CMC Markets Review – The Benefits of Trading with This Forex Broker
CMC Markets Forex trading accounts are some of the best options currently available in the market, allowing you to access the FX markets and trade 7 different asset classes, including treasuries, shares, indices, and cryptocurrencies. CMC Markets regulation is carried out by top-tier regulators, and the broker is a publicly traded company listed on the London Stock Exchange. Furthermore, the company has been an active member of the markets for more than 3 decades and is renowned for its excellent trading conditions, impressive trading tools, and outstanding trading platforms.
The broker is one of the top UK-based brokerages for trading CFDs and spread betting. Our CMC Markets review has been carefully compiled with the benefit of our readers in mind. We evaluate how the company’s regulatory status, its diverse product portfolio, and many years of experience in the Forex market contribute to an excellent trading environment. We will also find out if there are any problems with the company’s overall service to offer a comprehensive CMC Markets review.
- Competitive spreads
- Wide range of charting tools
- Tax-free spread betting profits
- CFD trading
CMC Markets Forex Trading – Types of Accounts and Account Registration
The main purpose of a comprehensive CMC Markets review is to understand the various benefits and drawbacks of the company before recommending it to our readers. These details provide a much better perspective for traders, which helps them compare different brokers before finalizing their decision. Therefore, let us showcase some of the pros and cons of CMCMarkets.
- Publicly traded broker with more than 30 years’ experience.
- Regulated by top regulators in the market.
- Excellent range of tradeable instruments.
- Highly competitive spreads.
- No CMC Markets minimum deposit requirement.
- Outstanding proprietary CMC Markets Forex trading app.
- Remarkable collection of trade assistance tools, market analysis, and educational materials.
- Does not offer the MT5, cTrader or other popular trading platforms.
- Limited CMC Markets deposit and withdrawal options.
- No deposit bonuses on offer.
Categories of CMC Markets Forex Trading Accounts on Offer
There are only 2 distinct types of CMC Markets Forex accounts, which makes it easier for traders. You can choose between a CFD account and a Corporate account, depending on your investor status. The CFD and Corporate accounts are quite similar to each other in terms of features and trading conditions. Still, as the names suggest, the CFD account is designed for individual traders, while the Corporate account is suited for corporate and institutional traders. The broker does not specify any CMC Markets minimum deposit requirements for either account category, which opens the broker’s services to the entire FX trading market. Therefore, the broker is indeed one of the best for both smaller low-volume traders and professional high-volume investors.
Both the CFD and Corporate accounts support the full array of execution policies such as market, limit, guaranteed stop loss, and stop entry orders. Several advanced order management tools, such as Boundary Orders, help traders minimize slippage or prevent it altogether. Other features include the ability to trade directly from charts, hedging capabilities, trading using unrealized profits, price depths for larger trade sizes, and tiered margins. One key feature that we uncovered in our CMC Markets review is that traders are given access to more than 10,000 tradeable instruments, which offers comprehensive market access to trade over 8 different asset classes.
The CMC Markets margin requirements are determined by maximum leverage of 1:500, which aligns with the general degree of margin offered by mainstream brokers. Other order execution conditions include fractional trade sizes, account netting, and telephone trading, which is provided around the clock. Even though the broker does not specify any minimum CMC Markets deposit requirement, the broker does offer several free tools and research materials, such as FX education, seminars, market insights, client sentiment, and pattern recognition scanner. As a result, the regular CMCMarkets CFD and Corporate accounts are some of the best Forex account options available in the market.
Traders from the UK can also open a Spread Betting account, a form of outcome-based wagering product that is only legal in the UK. It is indeed a financial derivative, but spread betting is not legal in most countries due to its similarities to gambling products. Additionally, the broker also offers other account options, such as a Stockbroking account for its Australian clients through its AU brokerage, but these accounts are highly geo-targeted. Regardless, the broker offers the CFD and Corporate accounts as a standard option for all traders across its global brokerage platforms.
How To Open a CMCMarkets CFD Account
There are 3 steps in the CMC Markets Forex account registration process. The first step collects your account preferences, namely, your preferred type of trading account, the base currency, the nature of the account, and your country of residence. Once the platform determines that you are eligible for a trading account, you will be taken to the next step of the registration process. For this step, you have to enter your personal details and contact information and choose a password for your account. You will also be required to submit your address, tax information, and financial background, after which you must agree to the broker’s risk disclosure policies and its terms and conditions.
Alternatively, the broker also allows its clients to sign up using their email address. All you need to do is enter your email address and your preferred password, which will take you directly to the broker’s browser-based app. You will have to verify your email address by entering a verification code or clicking on a verification link. The subsequent signup process may appear to be lengthy, as it stretches over 6 steps.
However, the forms are just the same, and you will be asked to update your personal information, contact details, and financial background through the broker’s Next Generation web-based trading platform. The broker will take some time to review the information you have provided and will ask you to upload the necessary identifying documents to verify your identity. You can only fund your account and start trading once your live account is approved.
CMC Markets App Options for Desktop Users
The company offers a proprietary CMC Markets app, known as the Next Generation trading platform, alongside the third-party MetaTrader4 platform. The Next Generation trading platform is an award-winning browser-based WebTrader that incorporates several advanced trading features and functionalities. It supports a multitude of indicators, trading tools, charting pattern recognition features, and other advanced trading functionalities such as the price projection tool, module linking, and client sentiment analysis. The platform is also connected to several news feeds, which are offered free to CFD and Corporate account holders. The platform enables traders to trade directly from the charts or place orders through the dedicated trading terminal. Therefore, we find the company’s proprietary WebTrader to be one of the most impressive trading platforms for CFD trading.
The Next Generation CMC Markets app is offered in both a dark and a light theme. There is a fixed and a fluid layout option, where traders can customize the workspace according to their exact preferences. The WebTrader uses a drag-and-drop approach for managing its workspace, which provides a high degree of customizability to have multiple windows open simultaneously. Each module can be used to display a particular market, a chart, a pattern recognition window, a trading terminal, or a sentiment indicator, all at the same time. Account management and other dashboard features are available as separate menus located at the top and side of the interface.
As for the overall performance, we never found the platform to be lacking in any area. The speed of transition between the windows, order execution times, and the popup menus all performed to the best of our expectations.
Traders are offered a wide array of trading options, such as market information, tradeable instruments, watchlists, learning resources, charts, and a trading terminal. At first glance, the entire layout may seem to be inundated with trading tools and information, but upon closer inspection, we found it to be quite useful and practical. Traders can obtain specific details of an asset by right-clicking it, which provides useful data such as its CMC Markets spread, CMC Markets interest rates, client sentiment, quote panel, order settings, and product overview.
Traders can also learn about the CMC Markets margin requirements offered for each market and plan their trades accordingly. The one-click access to all the features of the Next Generation platform did elevate our experience quite considerably.
We were very impressed with the broker’s proprietary app, such that we almost forgot to fire up the optional MT4 platform that is also on offer. Since this CMC Markets review is designed to cover all the aspects of trading, we also gave the MT4 a shot. The MetaTrader4 terminal does have its own unique party tricks, such as EA support in a vast MQL forum with access to excellent third-party add-ons. As a result, it makes more sense for traders who have been using MT4 to access the Forex market.
Nevertheless, the CMC Markets spreads were quite similar for both the MT4 and the Next Generation platforms, and the same was the case for CMC Markets margin requirements. There were no visible changes in the trading conditions, and therefore, we believe that traders can benefit by using the features of both platforms interchangeably to improve their trading results.
Is There a Dedicated CMC Markets App for Smartphones and Tablets?
The broker indeed offers a dedicated CMC Markets app for both Android and iOS devices. Traders can choose the Next Generation app for trading by downloading it from the Google Play or Apple App Store, or opt for the MT4 app, which is also available for download on Android and iOS mobile devices. The proprietary Next Generation mobile app is a great tool for mobile trading with its advanced analytical tools and feature-rich trading options. Traders do get access to the same set of features offered by the WebTrader version of the interface, but the mobile version appears more streamlined and well thought out. The mobile apps perform brilliantly under all market conditions, with no visible lag or performance disruptions. Of course, you may feel a bit short of on-screen space, especially if you are moving from the desktop version to the mobile version, but it is still one of the best mobile FX trading apps on the market.
We also tested the MT4 apps for iOS and Android and found that their performance was within our expectations. However, despite our affinity for the MetaTrader apps in most instances, we believe that in this case, the mobile CMC Markets app performed far better than the MT4 mobile apps. From the trading functionalities to the overall look and feel of the platforms, the broker’s proprietary app comfortably exceeded the baseline standards set by the MT4 apps. Therefore, we would highly recommend that our readers try the CMCMarkets mobile apps to see if they can bring about a difference to their trading results while on the move.
Does CMC Markets Regulation Hinder Its Ability to Offer Bonuses?
Unfortunately, stringent CMC Markets regulation and compliance mean that the broker does not offer any free money promotions to either new or existing clients. Of course, such a move is understandable, considering the policies and restrictions placed by various regulators in the EU, UK, US, and Australia on bonuses and offers. However, the company does provide a free referral bonus of up to $250, which is available to both the referrer and the referral. Existing clients can refer any number of referrals to the broker’s platform, and they will be paid $250 for each qualified referral.
There aren’t any CMC Markets withdrawal limitations on the bonuses as such, but the bonus will be provided to traders only if they deposit a minimum of $1000 and trade at least $500,000 in notional volumes. The referral bonus can also vary between the broker’s different global brokerage divisions, and the company reserves the right to withhold or cancel the bonus altogether.
Despite the lack of any deposit bonus offers, the company does offer a cash rebate program that adopts a multi-tier rebate structure for high-volume traders. Traders should transact a minimum of $50 million in trade volumes per month to be eligible for the cash rebate offer. There are 3 tiers in the rebate program, with the first tier offering up to $5 per million traded. The first tier of the rebate structure is designed for up to $200 million in trading volumes, while volumes exceeding $200 million and up to $300 million qualify for the second tier. The second tier offers a cash rebate of $7 per million traded, while all trade volumes beyond $300 million qualify for the third tier rebate offer, which pays back $10 per million traded. The cash rebates do not impose any restrictions when it comes to initiating a CMC Markets withdrawal.
Funding Your Account – CMC Markets Deposit and Withdrawal Methods
While we welcome the broker’s move to adopt a $0 CMC Markets minimum deposit policy, we are not entirely fond of the company’s reluctance to accept e-wallets or cryptocurrency payments. Traders are only allowed to deposit funds using a bank wire transfer or debit/credit card payment. Although larger traders prefer these funding options to deposit or withdraw a substantial amount of trading capital, smaller traders may feel pinched by the fees incurred for these deposit methods. The absence of e-wallets and cryptocurrencies is a severe drawback for the broker, and we sincerely hope that the company addresses this issue at the earliest.
Nevertheless, all CMC Markets deposits are handled through secure and encrypted gateways, and traders can only deposit funds once their live accounts are approved and verified. The same deposit conditions apply for withdrawing funds as well. The accounts team carefully scrutinizes CMC Markets withdrawal requests made by clients, and they might ask for additional verification documents or proof of identity. The company does not allow third-party transfers, nor does it transfer funds if the bank records fail to match the information provided by the traders. Therefore, traders must submit the correct information when signing up, or they risk denial of their CMC Markets withdrawal request.
|CMC Markets Deposit Options|
|Deposits availability||Min. Deposit||Deposit Fee|
|Deposits Availability: Depending on chosen method||Min. Deposit: -||Deposit Fee: Depending on user’s reside|
All withdrawals are processed within the same working day if initiated before the cut-off time, while those initiated after the cut-off time will be processed the next working day. However, the funds may take a while to reach your bank account since bank wire transfers may involve delays if transmitted through different intermediary banks. Despite the shortcomings of the narrow choice of funding methods, the broker does honour its long-standing reputation in the markets by processing its clients’ withdrawals without fail. The broker has indeed built up a positive reputation over the 3 decades of its existence by ensuring that its traders can enjoy a safe, secure, and conflict-free trading environment.
|CMC Markets Withdrawal Options|
|Transaction time||Min. Withdrawal||Withdraw Fee|
|Transaction Time: 1 - 4 business days||Min. Withdrawal: -||Withdrawal Fee: No fees|
CMC Markets Margin Requirements, Real-Time Spreads and Other Trading Conditions
The CMC Markets margin requirements can go as low as 0.10% for Forex CFDs, with the maximum leverage pegged at 1:500. Share CFDs and actual stocks have far less leverage, which changes according to the underlying market. However, all products are offered as CFDs, which means that the broker acts as a market maker by aggregating orders within the broker’s platform and matching them internally or passes it on to the liquidity provider. Often, the broker may absorb smaller orders, in which case the broker takes opposing positions to its traders.
Therefore, there is a significant conflict of interest, but the broker appears to take a neutral stance by offloading all of its opposing positions to the market. Regulatory requirements also reinforce the company’s commitment to minimizing conflict of interest with its clients.
Despite being a market maker broker, the CMC Markets spread is quite competitive. The lowest spread for major FX pairs starts at 0.3 pips, but the real-time CMC Markets spreads were around 0.7 to 1.3 pips. The broker offers quite excellent quotes, especially when we consider that the company adopts a market maker protocol. The order execution times were excellent, and traders will appreciate the company’s minimal slippage and guaranteed stop-loss. Of course, if you are using the guaranteed stop-loss feature, you will have to pay a GSLO premium, which will increase the overall costs of trading.
Speaking of the general costs of maintaining a CMC Markets Forex trading account, you should be aware of a few additional costs charged by the company. For instance, if no orders have been opened on the platform for 1 year, the broker will charge an inactivity fee of $10. However, negative balance protection ensures that traders will not be in debt if the account balance runs to 0. The negative balance protection is also offered to traders in the case of a margin call. Nevertheless, if you wish to reactivate your account after a dormant period, the broker may reimburse up to 3 months of inactivity fees, but nothing more. The account inactivity fees aren’t too drastic, and we don’t see any reasons to complain.
However, apart from the CMC Markets spread, there are a few other trading costs to consider. The absence of ECN or DMA trading does mean that there are no commissions for trading, but traders will have to pay holding costs in Forex for overnight positions. The CMC Markets interest rates for these overnight positions are determined by finding out the difference between the interest rates of the currencies and then adding 0.0027% as CMCMarkets charges.
Therefore, the CMC Markets interest rates are much more predictable than those of other FX brokers, making them a bit more cost-compliant. Furthermore, we traded the markets using a live account for this CMC Markets review and found that the overall trading and account management costs were quite competitive and on a par with other top brokers in the market.
CMC Markets Regulation and Safety Standards
CMC Markets has been a front-running CFD broker for the best part of 3 decades, which has given the company enough experience to understand that regulatory compliance is a huge part of increasing trust among traders. Therefore, it is not surprising to see that CMC Markets regulation is carried out by some of the top regulators in the FX market. The broker’s international operations are regulated by the FCA (re. number 173730) in the UK, which is a leading regulatory agency with some of the best regulatory policies in the entire world.
Due to the UK’s recent split with the EU, brokers in the UK may not have smooth access to the European markets. However, it shouldn’t affect this broker too much since CMC Markets regulation is also supervised by Germany’s BaFin, which comes under the ESMA guidelines. This has worked in the company’s favor, as it has helped the company cater to the entire European retail trading market without any restrictions.
EU regulations in Forex trading are derived from the MiFID directives, which also has a bearing on the rules and regulations implemented by the FCA. These agencies stipulate stringent conditions, such as adherence to minimum operating capital requirements, segregation of clients’ funds, protection for clients against broker insolvency, and strict auditing standards. These regulators even force brokers to act and perform in the best interests of their traders or face severe penalties and outright bans. Therefore, it is no wonder that CMC Markets regulation has contributed significantly to its positive reputation.
Aside from the regulatory licenses issued in the UK and Germany, our CMC Markets review process also revealed that the broker has a strong presence in the Asia-Pacific region. It has branches in Singapore and Australia, which are regulated by the MAS and ASIC, respectively. The MAS and ASIC are renowned regulators in the Asia-Pacific region and have excellent customer protection policies that safeguard traders’ interests. Overall, we are pretty satisfied with CMC Markets regulation and would recommend the broker to our readers.
Contacting the Broker for Assistance
The broker has set up branches and offices in multiple locations across Europe, North America, and the Asia-Pacific region. These offices help traders contact a brokerage nearest to them, which is an advantage for most international clients of the company. Of course, they can also get in touch with the broker’s representatives via phone, email, or website contact form, but we couldn’t find a live chat functionality.
Nevertheless, it was refreshing to see that the broker pays attention to what its customers have to say, which is evidenced by the fact that it answers customer calls within 20 seconds. Of course, emails can take longer, but the broker still responds to all email correspondence within 24 hours. Aside from the absence of a live chat option, we found the broker to have one of the best customer support teams in the entire industry.