About CMC Markets review: In this review of CMC we will discuss, what is CMC, account opening process, tools provided, fees and more.
Table of Contents
What is CMC Markets?
CMC Market is a CFD and forex broker, which was founded in 1989. It is regulated by the UK’s FCA. It has a long operating history which makes it safe for the customers.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Account opening
Account opening at CMC is simple and fully digital. There is no minimum deposit required. But it usually takes a long time to verify your account, as it has a bit of a confusing registration process.
What is the minimum deposit at CMC Markets?
The required CMC Markets minimum deposit is $0. This is great if you want to start trading with lower amounts only.
Account Types
CMC Markets offer two types of account :
| CFD Account | Spread Betting Account | |
| Available in | All countries where CMC Markets operates | UK, Ireland |
| Account base currencies | GBP, EUR, USD, AUS, CAD, NOK, NZD, PLN, SEK, SGD | GBP, EUR |
| Pricing | Spread plus commission for stock CFDs | Spreads only |
| Capital gain taxable | Yes | NO |
| Joint account available | Yes | Yes |
| Corporate account available | Yes | No |
In addition, you can open a Pro account that allows you higher leverage. To open a Pro account, you have to satisfy the following criteria:
- Placed 10 trades in the previous quarter and these trades were relevant with significant size.
- Your portfolio exceeds €500k.
- You worked in the financial sector for at least one year.
Fees
CMC Markets fee snapshot
| Assets | Fee Terms |
| S&P 500 CFD | The fees are built into the spread, 0.5 points is the average spread cost during peak trading hours. |
| Europe 50 CFD | The fees are built into the spread, 1.6 points is the average spread cost during peak trading hours. |
| EURUSD | The fees are built into the spread, 0.7 pips is the average spread cost during peak trading hours. |
| Inactivity fee | £10 monthly fee after 12 months of inactivity |
CFD Fees
CMC Markets CFD fees for a $2,000 long position held for one week
| S&P 500 index CFD fee | $1.5 |
| Europe 50 index CFD fee | $1.9 |
| Apple CFD fee | $21.5 |
| Vodafone CFD fee | $25.2 |
Forex Fees
CMC Markets forex benchmark fees of a $20,000 held for one week
| EURUSD benchmark fee | $8.0 |
| GBPUSD benchmark fee | $6.0 |
| AUDUSD benchmark fee | $7.1 |
| EURCHF benchmark fee | $8.2 |
| EURGBP benchmark fee | $9.0 |
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Trading Platform
Trading platform provided by CMC Market is highly customizable and has modern design. It is highly customizable and has good charting tools. CMC provides three types of trading platforms.
- Web Trading Platform
You can choose between two web trading platforms:
- ‘Next Generation’, CMC Markets’s own trading platform
- MetaTrader 4, a third-party platform
Web trading platforms are available in 9 different languages.
- Mobile Trading Platform
Its mobile trading platform is somewhere same as a web trading platform. They have similar kinds of search function and ordering function. Mobile app too has modern design and is customizable.
- Desktop Trading
CMC does not have its own desktop trading platform. For desktop trading, the client is left with MetaTrader4 as an option. Where. MetaTrader4 is far away from CMC in terms of web trading platform.
Products Offered
CMC only focuses on trading in CFD and Forex. You can not trade other real time assets with CMC.
CMC Markets Product Portfolio
| Currency pairs (#) | 338 |
| Stock index CFDs (#) | 92 |
| Stock CFDs (#) | 8000 |
| ETF CFDs (#) | 1000 |
| Commodity CFDs (#) | 136 |
| Bond CFDs (#) | 56 |
| Cryptos (#) | 15 |
Research and Education
CMC Markets has good research tools. Its news feed and charting tools are amazing. They used to publish articles and blogs on a continuous basis. Brokers are available to help traders every time.
They have good educational tools as well. The live webinars, video lectures and podcasts allow new learners to learn the fundamentals of the market. The video tutorials provide in depth and detailed knowledge of every topic related to the market.
| Pros | Cons |
| Great web and mobile platforms | High stock CFD fees |
| Advanced research and educational tools | Complicated account verification |
| No minimum deposit | Limited product portfolio |
| Credit/Debit card available | £15 fee for international bank transfers |
| Data on asset fundamentals | No two-step (safer) login |
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Customer Support
You can contact CMC Markets via:
- Live chat
- Phone
CMC Markets’s customer services are available in 9 multiple languages.
Safety
CMC Markets is considered safe because it is regulated by the top tier institutions. Along with this, it also holds a good financial position and is also listed in the London Stock Exchange.
CMC clients are protected under scheme, which is as follows;
CMC Markets investor protection
| Country of clients | Protection Amount | Regulator | Legal Entity |
| UK, EU, and countries except below | £85,000 | Financial Conduct Authority | CMC Markets UK plc, CMC Spreadbet plc (for spread betting accounts, available in the UK) |
| Canada | CAD 1,000,000 | Investment Industry Regulatory Organization of Canada (IIROC) | CMC Markets Canada Inc. |
| Australia | No protection | Australian Securities and Investments Commission | CMC Markets Asia Pacific Pty Ltd |
| New Zealand | No protection | Financial Markets Authority | CMC Markets NZ Limited Company |
| Singapore | No protection | Monetary Authority of Singapore | CMC Markets Singapore Pte Ltd |
The verdict
CMC Markets is a good CFD broker. It is beneficial for those who are ready to take risks. As mentioned earlier CFDs are highly complex instruments with 75% traders being at a loss while trading the same. Customers are protected under the protection scheme. Hence, before investing must check that you come under scheme or not.
It provides a free demo account for lifetime, no minimum investment, no withdrawal fee and inactivity fee kicks after 3 months. So you can definitely give it a try.
FAQ’s
How do I place a trade?
Click or tap on the ‘Sell’ or ‘Buy’ price and an order ticket will appear. Choose between ‘Market Order’, ‘Limit Order’, or ‘Stop Entry Order’, input the trade size and then hit enter, add any ‘Stop Loss’ and ‘Take Profit’ levels and then place your trade.
Where does your holding cost on FX come from?
The overnight holding rate used when calculating the applicable holding costs on FX comes from the tom-next rate, which is the difference between the two currencies’ interest rates, with an additional 0.0027% CMC Markets charge added
What happens if l lose my bank cards or they are stolen or damaged?
If this happens, please notify your bank as soon as possible. Once you’ve done so, please contact the Client Management team who will arrange to remove those cards from your account.
Do I need to open a separate forex trading account to trade forex with CMC Markets?
No, our CFD trading accounts offer FX trading. We do not offer a separate account that deals specifically in FX.
CMC Markets
Pros
- No minimum deposit
- Data on asset fundamentals
Cons
- High stock CFD fees
- Limited product portfolio
