CMC Markets – Advanced Trading Platform Review

Client funds are held in trust in a segregated account, which helps eliminate fraud and the company using client’s funds for other purposes. The company offers 24-hour support. Since it has regional offices in multiple locations around the world, customer support is offered in a number of languages.

Offices are located in the UK, Australia, Austria, Canada, China, France, Germany, Ireland, Italy, New Zealand, Norway, Poland, Singapore, Spain, and Sweden. CMS is a CFD broker, which means traders aren’t actually buying or shorting the underlying asset. Rather, they are making a bet with the broker about the underlying asset.

CFDs fluctuate in value along with the underlying asset. Spreads may be bigger in CFDs compared to the underlying asset, but you may be able to access more leverage. CMC charges a commission on shares trading, but only charges the spread on other assets.

In the UK, CFD trading is called spread betting. UK residents can open a spread betting account and trading gains aren’t taxable. Spread betting accounts are only for UK residents, and outside the UK, CFDs are subject to local tax regulations.

Here are the trading terms for CMC Markets.

CMC Markets Commission Rates and Spreads

The spread is the difference between the bid and ask prices. CMC Markets is a CFD provider, meaning you’re not buying or selling the actual underlying asset. CMC Markets controls the spread you pay, and it’s generally much higher than what the actual underlying market would offer.

The spread is a cost, so the lower the spread the better. CMC Commissions are 0.1% of the total trade value of share/stock transactions in the UK and Europe. CMC commissions are 2 cents per share for US shares. There is a $10 or £9 minimum commission on each trade. Commissions are only shared on shares trades.

CMC Markets Margin and Leverage

Margin is the amount of capital you need to control a position. For shares it is 20%. That means you can buy $10,000 worth of stock with only $2,000. You only need 20% of the value of the position to open it and maintain it.  Another way to think of margin is as leverage, so for example, 20% is 5:1 leverage. A 3.3% margin, like in forex, is 30:1 leverage.

CMC Markets Holding Costs and Other Fees

Another difference between CFDs and the real underlying market is holding costs. CMC charges a fee for every day a position is held. The fee ranges between 0.0008% and 0.1% of the total position value. This is charged daily, and the amount charged varies by product.

To see the daily holding costs, visit the CFDs page, select an asset class, then scroll down to the “Costs” section. Two holding costs are listed: one for if you are holding a short position, and the other for if you are holding a long position. The margin and spread are also listed for that specific product.

If you want real-time share data, you will need to activate a market data subscription. These fees vary based on the data you need. These fees are refunded if you make more than 2 trades per month as a non-professional investor. If an account is dormant for more than a year, it is subject to a fee of £10 per month.

CMC Markets Product Offerings

CMC Markets has one of the widest product offers of any broker in the world.

• More than 330 forex pairs
• More than 80 global stock indices, including the FTSE 100, Dow Jones, Nasdaq 100, and German Dax
• 21 cryptocurrencies, including Bitcoin, Bitcoin Cash, Etherium, and Litecoin
• More than 100 commodities, including gold, silver, oil, and natural gas
• More than 10,000 shares from stock exchanges around the world
• More than 1,000 ETFs from stock exchanges around the world
• More than 50 interest rate/treasure products from the US and European countries.

There is no shortage of things to trade. Keep in mind that most great traders (not all) are specialists in a particular market. Most don’t trade everything; they pick a market and hone their skills.

Here is CMC’s in depth platform user guide.The CMC Next Generation trading platform is their flagship. It is intuitive and relatively easy to use and get started with. One of the key features that traders like is that you can place your entry, stop loss, and profit target all once.

The order entry tool shows you exactly the value of the position, the margin required for the position, as well as how much you will make or lose if the price hits the profit target or stop loss.

The Next Generation platform is also offered for mobile devices. MetaTrader 4 is a popular platform for forex and CFD commodity trading. Its user-friendly interface offers algorithmic trading capabilities. You can trade shares via the Next Generation platform, the Share Trading platform, or the Share Trading Pro platform.

The Share Trading platform offers research and portfolio tools, as well as more advanced features such as customizable charts and the ability to link features together for rapid ticker symbol changes. The linked modules update in realt-time to show you the information you need to make your trades.

CMC Markets UK offers funding and withdrawals via:

• Credit or debit card
• Bank transfer
• PayPal

Other jurisdictions offer bank wires if an electronic bank transfer isn’t available. PayPal and credit cards are not available for deposits and withdrawals in all jurisdictions. Outside the UK, you will likely be limited to electronic bank transfers or bank wires.

There is no fee for deposits, but your bank, PayPal, or credit card may charge a fee. CMC withdrawals typically take 1-2 business days to process. There is no fee for most withdrawals, but your credit card or PayPal may charge a fee. Fees for bank wire and bank transfer withdrawals range from $10 to £15.

Segregating funds is an important safety feature that some brokers offer. It means that if the company is financially distressed they can’t dip into client funds. Your funds are held in a separate trust account.

If CMC were to enter bankruptcy, client funds would be distributed back to clients less any bankruptcy administration fees. Such fees could then be reimbursed by your local investor protection organization, if applicable.

For example, the Financial Services Compensation Scheme (FSCS) provides coverage for UK client losses (due to a broker’s insolvency) up to £85,000. Similar measures exist for clients outside the UK, if their country provides such protection.

A regulated broker must apply to and be approved by a country’s regulating body. The broker must then abide by local laws and maintain financial health or risk having their license revoked or face charges.

Below you can find the jurisdictions where CMC Markets is regulated, and the governing body that regulates them. If you ever have issues with a broker, contact the broker first. If that doesn’t work, you can file a complaint with the regulatory organization.

• UK – Financial Conduct Authority (FCA)
• Canada – Investment Industry Regulatory Organization of Canada (IIROC)
• Australia – Australian Securities and Investment Commission (ASIC)
• Germany – Federal Financial Supervisory Authority (BaFin)
• New Zealand – Financial Markets Authority (FMA)
• Singapore – Monetary Authority of Singapore (MAS)

CMC Markets is also a publicly traded company (CMCX), listed on the London Stock Exchange. This provides an added level of credibility, since companies listed on exchanges must file financial statements on time and maintain a certain level of financial health. If they don’t, they risk being delisted from the exchange.

CMC Markets Support Review

CMC Markets offers live support 24 hours per day during the week via email or phone. Use the CMC Contact Us page to locate your local head office. You’ll find the email and phone number listed.

Wait times for phone calls are typically several minutes, and email responses are typically received within 24 hours (during the week) for non-urgent matters. They also offer an extensive FAQ section providing insights on commonly asked questions.

How is CMC Markets rated as a broker?

According to Trust Pilot, an independent user review site, CMC Markets has a rating of 4.2 out of 5 based on more than 1,500 reviews.

What should I do if I have a complaint against CMC Markets?

First, try to resolve the dispute with the CMC by contacting them via phone or email. If that doesn’t address the issue, contact the regulatory body that governs CMC in your area.

How much capital should I deposit with CMC Markets?

You can deposit as much or as little as you like. At least $100 or £100 is recommended. This will allow you to meet the margin requirements of most financial assets while trading the smallest position size possible.

Which assets should I trade with CMC Markets?

CMC offers more than 10,000 financial products you can trade; however, most successful traders are specialists. It will pay to focus on a specialty that you’re most interested in.

CMC Markets is a CFD broker, what does that mean?

CFDs are a derivative product created by the broker. When you trade a CFD, you are not trading the actual stock, forex pair, or commodity. You’re making a contract with the broker. CFD prices move as the underlying asset moves, but CFDs typically have a higher spread than the actual underlying market.

Final Thoughts on CMC Markets

CMC Markets is a reputable broker for CFDs. They are highly regulated and operate in many countries around the world, and offer a wide range of products on which you can trade.

The real choice for traders is whether they want to trade a CFD or the real underlying product. There is a tradeoff here; spreads are lower in the real underlying market compared to the spread CMC charges. CMCs commissions are also on the higher end. On the flip side, CFDs offer slightly higher leverage in some cases than trading the underlying product directly.

If you want to buy and sell the actual financial asset with no mark-up from the broker, then it’s a good idea to search instead for a traditional (non-CFD) broker. However, if you want to trade CFDs or spread bet, CMC Markets is a solid broker to suit your needs.

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