CMC Markets Review
Established in 1989, CMC Markets offer over 10,000 trading instruments on sophisticated and versatile trading platforms. They also provide comprehensive analysis, trading tools and educational materials.
Pros / Cons
- Strict regulation
- Segregated client funds
- Financial Services Compensation Scheme (FSCS)
- Powerful platforms: Next Generation & MT4
- Innovative platform tools inlcuding ‘Module linking’ & ‘Pattern Recognition’
- No minimum account opening deposit
- No US clients
- Spread mark-ups
- No fixed spread accounts
- No copy trading platforms
- No PAMM/MAM
- No FIX API
In this detailed CMC Markets review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
CMC Markets Overview
CMC Markets is a multiple award-winning broker providing trading products and services to a global client base. The broker offers forex and CFDs for trading on its cutting edge trading platforms.
Founded in 1989 in the United Kingdom (UK), the broker is listed on the London Stock Exchange (LSE) with the ticker symbol CMCX. They are regulated in multiple jurisdictions, offering tight spreads and modern technology. CMC Markets has become a leading spread betting and CFD provider in the world today.
CMC offers a wide variety of tradable assets ranging from forex currency pairs, indices, commodities, cryptocurrencies, treasuries, metals, energies, CFDs and stock shares. These instruments are traded on modern platforms with a variety of essential and advanced tools to assist traders.
CMC Markets asserts that it is the sole execution venue for all its clients’ orders. The broker also affirms that it does not operate an order book where clients’ orders could provide or take liquidity. All orders are executed at the best rates available and at optimum speeds. This method of execution makes the broker a ‘market maker’, which does not connect a trader to a liquidity pool provider. Spreads can therefore be marked-up as they are not coming from an aggregated liquidity pool.
Over the years, CMC Markets have won numerous industry awards for their trading services, including ‘outstanding value’ and ‘client satisfaction’ awards.
CMC Markets Regulation
CMC Markets is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom (UK) with license number 173730. This license controls the UK and Europeans operations through its MiFID passports.
CMC Markets is authorised and regulated by the Australian Securities and Investments Commission (ASIC) with license number 238054.
CMC Markets’ New Zealand operation is licensed by the New Zealand’s Financial Markets Authority (FMA) with the license number 41187.
CMC Markets in Singapore is licensed by the Monetary Authority of Singapore (MAS).
In Canada, the Investment Industry Regulatory Organisation of Canada (IIROC) regulates the brokerage activities of CMC Markets.
Clients’ deposits are maintained in different segregated bank accounts. These funds are kept in top European banks such as NatWest, Barclays and Lloyds, Ulster Bank in Ireland, Deutsche Bank in Germany and Barclays in France.
CMC Markets accounts records are regularly crosschecked by internal auditors. Every year, ‘PricewaterhouseCoopers’ audits the records and the reports are sent to the regulatory authorities.
CMC Markets UK and European clients are insured by the Financial Services Compensation Scheme (FSCS). The scheme can compensate eligible clients up to £85,000 per person if the broker becomes insolvent. The Canadian clients are insured for up to one million Canadian Dollars by the Canadian Investor Protection Fund (CIPF). The MAS regulated jurisdictions are entitled to an insurance of up to 50,000 Singapore dollars.
CMC protects its trading platforms and websites with Secured Socket Layer (SSL) encryptions to ensure adequate user protection from identity thieves and cyber hackers.
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CMC Markets Countries
CMC Markets does not accept residents of the United States, Belgium and a few other countries. Some CMC Markets broker features and products mentioned within this CMC Markets review may not be available to traders from specific countries due to legal restrictions.
CMC Markets Platforms
Two platforms are available. They are as follows:
Next Generation Trading Platform
This is the award winning proprietary platform from CMC Markets. It is web based and thus, does not require any downloads or installations. It is also available on mobile devices as it runs directly in most modern web broswers. The Next Generation platform is designed with multiple windows and layouts. The platform is loaded with analytical tools, complex charting package, advanced order management, news, etc.
Here are some of its features:
- 12 different types of charts including OHLC, Kagi, Renko charts, etc
- Over 115 technical indicators.
- Fully customisable layouts, charts and indicators.
- Trade from the charts.
- Loaded with tools such as pattern recognition, client sentiment, module linking, etc.
- News from Reuters is streamed on the platform.
MetaTrader 4 (MT4) Trading Platform
Developed by Russian software company MetaQuotes and used by millions of traders worldwide, MT4 is a well known platform for trading forex and CFDs. CMC Markets provides access to trade thousands of instruments on the MT4 trading platform. MT4 can be downloaded from the CMC Markets website and installed on a windows PC. The mobile versions are available and can be installed on iOS or Android devices.
Here are some features of MT4:
- Available in over 20 languages.
- Multiple chart types and timeframes.
- Wide range of analysis tools including technical indicators and drawing tools.
- Automated trading using Expert Advisors (EAs).
- MetaEditor for creating custom indicators and EAs.
- Access to the MetaTrader market where signals, custom indicators, EAs and other tools can be purchased or acquired at no cost.
- Multiple order types including risk management tools.
- Monitoring features including live quotes, account monitoring, trade monitoring as well as trade history, etc.
- Alert notifications via the platform, SMS and email.
- Trading on the go using MT4 android app or MT4 iOS app.
CMC CFD Trading App
This is CMC Markets’ proprietary trading app which is a mobile version of the ‘Next Generation’ trading platform. It is developed for iOS and Android devices. It can be downloaded from the relevant app stores. With the mobile app, clients can trade thousands of instruments in real time whilst on the go from anywhere in the world.
Here are some of the features of the app:
- Customisable watchlist that can be used to view the instrument details and arrange them according to the trader’s interests.
- Over 30 technical indicators, multiple charts and drawing tools.
- Insights tool presents analysis from CMC Markets analysts.
- Live economic calendar with alerts on the app.
- Alert push notifications
- For every instrument, the sentiment analysis charts are available on the app.
CMC Markets Trading Tools
Pattern Recognition & Price Projection
The pattern recognition is a tool inbuilt into the Next Generation trading platform. It scans the charts and recognises technical patterns such as triangles and wedges, etc. When the patterns are complete, it creates a price projection box highlighting where the price action may likely go.
This tool enables the grouping of charts together for the sake of comparison. This tool is useful for examining the same assets over multiple charts, timeframes, indicators, etc at the same time.
Chart Forum Community
This is where traders can discuss strategies, exchange ideas and share chart analysis. It is part of the Next Generation trading platform. Traders can copy analysis, save and comment on posts.
This tool shows the percentage of traders that have bought a particular instrument as well as the percentage that have sold the same instrument.
This shows the dates and times scheduled for different global events as well as their predicted impact on the market. This calendar is powered by Reuters and it is streamed on the Next Generation platform.
This is produced and presented daily by CMC Markets experts. They give market insights and useful technical analysis on selected assets.
This consists of daily commentaries and video analysis as presented by CMC Markets analysts. It is accessible via the trading platform. The aim is to give traders ideas on how to proceed based on the analysis and price movements surrounding the assets.
News & Analysis
The topics covered are Market commentary, chart analysis, weekly outlook, technical and fundamental analysis. This is prepared and presented by the team of analysts at CMC Markets.
CMC Markets Education
The CMC Markets website has a dedicated learning section where a selection of comprehensive trader education is provided.
There are several training videos covering a variety of trading topics including fundamental analysis, technical indicators, forex and CFD trading, spread betting, etc. The videos are grouped for beginners, intermediate and advanced traders.
There are trading guides, lessons on forex, CFD and cryptocurrency trading. Also, there are articles explaining the basic concepts of trading for those who are new to it.
Webinars are scheduled on the CMC Market website from time to time, usually at least twice per month.
CMC Markets Instruments
CMC Markets has over 9,400 tradable assets available for trading on its platforms. There are:
- 300+ forex pairs including major, minor & exotic currency pairs.
- 60+ indices.
- 9,000+ share CFDs.
- 90+ commodities.
- 15+ cryptocurrencies.
- 30+ treasuries.
CMC Markets Accounts & Fees
CMC accounts are based on the trading platform and the assets available for trading. Spreads are generally competitive on most assets. The spread on the popular EURUSD FX currency pair starts from 0.7 pips while commission on shares start from 0.1%. Whilst many other brokers such as those who run an ECN model will tend to have spreads starting from 0 pips, CMC do not charge a commission as the cost is included within the spread.
The following are the account types:
Spread Bet Account
This is exclusively for residents of UK and Ireland. It is a way of trading the markets by speculating on price movements of the assets. The spreads start from 0.3 pips and there is a maximum leverage of 1:30. There is no minimum deposit and over 9,000 instruments are available for spread betting.
This account is only for the MT4 platform. It gives access to over 50 tradable assets including forex, indices and commodities. No commissions are charged as the broker fees are already embedded in the spread.
This account is for the ‘Next Generation’ trading platform. It gives access to trade all the 10,000+ trading instruments available. Commissions are charged on shares.
Demo accounts are available on all platforms. A virtual balance of $10,000 is preloaded into the demo account. This can help users to familiarise themselves with the platforms, practice trading strategies and test the brokers service.
As broker fees can vary and change, there may be additional fees that are not listed in this CMC Markets review. It is imperative to ensure that you check and understand all of the latest information before you open a CMC Markets broker account for online trading.
CMC Markets Support
The customer desk is available 24hrs a day from 9pm Sunday to 10pm Friday. The available communication channels are telephone, email and instant web chat.
The support page has a glossary of approximately 220 financial markets terms along with detailed definitions. It also has top Frequently Asked Questions (FAQs) grouped accordingly.
The broker is also available on social media; facebook, twitter, LinkedIn and YouTube.
CMC Markets Deposit & Withdrawal
CMC Markets states that it is not permitted to accept cash deposits. It also cannot receive or make payments to third parties. So, all payments must be in the account holder’s name. The different regions of CMC’s operation have their own payment methods suitable for the local clients. Generally, CMC Markets does not always charge deposit and withdrawal fees. But, in most cases, the transaction fees charged by the payment processors are transferred to the clients. Bank transfers may take a few business days to clear whilst some methods can be instant.
Some payment systems may have transaction limits, restrictions, and requirements which are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries.
Accounts can be opened in USD, EUR, GBP, CHF, NOK, SEK. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
Here are some of the globally accepted funding options:
Clients can make deposits from their bank accounts to CMC Markets’ bank accounts. Withdrawals are also made via this method. It takes 3-7 working days depending on the banks.
CMC Markets does not accept AMEX and Diner card. Only 3D secure cards are accepted. Card payments are promptly transferred to the trader’s account, usually within a few hours.
E-payment solutions like Poli, PayPal and Bpay are accepted by some regions like Australia. Online payments are usually processed instantly.
CMC Markets Account Opening
To open a new account, visit the broker website and click on “Create account” found beside the menu bar. The form below displays.
Fill the form and click ‘Get started’. Another form displays where you will have to enter personal information, address, financial background, employment status, trading experience and declarations. You will need to upload a form of identification (passport, drivers license, etc) and proof of address (utility bill, bank statement, etc) in order to verify your account. Once it has been verified you will then be able to fund it and commence trading.
CMC Markets Summary
CMC Markets is a well-established online broker that has stood the test of time and continues to adopt the latest trade technologies. The broker holds multiple regulations from different authorities and carefully abides by the stringent regulatory provisions.
With an impressive asset listing of over 10,000+ instruments, individuals, corporate and international traders are accommodated. There is no minimum deposit, meaning that anyone is welcome irrespective of trading capital or experience. The spreads are slightly high when compared to other brokers.
The CMC proprietary Next Generation trading platform has won multiple awards. It has a myriad of innovative tools that aim to simplify the job of the trader. The sentiment analysis, social forum, news from Reuters as well as analysts’ insights are all great additions that make the platform a good choice for different styles and expertise of traders.
They also provide a comprehensive range of training videos and other educational resources on the website and platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.