IG Vs CMC Markets

Category: Broker Guides | Author: Trading Brokers | Date: July 21, 2023

IG and CMC Markets are two of the most well-known and established forex brokers in the world. They both offer access to a wide range of markets and instruments, including forex, CFDs, stocks, indices, commodities, and cryptocurrencies. They also provide advanced trading platforms, tools, research, and education for traders of all levels and styles. But how do they compare in terms of their features, services, and fees? Which one is better suited for your trading needs and preferences? In this article, we will compare and contrast IG and CMC Markets based on various criteria, such as regulation, account types, pricing models, available instruments and markets, and so on. By the end of this article, you should have a clear idea of the pros and cons of each broker, and be able to make an informed decision on which one to choose. Let’s get started!

Overview of IG

IG

IG

IG is a well-established and highly regarded trading platform that offers a comprehensive suite of tools and features for traders of all experience levels. With a user-friendly interface and intuitive navigation, IG provides a seamless trading experience. The platform boasts a wide range of financial instruments, including stocks, indices, commodities, forex, and cryptocurrencies, allowing traders to diversify their portfolios.

IG stands out with its advanced charting capabilities, enabling in-depth technical analysis and the ability to customize indicators and drawing tools. Additionally, the platform offers real-time market data, news updates, and educational resources to empower traders with up-to-date information and market insights. With competitive pricing, flexible account options, and a robust mobile app, IG caters to both active traders and long-term investors, making it a popular choice among individuals looking for a reliable and feature-rich trading platform.

Pros of IG

  • Highly regulated and reputable broker with over 45 years of experience
  • Offers over 17,000 tradable instruments across various markets and asset classes
  • Supports automated trading, social trading, and copy trading via third-party services
  • Offers low spreads and commissions on its Raw Spread Account and cTrader Raw Account
  • Offers a wide range of educational resources, including webinars, courses, videos, articles, podcasts, and more
  • Has excellent customer support available 24/5 via phone, email, live chat, and social media

Cons of IG

  • Charges a high minimum deposit of $450 for most account types
  • Does not offer a swap-free account for Islamic traders
  • Charges inactivity fees after two years of no trading activity
  • Does not accept clients from some countries, such as the US, Canada, Japan, and New Zealand.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview of CMC Markets

CMC Markets 

CMC Markets

CMC Markets is a reputable and established trading platform that offers a comprehensive range of features and tools tailored to meet the needs of traders. With its user-friendly interface and intuitive design, CMC Markets ensures a seamless trading experience. The platform provides an extensive selection of financial instruments, including stocks, indices, commodities, forex, and cryptocurrencies, enabling traders to diversify their portfolios.

Notably, CMC Markets excels in its powerful research and analysis tools, offering real-time market data, economic calendars, and customizable charting options. Moreover, the platform provides access to educational resources, webinars, and expert insights to enhance traders’ knowledge and decision-making. CMC Markets also offers competitive pricing, flexible account types, and a mobile trading app that allows traders to monitor and execute trades on the go. Overall, CMC Markets stands as a reliable and feature-rich platform suitable for traders seeking robust tools and a comprehensive trading experience.

Pros of CMC Markets

  • UK-based, regulated by FCA
  • Low forex fees, no deposit/withdrawal fees
  • Great web and mobile platforms
  • Advanced research and education

Cons of CMC Markets

  • Stock CFD fees are high.
  • The product portfolio covers only CFDs (forex, indices, commodities, shares, ETFs, bonds, crypto – except for UK clients).
  • Customer service, while helpful, is available only 24/5 (from Sunday nights through to Friday night)
CMC Markets Logo

Established in 1989, CMC Markets offers a great selection of over 10,000 trading instruments on sophisticated and versatile trading platforms. They also provide comprehensive analysis, trading tools and educational materials.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparing IG and CMC Markets

When comparing IG and CMC Markets, there are several factors to consider. Here are some key factors to reflect on:

Regulation

IG boasts a comprehensive range of regulatory approvals, including ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, and NFA. This extensive list reflects IG’s commitment to operating under the oversight of multiple reputable regulatory bodies, ensuring a high level of compliance and security for traders. On the other hand, CMC Markets is regulated by ASIC, FCA, FMA, IIROC, and MAS. While CMC Markets operates under a slightly smaller set of regulatory authorities compared to IG, it still adheres to stringent standards enforced by these respected organizations.

Trading Platforms

IG offers a diverse range of trading platforms to cater to different trader preferences. Traders can choose from platforms such as MetaTrader 4 (MT4), ProRealTime, L2 Dealer, and WebTrader. Each platform comes with its own unique features and capabilities, providing traders with flexibility and options. CMC Markets, on the other hand, offers MetaTrader 4 (MT4), Next Generation, and WebTrader as its trading platforms. These platforms also offer a wide range of features and tools, empowering traders with advanced charting, technical analysis, and order execution functionalities.

Pricing and Fees

CMC Markets has low forex fees with an average raw spread of 0.73 pips for EUR/USD, but high stock CFD fees. IG has low forex fees with an average raw spread of 0.17 pips for EUR/USD and average stock CFD fees. However, CMC Markets has an edge over IG when it comes to stock CFD trading, as IG charges higher fees for this asset class. Both brokers also charge inactivity fees if you do not trade for a certain period of time, as well as overnight financing fees for holding positions past the market close.

Broker Type

Both IG and CMC Markets operate as Straight-Through-Processing (STP) brokers, ensuring efficient and direct market access for traders. As STP brokers, both platforms eliminate the need for a dealing desk, allowing trades to be executed directly in the market. This model enhances transparency, as it eliminates potential conflicts of interest between the broker and the trader. By routing client orders directly to liquidity providers, IG and CMC Markets enable traders to access competitive pricing and fast trade execution.

Leverage

CMC Markets provides higher leverage options compared to IG for most regions and account types. Professional traders in Australia, the UK, and Europe can access leverage of up to 500:1 at CMC Markets, while IG offers a maximum of 222:1 for the same group. Additionally, retail traders in New Zealand can avail themselves of up to 500:1 leverage for forex trading at CMC Markets, whereas IG’s highest leverage for retail traders in the UK, Europe, and Australia ranges from 30:1 to 250:1, depending on the account type. In the USA, both brokers offer lower leverage, with CMC Markets providing a maximum of 50:1 and IG offering 50:1 for major currency pairs and 20:1 for minor currency pairs. It’s essential to exercise caution when using higher leverage due to the associated increased risk.

Asset Selection

Both IG and CMC Markets offer a wide range of tradable instruments, enabling traders to diversify their portfolios. IG provides access to over 18,000 tradable instruments, including forex, indices, shares, commodities, cryptocurrencies, options, ETFs, bonds, and interest rates. Similarly, CMC Markets offers over 10,000 tradable instruments, covering forex, indices, shares, commodities, cryptocurrencies, options, ETFs, bonds, and interest rates. This extensive asset selection on both platforms allows traders to explore various markets and opportunities.

Social Trading

Both IG and CMC Markets offer some form of social trading, but they differ in their scope and functionality. IG has an IG community feature, where you can interact with other traders, share ideas, and access IGTV. However, IG does not offer a dedicated copy trading service, where you can automatically replicate the trades of other traders. CMC Markets has a CMC Pro feature, where you can access advanced tools and analytics, as well as a social trading network powered by Tradeo. This allows you to follow and copy other traders on the platform, as well as create your own trading signals.

Minimum Deposit

CMC Markets has no minimum deposit requirement, so you can start trading with any amount you like. IG has a minimum deposit requirement of $250.

Withdrawal and Deposit Methods

CMC Markets and IG both offer bank transfers, credit/debit cards, and PayPal for deposits and withdrawals, with no fees from the brokers. IG also supports other e-wallets such as Neteller and Skrill. CMC Markets has no minimum deposit requirement, while IG’s minimum deposit varies by region and account type.

IG or CMC Markets: Which is Best for You?

When deciding between IG and CMC Markets, determining which platform is best for you depends on your individual preferences and trading needs. If you’re someone who values a wide range of trading platforms to choose from, IG’s offering of MetaTrader 4 (MT4), ProRealTime, L2 Dealer, and WebTrader provides ample flexibility. On the other hand, if you prioritize advanced research and analysis tools, CMC Markets’ platforms, including MetaTrader 4 (MT4), Next Generation, and WebTrader, offer powerful charting capabilities and technical analysis features. If social trading is important to you, IG’s integration with Myfxbook allows you to connect with other traders and copy their strategies, whereas CMC Markets does not currently offer social trading. Additionally, if a lower minimum deposit is a priority, CMC Markets’ requirement of $0 may be more appealing. Ultimately, the best platform for you depends on factors such as your preferred trading platform, desired tools, social trading preferences, and deposit requirements, so consider your specific needs to make an informed choice.

Conclusion

In conclusion, the comparison between IG and CMC Markets highlights the strengths and features of each platform, allowing traders to make informed decisions based on their individual preferences. Both platforms offer regulated and reputable services, a diverse range of tradable instruments, and competitive pricing. IG stands out with its multiple trading platform options, social trading functionality, and a higher number of tradable instruments. On the other hand, CMC Markets excels in advanced research tools and a lower minimum deposit requirement. Ultimately, the choice between IG and CMC Markets depends on factors such as preferred trading platforms, desired tools, social trading needs, and deposit considerations. Traders are encouraged to carefully evaluate their requirements and select the platform that aligns best with their trading goals and preferences.


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