CMC Markets Review (2024)

CMC Markets provides an award-winning global online trading platform.

Established in 1989, CMC Markets offers spread betting and CFDs across a wide variety of trading instruments, including:

• Forex
• Indices
• Commodities
• Shares
• ETFs
• Treasuries

CMC Markets is based in London, UK, and is listed on the London Stock Exchange (LSE). It serves both individual and business clients and claims to be suitable for both new and experienced traders.

However, it does not accept US clients.

Currently, spread betting is only available through CMC Markets if you live in the UK or Ireland.

CMC Markets provides ongoing access to your trading account through its mobile app and seeks to educate its clients via a range of trading webinars, videos and guides.

Is CMC Markets Regulated?

CMC Markets is regulated by the Financial Conduct Authority (FCA), offering a financial safety-net to CMC Markets clients through the Financial Services Compensation Scheme (FSCS).

Your eligible deposits with CMC Markets are protected up to a total of £85,000 by the Financial Services Compensations Scheme (FSCS), the UK’s deposit guarantee scheme.

For those trading through CMC Markets Canada Inc., regulation is offered through the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund.

A financial safety-net is available through the Canadian Investor Protection Fund (CIPF).

CMC Markets is further regulated by the Australian Securities and Investment Commission (ASIC), the Investment Industry Regulatory Organization of Canada (IIROC) and the Monetary Authority of Singapore (MAS).

Who Is CMC Markets For?

CMC Markets is aimed at both experienced traders and those just starting on the trading path who wish to invest via CFDs or spread betting.

Its 24-hour Monday to Friday customer service, educational offering and user-friendly platform provide an ideal way for a new trader to learn as they go.

CMC Markets serves both individual and business clients worldwide, except for the US, where trading CFDs and spread betting are banned.

CMC Markets Products

CMC Markets offers two products, CFD (contract for difference) and spread betting.

CFD

When you purchase a CFD, you enter into a contract to trade on the value of a stock, commodity or another trading instrument without actually owning it.

Leveraging is available to fund the purchase of CFDs, meaning that you can enter into a contract with a modest initial outlay, only a fraction of the full cost of the trading asset.

CFDs are subject to capital gains tax. Should you receive dividend payments, these will incur a dividend tax liability.

CMC Markets CFDs cover the following instruments:

• Over 10,000 shares
• Over 1,000 ETFs
• More than 330 forex
• 100+ commodities
• Over 80 indices
• More than 50 treasuries

For more information on CFDs, read Stocks vs. CFDs: The Key Differences.

Spread Betting

In spread betting, you make a bet on whether a financial instrument will rise in price or drop. As with a CFD, there is no element of ownership.

The amount of money you make or lose is reliant on whether the price acts in the way you believed it would.

You choose how much money to put at risk by deciding on the value of your bet.

The broker offers two prices, the buying price and the selling price.

If you believe the instrument price will rise, you purchase at the ‘buying price’.

If you think the instrument price will fall, you purchase at the ‘selling price’.

The ‘spread’ in the title refers to the range of value between the buy and sell prices.

As with CFDs, leveraging is available for spread betting purposes. Unlike CFDs, spread betting is free of capital gains tax and incurs no commission fees in the UK.

Spread betting is only available to residents in the UK and Ireland.

Spread betting is available on more than 12,000 instruments with CMC Markets, including forex, commodities, shares and ETFs, indices, and rates and bonds.

Alternatively, you can spread bet on CMC Markets share baskets, all of which are linked to current trends, such as:

• Automation and robotics
• Driverless cars
• Social media
• Renewable energy
• Luxury lifestyle

Want to find out more about spread betting? Have a look at how to spread bet.

CMC Markets Platform Features and Tools

CMC Markets aims to make its platform accessible to traders at all levels, from complete beginners to experienced traders, by providing a high level of customization.

Furthermore, there is a wide range of help and support on how to use and access the CMC Markets platform, including platform tour videos, trading strategy tutorials and live chat.

Next Generation Web Platform

The Next Generation Web Platform offers you the chance to customize it to suit your needs and level of expertise.

The platform includes:

• A wide range of technical indicators and drawing tools
• Price projection tool
• The ability to group modules
• Access to an online trading forum
• The ability to trade directly from your charts
• Pattern recognition scanner

Mobile Trading Platform

The CMC Markets award-winning mobile trading platform (Best Mobile Trading Platform, ADVFN International Financial Awards 2022) makes trading possible on the go as well as simply from your desktop.

Available in versions for iPhone, iPad and Android, the CMC Markets mobile trading platform provides a live market calendar and push alerts.

Metatrader 4 Desktop

Metatrader 4 (MT4) is an online trading platform generally used to trade forex.

Using automated programs called 'expert advisors', you can set up MT4 to trade for you.

In the hands of CMC Markets, you can use MT4 to trade indices and commodities as well as forex. You can trade CFDs on MT4, but spread betting is not available on this platform.

MT4 can be downloaded to your computer, iPad, iPhone or Android mobile device.

CMC Market Account Types

There are several available options if you decide to open an account with CMC Markets:

Demo Account

If you would like to build your trading skills and try out the CMC Markets platform before you put any funds at risk, the demo account may be the perfect solution.

Sign up for free to open a demo account and choose whether you want to trade CFDs or spread bet using virtual money instead of the real thing.

Live Spread Betting Account

Only available to residents of the UK and Ireland, this account allows you to spread bet across over 12,000 instruments with no commission fees.

You can spread bet on more than 10,000 shares from 23 countries.

There is no cost to open a live spread betting account. However, you must deposit funds in your account before you can start to trade.

Live CFD Account

A CFD trading account is also free to open, and once you’ve added funds to your account, you’ll be able to begin trading CFDs with CMC Markets.

This type of account can be used to trade CFDs across more than 10,000 instruments, but with a larger number of share instruments, rising to over 8,500.

Commission fees are applicable with this type of account when trading in shares.

FX Active Account

Trade on six major forex pairs from 0.0 pips with fixed low commission.

You will also get 25% spread discount on 330 other forex instruments on the proprietary trading platform, or 175+ pairs on MT4.

Live Corporate Account

This type of account trades CFDs only and is generally registered in the name of your business or your trading brand.

Opening a corporate account may incur a fee, so it is advised to check with CMC Markets before doing so.

CMC Markets Commission and Fees

There is no minimum deposit to open a live CMC Markets account, although you must have paid money into your account before you can begin to trade.

The commission is charged for CFD and corporate accounts when trading in shares and ETFs.

Should your account be inactive for over a year, you will be charged £10 (or the local currency equivalent) per month, provided you have funds in your account.

There are no withdrawal fees if you use a bank, credit or debit card, or an electronic wallet; however, instant bank transfers and international bank transfers incur a fee of £15.

CMC Markets Research and Education

Trading is an ongoing journey of investigation and learning. CMC Markets knows this and provides a wide range of assistance:

Research

CMC Markets provides news and insights to keep you up-to-date with the latest trading developments.

Available resources include:

• A live feed of Reuters financial market news
• Analyst insights on market activity, company announcements and the most recent news throughout the day
• Morningstar Quantitative Equity Research which provides share price insight
• A live market calendar provided by Thomson Reuters that inform you of events and factors affecting the trading markets; for example, a country’s GDP, rising or falling levels of inflation or developments in employment figures
• The CMC Markets blog
• CMC TV
• CMC Market social media streams

Education

CMC Markets offers a wide range of educational material so that you can learn about trading using the media that suits you and at your speed, including:

• Online webinars and events
• An extensive library of market analyst videos
• Analyst articles ranging from getting started basics to more complicated trading practices
• Step-by-step guides for beginners, intermediate and advanced level traders on all aspects of trading with CMC Markets, including how to use its online platform
• An online glossary of trading and financial terms
• 24-hour five days a week support line

Advantages and Disadvantages of CMC Markets

The best way to decide whether to open an account is to examine the benefits and disadvantages of trading with CMC Markets.

Advantages:

• Its suitability for traders at all levels
• The option to open a demo account to try out CMC Markets with virtual money before you put your actual funds at risk
• No minimum deposit to open an account
• Access to a wide range of trading instruments
• Low forex fees
• Its global coverage for trading CFDs, other than the US
• The high level of regulation, both locally in the UK and globally
• Trading with an award-winning organization
• A highly customizable trading platform
• An extensive range of trading tools
• Plenty of live and up-to-date resources to assist with your research
• A wide range of educational material across varying media
• Access to a trader chart forum
• Mobile app for trading on the go

Disadvantages:

• Can only trade with CFDs or spread betting (However, CMC Invest will be launching soon, offering a general investment account and a stocks & shares ISA, plus more)
• Does not lead to ownership of trading assets
• The account verification process can be complicated

How to Set up an Account With CMC Markets

Set up an account through the CMC Markets website. The application process is completely online.

Follow these steps:

• State your country of residence
• Provide an email address and password
• Enter the code that you will receive from CMC Markets by email
• Choose your platform, CMC or MT4, and then your account type (spread betting, CFD trading, FX Active)
• Enter your details and financial background
• You will be taken through the demo platform as a starting point
• Upload your documents as proof of your identity and residency
• When your account is verified deposit funds, and you are ready to go

Proof of your identity must show a photo of your face. Suitable identity documents include your passport, driving licence or national ID card.

Should you wish to use some other form of photo ID, please check with CMC Markets first.

Proof of your residency can be provided by submitting documents that feature your address, such as bank statements, utility bills or credit card bills – these must be no older than three months.

You may be asked to provide more than one document under each category and for your documents to be officially certified.

Both a scan of the complete document sent in an email or a hard copy forwarded in the post is generally acceptable.

Final Thoughts

CMC Markets is an excellent choice for traders of all levels of expertise. It is suitable for global traders, except for the US, who wish to trade CFDs in forex, indices, shares and ETFs, commodities and treasuries, and UK and Ireland residents who wish to try their hand at spread betting.

WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.