the trading platforms. CMC markets also provide a link to CMC TV, which provides several functionalities. Moreover, it also offers a YouTube channel that provides several updates per week on the current market movements, whether to buy or sell an asset and its development. Aside from market updates, it also offers technical analysis.

Education

As per our review, CMC Markets offers a wide choice of available educational materials in written text and videos. Aside from trading lessons, it also offers tutorials for its traders. CMC Markets education materials offer a variety of tools that are given below-

  • Tutorial videos
  • Demo account
  • General educational videos
  • Trading educational articles
  • Webinars
  • Glossary and several more

The educational articles of CMC Markets are very easy to read, and it is supported by short videos and graphs to help the traders to understand complex trading processes. Some of the articles are based on the trader’s trading experience, and some of the topics range from CFD fundamentals and goes through trading strategies.

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Customer Support

CMC Markets offers dedicated customer support available 24×5, and traders can use their FAQ section. It also offers customer support through phone, email, and live chat. The phone support is answered immediately. This broker has been voted as the best phone and email customer service in the year 2019, offered by investment trends UK leverage trading report.

Wrap up

To conclude, we can say that CMC Markets is a well-known broker regulated by top-level regulatory authorities. It is one of the best forex and CFD brokers offering services around the world. Some of the advantages include low forex fees, providing several research tools, trading platforms, and dedicated customer service. Even though it has few drawbacks, its service is seamless. To open an account is very easy, and the product selection covers forex and several asset classes like bonds, mutual funds, stocks, and several more. We recommend the traders try this broker because it offers excellent features with no minimum deposit with caution.

FAQ’s

1. Are CMC Markets Good?

Ans. Yes, CMC Markets is a good broker, and it is rated as best in several categories as the best overall Forex broker, which offers a wide range of tradable assets. This broker offers several features irrespective of the trader’s experience level and a feature-rich platform for its traders. It also offers excellent customer service, educational resources, and great research tools. 

2. Are CMC markets safe?

Ans. As per our CMC Markets review, we can say that CMC Markets is considered as low risk and has a good trust score, which shows it is safe. Moreover, this broker is publicly traded, and it does not operate as a bank. Several regulatory authorities around the world authorize it.

3. Is CMC Markets Good for beginners?

Ans. Yes, CMC Markets is a well-known online trading broker based in London and has traders trading on the platform globally. It offers two platforms, their proprietary trading platform; another is Metatrader 4. Besides, its spreads are tighter compared to its competitors. The minimum deposit required is very low; this is considered as an advantageous feature for the new traders.

4. Who owns CMC Markets?

Ans. Peter Cruddas, in 1989, launched CMC Markets. Initially, it was first named as Currency Management Corporation and later renamed as CMC Markets. Based in London, it offers its trading services to traders all around the globe.

The platform reserves all rights for its features and functionalities.

Risk warning – CFD and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of the retail investor accounts lose money when trading CFDs and carrying out spread betting with this provider. You should always consider whether you understand how CFDs and spread bets work and whether you can afford to take the risk of losing your money.

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