CMC Markets vs Interactive Brokers Comparison – 2024

Top Reasons to Choose CMC Markets vs Interactive Brokers

Based on our evaluation, CMC Markets caters well to casual and beginner traders with commission-free trading, robust educational content, and reliable customer support. Experienced traders can also benefit from raw spread accounts, a feature-rich trading platform, and access to 12,000 markets.

Interactive Brokers is well-suited for professional traders, investors, and wealth managers. It offers the largest selection of instruments among all brokers, a diverse range of account types, competitive trading fees, and professional-grade proprietary trading platforms.

CMC Markets: Snapshot

CMC Markets, founded in 1989, is based in London and is authorized by 7 financial governing bodies, including 2 Tier-1 regulators. Publicly traded on the London Stock Exchange, the broker provides access to more than 12,000 tradable assets with competitive spreads and award-winning market research.

CMC Markets: Who is it For?

CMC Markets caters to the needs of beginner and experienced retail traders. For active traders, there are over 300 forex pairs, a tailored FX Active account, and one-click trading options. Beginner traders are offered a variety of educational resources, research materials, and trading signals.

What Makes CMC Markets Stand Out?

One of CMC Markets’ unique features is that it is a publicly listed broker on the London Stock Exchange. The award-winning Next Generation trading platform provides access to over 12,000 markets, a competitive fee structure, and advanced trading tools equipped with sentiment analysis and trading signals.

Interactive Brokers: Snapshot

Interactive Brokers Group, founded in 1978, is a publicly traded corporation based in Connecticut. Listed on the NASDAQ Stock Exchange, the broker complies with regulations from seven Tier-1 regulators. Over 2 million tradable instruments are available through a vast selection of trading and investing accounts, multi-asset platforms, and advanced tools.

Interactive Brokers: Who is it For?

With a wide range of asset classes, financial products, competitive fees, safety, and deep trading liquidity, Interactive Brokers caters to the needs of professional traders, investors, and portfolio managers.

What Makes Trading Interactive Brokers Stand Out?

Interactive Brokers stands out in the industry as a publicly traded broker listed on the NASDAQ Exchange. It offers the largest selection of global markets and asset classes, with competitive fees and professional-grade trading platforms.

Trust

CMC Markets vs Interactive Brokers Trust and Regulation Comparison

Established in 1989, CMC Markets is listed on the London Stock Exchange and operates from seven global entities. Five entities are governed by Tier-1 regulatory bodies, including the FCA (UK), IIROC (Canada), and BaFin (Germany), while two more entities are overseen by Tier-2 authorities. As a publicly traded broker, CMC Markets ensures high transparency and stability.

Interactive Brokers, based in Connecticut, USA, has been in operation since 1978. It is regulated by seven Tier-1 authorities, including the FCA (UK), ASIC (Australia), SEC and CFTC (USA), and four Tier-2 authorities. As a publicly traded broker on the NASDAQ Exchange, it ensures transparency and stability, with current equity capital exceeding $11 billion.

If you want to learn more about brokers’ regulations, be sure to check out our article on the top regulated forex brokers.

Fees

CMC Markets vs Interactive Brokers Spreads, Fees and Commissions Comparison

During our real-time assessment of fees using the CMC Markets CFD Account, we discovered that the spread for EUR/USD during the trading sessions in London and New York averaged 0.70 pips. This is lower than the industry average of 1.08 pips for an account without commission. If there is no activity for 12 months in a row, a monthly base currency fee of 10 units is charged.

The EUR/USD spread on the Interactive Brokers CFD account was found to average 0.25 pips, with a commission of $2 per lot. This is significantly better than the industry average of $3.50 per lot on top of the spread fee. This account also has no minimum balance requirements or inactivity fees.

Platforms and Tools

CMC Markets vs Interactive Brokers Trading Platforms Comparison

CMC Markets’ Next Generation platform is designed for experienced traders and is available via web and mobile. Beginners may find it more user-friendly than MT4. The Next Generation platform offers many advanced features, including 17 timeframes, 13 chart types, 115 technical indicators, built-in market sentiment tools, and a pattern recognition scanner powered by Autochartist. The MT4 platform primarily caters to automated traders, with options for desktop, web, and mobile use.

Interactive Brokers offers various proprietary trading platforms catering to different types of traders. The IBKR Trader Workstation (TWS), IBKR Mobile app and IBKR Client Portal provide access to more than 2 million tradable instruments, including more than 8,000 CFDs. Specialists in stocks, options, and mutual funds can use IBKR Desktop, IBKR Impact, and IBKR Global Trader. The flagship TWS platform is designed for experienced traders and offers customizable layouts, market scanners, integrated economic news, and diverse order types. The IBKR Mobile app caters to beginners with a user-friendly design that is easier to navigate.

In case you’re looking for brokers that offer more third-party trading platforms, check out our guides on the best MT5, TradingView and cTrader forex brokers.

Tradable Instruments

CMC Markets vs Interactive Brokers Instruments Selection Comparison

CMC Markets stands out in the industry with more than 12,000 markets to choose from. Its selection of 300 forex pairs is the most extensive among all forex brokers, catering well to the needs of forex traders.

Interactive Brokers offers the industry’s most extensive range of financial products, with over 2 million tradable instruments, including over 8,000 CFDs, from 200 countries. This selection caters well to multi-asset traders and portfolio managers.

Customer Support

CMC Markets vs Interactive Brokers Customer Support Comparison

CMC Markets provides customer support 24/5 via email, live chat, and phone. Our evaluation revealed some waiting times for live chat, but connecting via phone was almost instantaneous. The customer support agents were both knowledgeable and helpful.

Interactive Brokers offers customer support 24/6 through live chat, phone, and a contact form. The knowledgeable customer service agents handled various simple to complex inquiries well, although connecting with a live agent did take some time.

Research

CMC Markets vs Interactive Brokers Research Tools Comparison

CMC Markets offers a comprehensive range of market research provided by its dedicated in-house analyst team. This material is accessible through the Next Generation platform and caters to traders of all levels. Key publications include Morning Call, Intraday Insights, Evening Call, Breaking News, and Price Mover. Additionally, live market analysis videos are available on the CMC Markets YouTube channel. Third-party research is also provided by Morningstar and Reuters.

The Traders Insights page from Interactive Brokers offers expert market research. The content can be accessed directly through its proprietary trading platforms. Materials include written articles and videos discussing various markets and trading techniques. The broker provides third-party content from Nasdaq, Investopedia, and Redwall Analytics, catering to the needs of professional traders and investors.

Deposits & Withdrawals

CMC Markets vs Interactive Brokers Deposit and Withdrawal Methods Comparison

CMC Markets offers fee-free deposits and withdrawals via bank wire transfer, credit/debit card, and PayPal. Deposits are processed instantly. Withdrawals via credit/debit card may take 5-10 business days, while bank transfers and PayPal withdrawals typically take 1-2 business days.

Interactive Brokers provides deposit and withdrawal options through bank wire transfers. While deposits are free of charge, withdrawal fees may vary depending on the region and currency. Withdrawals in US dollars incur a $10 fee, and BACS/SEPA withdrawals in euros and British pounds incur a €1 or £1 fee. Payments are typically processed within one business day.

Account Types and Terms

CMC Markets vs Interactive Brokers Account Types Comparison

At CMC Markets, traders can choose from three types of accounts: Spread Betting, CFD, and Corporate. Additionally, the CFD account offers FX Active and Islamic options. These various account types cater to the needs of both novice and experienced traders.

Interactive Brokers offers a wide range of account types catering to individual traders, professional investors, fund managers, and family offices. These include Individual, Joint, Trust, Family Advisor, ISA, SIPP, Family Office, Small Business, Money Manager, Broker, and Proprietary Trading Group accounts.

Education

CMC Markets vs Interactive Brokers Educational Content Comparison

CMC Markets provides a diverse collection of educational resources, including articles, videos, webinars, and podcasts. The podcasts feature interviews with industry professionals discussing topics like trading psychology. The webinars cover a variety of subjects suitable for both novice and seasoned traders.

Interactive Brokers offers a comprehensive suite of educational materials. The Traders Academy provides 65 finance courses that include articles, videos, and quizzes covering various topics such as stocks, bonds, cryptocurrencies, platform tutorials, and fundamental analysis. Additionally, weekly educational podcasts and interactive live trading webinars serve as valuable resources for traders and investors at all levels.

Our Methodology

Since 2011, FX Empire has developed a detailed methodology for evaluating CFD brokers, involving over 250 variables across nine crucial categories. Our team of experts, with deep industry knowledge, conducts live testing and research by interacting with the brokers directly. We check regulations, open accounts, test spreads, account costs, platform functionality, instrument variety, customer support reliability, and the quality of research and educational content. This granular analysis helps us identify each broker’s strengths and weaknesses, keeping our comparisons current with market trends and ensuring our guides meet traders’ needs.

We strive to evaluate each broker objectively, considering how their offerings align with the diverse trading goals and preferences of our readers. Our focus is on providing a balanced overview of each broker’s strengths and weaknesses. This method ensures that our readers receive clear, insightful comparisons to aid in making well-informed trading decisions.

We employ a comprehensive rating system across nine key categories:

• Trust
• Fees
• Platforms and Tools
• Tradable Instruments
• Customer Support
• Research
• Deposits and Withdrawals
• Account Types and Terms
• Education

In each category, we conduct an in-depth analysis for both brokers, outlining features, advantages, and disadvantages and determining their suitability for different trader profiles. By blending insights from our extensive reviews with first-hand experiences and observations, we ensure each comparison is balanced, informative, and tailored to the trader’s unique needs. You can read more about our review process here.

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