CMC Markets is a leading online trading company, offering forex, spread betting, and CFDs across major global markets.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Segregates client funds
- Established in 1989
- Regulated by Financial Conduct Authority
- Min. deposit from $200
- Only FX, and some CFDs
- Poor customer service
- Pricey withdrawal
There are two types of accounts at CMC Markets. They offer dedicated CFD trading and corporate accounts.
According to the comparison charts on their website, the accounts are very similar. Traders can choose from over 5,700 products across 5,000 shares, 79 global indices, 320 different currency pairs, commodities, and treasuries, and benefit from competitive pricing, such as tight spreads, low margins and commissions.
Spreads differ depending on the asset chosen. Charts listing both the minimum and typical spreads and the trading times for each market are conveniently posted on the website.
There is no minimum deposit required to open an account. Some of the key features of either type of account are that they accept 10 different forms of currency for deposit, order boundaries, account netting, telephone trading, a price depth ladder, and position hedging.
CMC Markets is big on spread betting which is a tax-efficient way of trading on the price movements of almost all financial products. With spread betting, traders don’t buy or sell the underlying asset but rather place a bet on whether the price of a product will go up or down in value.
Spread betting uses margin which allows traders you to do more with their capital such as open more or bigger positions than they would be able to if they had to fund the full value of the position on their own.
CMC Markets uses its own proprietary platform which offers a host of different and useful features.
The award winning trading platform, Next Generation, is the culmination of over two decades worth of industry experience, innovation and technological investment and is their most advanced platform yet, with fast execution and expert features and charts. This platform won several awards in 2016 for its charting and its features in addition to overall user satisfaction.
Next Generation has a charting package with over 80 technical indicators, chart types and drawing tools for the user’s benefit allowing for a very detailed technical analysis.
Another interesting feature which this platform provides is a client sentiment tool. With this tool you can gauge the climate and feelings of other traders to help predict which direction the market will turn. The tool allows for checking the sentiment of all traders or of the top traders. The more volatile the market the more useful this tool can be.
The Next Generation platform also gives users access to multiple news sources and analysis. They have an active twitter account and YouTube channel giving users a very wide picture of the markets at any given moment.
There is an extensive Users Guide available for download so that users can understand the platform and all that it offers. Mobile trading apps are also available for download from the brokerage’s website for IPhone, IPad and Android.
The team at CMC Markets is constantly updating their platform to meet the ongoing needs of its clients.
Their latest update was completed in March 2015 and offers several additions and improvements to their already existing features.
They’ve enhanced their risk management offering by adding a new type of stop loss to the platform– Guaranteed Stop Loss Orders (GSLOs). GSLOs work exactly the same as regular Stop Loss Orders except that for a premium they guarantee to close you out of a trade at the price specified, regardless of market volatility or gapping.
GSLOs can be placed during regular trading hours but are only available on the latest version of their mobile trading app.
Another new feature offers quicker platform navigation with Module Linking. This allows traders to group different modules together so that if a change to the product is shown in one module, all of the other modules in that group will automatically update to show the new product.
An additional built-in search function to the headers of most modules, as well as to the main navigation toolbar helps traders find and view products more easily straight from a module’s header.
CMC offers attractive minimum spreads for popular products. For example, 0.7 of a point for the EUR/USD and USD/JPY, plus 1 point for the UK’s FTSE 100 and Germany’s Dax 30. Overall, you can expect typical spreads of 0.8 pips.
This means CMC trading costs are competitive when compared to the likes of IG and Plus500.
Leverage is an important element in forex trading. It ensures you only need a small initial deposit or margin to enter a trade. CMC day trading forums have been quick to highlight generous leverage offerings. Margins start at just 3.34%, which means leverage of 30:1.
In fact, CMC offers five tiers of margin, depending on your overall net position per instrument. This tier-margin approach based on position size is similar to that used by Saxo Bank.
However, it’s important to note that while trading on leverage may increase your potential profit, it can also amplify losses
Credit cards (VISA, MasterCard, Debit)
Bank wire transfers
To conclude, for those interested in forex and CFDs, the CMC trading group is a sensible choice. The Next Generation platform is powerful and versatile, while the mobile apps are high-quality. In addition, CMC trading charges are competitive and with over 10,000 products to choose from, there is something for traders of all experience levels. Finally, as reviews of CMC online share trading accounts are quick to highlight, there are no minimum deposit requirements.