CMC Markets Review 2024

Trust

CMC Markets Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the CMC Markets trade name:

• CMC Markets UK PLC is authorised and regulated by the UK Financial Conduct Authority (FCA), firm reference number 173730. We rate FCA as a Tier 1 regulator.
• CMC Markets Asia Pacific Pty Ltd. is authorised and regulated by the Australian Securities and Investment Commission (ASIC), ACN number 100 058 213. We rate ASIC as a Tier 1 regulator.
• CMC Markets Canada Inc. is authorised and regulated by the Investment Industry Regulatory Organization of Canada (IIROC). We rate IIROC as a Tier 2 regulator.
• CMC Markets Germany GmbH is authorised and regulated by the Federal Financial Supervisory Authority (BaFin), ID number 10154814. We rate BaFin as a Tier 2 regulator.
• CMC Markets Singapore Pte. Ltd. is authorised and regulated by the Monetary Authority of Singapore (MAS). We rate MAS as a Tier 2 regulator.
• CMC Markets Middle East Ltd. is authorised and regulated by the Dubai Financial Services Authority (DFSA), reference number F002740. We rate DFSA as a Tier 2 regulator.
• CMC Markets NZ Ltd. is authorised and regulated by the New Zealand Financial Markets Authority (FMA), reference number FSP41187. We rate FMA as a Tier 2 regulator.

Why is it important to know where your broker subsidiary (entity) is regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection. 

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All CMC Markets entities guarantee the segregation of client funds.    
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. All CMC Markets entities ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Clients of CMC Markets UK PLC are protected by up to GBP 85,000 under the Financial Services Compensation Scheme (FSCS). Two more broker entities also have such a compensation scheme in place.  
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with CMC Markets UK PLC is 1:30.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

Founded in 1989, CMC Markets has a substantial operating history and is one of the oldest forex and CFD brokers in the world. It is also one of the largest, with between 501 and 1,000 employees, according to the company’s LinkedIn page. Headquartered in the City of London, CMC Markets also has offices in Sydney, Singapore, Toronto, and across Europe.

CMC Markets is publicly traded and listed on the London Stock Exchange (UK:CMCX). In 2020, it became part of the FTSE 250 Index, a capitalisation-weighted index listing the largest companies on the London Stock Exchange. As a publicly traded company, CMC Markets must disclose financial reports, allowing for greater insight into the stability of the company.

In our research, CMC Markets demonstrated a high level of transparency regarding its regulatory status, fees, and general background information. The materials are readily available on the website. 

The regulatory status of different subsidiaries is covered at the footer of each page. The Trading Costs page clearly outlines all the costs, such as spreads and overnight holding fees. A User Agreement (Terms of Business) document is available on the CFD Legal Documents page.

Is CMC Markets Safe to Trade With?

I concluded that CMC Markets is very safe to trade with due to the following factors: 

• Authorized by multiple Tier-1 regulators
• Has a ‘best execution policy’
• Has transparent legal documents

Fees

CMC Markets Trading Fees

CMC Markets Spreads

I tested CMC Markets’ spreads on 3 July 2024 during the London and the New York open. The results are shown in the table below: 

Broken down by asset class and compared to the industry average, CMC Markets offers low spreads on share CFDs, low-to-average spreads on currency pairs and indices, and average spreads on commodities. 

CMC Markets Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units). 

CMC Markets Non-Trading Fees

CMC Markets does not charge a handling fee for deposits and withdrawals. There is, however, a GBP 10 inactivity fee charged on dormant accounts. 

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of CFC Markets’ two retail trading accounts and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large. 

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

Based on my research, the CMC Markets’ two retail account types beat the industry average by quite a bit. This combination of commission-free trading (except for share CFDs) and raw spreads from 0.5 pips is suitable for all kinds of trading strategies.

Are CMC Markets’ Fees Competitive?

Overall, I was impressed by the fees at CMC Markets and especially by the tight spreads, which are highly important to traders. The spread reflects the costs of entering and exiting trades. For an active trader, this cost can often make the difference between being profitable or suffering losses at the end of the day.  

Platforms and Tools

The Next Generation Platform

CMC Markets’ Next Generation platform certainly lived up to its name. Testing its many features was a breeze, and I assessed that the platform could be used to carry out comprehensive technical analysis. This is made possible due to the fluidity of its charts, supplemented with a wide array of analytical tools.

The Next Generation platform offers built-in chart pattern recognition tools. The idea is that you can scan multiple instruments and timeframes for classic chart patterns that may have predictive value. The patterns recognized are mostly basic ones, such as triangles, wedges, and double tops/bottoms. The more sophisticated Head and Shoulders pattern can also be identified.

A client sentiment tool lets you know what other clients within the platform are trading and whether they are long (buyers) or short (sellers). Sentiment can be viewed across the whole client base or just among the top-performing traders. Sentiment is usually used as a contrarian indicator.

General Ease of Use

At the core of CMC Markets’ offering is its proprietary web-based Next Generation platform. The platform has a clean, easy-to-use interface along with advanced functionality, making it suitable for beginners as well as experienced traders.

Charts

Charting within the Next Generation Platform is robust and easy to use. Charts include the following features:

• 115 technical indicators: These are categorized into Overlays and Studies. Overlays include indicators like moving averages, Bollinger Bands, and Keltner Channels, which sit on top of charts. Studies encompass indicators such as MACD, RSI, and various oscillators, typically shown beneath charts. These overlays and studies can be easily added from the bottom of the chart, making the process smooth and intuitive for beginners.
• 13 chart types: These include classic formats like Japanese Candlesticks and Bar charts, as well as more exotic Kagi and Renko charts.
• 40 drawing tools: Ranging from basic trend lines and channels to various Fibonacci and Gartley tools. These tools are visually represented beneath the chart for easy understanding and use.
• 17 time frames: Ranging from 1 second to 1 week, allowing traders to analyze specific periods. One-minute charts show price movements for each minute, hourly charts for each hour, and so forth. You can also select the total time period for the chart, from 1 day to a maximum that varies by instrument. For example, gold data goes back 26 years to 1996.

The layout of charts within the platform is easily customizable, and there are a variety of preset layouts you can select if you want to watch the charts of multiple markets at once.

Orders

The platform offers an above-average range of order types for placing trades. Traders can choose between the following orders:

• Market orders: This order type is used to open or close trades at the current market price.
• Limit orders: Limit orders are used to enter or exit the market at a specific price.
• Stop-loss orders: Here you can specify the price at which a position will be closed if the market moves adversely.
• Trailing stop-loss orders: This type of stop-loss order follows the market price as it moves in your favor. It remains at a set distance from the current price, allowing you to lock in profits.
• Guaranteed stop-loss orders: GSLOs provide certainty that your stop-loss will be executed at your desired price. However, an additional charge can be applied.
• Boundary orders: For use in fast markets, this order type allows you to set a price range that you are willing to accept to ensure that your trade is executed.

Time-in-force conditions can be applied to orders. For example, if you are entering a limit order to buy gold at a price below where the market is trading, you can either mark the order GTC (good ’til canceled) or set a specific expiry date for your order.

My Key Takeaways After Testing the Next Generation Web Trader Platform

It was a breeze to test CMC Markets’ proprietary platform. I especially enjoyed using its advanced charting capabilities. The high level of detail displayed makes price action examinations especially easy. 

CMC Markets’ Mobile App

The CMC Markets mobile app has a great user interface and is packed with functionality similar to that of the web platform. Over 12,000 instruments are available to trade. Charts are optimized for mobile and offer 25 technical indicators and 15 drawing tools. You can place, edit, and close trades directly from charts.

The app’s order tickets allow users to place the full range of order types, including guaranteed stop-loss orders and trailing stops. Biometric (fingerprint) and two-step login are available.

My Key Takeaways After Testing CMC Markets’ Mobile App

The CMC Markets mobile app is intuitive and feature-rich, delivering a great experience for traders on the move. I appreciated its light design and intuitive layout. The start screen is customizable to suit your preferences. You can also set up push notifications, SMS, or email alerts on your orders or price levels.

However, you can’t be logged into mobile or web platforms at the same time. Another drawback is that charts do not automatically sync with the way you have them set up in the web platform.

MetaTrader 4

MetaTrader is a powerful platform with impressive features but the interface appears dated in comparison with the Next Generation Platform. What distinguishes MetaTrader is its ability to perform strategy backtesting and automated trading.

Key Features

The platform provides popular features such as:

• Alerts. This feature allows traders to be updated when an instrument reaches a specific price level. Alerts can be delivered via audio, an email, or a push notification to a mobile device.
• Watchlists. Traders can set up a list of their favorite instruments and follow live quotes in a panel called Market Watch.
• One-click trading. This feature allows traders to execute orders with a single click and no secondary confirmation. Being able to place a trade with a single click saves time and is especially useful for short term traders.
• Trading from the chart. MT4 also allows users the convenience of trading directly from the chart.

Order Types

MetaTrader also delivers when it comes to the range of available order types and its charting functionality. The following order types are available:

• Market Order. This is an order to buy or sell an instrument at the current best available price.
• Limit Order. This is an order to buy or sell an instrument at a specified price or better.
• Stop Loss Order. This is an order to buy or sell an instrument that is triggered when price reaches a specified level.
• Trailing Stop Order. This is a stop loss order that can be set at a defined percentage or dollar amount away from an instrument’s current market price. It is used to secure profits when you are in a winning trade, while not having to exit the position.

Charting

Charting features are robust. MetaTrader 4 offers:

• 30 technical indicators. These include classic trend indicators, volume indicators and oscillators.
• 23 analytical objects. These include lines, channels, Gann and Fibonacci tools.
• 9 time frames Each instrument can be displayed in nine time frames, from one minute to one month.
• 3 chart types. Traders can choose between Bar Charts, Japanese Candlestick Charts and Line Charts.

Advanced Features

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 4 allow users to automatically copy the activity of other traders in real time.
• Automated trading. MetaTrader 4 allows users to develop, test and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms. They find opportunities according to set parameters and then either create a notification or automatically open a trade.

To conclude, the MetaTrader 4 desktop platform is one of the most feature-rich and popular trading platforms in the world. It does not have the best design and it does require some time and effort to learn, but that is typical of advanced platforms.

Order Execution

CMC Markets is a dealing desk/market maker broker, meaning that they set the bid (buy) and offer (sell) prices internally and automatically take the other side of a client’s trade. This contrasts with STP/ECN brokers who provide clients direct access to other market participants. (STP stands for straight-through processing, and ECN stands for electronic communications network.)

Tradable Instruments

CMC Markets’ instruments offering beats the industry average for every asset class.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With CMC Markets?

My Key Takeaways After Exploring CMC Markets’ Instruments Offering

CMC Markets offers an impressive number of commonly traded assets and exotic instruments. Forex and commodity traders, in particular, stand to benefit from the broker’s rare instruments on offer. My only gripe is that there are few alternatives to CFDs, such as futures contracts and vanilla options.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

When testing support via chat, I experienced a short delay and was placed in a queue. Although the wait time was brief, it was noticeably longer compared to market leaders, where responses are typically immediate. However, phone support had virtually no wait time, and email inquiries were answered within 1 business day.

We tested support with a variety of questions. These ranged from basic, such as ‘Are funds segregated?’ to more unusual inquiries, such as ‘Does CMC Markets offer VWAP?’ Overall, we received a good quality response in a timely fashion. 

Deposits & Withdrawals

Deposits

Withdrawals

We judged the speed of deposits and withdrawals at CMC Markets to be average for the industry.

Account Types and Terms

CMC Markets Account Opening Process

To set up an account with CMC Markets, follow these easy steps:

• Step 1: Enter your email and set up a password. 
• Step 2: Verify your email by using the code you are sent. 
• Step 3: Enter your personal details. 
• Step 4: Choose an account type. 
• Step 5: State your financial background and employment status. 
• Step 6: Explain your trading experience and reason for opening an account. 
• Step 7: Verify your account by uploading proof of address and ID. 

CMC Markets Account Types

The CFD Trading account is perfectly calibrated for experienced and novice traders. There is no minimum deposit requirement, making it quite accessible. Additionally, the combination of commission-free trading and raw spreads from 0.5 pips is extremely favorable.

Demo Accounts

CMC Markets offers a demo account that introduces traders to the broker’s services and allows them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account along with a live CFD account.

Islamic Account

CMC Markets does not offer Islamic accounts for swap-free trading.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with CMC Markets for instruments from different asset classes:

Supported Countries

CMC Markets accepts clients from Australia, Austria, Bahamas, Bahrein, British Virgin Islands, Bulgaria, Canada, Cayman Islands, Chile, Croatia, Cyprus, Czech Republic, Estonia, Denmark, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hong Kong, Hungary, Iceland, Ireland, Isle of Man, Israel, Italy, Jersey, Jordan, Kuwait, Latvia, Liechtenstein, Lithuania, Luxemburg, Malta, Monaco, Netherlands, New Zealand, Norway, Oman, Peru, Philippines, Portugal, Qatar, Republic of Korea, Romania, Saudi Arabia, Seychelles, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arabic, Emirates, United Kingdom, Vietnam.

Research

Research Tools

Market Insights

Market insights are provided throughout the day on the Next Generation Platform, with a variety of different reports, including:

• Morning call. This brief report examines the news stories and economic data that could move the market in the day ahead.
• Intraday insights. This recaps the results of important economic releases and other news.
• Evening call. A more in-depth report covering the major stories of the day. Analysis is broken down by region (US and Europe) and by market (forex and commodities).
• Breaking news. Covers market-moving news such as earnings releases and the reaction to it.
• Price mover. This report focuses on trading instruments that are making big moves that day. Particularly useful to day traders, who often look for opportunities in markets experiencing unusual short-term volatility.

Blog

The blog on the CMC Markets website is frequently updated, with roughly five economic and market news stories posted per day. These stories range from in-depth analyses of specific stocks, indices, and sectors to forecasts of how upcoming economic data could impact the market.

Video Content

CMC TV, hosted on YouTube, features live coverage of headline economic events such as Non-farm Payrolls, central bank meetings, and major earnings releases. These video sessions range from roughly 30 to 45 minutes in length and also include technical analysis of the relevant charts.

My Key Takeaways After Exploring CMC Markets’ Research Content

Research content with CMC Markets is rich and nuanced. The broker goes above and beyond to offer its clients powerful insights and actionable trading breakdowns, which can help them achieve consistent results. 

Education

Educational articles on the website, such as ‘How to Trade Bitcoin’ and ‘What is a trailing stop order?’, help guide traders. More advanced guides that go deep into specific trading strategies, like momentum trading and price action trading, are especially useful.

Webinars cater to both beginners and experienced traders and cover topics ranging from the outlook for the global markets to making the most of the Next Generation trading platform. They take place weekly and are archived on the CMC Markets YouTube channel.

The Opto Sessions Podcast features interviews with industry experts, covering topics like value investing or investing in a specific sector such as software. These weekly podcasts are a great way to broaden your knowledge in a passive way, for example, while driving your car.

The Bottom Line

CMC Markets is a pioneer and market leader in the forex and CFD industry. As a large, extensively regulated, publicly traded company, it offers stability and diverse services. The proprietary Next Generation platform boasts advanced functionality and an attractive, user-friendly interface.

The depth of the product catalog places this broker in an elite group, and active traders will especially appreciate its tight spreads. Education and research offerings are strong, and customer service, while not always the fastest, is reliable.

These factors make CMC Markets an all-around winner and an appealing choice for both beginners and advanced traders.

FAQ