CMC Markets Review

CMC Markets is a global broker for CFD and Forex trading. They offer various trading instruments like Forex pairs, Indices, Cryptocurrencies, and Commodities. Originally launched in the UK, CMC Markets has expanded internationally. They have offices in Australia, Austria, Canada, France, Germany, Ireland, Italy, New Zealand, Norway, Poland, Singapore, Spain, and Sweden. Over 1 million traders worldwide have signed up with this brokerage, which has won multiple awards. Keep in mind that the information in this review might change because the company updates its services and policies regularly. Now, let’s see if CMC Markets is a reliable broker or a scam.

🏢 Headquarters United Kingdom
📅 Year founded 1989
🗺️ Regulation BaFin (Germany), ASIC (Australia), MAS (Singapore), IIROC (Canada), DFSA (United Arab Emirates), FMA (New Zealand), FCA (United Kingdom)
💻 Trading platform: CMC Mobile App, CMC Web Platform, MT4
💰 Account currency: GBP, EUR, USD, AUD, CAD, NOK, NZD, PLN, SEK, and SGD
📊 Accounts: Spread betting account, CFD account, Demo (limited)
💵 Withdrawal options: Wire Transfer, Credit Card, PayPal
💵 Deposit options: Wire Transfer, Credit Card, PayPal
🚀 Minimum deposit: $0
⚖️ Leverage: 1:30 (BaFin), 1:30 (ASIC), 1:20 (MAS), 1:45 (IIROC), 1:30 (DFSA), 1:500 (FMA), 1:30 (FCA)
☪️ Islamic account (swap free) No
🎮 Demo Account Yes
💱 Spread: From 0.7 pips
🔧 Instruments: Forex, Cryptocurrencies, Indices, Stocks, Commodities, Shares & ETFs, Treasuries
📋 Orders execution: Market Execution
☎ Customer Support: 24*5, Call, Email Support,
📚 Education Yes

What is CMC Markets?

CMC Markets is a well-known broker for Forex and CFD trading, established in 1989. It offers a wide range of financial instruments for trading. However, traders might not like the high trading fees on its commission-based account.

CMC Markets has two live accounts with no minimum deposit requirements. One is a commission-free account with spreads starting at 0.7 pips on the EUR/USD. The other is a commission-based account with spreads of 0.1 pip and commissions of 0.005% (which equals 50 USD per lot traded), which is very high.

Trading can be done on both MT4 and its own platform, which has many technical and fundamental analysis tools. CMC Markets also provides education and market analysis materials for new traders. However, its customer service, available 24/5, lacks a live chat feature, which many traders find important.

Pros and Cons

Pros Cons
CMC Markets is a well-regulated broker with a strong history. Conditions can change depending on regulations and the entity you’re dealing with.
They’ve been operating for many years. They don’t offer 24/7 customer support.
They’re globally recognized and have won awards.
They offer a wide range of trading platforms and competitive trading conditions.
They provide excellent support, education, and research tools.
Suitable for both beginners and professionals.

CMC Markets Fees

The fees for CMC Markets are good. They have competitive CFD spreads and commissions. For example, major FX pairs have spreads starting from 0.7 points, key indices like the UK 100 and Germany 30 have spreads starting from 1 point, and Gold has spreads starting from 0.3 points. Margin rates are 3.3% for Forex, 5% for indices and commodities, and 20% for shares and treasuries. Additionally, there are inactivity fees, funding fees, and overnight swaps for all fees.

Spreads

CMC Markets Spread is a big advantage for the broker. However, keep in mind there’s a minimum spread shown in the table below and an average spread over the trading period. The spread might change when the market is very volatile. Also, the holding rate used to calculate holding costs on FX is based on the tom-next rate. This rate is the difference between the interest rates of the two currencies, with an extra 1% charge from CMC Markets.

Regulation & Trust

CMC Markets follows strict rules set by regulators, making sure it can legally offer trading services. It’s authorized and regulated by the FCA (UK), which ensures it sticks to the rules about handling clients’ money, known as CASS. This is important because it keeps traders’ money safe.

Since 1989, CMC Markets has been in business. It has licenses from different trusted bodies like the FCA in the UK, CIRO in Canada, and ASIC in Australia. These licenses mean that if the company goes bankrupt, UK clients are protected up to £85,000, EU clients up to €20,000, and Canadian clients up to CAD 1 million.

Unfortunately, there’s no set protection for clients from other places like Australia, New Zealand, Singapore, or the Middle East.

For UK and EU clients, there’s something called negative balance protection. This means your account balance can’t go below zero, which is important, especially for day traders who use leverage. Also, CMC Markets is listed on the London Stock Exchange (LON: CMCX). This is a big deal because it shows the company’s financial statements are released consistently and transparently. This adds to its trustworthiness.

Leverage

Leverage is like a loan from the broker to the trader. It lets you trade a much bigger amount than what you initially put in. The amount of leverage you can get varies depending on who you’re trading with. Using leverage can help you make bigger gains, but it can also lead to bigger losses. To keep things safe, there are rules set by regulators. These rules say how much leverage is okay.

Different places have different rules:

  • In Europe, traders can use a maximum leverage of 1:30.
  • In Australia, the maximum leverage is also 1:30 now.
  • But in New Zealand, traders can use leverage up to 1:500.

Also, professional traders might get even more leverage once they’re confirmed as professionals. This is on top of the regular rules, so make sure you know all the conditions.

Deposits and Withdrawals

CMC Markets offers its clients a limited choice of payment methods, which include bank transfers and Visa/Master Cards. However, this limited selection is balanced by fast payment processing, typically taking one or two banking days. To start trading with CMC Markets, there’s no minimum deposit requirement, but it’s recommended to deposit at least 200 GBP to cover margins and costs.

Withdrawals with CMC Markets are processed quickly, and there are no charges by the company for depositing or withdrawing funds. However, your bank may impose additional fees for banking services or international transfers, which you’ll need to cover.

Account Types

CMC Markets offers two types of accounts: CMC Markets CFD Trading and Corporate Accounts. It’s important to know that settings and options may vary slightly depending on your location because of regulatory restrictions. For regular trading, there’s one account type. Your preferences will be adjusted based on your level and the regulations in place. Both account types offer similar features and tools, but there are also specialized options to choose from based on your trading needs.

Trading Platforms

CMC Markets offers two choices for trading platforms: their own web-based platform or MetaTrader 4 from a third party. Both platforms have advanced functions, but we prefer CMC’s online terminal because it’s easier to use.

The CMC platform has many analytical features and integrated services. These include pattern indicators, 13 types of charts, platform video guides, and live news feeds. Some of my favorite features are the 80+ technical indicators, 40+ drawing tools, customizable workspace, support for Renko charts, advanced order types, built-in strategy testing, personalized performance data, and pattern recognition scanner.

However, like most broker platforms, it doesn’t allow automated trading strategies. If you want to use automated strategies, MetaTrader 4 is the better choice because it supports Expert Advisors (EAs). MetaTrader 4 also has a mobile app available for iOS and Android. You can access many features of the desktop software on the app, such as creating watchlists, technical analysis tools, and customizable charts.

But compared to CMC Markets’ mobile app, we find MetaTrader 4’s design less modern, though it has a similar bottom menu for switching between windows.

Customer Support

We’ve noticed that both beginners and experienced traders can enjoy CMC Markets’ technical support and trading services. These services are highly regarded in the industry for their power and effectiveness. Additionally, users can practice trading in a risk-free demo account. CMC Markets provides customer support 24/5, which means it’s available around the clock on weekdays. You can get assistance through live chat, phone calls, or email.

Research and Education

CMC offers many great research tools. On their platform, you can access technical analysis, fundamental analysis, and market insights. Customers rely on the strong support CMC provides. They can also chat online with specialists during webinars. The company invites these experts to share their knowledge.

There’s also a comprehensive learning center. It’s organized by topic, so you can easily find what you want to learn or improve your knowledge about. We found it very well organized when we reviewed CMC Markets.

Is CMC Markets safe?

Yes, CMC Markets is safe. Our experts have researched and found that CMC Markets is a trustworthy broker with a long history. It’s regulated by top financial authorities like ASIC and FCA. This means trading CFDs with CMC Markets is secure and low-risk.

Conclusion

In conclusion, CMC Markets is a reliable broker that offers great trading conditions. They have over 30 years of experience in the trading business. They focus on their clients, always looking for ways to improve. They offer good value for money, keeping trading costs competitive with low spreads and margins. CMC Markets is flexible, offering different platforms, currency pairs, and solutions. They also provide excellent educational materials for traders at all levels. However, it’s important for readers to check the latest information directly with the company before making any decisions. We recommend visiting the official website for further consultation.

FAQs

What are CMC markets commission and fee?

Visit our guide about CMC markets commission and fee details.

 

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CMC Markets Review