Table of contents:
- 1 The history of CMC Markets
- 1.1 Is CMC Markets also a market maker?
- 1.2 Which markets are tradable?
- 1.3 What is the minimum deposit?
- 1.4 How does the deposit and withdrawal take place?
- 1.5 How is CMC Markets regulated?
- 1.6 What are the spreads and what are the conditions?
- 1.7 How is the topic of final withholding tax regulated?
- 1.8 YouTube and CMC Markets’ Live Team
- 1.9 How do I become a professional client at CMC Markets?
- 1.10 Where does the login for the demo account take place?
- 1.11 CMC Markets App
- 1.12 iPhone trading app CMC Markets
- 1.13 MetaTrader at CMC Markets
- 1.14 What is the leverage at CMC Markets?
- 1.15 What is your experience with CMC Markets?
- 1.16 Customer Support
- 1.17 Conclusion of the CMC Markets review:
- 1.18 is there a demo account?
- 1.19 Is there a commission?
- 1.20 What is the minimum stake size on spread bets?
- 1.21 What trading platforms are available?
CMC Markets user-ratings: $0
Asset varierity - 10/10
Trading platform - 10/10
Support - 10/10
Fees - 10/10
Deposit/Withdrawal - 10/10
Facts about the company:
- Type: CFDs, Spread Betting & Forex Online Broker
- Regulation: FCA (UK), CySEC (Cyprus) and AFSL (Australia)
- Minimum deposit: $0
- Demo account: Free
- Markets: Forex, CFDs, Shares, ETFs, Commodities, Indices, Cryptocurrencies, Treasuries
- Tax-free profits on spread betting
- No minimum deposit
- 100% automated execution
- Access thousands of financial instruments
- Competitive and low spreads
- High liquidity
The history of CMC Markets
Peter Cruddas founded CMC Markets back in 1989 and has since become one of the world leaders in online retail trading. In 1996, CMC was the first company to provide an online trading platform for foreign exchange that had previously only been available to institutional traders.
The first foreign branch was opened in 2002, with the opening of a branch in Sydney. By 2007, further branches had already been opened in New Zealand, Germany, Canada, Sweden, and Austria. A 10% stake was sold to Goldman Sachs. CMC Markets now has 14 offices worldwide.
With its 25th anniversary, CMC received a record number of awards for its Next Generation trading platform and related services. CMC Markets went public in 2016 and is listed on the London Stock Exchange as CMCX. On 20 June 2016, it was admitted to the FTSE 250 Index.
Is CMC Markets also a market maker?
CMC is also a Market Maker. This means that CMC is the only place of execution for its own orders. Orders are executed via bilateral transactions with CMC as the counterparty for trading via the platform and not via transactions via a trading venue or other external trading platform. Pricing and order execution are fully automated.
As CMC Markets itself provides quotes and settlement prices, these may differ from the prices of other trading platforms. However, CMC Markets is committed to treating its clients fairly and executing their orders in their best interests.
Which markets are tradable?
There are over 10,000 CFD products tradable and therefore all major markets are accessible:
- Raw materials
- Government Bonds
There are 22 currency pairs tradable in Forex. Combining cash and forward contracts, prices are offered on over 330 currency pairs. In the Index CFDs area, there are over 90 cash and forward contracts. These include common markets such as the DAX 30 and Dow Jones.
With a number of over 9,000 equity CFDs & ETFs, the selection in this area is also very large. In the area of commodities, there are over 110 products offered. Government bonds are also tradable. Here there are over 50 products that are tradable. Even five cryptocurrencies are offered.
Over 10,000 tradable products at CMC Markets. Including CFDs on FX, Indices, Stocks CFDs & ETFs, Commodities, Government Bonds, and Cryptocurrencies.
What is the minimum deposit?
There is no minimum deposit. However, it is recommended that the deposit covers at least the amount of margin and also the potential loss. This gives you the opportunity to test the broker with real money even with a small deposit and get a comprehensive picture. There is also the possibility to open a demo account and thus test the whole thing without any risk.
How does the deposit and withdrawal take place?
The account can be capitalized by bank transfer or credit card deposit. If the deposit is made by credit card, the payment is credited to the account immediately. With a bank transfer, this usually takes 2-3 working days.
Payment can be made by bank transfer or credit card. However, the payout account must be verified in order for the payout to be made to this account. This means that you must be the account holder yourself and you must provide CMC Markets with appropriate proof of account ownership (e.g. bank confirmation). In the case of a bank transfer, the funds will be credited after 2-3 business days. Depending on your bank, the credit will be received by your credit card within 3-5 business days.
How is CMC Markets regulated?
CMC Markets UK Plc is regulated by the Financial Conduct Authority (FCA), registration number 173730, and is also regulated by the German Financial Services Authority (BaFin).
If you have a trading account with one of the European branches, it will be managed at CMC Markets’ UK headquarters. Retail deposits, including cash, margin, and unrealized gains, are held in clearly segregated accounts with reputable banks and are clearly segregated from CMC Markets’ own funds. The banks are regularly reviewed for compliance with CMC Markets’ risk management criteria. CMC Markets uses only its own funds for hedging purposes.
What are the spreads and what are the conditions?
CMC Markets offers reliable and competitive pricing. For example, the spread in EUR/USD is 0.7 pips. The spread is 1 point for the common indices and $0.3 in gold. Margin rates start as low as 3.3% for Forex, 5% for indices and commodities, and 20% for stocks and government bonds. Commissions are only charged when trading equity CFDs.
Holding costs are incurred when positions are held overnight or over the weekend after 5:00 pm New York time. These holding costs can be both positive and negative, depending on market conditions or reference interest rates, or whether you go long or short. There are no holding costs for indices, forex, commodities, and forward contracts on government bonds.
In order to view the prices of Australian, Italian, Norwegian, and British equity CFDs on the platform, you need to activate the corresponding price data subscription. A monthly fee is charged for this. However, if at least two trades are executed under the same quote data subscription within one calendar month, the fee for this subscription will be credited back to the account. The credit will be made in the following calendar month. Refunds after two trades are only valid for private clients.
There are also fees for a Guaranteed Stop Loss (GSLO). This guarantees the closing of trades at the specified price without regard to market volatility or gapping. If the GSLO is not triggered, CMC Markets will refund 100% of the original premium.
A monthly inactivity fee of $10 is deducted from the balance of an inactive trading account. For this purpose, an account should be considered inactive if no positions are open and there has been no other trading activity for at least two years.
|Asset Class||Number of instruments||Spreads from||Margins from|
|Shares & ETFs||9,000+||0.1 %||20%|
How is the topic of final withholding tax regulated?
CMC Markets does not pay withholding tax directly. All winnings will therefore initially remain in the account. The same also applies in the event of a payout. Here too, the full amount will be paid out without deduction of the final withholding tax. However, as is the case everywhere else, you are required to declare the capital gains tax on trading profits in your tax return.
YouTube and CMC Markets’ Live Team
CMC Markets has a YouTube channel as well as a Livestream. Currently, the Youtube channel has about 9,900 subscribers and contains many helpful videos. Besides the basics of trading and strategies, there are also a lot of videos explaining the trading platform, etc.
The Livestream is maintained by Jochen Stanzl and Sibusiso Khumalo. The live stream takes place three times a day. In the morning around 08:00 am the Livestream starts with the CMC Espresso. There is an outlook for the upcoming trading day and the most important news and price drivers are also discussed.
Punctually at 09:00 a.m. for the opening of the exchange, the CMC Exchange Buffet will follow. Together with the experts from CMC Markets, you will observe the DAX, Dow Jones, and other financial instruments that are currently exciting on the stock exchange. Additional questions can be asked in the live chat, which will be answered directly.
CMC Inquiry starts at 11:45 am. At this time, chart analysis, but also other topics such as technical features and support issues will be discussed. Besides basic knowledge for beginners, there are also tricks and exciting additions for experienced traders.
How do I become a professional client at CMC Markets?
To qualify for a CMC Pro account, you must meet the criteria for professional client status. If you can answer “Yes” to two of the following three questions, you can be eligible for a CMC Pro account:
- Have you carried out transactions in a significant amount during the last year with an average frequency of 10 transactions per quarter?
- Does the size of your financial portfolio exceed USD 500,000?
- Have you held a professional position in the capital market for at least one year?
Being classified as a professional client has many advantages. In addition, you receive all these advantages without additional costs and without the obligation to make additional contributions.
While regulatory restrictions apply to standard CFD accounts, a CMC Pro account gives you exclusive access to trading higher leverage and restricted products, such as the Digital 100s.
With the Digital 100s, you can speculate with limited risk on whether or not a particular event will occur within or at the end of a specified period. There are only two different results: “Yes” or “No”. Assuming that an event will occur, you buy the Digital 100s and sell the Digital 100s if you think the event will not occur.
In addition, you get a personal contact person and advance access to new products. In addition, high-turnover traders have the chance to receive a monthly refund.
Where does the login for the demo account take place?
CMC Markets also offers a free demo account with virtual credit. This gives you the opportunity to test the platform without risk, as well as to try out trading techniques and strategies. However, the demo account does not include prices for equity CFDs.
Alternatively, you can simply log into your trading account via the CMC Markets website. The login option will appear in the top right-hand corner.
CMC Markets App
The app from CMC Markets is available for iPhone, iPad, and Android. It contains all functions for the own order window, optimized charting with more than 40 technical indicators and drawing tools. In addition, the mobile platform includes a customizable overview, push notifications, the economic calendar, and a help section.
iPhone trading app CMC Markets
An example of how the Trading App from CMC Markets is presented.
The app includes the following functions:
- Extended order window
- Intelligent watch lists
- Improved product search
- Detailed product overview
- Personal start screen
- Innovative mobile charting
- Customer assortment
- Reuters news ticker
- Analyses from the experts at CMC Markets
- Business Calendar
- Real-time alarms
- Registration options
- Deposit in seconds
- and counting
The charting within the app is very good. In addition to different chart types and real-time prices with small intervals, positions can be traded, changed, and closed directly from the chart.
MetaTrader at CMC Markets
In addition to the in-house NextGeneration platform, the MetaTrader is now also available at CMC Markets. To use MetaTrader with CMC Markets, a demo account is sufficient. With the access data you can then log into the MetaTrader.
The advantage of MetaTrader is the possibility to use Expert Advisors (EAs). Either you can program them yourself due to the MetaTrader’s easy programming language or you can choose the right one from a huge selection of already existing EAs. In addition, MetaTrader also offers many other useful tools.
What is the leverage at CMC Markets?
The European Securities and Markets Authority (ESMA) has decreed that leverage for retail investors should be limited to between 30:1 and 2:1. This has reduced the leverage for retail investors. This is determined by the margin requirement.
Different margin rates may be applied for certain products. This is done depending on the size of the position (or part of the position). The portion of the position that belongs to a particular level is subject to the margin rate applicable at that level (for equity CFDs).
Margin is calculated on the basis of the average price of price level 1 (as shown on the platform). For indices, the leverage is a maximum of 20, and the maximum leverage is possible in FX. Here the leverage is up to 3.3%. Clients classified as “professional clients” are not subject to these restrictions and therefore have higher leverage.
What is your experience with CMC Markets?
The experience with CMC Markets can generally be considered good. Clients particularly appreciate the trading platform and the App. Also, the product range and the order execution is absolutely satisfying for most of them.
With the addition of MetaTrader, automated strategies and trading programs can now be executed through CMC Markets. This was a point of criticism from many customers. However, this problem has been solved by MetaTrader.
CMC Markets also offers a comprehensive range of training courses and thus provides the most important basics for CFD and Forex trading. Besides various videos and e-books, there is also private trader training. The many positive experiences are also reflected in the numerous awards that CMC Markets has received as a broker.
CMC Markets’ customer service is available around the clock from Monday through Friday. With a wide range of hotlines available in various languages, anyone can find the right CMC Markets contact person. In addition, there are over 13 e-mail contact options in 13 different countries. Furthermore, the contact form on the CMC Markets website can be used.
|Telephone:||+44 (0)20 7170 8200|
Conclusion of the CMC Markets review:
CMC Markets is a good and recommended CFD and FX broker. The listing of CMC Markets on the stock exchange provides absolute transparency. Coupled with the company’s many years of existence, there are two important aspects here where many other CFD brokers fail. With its own app and the NextGeneration platform, CMC has created a standard that is currently unmatched by any other CFD broker.
Although CMC is a market maker, the prices and execution are fair and good. In addition, the classification as a professional-client gives you further additional advantages. Also, the account opening, as well as deposits and withdrawals are easy and uncomplicated.
Most asked questions:
is there a demo account?
CMC Markets offers a demo account to its clients. However, you can only trade virtual funds with the demo account. So it does not display prices for share CFDs.
Is there a commission?
While trading CFDs with CMC Markets there is a commission charged. Please note, that there are also costs charged to view share prices on the website.
What is the minimum stake size on spread bets?
The stake size on spread bets differs between different trading instruments. The spread bet for indices is 50p, while the stake size on spread bets for US shares is 10p. The stake size on spread bets for Forex and Commodities is 10p per point.
What trading platforms are available?
With CMC Markets, you can trade three different trading platforms. You can either trade on mobile apps, on the CMC WebTrader, or via MetaTrader4.