CMC Markets Trading Platform Review

Founded in 1989, CMC Markets is a reputable broker suitable for UK traders seeking competitive pricing on contracts for difference (CFDs) and spread betting. It offers a broad selection of financial instruments, including forex, commodities, stocks, indices, and cryptocurrencies, supported by advanced trading tools. With a £0 minimum deposit, it’s accessible to a wide range of users.

CMC Markets Contact Information

If you are interested in giving CMC Markets a try, this publication explores crucial aspects like the broker’s trading costs, account types, regulatory status, and more. By the end, you will have a clear idea of whether CMC Markets aligns with your trading preferences.

Highlights of CMC Markets

• Robust Regulatory Oversight: The brokerage maintains a strong global regulatory standing, adhering to the strict guidelines of multiple top-tier financial authorities. Crucially, it holds a license from the UK Financial Conduct Authority (FCA).
• Diverse Trading Instruments: Traders can access a wide array of assets, including various forex pairs, commodities, global stocks, market indices, and crypto CFDs (for professional traders), among others.
• User-Friendly Platforms and Resources: Access the proprietary Next Generation platform plus MT4 and TradingView.
• Transparent Cost Structure: Straightforward, spread-based pricing; no deposit/withdrawl fees; no minimum deposit.
• Positive Client Feedback & Support: The firm also offers 24/5 customer assistance via live chat, phone, and email. An FAQ page is also available.

Advantages and Disadvantages of CMC Markets

Available Markets at CMC Markets

CMC Markets stands out as a prominent broker that focuses on spread betting and CFDs. While direct stock trading is handled by its dedicated stockbroking division, CMC Invest, the core CFD offering exceeds 12,000 tradable instruments.

Forex

At CMC Markets, traders enjoy an exceptionally broad selection of foreign exchange instruments, featuring dozens of major, minor, and exotic currency pairs. Spreads on key currency pairs like EUR/USD from 0.6 pips and GBP/USD from 0.9 pips which is generally competitive with other brands. Forex indices are also available.

• Currency Pair Variety: Access to more than 300 currency pairs, including a diverse range of majors, minors, and exotics.
• Competitive Spreads: Spreads on popular pairs begin at 0.6 pips, aligning with general industry standards.
• Fast Execution: Orders are processed with remarkable speed, averaging 30 milliseconds.
• Forex Indices: Unique instruments like the CMC USD Index, CMC GBP Index, and CMC EUR Index allow trading on broader currency trends.
• Leverage: Retail clients in the UK can use up to 1:30 for currency pairs and 1:20 for currency indices.

Average Forex Spread at CMC Markets

Indices

CMC Markets features CFDs on over 80 cash and forward global stock indices, which include well-known benchmarks such as the FTSE 100, S&P 500, and DAX 40. This extensive range of index CFDs significantly surpasses what is typically found among competing brokers. For major indices, traders can apply a maximum leverage of 1:20, and spreads on instruments like the US SPX 500 start from a competitive 0.5 points, without any additional commission charges.

• Broad Coverage: Over 80 cash and forward index CFDs available, including major global indices.
• Competitive Pricing: Spreads on key indices like the US SPX 500 start from 0.5 points with no commissions.
• Leverage: Maximum leverage for major indices is set at 1:20 for retail clients.
• Out-of-Hours Trading: Many popular indices are tradable 24/5, allowing responsiveness to global market events beyond standard hours.

Commodities

CMC Markets offers a comprehensive selection of over 100 commodity CFDs. This includes various spot energies, precious and industrial metals, and agricultural commodities.

Spreads from 0.22 points on spot gold, and leverage is capped at 1:20 for this instrument. Other commodities typically offer leverage ratios of up to 1:10. Furthermore, traders can access commodity indices, which consolidate exposure to specific sectors like Precious Metals, Energy, or Agriculture, available with a maximum leverage of 1:10.

• Diverse Range: Over 100 cash and forward commodities, encompassing energies, metals, and agricultural products like wheat and coffee.
• Tight Spreads: Competitive spreads, with spot gold starting from 0.22.
• Varying Leverage: Leverage up to 1:20 on spot gold and 1:10 on most other commodities and commodity indices.
• Sectoral Indices: Ability to trade specific commodity sectors through dedicated indices.
• Extended Trading Hours: Certain popular commodities, such as Brent and West Texas oil, can be traded almost around the clock.

Shares

The platform boasts CFDs on more than 10,000 individual company shares sourced from 20+ different countries, all accessible via the Next Generation platform. For retail clients in the UK, the maximum leverage for stock CFDs is limited to 1:5. Share CFDs incur commissions: £9 (UK), €9 (EU), and $10 (US).

• Extensive Stock List: Access to CFDs on thousands of shares from over 20 global markets.
• Commission-Based Trading: Trades incur commissions, with minimum fees depending on the region of the underlying share.
• Leverage: Maximum leverage for share CFDs is 1:5 in regulated regions.
• Professional Research: Clients can access free quantitative equity analysis from Morningstar.
• 24/5 US Stock Trading: Trade on 67 popular US stocks almost continuously throughout the trading week.

ETFs

CMC Markets provides trading opportunities for over 1,000 Exchange-Traded Funds (ETFs) in the form of CFDs. This comprehensive offering allows clients to gain exposure to diversified portfolios across various themes and sectors.

Execution speeds of 0.0030 seconds serve to minimise slippage when trading ETFs. Moreover, ETFs can be traded with a maximum leverage of up to 1:5 at CMC Markets. A minimum commission of $10 is applied to ETF CFD trades.

• Wide ETF Selection: Over 1,000 ETFs available for CFD trading, covering popular themes from various regions.
• Commissions: A minimum commission of $10 is charged per ETF CFD trade.
• Leverage: Maximum leverage of 1:5 is offered for ETF CFDs.
• Integrated Research: Free access to Morningstar’s quantitative equity analysis helps with informed decisions.

Treasuries (Bonds)

CFDs on over 50 government bonds issued by entities across the European Union, the United Kingdom, and the United States await traders who make CMC Markets their broker of choice. Additionally, clients can trade CFDs on interest rates such as Euribor.

Spreads start at 2 points, and there are no commissions charged for trading either bonds or interest rates. For bond CFDs, a maximum leverage of 1:30 is available, while interest rate CFDs have a leverage cap of 1:5.

• Extensive Bond Coverage: Over 50 government bonds from the EU, UK, and US are available for CFD trading.
• Interest Rate Instruments: Includes CFDs on interest rates like Euribor.
• No Commissions: Trading bonds and interest rate CFDs is commission-free.
• Varying Leverage: Leverage up to 1:30 for bond CFDs and 1:5 for interest rate CFDs.
• Out-of-Hours Trading: Certain popular bonds, like US T-Bonds, can be traded for extended hours.

Share Baskets

CMC Markets has introduced an innovative product called “share baskets,” which are exclusive, themed portfolios of stocks curated to track specific trends or sectors. These baskets, such as BATMMAAN, China Tech, and US Semiconductors, allow traders to gain diversified exposure to emerging industries like artificial intelligence, space exploration, or autonomous driving through a single position.

A significant advantage of these share baskets is zero commission and lower holding costs compared to trading individual shares. This unique offering provides a streamlined way to invest in broader market themes without the complexity of managing multiple individual stock positions.

• Themed Portfolios: Curated collections of stocks based on popular market trends or sectors.
• Diversified Exposure: Offers broader market exposure to a theme in a single trade, reducing single-stock risk.
• Cost-Effective: Features zero commission and reduced holding costs compared to trading individual shares.
• Leverage: Up to 5:1 leverage is available on share baskets.
• Simplified Trading: Enables exposure to a theme without managing multiple separate positions, saving time and effort.

Cryptocurrencies

CMC Markets features an extensive range of trading opportunities in the rapidly evolving cryptocurrency market, specifically through Contracts for Difference (CFDs). The brokerage provides access to 19 distinct digital currencies, predominantly traded as pairs against the US dollar. This selection aligns well with the offerings typically found at major cryptocurrency brokers, ensuring a competitive and diverse choice for interested traders.

However, due to UK regulatory frameworks, cryptocurrency CFDs are exclusively available to CMC Pro clients, as retail derivative trading on crypto assets is not permitted. For those eligible, the platform supports a maximum leverage of 1:5 (20% margin).

• Diverse Cryptocurrency Selection: The platform allows trading on 19 different digital currencies, encompassing well-known names like Bitcoin, Ethereum, and Litecoin, as well as a variety of alternative coins such as TRON, EOS, and NEO. These are primarily offered as CFDs against the US dollar.
• UK Regulatory Compliance: In the United Kingdom, access to cryptocurrency CFDs is restricted solely to professional clients, adhering to regulatory guidelines that prohibit the offering of high-risk products to retail investors in the region.
• Leverage and Margin Details: For eligible professional traders, a maximum leverage of 1:5 is provided for cryptocurrency CFD positions, meaning a relatively small capital outlay can control a larger market exposure, with a minimum professional margin requirement of 20%.
• Innovative Crypto Indices: Beyond individual digital assets, CMC Markets features three unique cryptocurrency indices: the All Crypto Index, Major Crypto Index, and Emerging Crypto Index, enabling traders to gain exposure to a basket of cryptocurrencies rather than just single assets.

Options

Options enable traders to gain the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific timeframe. CMC Markets provides an avenue for options trading, allowing clients to speculate on the price movements of major indices and prominent US tech stocks, including the ‘Magnificent Seven’ US tech stocks.

Options can be traded through either a spread betting or CFD account, with all products being cash-settled. The platform offers fractional options for precise position sizing and boasts features like real-time Greeks for deeper insights into trade dynamics, alongside ultra-fast execution speeds and comprehensive charting tools.

• Zero Commission: Trade options without incurring commission fees.
• Fractional Options: Allows for precise position sizing, even for small trades.
• Key Instruments: Access to options on major US/European indices and “Magnificent Seven” US tech stocks.
• Real-time Greeks: Provides crucial metrics for assessing options risk and market sensitivity.
• Fast Execution: Boasts ultra-fast execution speeds of 0.0030 seconds.

Trading Costs at CMC Markets

Understanding the cost structure of any trading platform is vital for achieving profitability, and this section presents a detailed overview of CMC Markets’ fees, categorised into trading and non-trading charges. While some costs are inherent to market dynamics, others are specific to the broker’s operational model, making a thorough review crucial for informed decision-making.

Spreads

The spread represents the difference between the bid and ask prices of a tradable instrument, and it is the core pricing model of CMC Markets. The broker generally offers competitive spreads on its CFDs on forex and other instruments.

The minimum spread on the widely traded EUR/USD currency pair in their standard CFD account starts from 0.6 pips, which stands favourably against many other brands. GBP/USD, meanwhile, features spreads from 0.9 pips. Note that forex pairs typically feature variable spreads that can fluctuate based on market conditions.

Commissions

The commission structure at CMC Markets varies depending on the account type and the specific asset being traded. For most users trading through their standard CFD accounts, no additional commissions are charged, as the broker’s compensation is built into the bid-ask spread.

However, a notable exception applies to stock CFDs. UK clients who trade shares will incur commissions of £9 for UK shares and $10 for US-listed shares. European shares, meanwhile, have a fee starting at €9.

For the FX Active accounts, CMC Markets offers tighter spreads starting from 0.0 pips on certain major currency pairs, but this comes with a commission of $2.50 per side per standard lot. This is an alternative pricing model for high-volume forex traders seeking lower raw spreads.

Overnight Fees

Overnight financing charges, commonly known as swap rates, are applied when leveraged positions are held open beyond a single trading day. These charges reflect the interest rate differential between the two currencies involved in a pair for forex trades, or broader interbank rates for other asset classes. They can be either debited or credited to a trader’s account, depending on whether they hold a long or short position.

At CMC Markets, swaps are charged or paid at 5 PM New York time. Specific adjustments, such as adding or subtracting 0.0027% to the tom-next rates for long and short positions, respectively, are factored in by the broker to reflect the true cost of maintaining overnight exposure.

Below, you can observe the rollover fees imposed at the time of writing. Note that swaps change on a regular basis, so make sure to pay a visit to CMC Markets’ Trading Costs page before you decide to hold a position overnight.

Non-Trading Fees

As established, there are numerous costs at CMC Markets that are directly associated with placing and holding trades. However, the broker also has some non-trading fees that clients should be aware of.

The charge levied for dormancy, for example, amounts to £10 per month. This fee is imposed on accounts that exhibit no trading activity for a continuous period of 12 months. This dormancy fee is deducted from the available account balance each month until trading resumes or the balance reaches zero.

Crucially, CMC Markets does not impose fees for deposits or withdrawals in the UK, which is a standard among reputable brokers. However, it is advisable for clients to confirm if the company or financial institution behind their payment method of choice attaches its own fees to transactions, which would be beyond CMC Markets’ direct control.

Trading Platforms Supported by CMC Markets

CMC Markets provides its clients several trading platforms to pick from, including proprietary technology and widely recognized third-party solutions. This dual approach ensures that users, regardless of their experience level or preferred trading style, can enjoy a suitable environment for executing their strategies.

Next Generation

CMC Markets’ flagship proprietary web-based platform, Next Generation, is known for its broad range of features and user-friendly interface. It boasts an advanced charting package, complete with over 100 technical indicators, 70+ chart patterns, and 10+ chart types.

The platform also incorporates unique tools like a price projection feature to identify chart patterns and a pattern recognition scanner that alerts users to common formations across popular products. Next Generation also offers extensive layout customisation and advanced order types for precise trade management, and integrated market news and analysis, including expert commentaries and research from Morningstar and Reuters.

However, a notable limitation is the absence of algorithmic trading capabilities. This means that automated strategy development requires an alternative platform.

• Advanced Charting: Over 100 indicators, 70+ patterns, and more than a dozen chart types for in-depth analysis.
• Pattern Recognition: Automated scanner notifies users of emerging chart patterns on popular instruments.
• Customizable Layouts: Ability to save and switch between up to five personalised trading layouts.
• Sophisticated Orders: Offers advanced order options like boundary orders and guaranteed stop-loss orders.
• Integrated Insights: Direct access to market news, expert analysis, and research reports within the platform.

MetaTrader 4

MetaTrader 4 (MT4) stands as a platform that enjoys popularity across the globe, and it is particularly favoured by UK-based forex traders for its extensive analytical tools. Extensive customisation is another perk. Beyond its built-in technical indicators, CMC Markets’ MT4 offering enhances the experience with add-ons like Mini Terminal and Sentiment Trader.
MT4 users also have the capability to trade micro lots, which is crucial for refined risk management, especially when using leverage. Most importantly, MT4 is the go-to platform for algorithmic trading, allowing users to develop, optimise, and backtest automated strategies using the MQL4 programming language.

• Customisation: Access to thousands of free and paid indicators for personalised analysis.
• Broker Add-ons: Includes 12 exclusive add-ons and 15 extra technical indicators provided by CMC Markets.
• Micro Lot Trading: Facilitates improved risk management through the ability to trade smaller lot sizes, making the platform excellent for beginners and cautious traders alike.
• Algorithmic Trading: Supports the development and backtesting of automated strategies using MQL4.
• Copy Trading: Integration with MT4 Trading Signals enables real-time replication of other traders’ activities.

TradingView

CMC Markets integrates with TradingView, a highly regarded third-party platform. This platform enables users to conduct advanced technical analysis with over 20 chart types and more than 100 drawing tools, assisting in the identification of potential trading opportunities.
The platform is also known for social trading, which allows UK traders to exchange ideas and strategies, fostering a collaborative learning environment. TradingView offers over a dozen customizable alerts based on price and volume, and it includes over 400 built-in technical indicators.

• Advanced Charting: Boasts over 20 chart types and 100+ drawing tools for comprehensive technical analysis.
• Social Community: Provides a platform for exchanging trading ideas and strategies with other users.
• Customizable Alerts: Offers 10+ distinct alerts based on price movements and trading volume.
• Custom Indicators: Users can develop bespoke technical indicators using the Pine Script programming language.
• Multi-Device Compatibility: Accessible on both desktop and mobile devices, ensuring flexibility for traders on the go.

Mobile Trading at CMC Markets

CMC Markets provides its clients with a mobile trading experience that mirrors the advanced capabilities found on its web platform. It offers a native application for both iOS and Android devices. This intuitive app allows users to seamlessly open, close, and modify trades, leveraging sophisticated order types and charts optimised for mobile screens.

Beyond its core trading functions, the CMC Markets mobile app integrates a suite of analytical tools, including various technical indicators and chart types, along with customisable dashboards and real-time client sentiment tracking.

Users can stay informed with push notifications, email, or text alerts, and access free market news and analysis from in-house experts, Reuters, and Morningstar, complemented by a comprehensive economic calendar. The platform also incorporates enhanced security features like fingerprint authentication.

As CMC Markets also supports MT4 and TradingView, their respective mobile applications can also be utilised by the broker’s users.

Account Types Available at CMC Markets

CMC Markets offers a selection of account types designed to cater to different trading needs and the FCA’s regulatory requirements, primarily focusing on CFD and spread betting services. There are also options for professionals or individuals interested in paper trading. Understanding these distinct account offerings is essential for prospective traders to choose the most suitable option for their financial objectives and risk tolerance.

Spread Betting

This account type is distinct because trading costs are integrated into the spread, meaning there are no additional hidden fees or commissions levied on trades. Additionally, a significant benefit of spread betting for eligible clients is the tax efficiency. Gains derived from this form of trading are typically exempt from capital gains tax and stamp duty in the UK and Ireland.

• Cost Structure: Trading costs are covered solely by the spread, with no additional commissions.
• Extensive Instruments: Access to over 12,000 diverse trading instruments, including currency pairs, stock indices, commodities, individual shares, Exchange-Traded Funds (ETFs), interest rates, and government bonds.
• Tax Advantages: Gains are generally exempt from capital gains tax and stamp duty.
• Base Currencies: Supports GBP and EUR for account funding and withdrawals.

CFD Trading

The CFD (Contracts for Difference) trading account features an all-inclusive spread pricing model. Stock CFDs are the one exception, seeing as a minor commission applies (e.g. $10 for US stocks and £9 for UK stocks).
We should also note that this account type does not offer access to crypto CFDs. Under FCA rules, only professional clients can trade crypto derivatives.

• Simplified Pricing: Costs are primarily covered by the spread, with no commissions on most CFDs.
• Flexible Deposits: No minimum deposit requirement for account funding.
• Variable Leverage: Leverage of up to 1:30.
• Multiple Base Currencies: Supports a broad selection of major and minor currencies for account management, including GBP.

FX Active

The FX Active account at CMC Markets is specifically tailored for high-volume traders. A key advantage is spreads from 0.0 pips on major currency pairs. Although this comes with a fixed commission charge of $2.50 per side, per standard lot, the overall pricing structure still serves to reduce trading costs compared to the broker’s spread-only accounts.

• Target Audience: Designed for high-volume forex traders.
• Raw Spreads: Provides spreads from 0.0 pips on major forex pairs.
• Commission Structure: Incurs a fixed commission per standard lot on forex trades ($2.50 per side).
• Share Commissions: Specific commissions apply to US ($10) and UK (£9) share CFDs.

CMC Pro

Designed for professional clients, the CMC Pro account features enhanced trading conditions that differ significantly from those for retail investors. Professional clients can access higher leverage of up to 1:500, allowing for greater market exposure with a smaller initial capital. Unlike retail accounts, CMC Pro users do not benefit from negative balance protection.
Professional clients also have the ability to trade cryptocurrency CFDs with margins starting at 20% and leverage capped at 1:5. Additionally, eligible high-volume traders may receive cash rebates and earn up to 3% interest on available equity.

• Elevated Leverage: Offers up to 500:1 leverage for professional clients.
• No Negative Balance Protection: Professional clients do not have access to this safeguard.
• Crypto CFD Access: Permits trading of cryptocurrency CFDs.
• Incentives: Potential for cash rebates and interest earnings on account equity for high-volume traders.
• Dedicated Support: Provides a personal account manager for enhanced client service.

Demo Account

CMC Markets users can open a demo account that serves as a highly valuable tool for both aspiring and experienced traders. This simulated environment replicates real-time market conditions, allowing users to practice and test trading strategies without any financial risk, as all trading is conducted with virtual funds. Demo accounts have no expiration date.

• Cost-Free: Available completely free of charge to all interested users.
• Demo Accounts are Permanent: No time limit on how long the demo account can be used.
• Risk-Free Trading: Utilises virtual funds, eliminating financial risk for practice.
• Strategy Testing: Allows experienced traders to test and optimise new trading strategies in real-time simulated conditions.
• No Live Stock Quotes: The demo account does not display live stock quotes, which might affect the comprehensive testing of stock-specific strategies.

Customer Support at CMC Markets

CMC Markets prides itself on offering excellent customer support services, designed to assist traders with their inquiries and provide timely solutions to any potential issues. The brokerage ensures accessibility through various contact channels, including live chat, telephone, and email, available primarily on weekdays.

Weekend support is not currently provided. However, an extensive online FAQ section serves as a valuable self-service resource for common questions.

Regulatory Background and Compliance

CMC Markets adheres to stringent standards set by several top-tier financial authorities, which significantly enhances client trust and ensures a secure trading environment. In the UK, the broker is authorised and regulated by the Financial Conduct Authority (FCA).

Due to its FCA authorisation, CMC Markets must offer negative balance protection to its retail clients and prevent them from trading crypto derivatives. Moreover, UK-based traders are eligible for compensation of up to £85,000 should the company become insolvent.

As for international traders, CMC Markets adheres to the regulations of prominent supervisory bodies like ASIC (Australia), the German BaFin, the DFSA (UAE), and the Canadian CIRO, among others. This extensive regulatory oversight underscores CMC Markets’ commitment to compliance and investor protection across its operational regions. It is also worth noting that the broker’s BaFin license supports EU operations.

Client Security at CMC Markets

With over three decades of operational history, CMC Markets is a trustworthy broker that places a strong emphasis on the security of its users. A cornerstone of the brokerage’s client security framework is the segregation of client funds. In compliance with UK regulatory mandates, client money is held in segregated trust accounts that are seperate from company funds.

Furthermore, retail traders in the UK benefit from the Financial Services Compensation Scheme (FSCS) up to £85,000. The firm also offers negative balance protection to non-professionals, so losses cannot exceed deposited funds.

What UK Traders Say about CMC Markets?

Based on user feedback, UK traders generally hold a positive view of CMC Markets, reflected in a high Trustpilot rating of 4 out of 5 from over 2,200 reviews. A significant majority (65%) awarded CMC Markets five stars.

The feedback is not universally positive, with a portion of reviews expressing dissatisfaction. Some negative comments point to issues with customer service responsiveness, particularly for account opening problems or prolonged wait times, while others report experiencing occasional intraday outages.

Most clients commend its ease of use, trading environment, and reliability. Specific praise often highlights the efficiency of deposit and withdrawal processes, as well as the helpfulness and professionalism of the customer support team.