CMC Markets Review
- Tight spreads
- Free demo accounts
- The broker is regulated
- Wide range of trading instruments
- No bonus
- Traders are required to maintain a minimum balance of £100 to maintain active bets.
CMC Markets was pioneered in 1989 and since then it has set standards as a reliable online forex broker. The company has amassed an experience wealth of over 30 years in providing a reliable exchange platform for trading forex pairs, commodities, indices and stocks. In 2016 the company was listed publicly listed in the London Stock exchange under the ticker CMCX. Apart from the regular instruments the company also has binary options as a trading alternative. A big difference between CMC Markets and regular online trading firms is that this broker has uses a custom trading platform, not the common MetaTrader. Another difference is that the broker hasn’t yet begun accepting cryptocurrencies as a trading instrument. This online broker has made a good name for itself in the online trading industry a reason which has seen it bag more than 60 awards such as “Best Online Trading Platform” and “Best Investor Education” in 2013 and 2014 respectively.
CMC Markets use a proprietary software for trading. Traders who have used MetaTrader 4 or MetaTrader 5 before will not experience difficulties using their platform. In fact to some extent other traders feel comfortable using their platform compared to MetaTrader. The platform is rich with indicators and tools, traders can switch between different chart types for better analysis of the market. The following are the unique characteristics of their platform.
- Client sentiment tool – this tool enables a trader to know the percentage of bull positions compared to bear and vice versa. This tool is important especially when tracking market direction on a volatile session.
- Multiple charts – Multiple charts have a notch higher capability from the regular MetaTrader. Traders are able to customize, save and share five different design layouts. The multiple charts enable traders also to have a trading dashboard rich with information and charts
- Pattern recognition scanner – the pattern scanner automatically alerts traders of a formation of a certain pattern such as head and shoulder, channels and others. This gives traders enough time never to miss out a trading opportunity. This happens every 15 minutes.
- Module linking – this feature allows traders to link different modules together. This enable to track changes across the other modules since when one module changes the other changes too. You can link your wish lists to client sentiment, order tickets and Reuter’s news.
- Price rejection list – there is a price projection box that is generated whenever patterns complete. In between April and October 2016, the price projection box was formed 72% across all assets.
There is a free demo account which novice traders can use to get a feel of the platform. Experienced traders can also use the demo account for strategy testing but not backwards. The trading platform is available on mobile devices with both an iOS app and Android app on offer.
There are over 10,000 trading instruments available for trading on CMC Markets platform. The specific breakdown is as follows; 9000 shares and ETF, 330+ forex pairs, 110+ commodities, 90+ indices and 50+ treasuries. It is important to note that this broker has yet ti incorporated cryptocurrencies as a trading instrument. Apart from CFDs, traders can engage in binary options which are referred to as digital 100 trading on CMC markets platform. You can trade binaries across indices, forex pairs and commodities. What’s attractive is that there is a cash rebate for traders who trade high volumes.
Fees and Commission
CMC Markets charges relatively low spreads compared to average market spreads. For instance the minimum spread for EURUSD pair is at USD 0.7. The spreads aren’t fixed and always vary according to market conditions, on volatile sessions, the spreads increase. At a fee, traders can be allowed to use the guaranteed stop loss orders which will protect them from market volatility. If the strike price is not hit, only a part of the fee is reimbursed. There is a minimum commission charged for single stocks, however, there is no maximum commission for multiple stocks. This exposes traders who trade huge volumes.
There is no fees charged during withdrawals. Dormancy fees applies when a trader’s account has been inactive for a period of more than two years. However, the amount is deducted from the balance contained in the trader’s account.
Security and Fairness
Trading with CMC Markets guarantees traders of safety of funds since CMC is regulated with the Financial Conduct Authority UK (FCA) and is a member of the Financial Services Compensation Scheme (FSCS). This implies that traders’ funds are insured up to £50,000 incase CMC markets are insolvent. Further security is enhanced by a cover which insures trader’s funds up to £85,000 in case the bank holding traders funds goes into liquidation. It is important to note that CMC markets funds are segregated from trader’s funds and this implies that CMC markets have no access to trader’s funds. Risk diversification is enhanced since the funds are put under different banks; Lloyds, HSBC, and Barclays in UK and Deutsche Bank, and Ulster Bank outside UK. In addition, there are regular audit checks to ensure compliance.
Security of personal and transaction information is guaranteed since CMC Markets uses encryption technology to secure customer information. How better can your personal information and funds be secure more than this?
You can reach the customer support representatives of CMC Markets via email and phone support. For queries on existing accounts you can reach the customer service through this number (+44 20 7170 8200) and the following email address ([email protected]). For new accounts you can reach them through +44 20 7170 8209 or through this mail ([email protected]). Their telephone support is active 24/7. You can get support also directly through the following social media channels; twitter, Facebook, LinkedIn, and Google Plus.
Apart from reaching to the customer service, you can get information about your queries from chat bots, they are rich in customer related queries. There is also a glossary section that has a lot of information about trading terminologies.
Everything about this online trading company is impressive. It has built a solid trust to its customers by having its business is regulated, gained credibility by segregation of funds and become reliable by having a wide range of trading instruments. The over 30 years’ experience in the financial services sector can be seen by its heavy investment in developing a proprietary trading software that has cutting edge features and tools.
Other attracting elements about this online broker are the tight spreads and low commission, common deposit and withdrawal methods and robust customer service support. CMC Markets has set standards for other brokers to emulate.
CMC Markets FAQ
The following are the common questions that customers inquired about CMC Markets.
Is CMC Markets regulated?
Yes, it is regulated by UK financial watchdog FCA.
Is CMC Markets a scam?
No, CMC Markets is a legit broker and it’s licensed in UK.
Where is CMC Markets based?
CMC Markets main office is in 133 Houndsditch, London EC3A 7AH, UK. It has satellite offices in other countries such as Australia, Norway, Austria, Italy, France, Ireland, Canada, Germany and New Zealand.