CMC Markets Review 2021 – Read Before Depositing Your Money

BrokerCMC Markets 
Web Address https://www.cmcmarkets.com/
Founded in 1989
HeadquartersLondon
Customer service+33 (0) 1 53 83 14 03
Support typeEmail, Telephone, Instant Messaging
LanguagesEN, FR, CE, DE, PT IT, SV, ES, DA, IR
Minimum deposit€ 0
Leverage1:30
Demo accountYes
Deposit methodsBank Transfer, debit card
RegulatedYes
Mobile ApplicationYes
Application shelfYes
Overall rating3.5 / 5

Summary

CMC Markets is a broker created in 1989 offering spread betting and CFDs. Its offer covers many financial products. With this broker, investors will be able to trade on currency pairs, indices, stocks, commodities, ETFs, as well as cryptocurrencies. 

CMC Markets is regulated by the FCA in the UK. The broker is also authorized to offer his services in France by the AMF. Its customers therefore benefit from certain protections, notably the coverage of their funds up to £ 85,000. 

The broker offers a relatively advanced trading platform, allowing traders to actively trade on the markets. It incorporates dozens of technical indicators, as well as fairly advanced analysis tools. The broker has also developed a mobile trading application.

CMC Markets is certainly a reliable broker. But our tests on its platform and its various resources offered to traders have shown that CMC Markets is far from being a competitive broker. Here are more suitable brokers for online trading.

Alternative to CMC Markets 

Depending on your trading experience and your needs, we have made a selection of 3 brokers who are more competitive than CMC Markets.

  • eToro: the most suitable broker for beginners and the best social trading platform.
  • Pepperstone: one of the most competitive platforms for trading fees.
  • Saxo Bank: offers more than 40,000 financial products to negotiate.

Account Opening

CMC Markets offers 3 types of accounts. Of these three, two are identical, which can cause confusion.

Opening an account with CMC Markets is not complicated. The process is done online. You will need to verify your identity before you can use the broker’s services. To do this, you will have to send a photo of your identity card, passport or driver’s license through the platform, as well as proof of address, such as a public service invoice.

CMC Markets’ offerings vary depending on the region or the jurisdictions in which its branches are registered. In France, investors are limited to CFDs. These allow speculation on the prices of underlying assets without buying or actually selling them. CMC Markets is therefore not ideal for investors wishing to diversify their portfolio with other instruments, such as futures or options.

Accounts

CMC Markets offers three types of accounts: the limited risk account, the individual account and the company account.

The limited risk account complies with customer protection rules established by ESMA. The trader’s potential losses are limited to the capital invested. In addition, this type of account has a Guaranteed Stop Loss function. This mechanism automatically closes losing positions, so that losses are limited to the initial margin tied up by the trader. 

The company account is reserved for legal entities such as companies. As for the individual account, we did not find any difference between it and the limited risk account. We do not see the point of separating the two types of accounts on the CMC Markets site.

CMC Markets also offers a demo account. The demo account allows you to discover the broker’s web and mobile platforms. You will find all the features of Next Generation on the demo account.

Deposit and Withdrawal

Few options are available to CMC customers for crediting their accounts. They are limited to deposit by card and transfer.

You can credit your CMC Markets account by bank card or by bank transfer. The broker does not offer other alternatives. Electronic wallets such as Skrill and Neteller are absent. On this point, CMC Markets is not very competitive, knowing that eToro offers more than 10 possible deposit methods. 

Withdrawals are made by bank transfer. Card withdrawals are possible, but provided that your deposit, with the same card, was made within the 12 months preceding. Mastercard withdrawals are also restricted.

Spread and Commissions

The cost of trading at CMC Markets is not very competitive. 

Like most brokers, CMC Markets charges the spread on the assets that are listed on its platform. The minimum spread on EUR / USD is 0.7 pip, which is quite high compared to the average of the other brokers we tested. 

For CFDs and ETFs shares, you pay a commission of at least 0.06%, which varies depending on the assets. 

Trading Platform

CMC Markets offers its own trading platform, which is fairly well designed. MetaTrader 4 is also available for traders who want more flexibility.

Next Generation

CMC Markets Trading Platform Next Generation

Next Generation is CMC Markets’ main trading platform. This webtrader is quite advanced. We find it to be a user-friendly, well-designed platform with a neat design. It is available in 2 versions: standard and advanced. The standard version has everything the trader needs to trade properly on the markets. It has more than 80 technical indicators and several drawing tools to refine its analyzes. 

The Next Generation platform can broadcast graphs in very short time units, which can be reduced to one second (each candle represents one second of quotation). 

Like most trading platforms, you can open multiple windows and track different assets at the same time. But Next Generation has the particularity of allowing synchronization between the charting graph windows. 

This feature allows you to open the same asset in different windows, but with different time intervals. In this way, you can display an asset in different time units, just by selecting it from the market window. The drawing tools and technical indicators will also be synchronized between the different graphics.

Mobile Platforms

CMC Markets has also developed its own mobile applications. They are available on Android and iOS. The number of indicators offered on CMC mobile is reduced, it is only about 20. There are also fifteen drawing tools. 

The charting functions of the mobile application are quite developed, with in particular the graphic management of positions. In addition, several types of charts are offered: in bars, in Japanese candlesticks, in Heikin-Ashi and in spreads.

On a tablet, you can follow the graphs of several assets at the same time. The application also allows you to save your analyzes.

MetaTrader 4 (MT4)

Automated trading is not available on Next Generation. But the broker offers the Metratrader 4 trading platform developed by MetaQuotes. It is the most popular platform for Forex and CFD trading. MT4 is very customizable and offers technical analysis tools.

In addition to the technical indicators integrated by default on the platform, Metatrader allows you to add or program your own indicators. Furthermore, this platform makes it possible to program trading robots for automated trading on the markets. Its programming language (MQL4) is easy to understand. The large developer community around Metatrader can also help you automate your strategies.

Available Markets

A wide range of assets are available for trading by CFDs.

CMC Markets offers more than 10,000 trading instruments. The broker offers over 338 Forex currency pairs. The most exotic pairs are therefore offered for trading in the form of CFDs.

The broker offers 87 indices including all the major indices tracked in Europe and the United States: CAC 40, DAX, Dow Jones, S&P 500, etc. 

CMC Markets offers a large number of stocks tradable by CFDs. There are more than 9,400. The broker also offers 46 bonds

Crypto currency pairs are tradable on Next Generation. You will find the most traded virtual currencies: Bitcoin, Ethereum, Ripple, etc.

Commodities are also available such as: metals, energy and other agricultural products.

Asset classesNumber of products
Forex338
Indices87
Cryptocurrencies12
Commodities111
Stocks and ETFs9,413
Bonds46

We talked about spread betting in the introduction. But this product is only available for traders residing in the UK and Ireland. Spread betting is a specific derivative product that allows you to bet on the prices of underlying assets: currency pairs, commodities, stocks, etc. 

Research

CMC Markets’ research tools are more oriented towards technical analysis.

CMC Markets has developed itself its technical analysis tools. The platform offers several types of graphs to analyze price action: Japanese candlesticks, online graphs, as well as more complex types of graphs such as Heikin-Ashi and Renko. 

Through its various data providers, CMC Markets offers up to 20 years of charting graph history on numerous assets. 

The platform has a function for recognizing technical analysis chart figures. With this scanner, chartist configurations such as channels, triangles or rectangles are highlighted. More complex figures such as the shoulder-head-shoulder can also be detected by the scanner. After locating a figure, the program shows you on the graph the potential levels of take profit and stop loss. 

In collaboration with fundamental analysis platforms such as Morningstar, CMC Markets offers its clients detailed market analyzes and possible forecasts on the stocks listed on its Next Generation platform. A dynamic economic calendar also allows you to follow market news in real time.

A news feed is present on the CMC Markets website. But it is not updated regularly.

However overall, we find the research tools too focused on technical analysis. If you want to support your views with relevant fundamental analysis, CMC Markets is certainly not the ideal platform for you.

Customer Support

Satisfactory customer support, which answers questions in a precise and professional manner.

CMC Markets customer support is quite responsive. When we emailed them about the difference between the individual account and the limited risk account, we received a response in less than 15 minutes. On the other hand, the direct messaging present on the site had not worked. The tool therefore seems to lack reliability. 

The broker has set up a fairly detailed FAQ. You will find answers to most of your questions there.

Training

Training is available from the CMC Markets website, but it is poorly organized.

CMC Markets offers a fairly comprehensive training. The broker explains in detail what CFDs are and the different asset classes offered on the platform. Each module is accompanied by articles, as well as explanatory videos. 

You will also find many tutorials that detail the functionality of Next Generation: how to place an order, how to synchronize your charts, set up a guaranteed stop loss, etc. Webinars are also hosted by CMC Markets analysts. 

Although comprehensive, the training is poorly organized, and there is no search bar allowing direct access to a subject. Navigating between modules is not easy.

Security

CMC is a regulated broker in the United Kingdom, but few security measures are taken to protect accounts.

CMC Markets is regulated by the Financial Conduct Authority (FCA). Through the Financial Services Compensation Scheme (FSCS) mechanism, the broker offers client funds protection of up to £ 85,000. Its clients’ funds are segregated through several partner banks in the United Kingdom and in Europe. 

The limited risk account complies with the regulations established by ESMA in 2018, in particular with regard to protection against the negative balance. 

When it comes to protecting trading accounts, we can say that CMC Markets is below industry standards. No additional security measures are put in place, apart from your login password. We noted the absence of two-factor authentication, a tool present at eToro. Some brokers even go further, by offering the possibility of restricting access to your account by IP address, this is the case with LYNX BROKER.

Conclusion

CMC Markets is a serious and regulated broker in Europe. However, our various comparisons made with other brokers lead us to conclude that CMC is not the best choice when it comes to online trading.

In France, its offer is limited to CFDs and trading costs are quite high. Its trading platform is oriented towards technical analysis and may not be suitable for traders looking for advanced fundamental analysis tools.

FAQs

What is the minimum deposit at CMC Markets?

There is no minimum deposit at CMC Markets, but you will need a minimum margin of 3.34% to open a trade in Forex CFDs.

Is CMC Markets regulated?

CMC is regulated by the FCA.

Can I trade with MT4 on CMC?

Yes.

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