CMC Markets is one of the pioneer Forex and CFD brokers founded in 1989. The company is headquartered in the United Kingdom. The broker offers margin-based trading services across multiple financial instruments, including forex, indices, shares, commodities, treasuries, and cryptocurrencies. Clients of CMC Markets have the option to either trade CFDs or go with spread betting. Besides being listed on the London Stock Exchange (LSE), the company holds regulations in Germany and the UK. Due to regulatory restrictions, the broker does not accept clients from several jurisdictions, including the United States. With MetaTrader4, and cTrader being the only trading platforms available, investors have the choice to open an account well suited for their trading needs. Owing to the security of clients’ investment, the company holds registration with funds compensation scheme (FSCS). The broker offers round-the-clock customer services seven days a week. In this CMC Markets Review, we cover all aspects of the broker in detail.
CMC Markets Regulations:
The company holds regulations with the listed regulatory authorities in both Germany and the UK.
- Federal Financial Supervisory Authority (BaFin) – Germany
- Financial Conduct Authority (FCA) – UK
In addition to keeping clients’ funds in segregated bank accounts, the company also holds registration with Financial Services Compensation Scheme (FSCS). Under this scheme, clients can claim their losses up to a certain limit. Either the company goes into liquidation, or the banks holding CMC Markets clients investment become insolvent, the company offers funds compensation in both scenarios under the following schedule.
If CMC Markets becomes liquidated:
Europe – €20,000
United Kingdom – £85,000
If banks become Insolvent:
Europe – €100,000
United Kingdom – £85,000
Opening a CMC Markets Trading Account
To cater to the trading needs of both retail and institutional clients, the broker offers flexible account types. Traders can select between Spread betting, CFD, and Corporate accounts. Unlike other brokers, signing up with CMC Markets is very simple. The account opening process does not take more than a minute or two. In order to review CMC Markets we went ahead and created some trading accounts.
Listed below are some easy steps to help you through the signing up process:
Step 1) Click on the blue highlighted start trading button available on the home page of CMC Markets.
Step 2) Enter your email ID on the sign-up page, and select the preferred type of trading account. i-e Spread Betting, or CFD account.
Step 3) Enter the six-digit verification code received on your registered email address.
Step 4) Enter your details on the registration page, such as name, country, product (spread betting, CFD), type of account (individual, corporate), and base currency (GBP, U.S. Dollar, Euro, Norwegian Krone, Swedish Krona, Swiss Franc), and press next to continue.
Step 5) Enter your confidential details, such as date of birth, mobile phone number, insurance number, nationality, and deceleration of tax residency. Click next to continue to the next page.
Step 6) Enter your complete address details and press continue.
Step 7) Enter your employment details, such as your employment status, name of the workplace, and type of industry.
Step 8) Enter details about your financial background, including annual income, and worth of yearly savings.
Step 9) Indicate your trading experience and the purpose of account opening with CMC Markets.
Step 10) Lastly, read the terms and conditions apply and confirm your agreement by clicking the submit button.
To start placing trades, clients also need to complete the KYC process. The KYC process enables brokers to verify the identity of their customers. Due to strict regulatory compliance, the broker doesn’t allow traders to deposit funds in their accounts before identity verification. Traders can submit their National ID Card, Passport, or Driving license to verify their identity. Clients also need to submit proof of their residence. You can provide your bank statement or utility bill as proof of residence. Once the account verification is completed, you are good to deposit funds in your account and start placing trades.
Let’s quickly check out the features available in each account types;
Spread Betting Account: The spread betting account is the most popular type of accounts in the UK. With no minimum deposit requirement and no taxes on capital gains, the account comes with spreads starting from 0.3 pips. The broker does not charge any commission in the spread betting account. However, clients need to pay a premium for holding positions overnight. Cash rebates are available for professional clients while negative balance protection is offered to retail traders only. The company does not allow hedging techniques in the said account. GBP and EUR can be the only default currencies in the spread betting account. Other features available in the account include a pattern recognition scanner, client sentiment, and rich educational resources. Not to mention clients have the option to sign up for free webinars.
CFD Account: CMC Markets has not defined the minimum deposit to open the CFD Account. The account comes with almost identical features as available in the spread betting account with a few exceptions. The broker does charge a commission starting from $10 and allows hedging techniques in the CFD account. Clients have the option of depositing funds in 10 fiat currencies, including the GBP.
Corporate Account: Institutional clients can sign-up for a CMC Corporate account. The minimum deposit to open a corporate account is not fixed. Clients can get started with any amount they see fit for their trading needs. Other features offered to corporate account holders stay the same as available in the CFD account.
CMC Markets Deposit & Withdraw & Fees
CMC markets offer multiple payment methods to add funds to your account. The broker is quick to accept deposits and fast to release funds. However, the supported payment methods at CMC Markets are limited. Given below is a list of payment methods that clients can use to fund their accounts.
- Debit card
- Credit card
- Bank transfers
- Wire transfers
- Inward telegraphic transfers
Please note that the broker does not accept Diners and AMEX cards. Also, a fee is applicable for transfers made from outside the UK. The broker charges the fee from your deposit amount and transfers the balance to your trading account. Clients need to ensure that their cards are 3D secured and issued in their names. Payments received from the third party are not accepted at CMC markets. Usually, funds deposited via debit/credit cards reflect in your trading account instantly. However, wire transfers may take 3-4 business days to reach your account.
Deposits and withdrawal are free of cost at CMC Markets. However, international funds transfers in currencies other than the base currency of your account might have some conversion fee charged by the source or recipient bank. Also, clients might need to bear some charges on debit/credit card transactions depending upon the country of their residence. For example; a 2% transaction fee is applicable on payments made using debit/credit card in Singapore.
Not to mention, the broker also imposes an account inactivity fee of $10 per month on all dormant accounts that have been consecutively inactive for more than a year.
Spread with CMC Markets
CMC Markets trading cost is quite competitive. The broker’s spread cost starts from 0.3 pips. The company also charges a commission starting from $10 on trading shares.
Listed below is the average spread the broker charges on major currencies pairs;
- EUR/USD – 0.7 pips
- USD/JPY – 0.7 pips
- GBP/USD – 1.0 pips
- USD/CAD – 1.7 pips
- AUD/USD – 0.7 pips
In addition to negative balance protection, the broker also offers guaranteed stop loss. However, the company charges a commission depending upon the type of underlying assets. For example;
- GBP/USD – 1.5 points
- EUR/GBP – 2 points
Leverage with CMC Markets
CMC markets also offer leverage to both retail and professional clients. Due to strict regulatory restrictions, the broker does not offer leverage of more than 1:30 to retail customers. However, professional clients can use the leverage of up to 1:500. Leverage can be very risky especially in a highly volatile market. Besides increasing your market exposure it also increases the risk of loss.
CMC Markets User Experience
CMC Markets offers a commendable user experience as far as the availability of tradable assets, types of accounts, and the usability of trading platforms are concerned. The broker offers over 10,000 financial instruments to trade with a competitive pricing structure. Flexible account types are well suited for different classes of traders. Both cTrader and MT4 trading platforms have a user-friendly trading interface. The company has a vast variety of trading tools available to assist traders in finding the best trading opportunities with CMC Markets.
Signing up with the broker is fast and easy. Multiple payment options make it convenient for clients to deposit and withdraw funds instantly. However, the level of customer support is below average. The company needs to pay special attention to its customer support department.
Who is CMC Market For?
The broker seems to have a customer-centric approach. Keeping things simple and easy, it focuses on providing a better trading experience to both novice and veteran investors. Low trading costs help small-scale investors to exploit trading opportunities as much as possible. Demo accounts are useful in building up the confidence needed for successful trading. Hedging techniques allow traders to profit from the smallest market moves. High leverage and rebates encourage high-volume traders to enhance their profit-making potential. In short, the broker is a one-stop-shop for all your trading needs.
CMC Markets User Experience
CMC Markets claims to offer non-stop customer support round the clock for seven days a week. Webchat is usually the most convenient method to seek customer support. However, CMC Markets’ chat window remains unavailable most of the time. When it becomes active, you barely find a live agent to answer your query. Customers have to rely upon the bot integrated FAQs section. However, clients can reach the company over the telephone or email.
After a detailed CMC Markets Review, we are confident to cast our vote in favor of the broker. The company is well suited for both retail and professional investors looking for an excellent low-cost investment opportunity.
Countries that CMC Markets is NOT available in:
Listed below are the countries where CMC Markets does not offer its services:
- North Korea
- United States
- South Africa
The minimum deposit is $0 at CMC Markets.
CMC Markets offers maximum leverage of up to 1:30.