CMC Markets is a UK-based multi-asset class CFD and spread-betting broker founded in 1989. It’s among the longest-running brokers on our list, and it’s probably among the most trusted brands here precisely due to its longevity.
This broker is among the most well-established UK brokerage firms around. But is it worth the hype and trust? Are there some more exciting features this broker can offer other than being reputable?
In this broker review, we’ll try to answer those questions. Let’s dig into this broker. CMC is the best market maker. Thus, avoid losing your money and start trading with CMC Market.
So, first and foremost, we want to know whether this broker is secure and regulated. The answer is yes, CMC Markets is a regulated broker.
It is authorized and regulated by the UK’s Financial Conduct Authority, with the name CMC Markets UK Plc. The FCA, as we all know, is a top-tier regulatory body overseeing brokers in the UK.
At the same time, CMC Markets also offers investor protection by segregating the client money in different accounts. In many Broker companies’ retail investor's accounts lose money, but it is not the case with the CMC. Some investors might afford to take the high risk of losing money rapidly due to leverage. But not all the traders are in the same shoes.
And, solidifying the trustworthiness of this brand, CMC Markets is part of the CMC Group, which is a publicly listed company on the London Stock Exchange. That’s right; it’s a public company. What that means is that it is very transparent when it comes to its finances and dealings.
All of these make CMC Markets a brand among the favorites of traders. And we can’t blame them if they want to put their money in regulated, publicly traded, and trusted brokers.
CMC Markets Trading Products
CMC Markets is primarily a CFDs broker that offers access to various trading products, such as:
- Foreign exchange pairs
- Stocks and ETFs
Contracts for difference (CFDs) are derivative products that let traders trade on the price movement of the underlying asset. This feature is highly complex for newbie investors, so CMC Markets made the right call of clarifying the risks of such instruments on its websites.
Its forex offerings are traded as CFDs, with prices on over 330 cash and forward currency pairs, including all major and minor pairs.
You can also trade index CFDs and take a position on the major ones, including the UK 100, US 30, and Germany 30.
If you also want to dabble in cryptocurrencies, CMC Markets also has an offering for you. You can trade on the prices of more than ten cryptocurrencies and crypto pairs, including BTCUSD, ETHUSD, BCHUSD, and XRPUSD.
CFDs on commodities are also available, including Brent and West Texas crude oil, Gold, Silver, and Natural Gas.
The stocks CFDs offerings are also impressive, with over 9,400 stocks from 23 countries ready to be traded. You can choose from the most prominent ones, including Tesco, Apple, Facebook, and Barclays.
You can trade CFDs on a range of treasuries like gilts, bonds, bunds, and treasury notes. The margin starts 20%, while spreads start from 1 point.
SAFE OR SCAM?
CMC Markets is considered as safe because it has a very long track record, is listed on the London Stock Exchange and is regulated by top-tier regulators.
CMC Markets is regulated by several top-tier financial authorities globally, including:
- The UK – Financial Conduct Authority (FCA)
- In Canada – The Investment Industry Regulatory Organization of Canada (IIROC)
- In Australia – The Australian Securities and Investment Commission (ASIC)
- In New Zealand – The Financial Markets Authority (FMA)
- In Singapore – The Monetary Authority of Singapore (MAS)
Traders are protected in different ways and degrees, depending on their country of residence, the investor protection amount, the regulator, and the legal entity that serves them in that country.
|1. Low forex fees||1. High stock CFD fees|
|2. Great web and mobile platforms||2. Limited product portfolio|
|3. Advanced research and educational tools||3. Complicated account verification|
|4. Majority clients belong to top-tier financial authority||4. Does not hold a banking license|
|5. Listed on a stock exchange||5. No 24/7 support|
|6. Negative balance protection|
|7. Trading platform tutorial|
|8. Educational videos|
|9. Phone support|
|10. Live chat|
|11. Fast response time|
|12. Good interactive chart|
|13. Trading ideas|
|14. Data on asset fundamentals|
|15. Credit or Debit card service available|
|16. No deposit fee|
|17. Several account base currencies|
Leverage is a facility that enables traders to get a much larger exposure to the market they are trading in than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.
CMC Markets trading forums boast generous leverage offerings that start at just 3.34%, which means a leverage of 30:1 but CMC Markets actually offers five tiers of margin, depending on a trader’s overall net position per instrument traded. It remains important to note that while trading on leverage may increase your potential profit, it can also amplify losses.
The best forex brokers in Australia not only need to offer high leverage for brokers but also help forex traders manage their investment risks. CMC Markets offers Guaranteed stop losses which is a good way to protect your investment against excessive losses.
For a small fee, a guaranteed stop-loss ensures you cannot lose more than you are prepared to lose for a particular trade. This type of protection guarantees your position is closed should prices fall below your loss tolerance level as the broker will absorb any differences in the event of slippage.
Another nice feature of CMC markets offer is trailing stop-loss. A trailing stop-loss ensures stop gaps are moved when a currency pairing moves in the predicted direction leading to profits. When the currency then moves the other way by a certain amount of points the stop-loss will come into force at the more favourable price.
CMC Markets: Commissions and Fees
CMC Markets offer six types of accounts to clients based on location:
- New Zealand
The first thing that you spot at CMC is that spreads are relatively low, at 0.3 pips for indices and commodities and to 0.7 pips on forex.
Although CMC Markets use spread for most asset classes, commissions could also apply. This happens on company shares trading. In such cases, the commission starts at around £9 per trade or the equivalent of that amount in another currency. There is a comprehensive percentage scheme for the commission on shares, and whatever is higher will apply.
Here is a list of the tradable assets at CMC Markets and their respective charge:
- Forex: Charged based on spread; starts from 0.7 pips for each region
- Indices: Charged based on spread; starts from 0.3 pips for each region
- Cryptocurrency: Charged based on spread; starts from 60 pips for bitcoin and 6 pips for Ethereum; not available in Singapore and Canada
- Commodities: Charged based on spread; starts from 0.3 pips for each region
- Shares: Charged based on commission; only spread betting for U.K./Ireland accounts
- Treasuries: Charged based on spread; starts from 1.0 pip for each region
CMC Markets: Security
- License and Regulation
CMC Markets is a highly regulated trading provider. The regulation comes from the Financial Conduct Authority in the United Kingdom. Also, the company is publicly traded and listed on the London Stock Exchange.
- Fund Security
CMC Markets holds its clients’ money in different banks for higher capital protection. The purpose of this is to distinguish clients’ money from company assets.
Also, CMC Markets follows a procedure called financial services compensation scheme (FSCS). It guarantees a return up to £50,000 in case CMC Markets fails to meet its financial obligations.
Deposits and Withdrawals
CMC Markets offers its clients a relatively “modest” set of payment methods, which is limited to bank transfers and Visa/ Master Cards. However, narrowed variability of financial instruments is compensated by the quality of the services, as all payments are done within one or two banking days.
The minimum deposit amount at CMC Markets mentions no minimum requirement to start trading, however the broker recommends to deposit at least 200 GBP in order to cover margins, costs, etc.
The withdrawals are processed quite fast by the CMC Markets, while there is no charge by the company to withdraw funds either for deposit or withdrawal. Yet, your Bank may impose additional Banking fee or international bank transfer that should be repaid by the customer. For instance, check out and compare fees with its Plus500.
The CMC Markets’ mobile app is cleanly designed and comes packed with multiple research tools, powerful charts, pre-defined watch lists for scanning, and much more. You can download the application in the App Store or Play Market for ios and android devices.
Seamless platform experience: The overall look and feel of the CMC Markets mobile app closely resemble the web-based version of the Next Generation platform. No question, ample time was invested in the app’s development, especially given the challenge of organizing so much information with limited screen space.
Charting: Like much of the rest of the app, charting was just as impressive as the platform’s web version. Although only 29 of the 81 technical indicators are available on the mobile app, it’s still a strong offering compared to many of CMC Markets’ competitors, which often lack technical indicators altogether. While the charting experience was impressive, one minor drawback is that zooming in and out across different time frames was not always fluid.
Market research: For research purposes, another useful feature in the app is the economic calendar where you can subscribe to an event. Once subscribed to an event, an alert will notify you when the news release time approaches. There is also CMC TV, CMC Insights, the broker’s blog, Reuters News, educational content for trading strategies, the Trading Smart series, and webinar schedules.
Other tools: The pre-defined watch lists in the CMC Markets mobile app are great for identifying trade opportunities. Watch lists include popular products, price movers, and currently trending categories.
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