Regulated by the FCA, CMC Markets is a British broker headquartered in the United Kingdom. Its platform is easy to access for beginners and professionals alike, and CMC Markets has long experience in the trading market. But is it really reliable? In this CMC Markets review, the answer is yes!
Our CMC Markets Review
CMC Markets is a well-established online trading platform offering a wide range of financial instruments, including CFDs on stocks, indices, currencies and commodities. With a user-friendly interface and advanced trading tools, it appeals to both beginner and experienced traders. However, as with any trading platform, it is essential to understand the risks of margin trading and to make sure your investment decisions are well informed.
Peter Cruddas founded CMC Markets in 1989. The company was originally set up as a market maker under the name Currency Management Corporation, and in 2005 the founders decided to shorten the name to CMC Markets.
In 1992, the broker was authorized by the AFDB, which later became the Financial Services Authority (FSA). In the 2000s, CMC Markets began offering contracts for difference (CFDs), which have since become the broker’s main specialty. It also runs spread betting, which it first introduced to the financial market in 2001.
How to Open a CMC Markets Account
- Visit the CMC Markets website.
- Look for the “Open an Account” or “Sign Up” option and click it.
- Fill in the registration form with your personal and contact details.
- Choose the type of account you want to open (live account or demo account).
- Follow the instructions to complete the registration process, including verifying your identity if required.
Awards Won by CMC Markets
CMC Markets has already won several awards. On September 15, 2016, for example, it was named “Best CFD Broker” at the Finance Magnates London Summit.
Over the past two years, the broker has also received more than 50 awards for the quality of its service. The innovation and technology it offers clients are also highly regarded. In 2017, it won the “Best Mobile Platform”, “Best Value for Money” and “Best Customer Service” awards. This broker has good customer reviews, as does AxiTrader.
Is CMC Markets an AMF-Authorized Broker?
- CMC Markets is a European broker and is therefore authorized by the AMF (Autorité des Marchés Financiers), the French financial markets regulator.
- The broker is also authorized by the ACPR (Autorité de Contrôle Prudentiel et de Résolution), which is backed by the Banque de France.
- CMC Markets is regulated by the FCA.
As it is regulated in Europe, CMC Markets is fully able to offer its services in France.
ECN Broker or Market Maker?
For online trading, CMC Markets uses market maker execution. It acts as an intermediary that matches its clients’ investments with the market. As a market maker, CMC Markets can quote prices that it sets itself.
CMC Markets Regulation
As mentioned above, CMC Markets is an international broker regulated in several countries. Its licenses include:
- FCA regulation in the United Kingdom (Financial Conduct Authority).
- ASIC regulation in Australia (Australian Securities and Investments Commission).
- MAS regulation in Singapore (Monetary Authority of Singapore).
How Does CMC Markets Protect Client Funds?
When choosing a broker, platform security is one of today’s traders’ main concerns. To avoid being scammed, it is wise to find out how a broker protects its clients’ funds. At CMC Markets, this is a top priority.
- To ensure full transparency, the broker holds all the necessary regulatory authorizations.
- Funds belonging to “retail” clients are held in segregated bank accounts in the United Kingdom (NatWest, Barclays, Lloyds, HSBC) and abroad (Ulster Bank in Ireland, Deutsche Bank in Germany, HSBC in Poland and Spain).
- Funds are also held with top-tier financial institutions.
- CMC Markets is a member of the FSCS (Financial Services Compensation Scheme), which helps protect its clients. This compensation scheme acts as a safety net, protecting eligible claimants up to £50,000 if a firm is unable to meet its financial obligations.
Why Choose a Regulated Broker?
With the boom of the digital world, online trading has become far more accessible. The number of brokers online is exploding, so you need to know how to choose the right type of broker.
Whatever your preferences and selection criteria, it is always wiser to choose a regulated broker. Above all, this type of broker helps you avoid scams: regulators require brokers to comply with very strict rules or face sanctions.
Besides minimizing the risk of theft and identity fraud, a regulated broker also offers better protection for your funds. Because your money is held with an independent bank, you will not lose your investments even if the broker goes bankrupt.
CMC Markets Scams
Since CMC Markets is regulated by several authorities in many countries, there is no reason to think it is a scam. However, some complaints have been received from clients who were robbed by impostors, while other clients are entirely satisfied with the broker’s services.
If you want to confirm your doubts, it is best to consult several reviews. In the event of fraud, you can immediately alert regulators such as the AMF, the FCA and others.
CMC Markets: What Are Its Fees in November?
CFD trading does not cost the same with every broker. Fees are an important factor and can help you choose one broker over another. So what are the fees on a CMC Markets account?
- Spreads: On its main trading instruments, CMC Markets earns its income from a minimum spread of 0.7 pips on EUR/USD.
- Commissions: On stock and ETF CFDs, you are charged a commission of 0.06%. This figure generally varies by asset and market.
- Swaps: To find out how much they cost, go to the broker’s website and use the trading calculator. In practice, swap rates mainly fluctuate with market movements.
- Account Fees: This charge applies to all accounts, unless the account is closed by the client or CMC Markets, trading activity resumes on the account, or the account balance is zero. Dormant accounts are charged an inactivity fee of €10.
CMC Markets Account Types
CMC Markets offers several account types to choose from, depending on how you plan to use it:
- Demo Account: With a CMC Markets demo account, you can practice and develop your trading strategies in a risk-free environment.
- Limited Risk CFD Account: This type of account limits potential losses to the capital invested.
- Corporate Account: This type of account is reserved for legal entities.
- Individual Account: The individual account is identical to the limited risk CFD account.
Instruments Available at CMC Markets
For CFD trading, CMC Markets offers a range of financial instruments.
- Forex: 338 currency pairs
- Indices: 87 (CAC 40, DAX, Dow Jones, etc.)
- Stocks and ETFs: 9,413
- Commodities: 111 (metals, agricultural products and energy)
- Bonds: 46
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The leverage offered by CMC Markets generally depends on the type of account.
- Professional: For a professional account, the broker offers maximum leverage of 400:1
- Retail: For a retail account, the broker offers maximum leverage of 30:1
CMC Markets Trading Conditions
Trading conditions vary according to your investor status. CMC Markets leverage for a professional, for example, is 400:1, compared with 30:1 for retail clients. A CMC Markets account requires no minimum initial deposit, although a balance of more than €1,000 is recommended for new accounts. You can fund your account by credit or debit card.
CMC Markets Platforms
CMC Markets offers several trading platforms to meet its clients’ needs:
- Next Generation: This is the broker’s main platform. User-friendly and polished, it is designed to let traders trade comfortably. It comes in two versions: standard and advanced.
- MetaTrader 4: CMC Markets is also available on MetaTrader 4 for automated trading. MetaTrader 4 is the best-known platform in the world of forex and CFD trading, and it can be downloaded. To get it, search for CMC Markets MetaTrader 4 Download (or CMC Markets MT4 Download). Unfortunately, it is not yet possible to trade with CMC Markets on MetaTrader 5 (MT5).
- Mobile platforms: For more choice, CMC Markets has also developed its own mobile platforms. With tools, indicators and charting features, these mobile apps are quite advanced and offer a smooth trading experience. They are available on Android and iOS.
Slippage and Order Execution
To limit the risk of slippage, CMC Markets uses fast, 100% automated execution, available on the Next Generation platform. The broker also offers many tools to reduce the effects of slippage:
- Many order types: orders, guaranteed stop loss orders (GSLOs), market orders, limit and stop entry orders, partial closing of trades, stop loss orders, trailing stop loss orders, take profit orders.
- Advanced order features: charts, boundary orders, depth ladder, long/short positions, rollovers, etc.
- Execution alerts
- Account liquidation: standard liquidation, last in/first out, largest loss first, highest position margin first.
CMC Markets Analysis Tools
To help traders analyze the market and earn more from their investments, the broker provides many analysis tools.
- Charts: To analyze price action, the platform offers several chart types, including Japanese candlesticks, line charts, Heikin-Ashi, Renko, etc.
- Client Sentiment: This tool shows the percentage of CMC Markets clients holding long positions compared with the percentage holding short positions on a given product. It is updated every minute, so you can spot changes in client direction and find new trading ideas.
- Multiple layouts: This tool lets you design and save up to 5 different layouts.
- Pattern recognition: A scanner that detects chart patterns.
- Module linking: This tool makes it easier to group charts from the same group.
CMC Markets Education
For those interested, CMC Markets offers comprehensive trading education. You can learn CFD trading or forex trading in detail, and the website also offers a general trading guide. For those with a particular interest in currencies, the platform provides a guide on how to trade them.
To get to know the Next Generation platform and its features better, you will find many tutorials on the website. CMC Markets analysts also host webinars on several topics.
How to Become a CMC Markets Affiliate
In addition to its education, wide range of instruments and analysis tools, CMC Markets also runs an affiliate program, and becoming an affiliate is very simple. To start, generate traffic for the broker. They can then track your traffic until a live account is opened under your referral. Once your referred client reaches the minimum trading requirement, you can earn a commission.
As a CMC Markets affiliate, you can enjoy many benefits:
- Maximize your trading experience
- Earn an attractive return on referred clients
CMC Markets Customer Service
According to several CMC Markets reviews on forums, the broker’s customer service is highly professional and reliable, which is one of its greatest strengths. Whether you are a beginner or an experienced trader, the service is available 24 hours a day to provide the support you need. You can contact it with any questions, concerns or problems you encounter in your trading.
How to Contact CMC Markets
If you want to get in touch with the broker, several channels are available. Here are the CMC Markets contact details:
- Client management team: +33 (0) 1 53 83 14 03
- French office: +44 800 093 3633
- International offices: +33 (0) 1 53 83 14 03 (Australia), +33 (0) 1 53 83 14 03 (United Kingdom). Numbers for other countries are available on the broker’s website.
- Live chat on the website
- Social media
CMC Markets vs Vantage: Comparing Top Brokers
CMC Markets:
- Well-established online trading platform.
- Wide range of financial instruments, including CFDs on stocks, indices, currencies and commodities.
- User-friendly interface with advanced trading tools.
- Suitable for beginner and experienced traders.
- Live and demo account options available.
Vantage:
- Also a popular online trading platform.
- Offers a variety of financial instruments, including CFDs on stocks, indices, currencies and commodities.
- Provides a range of advanced trading and analysis tools.
- Suitable for traders of all experience levels.
- Live and demo account options available.
Pros and Cons
CMC Markets has many advantages:
- Access to global markets
- More than 9,587 CFD instruments
- Regulated in several financial centers
- Listed on the UK stock exchange
- Numerous awards
- No minimum deposit required
- A range of sophisticated trading tools
- A unique platform (Next Generation)
Despite these many strengths, CMC Markets also has some drawbacks:
- High CFD spreads on US indices
- CMC Markets does not accept PayPal
CMC Markets: The Best Forex Broker?
For beginners and professionals alike, CMC Markets offers a competitive service. With free accounts, educational resources and competitive spreads, the broker is a sound choice, and its powerful, versatile Next Generation platform makes trading simpler.
However, several negative reviews have been received from clients describing bad experiences with this CFD and forex broker. As a result, CMC Markets cannot be included in our list of the best forex brokers.