CMC Markets Review – Is CMC Markets a multi-asset broker?
| Broker | CMC Markets |
|---|---|
| Website URL | https://www.cmcmarkets.com/en/ |
| Founded | 1989 |
| Headquarters | 133 Houndsditch, London, EC3A 7BX |
| Support Number | 0207 170 8200 |
| Support Types | Email, Phone |
| Languages | 17 languages supported |
| Trading Platform | web-based, MetaTrader 4, mobile apps |
| Minimum 1st Deposit | $0 |
| Minimum Account Size | $0 |
| Maximum Trade Amount | different for each instrument |
| Bonus | No bonus |
| Leverage | 1:30 for retail and up to 1:500 for professional clients |
| Spread | floating |
| Free Demo Account | Yes, Click Here To Open New Account |
| Regulated | CMC Markets UK plc (173730) and CMC Spreadbet plc (170627) are authorised and regulated by the Financial Conduct Authority in the United Kingdom |
| Account Types | CFD account, corporate account |
| Deposit Methods | bank transfer, credit/debit cards, ewallets |
| Withdrawal Methods | bank transfer, credit/debit cards, ewallets |
| Number of Assets | 9,000+ |
| Types of Assets | forex, indices, cryptocurrencies, commodities, shares, share baskets, treasuries |
| US Traders Allowed | Yes |
| Mobile Trading | Yes |
| Tablet Trading | Yes |
Introduction
CMC Markets was originally founded in 1989 and it has its headquarters in London. It acts as a multi-asset class CFD and spread betting broker. It is under the regulation of the highly-respected UK Financial Conduct Authority (FCA). There are thousands of different instruments that can be traded through CMC Markets. It covers most of the bases that a trader would be looking for in a broker.
This CMC Markets review takes a deep dive into the offering, separating the different aspects of the platform to see what is a good fit for your needs.
Pros
- Well-regulated
- Massive array of different asset classes and financial instruments
- Two quality trading platforms
- Competitive fee structure
Cons
- No 24/7 support
Products
The main focus for CMC Markets in terms of its product offering is the allowance of CFD trading and spread betting. There are six main asset classes covered as part of the offering. You have more than 30 different forex instruments to choose from, including major and minor currency pairs, as well as exotic options. There are more than sixty indices that you can trade, as well as fifteen different cryptocurrencies.
If you want to do some CFD trading with ETFs or shares, there are more than 9,000 different options in this regard. You can choose from over 90 different commodities and a few dozen treasuries. There really is a diverse offering of different types of financial instruments open for you to trade through CMC Markets. You can also open a demo account and try out trading these different types of products if you wish to learn the ropes without putting your money on the line.
Fees and Charges
For CFD trading, there is only commission charged if you are trading shares. These commissions will start at $0.02 per share of 0.1% for stocks that are listed in Canada and the United States. Otherwise, CMC Markets will make its money through the spreads. These will have different minimum spreads depending on the asset classes you are trading within. For example, the minimum spread for forex trading is 0.7 pips, 0.3 pips for indices, 1.4 points for cryptocurrencies and one point for treasuries. The margin rates will also vary depending on the asset class.
For the spread betting side of things, there are holding costs in certain instances if you have open positions when the markets are closed. This rate will usually be dependent on the underlying interbank rate. There are also charges in place if you are using a guaranteed stop-loss order. Finally, there is a fee in place for inactivity if no trades have been made through your CMC Markets account in the past month. This is a fee of £10 when there are funds in the account. No negative account balance will accrue as a result of these inactivity charges.
Trading Platforms
There is an impressive trading platform offering at CMC Markets. The proprietary CMC Markets Next Generation platform is extremely reliable, fast and has many top-quality features and tools that will be suitable for all types of traders. It has won many awards over the years for its quality. You have access to advanced charting packages and there are more than 115 technical indicators.
If you prefer to use a different type of a trading platform that is more beginner friendly, the industry-standard MetaTrader 4 trading platform is also an option. This will be familiar to most experienced traders and is a solid option also. This platform allows you to automate trading if you need to. Both of these trading platform options are available through mobile and tablet apps for iOS and Android devices.
Security and Reliability
CMC Markets acts under the oversight of the FCA in the UK. This is a well-respected authority that ensures that CMC Markets stays compliant with its offering. It is also a broker that has been around for many years, so it has a good track record among its clients.
All of the funds of CMC Markets clients are kept in segregated bank accounts from operational funds. Therefore, in the case of CMC Markets going into insolvency, client funds will be ring-fenced from creditors. There is also the safety net for clients of having access to the Financial Services Compensation Scheme (FSCS) which gives client protection of up to £85,000. For the most part, this coverage is for private individuals.
You do need to note that CFD trading and spread betting are higher risk methods of trading. At CMC Markets, there is a disclaimer that 70.5% of all retail accounts lose money when they trade CFDs or spread bet through the offering.
CMC Markets always ensures that the data of its clients are safe and secure when being transferred and stored. The best of encryption technology is used to achieve this.
Customer Support
CMC Markets has a very well-laid out support center. You can quickly see the respective section of the FAQ department. This is an ideal pitstop if you have a standard type of question that may have been asked before. Otherwise, you have a few different options if you are looking to directly contact the support team at CMC Markets. You can give them a call over the phone where they say that 98% of all phone calls will be answered in less than twenty seconds.
You can also send the team an email, or use the live chat feature for a quick response. The support team will be working every weekday on a 24-hour basis, so you will be able to have access during normal trading hours. The quality of the support team answers is also good, allowing you to quickly move past any issues you may be having.
Deposits and Withdrawals
There are a few main ways for you to add funds to your new CMC Markets account. You can use a credit card, debit card or a bank transfer. No cash deposits or cheques are allowable. There are certain types of credit cards that are not accepted, but you will be fine with most Visa and MasterCard options.
If you are sending a bank transfer and you are not inside of the UK, there may be some charges levied for this transfer. If your account is approaching a margin call, you can only add funds to your account through the phone support team. Otherwise, you can quickly make these deposits through your online account. The quickest options will be the debit and credit cards, with bank transfers often taking a day or two to process.
For withdrawals, you need to use the same method to remove funds as you used to add funds to your account. The processing time for these transactions will be between one and five days in total. You are also only able to make a single request to withdraw funds in a given day. There are no fees charged by CMC Markets when making a withdrawal, but the payment processor you use may have its own fees.
Conclusion
CMC Markets is a great online broker for most types of traders. There is a significant selection of different asset classes and financial instruments to trade. The fees are competitive and there is a great selection of leading trading platforms to use. It is a well-respected broker that is licensed by one of the leading financial regulatory bodies in the world. There is something for every type of trader with this offering.