CMC Markets Review
CMC Markets was established in 1989, and it is a global Forex and CFD broker. The broker has the trust of people from all over the world, and it is loved for its amazing prices, as well as for the number of instruments it has to offer.
Furthermore, people who have used it stated that CMC Markets has powerful charting, as well as amazing trading tools and high-quality research. All these things are provided through the Next Generation trading platform offered by CMC Markets, which can be a strong ally for your trading activities.
Whereas CMC Markets is considered one of the leading brokers globally, one thing is for sure: you cannot start trading with them unless you are sure they are safe. The offers they have may seem promising for sure, and you are probably more than tempted to start trading right now
. But before you do that, you should read this CMC Markets review so you can get an idea of how the broker operates. Let’s get started!
Who Is CMC Markets for?
CMC Markets is suitable for all types of traders. So, both a beginner trader and an advanced trader can benefit from this platform. Newcomers have the chance to start learning more about CFDs, Forex and spreads so that they can trade them.
What’s more, there are numerous educational materials available, so people have access to information that can help them make huge progress in terms of knowledge and skills. Also, the minimum deposit is pretty low, making it easier for a newcomer to get started.
Experienced traders, on the other hand, will have the advantage of choosing from a wide range of products. This gives them the opportunity to trade what they like the most and helps them diversify their portfolios. Also, the fees offered by the broker are competitive in the industry, and some of them can be a bit high, which is more suitable for the advanced trader rather than the beginner.
Things We Like
One thing we like a lot about CMC Markets is the fact that there are a lot of products to choose from. People who are new to the platform, but also advanced traders can choose from a vast array of products so they will have the experience they are looking for. We also loved how well-developed their mobile and web platforms are. It only simplifies things for traders.
Another thing we liked was the fact that they invested in education, either through tools or through great research. Traders have the opportunity to improve their skills, as well as learn more about trading and how it works.
It was great to know that clients have their accounts protected – this just adds more security and more peace of mind in return. The minimum deposit is pretty low and makes the platform more accessible for different types of people.
Things We Don’t Like
We noticed a few downsides as well when it comes to CMC Markets. For example, while we were happy that there are a lot of products, we noticed they are still quite limited compared to other brokers.
Then, the account verification is very complicated, and the stock CFD fees are very high. It all makes things complicated, and traders with a lower income will have a harder time if they are interested in stock CFDs.
It was also disappointing to see that clients from the U.S. are not accepted. What’s even worse is that there is an inactivity fee too.
Pros / Cons
- The Forex fees are very low
- Client accounts are protected
- Low minimum deposit
- An inactivity fee is charged
- The stock CFD fees are high
- Clients from the U.S. are not accepted
Safety and Regulation
Before giving your details and opening an account, you may want to become familiar with the following things:
Who Is CMC Markets?
CMC Markets is a CFD and Forex broker that was founded back in 1989. The broker is a U.K.-based one, which is listed on the London Stock Exchange. It offers platforms like the MT4 and Next Generation.
CMC Markets has a wide range of asset classes to offer to its users, including indices, commodities, Forex, individual shares, and others. The platform is known to offer low-cost trading, and their Next Generation platform comes with about 10,000 tradable instruments.
Is CMC Markets Regulated?
CMC Markets is regulated by the U.K. Financial Conduct Authority. It is also listed on the stock exchange.
CMC Markets Licenses
- CMC Markets NZ Ltd – authorized by FMA (New Zealand)
- CMC Markets Asia Pacific Pty Ltd – authorized by ASIC (Australia) registration number ABN 11 100 058 213, AFSL Number 238054
- CMC Markets Canada Inc. – authorized by IIROC(Canada)and Ontario Securities Commission
- CMC Markets Singapore Pte Ltd – authorized by MAS (Singapore) registration number No./UEN 200605050E
- CMC Spreadbet plc – authorized by FCA(UK) registration number 170627
- CMC Markets plc – authorized by FCA(UK) registration number 173730
Is CMC Markets Safe or a Scam?
CMC Markets is considered safe because it is regulated by so many financial authorities in the entire world, one of them being the FCA. It is also listed on the stock exchange. What’s more, clients belong to a top-tier financial authority, and they all have negative balance protection.
Client funds are segregated, offering more security in case something bad happens to the broker. The only bad thing regarding safety is the fact that CMC Markets has no banking license.
Countries It Accepts Clients from
CMC Markets accepts clients from several countries, such as the U.K., Ireland, Australia, India, Hong Kong, Germany, Canada, the United Arab Emirates, and more. The service is also prohibited in some places, like the United States, South Africa, China, Japan, and others.
The broker managed to win multiple awards and recognitions. Among others, they won the award for the Best Platform Features and Best Mobile Phone/Tablet Platform by Investment Trends U.K.
Range of Offerings and Products
CMC Markets has a pretty decent product selection. They have Forex, CFDs, and crypto. Sadly, they are a bit limited compared to other platforms, and you cannot trade products like mutual funds, bonds, options, stocks, or futures.
The broker has 90 stock index CFDs, 338 currency pairs, 8,000 stock CFDs, 136 commodity CFDs, 1,000 ETF CFDs, 15 cryptos and 56 bond CFDs.
You can use leverage up to 1:30 if you are a client from Europe. Meanwhile, if you are trading from New Zealand or Australia, you can use leverage up to 1:500.
CMC offers both Next Generation and MT4 as platforms. For the web platform, they have the Next Generation one, which comes with an amazing and clean design. It has an advanced order panel, and it is highly customizable as well. Besides, it comes with a clear fee report. The search functions offered by the platform are great and you can easily find what you need by clicking “Library” or going to the search bar. Unfortunately, it doesn’t have a 2-step login.
The mobile trading platform is also great, as it is similar to the web one. It is very user-friendly and just like the web one, it has a great search function. You can also access multiple order types. Unfortunately, there is no 2-step login available.
When it comes to the desktop platform, you can only use it with MT4. Overall, it is decent, as it has price alerts, a clear fee report, and good customizability. Sadly, the design is not that good, and it doesn’t have a 2-step login.
There are two main account types offered by CMC Markets, which will be different depending on the country you are trading from. You can open a CFD account or a spread betting account.
All of these accounts in the different countries/regions all have leveraged up to 500:1 on forex, but since these accounts are tailored to experienced traders this is less likely to be misused.
As a professional client, you will not get the same protections that are typically given to retail clients. Professional clients will receive bonuses that appear as monthly cash rebates for high-volume traders and an account manager.
CMC Markets CFD Account
The CMC Markets CFD account is the standard trading account, which is what you would typically open when you join the platform. Although it is the standard account it actually offers 10,000 CFD assets to trade, which includes 300+ forex pairs.
This particular type of account has no minimum deposit, unlike other platforms that require to deposit a minimum of $20, $50, even $100. When it comes to the spreads for this account, they start at 0.3 pips and have no commissions for CFDs. However, commissions for shares start at $7.
CMC Spread Betting Account
This account is only available for traders that are within the U.K. jurisdiction, and have a spread that starts at 0.7 pips for forex. One of the great things about this account is that it offers over 10,000 different assets to trade from.
CMC Corporate Account (Managed Account)
Like the CFD Standard, the corporate account has no minimum deposit required and is available mainly for institutional traders who have more experience than the average trader. This type of account works a little differently compared to the other accounts because it works as a Multi-Account Manager (MAM).
It features spreads that start 0.3 pips and also has no commission on CFDs, but there are commissions on shares that start at $7. It offers over 10,000 tradable CFDs and over 4,000 stocks.
CMC Markets Professional Account
The professional account is available in 3 countries/regions that have particular requirements for you to fulfill so you can use it. Firstly, in the U.K and EU you must meet 2 out of 3 requirements first which are:
- You must have made an average of 10 transactions of significant size per quarter in the past year.
- You must also have a financial instrument portfolio of over €500,000 in your bank or trading account.
- You must possess the required amount of experience in the financial services sector.
- When you register with the Australian entity, you must have at least 1 of the following:
The same EU and U.K. requirements:
- At least $2,500,000 in Australian dollars of net assets
- A minimum of $250,000 of income in the last 2 calendar years.
For Singapore traders you must meet at least 1 of the following requirements:
- At least $300,000 in Singapore dollars of income in the last year
- A minimum amount of $2,000,000 of net assets. Again in Singapore dollars
- A total of at least $1,000,000 of financial assets in Singapore dollars.
CMC Stockbroking Account (Cash Account)
This is the classic stockbroking account and if you applied for this account before 13th July 2020, then you might have noticed it was called CM Markets Cash Account.
This particular type of account is only available for Australian traders and has no minimum deposit.
The standard stockbroking platform is free for use, however, for the Pro stockbroking platform, you will need to subscribe to a $49 monthly payment to use the services. Although it should be mentioned that CMC offers unlimited free conditional orders.
If you qualify as a CMC Alpha Stockbroking trader then you will gain access free of charge to the Pro platform and have access to other benefits such as rebates and lower trading costs.
CMC Live Account Opening
Before opening a Live account, you should open a Demo Account first. This account, just like we’ve explained above, is a free trial with the broker and it simulates what would happen if you opened a live account.
In order to open a live account, you have to verify your identity by providing official documents to the broker, and finally deposit the amount of money you’re comfortable investing.
The account verification process is usually pretty quick with CMC Markets, but depending on the country that you are based you may need certain documents, such as:
- Proof of identity such as an ID or Passport
- Proof of residence such as a bank statement
- Account Funding
- The deposit methods for CMC Markets are as follows:
- Bank transfer
- Major Credit or Debit Cards
- eWallets: PayPal and others
CMC also accept deposits with the following currencies: GBP, EUR, USD, CAD, and others
CMC Markets offers the following base currencies on their platform: GBP, EUR, USD, AUD, CAD, NOK, NZD, PLN, SEK, SGD
CMC Account Bonus
For account bonuses, Australian traders will receive a $200 welcome bonus that they can use to trade.
However you won’t be able to withdraw it, you can only withdraw the profits that you make from it. To take advantage of this bonus you don’t even need to make a deposit, but it does expire after 30 days.
CMC Markets offers the Active Trader Program, which is a 3-tier loyalty program that brings your trading fees down making them much lower. The benefits regarding platforms and additional services include free access to the premium stockbroking platform.
CMC Account Inactivity Fees
Thankfully there are no fees for demo accounts since they do not hold actual funds and they do not expire. However, after a year of inactivity on a regular account, a $15 fee will be charged every month.
Also if you do not have enough funds to pay in your account, CMC may eventually close it.
CMC Account Reactivation
If you have been inactive and you want to recover your account, you simply have to log back into your account and continue to use it. If you have manually put your account in an inactive state, you can always reactivate it but the broker might ask you for some documents.
How to close your CMC Account?
Firstly you must withdraw your funds before you do anything, then once you have done that you should contact the broker support team who will go through the process of closing your account.
CMC Demo Account
A demo account is provided as well, which serves as a great opportunity for people to test the services.
Arguably the safest thing to do when opening a trading account is to open a demo account so you can test the waters. With a CMC Markets demo account, you are literally trading with no risk.
The demo account features no risk with virtual money and replicates real market conditions, so you can experience as much as you can without any risk.
The great thing about this demo account is you won’t be tied in or committed to opening a live account with CMC. The CMC demo account won’t expire either so you have an unlimited amount of time to trade on the demo account.
Deposits and Withdrawals
You can make deposits using various methods. You can either use your card, do a bank transfer or use an e-wallet. No deposit fee applies either unless you are making an international bank transfer.
CMC Account Deposit & Withdrawal
Deposits tend to be free, however, you might have to pay a conversion fee if you live in a country whose currency isn’t supported. Other fees may include commissions for wire transfers. With wire transfers, it will take one business day to process the deposit, but with credit/debit card deposits they are pretty much instantaneous unless it is your first deposit.
If that is the case then it may take a little longer to process. Other deposit methods such as eWallets are also instantaneous too.
What Is CMC Markets Minimum Deposit?
The minimum deposit at CMC Markets is $0. This allows you to start trading with smaller amounts.
Withdrawals tend to be free, but again you may have to pay a conversion fee or commissions for wire transfers. Withdrawals may take up to 3 business days to process and will go to the same place as where you made the deposit from.
CMC Markets Promotions
If you refer a friend on CMC Markets, you will receive $250 when they open their account.
Client Support and Education
Education is certainly not neglected in CMC Markets. Not only do you have a demo account, but you also get general educational videos, a platform tutorial video, webinars, and educational articles. There are lots of ways to learn more about trading.
Verdict – Overall Rating
CMC Markets is great. The platform is very safe, and you gain access to a lot of tools and products. There are numerous educational tools, and you also need small minimum deposits to be able to trade. Some downsides are the fact that there is an inactivity fee and that the desktop platform is not the best, but the pros outweigh the cons.
All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.
The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.
What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.
There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.
All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.
There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.
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