CMC Markets Review – 2021’s Best Forex Trading Platforms

Editorial Team
cmc-markets-forex-trading-review

CMC Market is an online international brokerage platform. It was established in 1989 and now has over 25 years of experience. The firm is regulated by various regulation authorities and has kept itself up-to-date with the innovations and development in the trading world. With access to various markets, CMC aims at providing CFD and Forex brokerage services.

CMC has been regulated by the FCA, ASIC, IIROC, FMA and MAS and doesn’t deal with clients that are based in the US. When compared to its competitors the firm has relatively low prices, except when it comes to CFD stocks. With offices in various parts of the world, CMC Market has expanded its client base and now deals with over 300 Forex instruments, 60 plus indices, 15 cryptocurrencies, more than 9000 shares and ETFs, 90 plus commodities and over 30 treasuries.

In this review, we will be going through the various aspects of CFD andForex dealing through CMC Market including withdrawals and deposits, trading tools, trading platforms, rules and regulation, fees and commission and various other factors that are taken into account when reviewing a broker.

CMC MARKET OVERVIEW:

  • Value for money
  • Intuitive platform
  • Multiple award-winners
  • Over 25 years of experience
  • 24/7 support
  • Trade anywhere
  • Risk management strategy
  • Security of funds
  • Execution control

COMPANY PROFILECMC MARKET:

CMC Market was founded in 1989 and has evolved ever since and is now established as a reputable publicly traded UK Forex broker. With over 25 years of experience, CMC Market has aligned itself with the ever-changing online trading landscape.

The company itself is listed under the ticket CMCX, on the London Stock Exchange (LSE). CMC has an extensive range of offerings to suit the needs of its ballooning client base. The company includes CFDs and spread betting across the five major asset classes as well as government bond listing and 15 cryptocurrency offerings. One of the most striking features of the company is its no negative balance policy that protects the accounts of clients from going into a negative balance.

The firm has been rated as the best forex broker and has also been recognized for its extensive range of offerings. In order to enhance the user-friendliness of CMC Market and to ensure an overall seamless experience, especially attention is placed on customer service, educational resources and research amenities.

CMC MARKET REGULATIONS:

CMC Market is regulated through some of the most top-tier regulation authorities which makes it secure. In total there are five regulatory bodies that monitor the CMC Market. In the UK, the Financial Conduct Authority (FCA) ensures that the company’s practices are in compliance with the client money rules and are not mixed with corporate funds. CMC Market has been registered under the number 173730 in the UK and ensures the safety of its clients’ money by holding them in segregated accounts, away from corporate funds. Furthermore, these accounts are not just under one roof and have been dispersed all over UK and European banks to enhance the security.

The intervention of the FSCS protects the assets of clients up to a total of £85,000 and clients are also protected from getting a negative balance through the ESMA rules that are applicable on the company. In Canada, the Investment Industry Regulatory Organization of Canada (IIROC) ensures that CMC market is operating within the boundaries of the law and offers a protection amount of $1,000,000 CAD. In Australia, CMC Market is regulated by the Australian Securities and Investment Commission (ASIC), however no protection money is offered to clients based in Australia.

In New Zealand, the Financial Markets Authority (FMA) and in Singapore, the Monetary Authority of Singapore (MAS) look into the company’s activities and ensures that it remains within the legal domain. Similar to ASIC, FMA and MAS also offer no protection money. However, all regulatory bodies do offer negative balance protection.

The CMC Market software itself also tightens security by using a two-fact authentication process that includes biometric authentication.

CMC MARKET TRADING PLATFORMS:

CMC Market offers a variety of different trading platforms which are convenient to use clients are given the option to opt for the platform that suits them and is the most appropriate for their trading experience. Here are all the things you need to know about the trading platforms that CMC Markets offers.

1. WEB TRADING PLATFORM

CMC Market uses ‘Next Generation’ as its web trading platform. Next Generation has an advanced order panel, is highly customizable, easy to navigate and has a modern and clean design. However, this Next Generation platform does not require a two-step verification process and that puts the safety of the client at risk which is why it is one of the major drawbacks.

Keeping the lack of safety aside, this platform is designed in a way to provide clients with tailor made solutions to cater to their problems and produce optimum results. It consists of a charting package which is very popular in the industry and allows clients to use technical indicators and drawing tools.  This helps in visualizing the prevailing trends in the industry and make better and more informed decisions.

This platform also has some innovative trading tools that includes price projection tools, client sentiment tools, multiple layouts and pattern recognition. The platform is capable of executing different kinds of orders including some of the most advanced orders. It has a built-in chat for assistance purposes, videos on trading strategies and a platform tour video.

2. MOBILE APPS

CMC Market’s mobile trading app has been awarded as the best mobile/tablet platform for trading. With a mixture of over 35 technical indicators and various drawing tools, the mobile app simplifies the trading experience and makes it more comprehensive. It is compatible on all devices.

In addition to the various tools, the mobile app consists of a live market calendar and clients have the option to choose whether they want notifications regarding important occurrences in the market or not. This mobile trading app is focused on CFD and Forex trading with live streaming prices, charts, order execution updates, Reuters news, client sentiment indicator and several other features.

3. METATRADER 4

The MT4 platform is the industry standard platform for trading purposes. It is compatible on all devices and can either be installed or clients can use the web-based version. It allows for CFD and Forex trading over a range of popular commodities and indices.

With the MT4 platform, clients can refer to the Expert Advisors (EAs) that are automated and generate solutions and advices for clients. In addition to the EAs, users will unlock a world of charts and analytical tools that will help in generating an in-depth financial analysis to have a more comprehensive approach to the market.

CMC MARKET DEMO ACCOUNT:

In order to prepare its clients for trading with real capital, CMC Market gives clients the option of starting from a demo account. This demo account allows clients to practice trading through thousands of instruments which includes FX, shares, commodities and indices.

Some of the features of this demo account are similar to those of a live account. Similar to a live account, a demo account provides you with powerful tools that can be used for graphing and analytical purposes. These accounts are compatible with all devices, thus allowing potential clients to learn trading on the go.

In addition to the things mentioned above, a person using a demo account will be provided with support during trading hours and will also have access to trading news and insight from the global market.

CMC MARKET DEPOSITS AND WITHDRAWALS:

CMC Markets does not impose any deposit or withdrawal fee with a few exceptions. There are various methods available for making these transactions.

  • Credit card
  • Debit card
  • Bank transfer
  • Mastercard
  • Visa
  • PayNow
  • FAST
  • GIRO
  • MEPS Funds transfer
  • POSB/DBS
  • Cheque
  • ATM transfer
  • NETS
  • Inward Telegraphic Transfer

ACCOUNT CURRENCIES SUPPORTED BY CMC MARKET:

CMC Markets supports 10 base currencies which include the following:

  • GBP
  • AUD
  • CAD
  • EUR
  • NZD
  • USD
  • PLN
  • SGD
  • NOK
  • SEK

CMC MARKET FEES AND COMISSION:

CMC Markets charges relatively low forex fees and its index CFD fee is market competitive. The firm does not charge its clients for any deposits, however in some instances, charges are imposed on certain withdrawals. The Stock CFD fees charged by the firm is high compared to its competitors.

1. TRADING FEE

CMC Markets’ trading fee is built within their spreads. If a client chooses to trade during peak hours, the average spread cost is 0.5 points if S&P 500 CFD assets are being traded. If a client is trading in Europe 50 CFD, the average spread cost will be 1.6 points during peak trading hours. In cases where the client is trading in EUR/USD currency pair, average spread cost is 0.7 pips during peak trading hours.

Therefore, it is safe to conclude that the trading fee varies from asset to asset, the currency pairs and the time of the day during which trading activity is carried out.

2. NON-TRADING FEE

CMC Markets doesn’t charge any non-trading fee in particular, however some withdrawals have certain charges attached to them.

3. INACTIVITY FEE

Unlike some of its competitors, CMC Markets imposes a fee on its clients if their account remains unused for a long time. The firm charges an inactivity fee of £10 for every month, once the client’s account has been inactive for a period of 12 months or more.

PROS:

  • Low forex fees
  • Mobile and web platforms are well developed and are user-friendly
  • Provides access to advanced educational and research tools
  • Regulated by top-tier authorities including FCA
  • Offers protection

CONS:

  • No US clients
  • CFD spreads are high for certain indices
  • No back-testing
  • Product portfolio is not extensive
  • Account verification process is complicated

CONCLUSION: SHOULD YOU TRADE WITH CMC MARKET?

CMC Markets is one of the safest options as it is regulated by top-tier regulatory bodies. CMC Markets has built a credible reputation and is one of the best and most reliable Forex and CFD brokers. Clients that trade through CMC Markets will receive the benefits of low forex fees, trade through highly developed trading platforms and will have access to essential research and educational tools.

However, there are a few drawbacks of using CMC Markets. Despite the low forex fees, the firm charges high Stock CFD fees. The firm’s product lists does not consist of the five major asset classes and only includes CFD and forex asset classes. In addition to this, the account verification process that is required is lengthy and tedious.

CMC MARKET FREQUENTLY ASKED QUESTIONS:

1. Does CMC Markets offer a demo account?

Yes, CMC Market does offer a demo account for its client where they can practice trading.

2. Does CMC require its clients to deposit funds before account activation?

Clients can create their accounts beforehand but accounts will not be activated unless they have a sufficient amount of funds in them.

3. Do identity checks affect credit rating?

No, a client’s identity check does not affect their credit rating.

4. Are there any inactivity charges?

Yes, CMC Markets charges £10 for every month that the client’s account remains insufficiently funded after a period of 12 months.

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