CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Losses can exceed deposits. This advertisement has not been reviewed by the Monetary Authority of Singapore. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
CMC Markets is a famous forex and CFD broker that provides online trading services all over the world. With an extensive range of tradable instruments and a custom-built state-of-the-art trading platform, the broker seems to be setting high service standards for its competitors in the retail forex trading industry. The broker secures an excellent rating on Trustpilot that makes it one of the most recommended forex brokers. In this piece, I review CMC Markets in detail.
Founded in 1989, CMC Markets is a public limited company dealing in multiple asset classes, including forex and CFDs. The company provides access to over 9000 tradable financial instruments. Headquartered in London, UK, the company also has its regional offices in Sydney and Singapore. In 2016, the company became listed on the London Stock Exchange with a market capitalization of £691 million. However, the majority of the company’s share belongs to the CEO and founder of the company Peter Cruddas (60.3%).
After being declared as the best CFD broker four years ago, the company continued striving hard to become one of the main trading giants in the forex industry. As of 2020, the company’s reporting revenue tallies £252 million, with net income stands around £86.9 million.
|Rich Products Portfolio|
Excellent research & educational tools
Low spread cost
Multiple deposits and withdrawal options
|High CFDs fee|
Does not accept US clients
Charges inactivity fee
Does not support back testing
Who CMC Markets is for?
CMC Markets caters to the needs of all classes of traders, including learners, professional, and institutional investors. Clients looking to trade a wide range of assets can explore more than 10,000 financial derivatives being offered at CMC Markets. Advanced risk management tools and funds protection policy provides sufficient reasons for low-risk seekers to make investments at CMC Markets
Using demo accounts, traders can practice various money management and trading strategies without fearing financial losses. The company offers tight spreads and fast trade execution, helping scalpers to take benefit of even the smallest price change. Forex and stock rebates instigate high volume traders to optimize their profitability. In short, CMC Markets fit the needs of anyone who wishes to start margin-based forex trading.
Sign up bonus: The broker does not offer a signup bonus. However, it does offer a referral bonus to qualifying traders.
Is CMC Markets Safe?
Trust Score: 80 (read more)
CMC Markets is a listed company and holds regulation from one of the world’s top regulators Financial Conduct Authority (FCA). The company is also registered with the Financial Services Compensation Scheme (FSCS) to offer insurance coverage of up to 85000 GBP. Clients can claim the compensation money in case the company becomes insolvent. Also, the broker is required to keep clients’ money in segregated bank accounts in addition to maintaining sufficient capital funds available.
Clients who sign up with CMC Markets might also need to exchange their confidential data with the broker. Therefore, the company secures its web servers using the state-of-the-art web encryption technology, including SSL encryption and 2F authentication parameters. Above all, FCA regulation and public listing of the company are enough reasons to feel secure while signing up with the CMC Markets
|Licenses:||Financial Conduct Authority (FCA)|
Offering of Investments
CMC Markets offers an extensive range of tradable financial products. Clients can name the asset they wish to trade, and the broker will make it available. At present, the company offers a total of more than 330 FX currency pairs along with over 9000 Shares & ETFs. Clients can access 60 indices, and 90 commodities, 50 treasuries, and 15 cryptocurrencies. Please be informed that the products offered at CMC Markets might be a little less or more. I have posted rounded figures for information.
The product range may also vary depending upon your home country and the selected account type. However, it is unlikely for clients to not find their desired financial asset at CMC Markets. Still, it is always better to confirm the availability of a particular financial instrument from the broker before opening an account.
|Forex: Spot Trading||Yes|
|Currency Pairs (Total Forex pairs)||60+|
|Social Trading / Copy-Trading||Yes|
|CFDs instruments||Forex, Metals, Stocks, Energies, Indices, Commodities, Cryptocurrencies (9000+)|
Commissions & Fees
CMC Markets mainly make money through spreads. Still, the spreads offered by CMC Markets are very competitive when compared with the industry average, even lower than most of its rivals.
At present, the broker offers three types of accounts, including Spread Betting, CFD, and Corporate. Clients can sign up with the broker with a minimum deposit of £1. The broker has not defined a specific deposit limit, allowing traders to get started right away with any amount of funds available. Spreads across all types of accounts start with 0.3 pips with an added commission of $10. Please note that the commission applies to shares trading only. Also, the broker does not charge any commission from clients having the spread betting account.
As of December 2020, average spreads on widely traded major FX pairs ranges between 0.7 pips to 0.9 pips. However, the broker charges higher spreads on CFD trading. Due to the most competitive spread charging structure, the all-in cost doesn’t exceed 0.64pips at CMC Markets. On the other hand, the broker does charge an additional fee amid guaranteed stops, overnight positions, and inactive accounts.
CMC Markets also offers rebates to high volume traders. The company has classified rebate offerings into tiers. The broker provides a cash rebate of $25 per million to traders meeting the criteria of trading $25 Million volume per month. Clients can also avail $10 per million cash rebate for a monthly trading volume of above $300 Million. Please note that the cash rebate program is available for professional clients residing in the United Kingdom only.
|Minimum Initial Deposit||$0|
|Average Spread EUR/USD – Standard||0.7 Pips|
|All-in Cost EUR/USD – Active||0.6 pips|
|Minimum withdrawal||Not Specified|
Platforms & Tools
CMC Markets offers multiple trading platforms that are supported by all computing devices, including web, desktop, and mobile phones. The company offers a customer-developed cTrader platform as well as a full suite of MetaTrader platforms.
The next generation cTrader comes with advanced trading features, such as a pattern recognition scanner and client sentiment analysis. It also has more than 115 technical indicators and over 70 charting patterns available. The company claims to offer 99.9% fill rate with 99.95% platform stability.
One unique feature that I find very impressive is the Chart forum. The broker allows clients to share their technical analysis with fellow traders using the chart forum. Traders can also access technical analytics done by the company’s trading professionals.
To view posts from other users, you need to first enable the option from the setting menu of the next generation web trading platform. After that, clicking on the user’s posts, you will have their full analysis loaded on your charts. However, doing so is not recommended. I would suggest traders relying only on the company’s featured technical analysis since you know these are coming from expert traders.
On the other hand, using MetaTrader4 trading platform, clients can access nearly 60 tradable financial instruments with a handful of trading tools available that are less as compared to the broker’s in-house developed cTrader. Both platforms have their own merits and demerits. Mt4 is an easy to use platform that even newbies can easily learn, while cTrader is an advanced-level platform that requires proper knowledge and experience.
|Virtual Trading (Demo)||Yes|
|Desktop Platform (Windows)||Yes|
|MetaTrader 4 (MT4)||Yes|
|MetaTrader 5 (MT5)||Yes|
|Charting – Indicators / Studies (Total)||60+|
|Charting – Drawing Tools (Total)||20+|
|Charting – Trade From Chart||Yes|
|Order Type – Trailing Stop||Yes|
CMC Markets offers diverse content and research tools under the insights head. The available resources include both in-house and third-party featured content. There are three categories in the research corner, including news and analysis, learning to trade, and trading intelligence.
Clients can access a wide range of written content that covers latest industry news, market insights, and analysis division. Learn to trade category features video tutorials and webinars on both basic and advanced level trading strategies.
A wide range of written articles is also a part of the learning to trade head. The trading intelligence has a news feed and expert posts from the industry’s top professionals. Overall, the research facility of the broker is well populated and better than most of the broker’s competitors.
The education section of CMC Markets is also well populated and offers a wide range of learning materials, including trading guides, podcasts, video tutorials, and webinars. Clients can read through trading guides that cover content for both newbies and professionals. Access to the broker’s written content and video tutorials is restricted to clients only.
There are a few dozens of recorded video tutorials available under the Artful trader and Opto series to help clients learn every bit of forex trading. Those who prefer live education sessions can sign up for free webinars as well.
Although the educational section of the broker has a lot to learn and grow, still I feel the company could improve its education section by adding some more useful resources. There can be an interactive quiz interface to help clients know their standing with regards to the digested forex information. Also, the availability of a glossary section can help clients to become aware of different forex terminologies.
Concerning the mobile trading platform, the company seems to have done well. CMC Markets offers state-of-the-art mobile trading apps for on-the-go traders.
The mobile trading app resembles the web-based trading platform and has all the main trading tools available. The only limitation comes with the availability of technical indicators that are almost two-third in quantity as compared to those offered through the desktop version.
Also, clients cannot open or annotate multiple charts due to the small screen size. Apart from that, the mobile trading app provides complete flexibility and power to mobile traders.
|Mobile devices||Android & Apple|
|Features||Watchlist, charting tools, negative balance protection, price alerts|
After going through various features of the broker in detail, I can safely name CMC Markets to be a winner in providing multiple trading solutions under one roof. The broker is listed on the London Stock Exchange, offers low spread costs, and has no minimum deposit requirement. Also, the company’s rich product portfolio and user-friendly advanced trading platforms make it a favorable choice for margin based trading.