Founded in 1989, CMC Markets is one of the oldest brokerage businesses worldwide and dominates the Forex industry as a top-tier company. The company had a market capitalization of over £944 million as of September 2020. If you consider trading on a brokerage but do not know how to choose, our CMCMarket review may guide you.
Is CMC Markets Safe?
CMC Markets may be the safest brokerage in the industry. It is publicly traded and does not operate a bank. The company is regulated by four tier-1 regulators (high trust) and two tier-2 regulators (average trust). Tier-1 Regulators are the Financial Conduct Authority (FCA), Australian Securities & Investment Commission (ASIC), Investment Industry Regulatory Organization of Canada (IIROC) and Monetary Authority of Singapore (MAS).
Range of Instruments
CMC Markets offers a total of 9852 CFDs and 158 Forex pairs. Cryptocurrency trading is available only via CFDs and physical crypto trading is not an option. Note: Crypto CFDs are not offered to UK residents.
Commissions and Fees
The trading costs are very important for the majority of the traders and CMC Markets has been doing a great job in that category. The broker is offering a very low spread regardless of the account type and trading volume of the customer.
The spreads offered by CMC Markets are better than the industry average. For example, the typical spread on EUR/USD is 0.74 pips according to CMC Markets price data for August 2020. Besides the average spread, you can enjoy the spread of 0.64 pips on the highest tier as the all-in cost. This number still stays competitive compared to the ones offered by IG (0.59 pips) and Saxo Bank (0.6 pips).
High-level activity of the traders is also rewarded on CMC Markets. There is a Forex rebate system as you get $5 per million if you succeed to exceed $25 million in trading volume per month. The number gets even higher up to $10 per million if the notional trading volume sees the level of $300 million monthly.
Platforms and Tools
CMC Markets uses a trading platform called Next Generation. The platform is very easy to use and fast compared to the other platforms of the company’s competitors. There are lots of tools you can work with on the platform. There are 80 technical indicators, 60 candlestick patterns, 13 chart patterns and 40 drawing tools and all of them can be combined with each other easily.
The company also is doing very well when it comes to social trading. The broker has developed a section called Chart Forum on which people can post their charts and analysis on specific instruments. The ratings of the traders can be a good indicator to understand which one is worth following.
The Next Generation platform does not allow automated trading; however, traders can choose CMC Markets MT4 platform if they want automated trading. As a drawback, the number of instruments is far less in MT4 compared to Next Generation.
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