CMC Markets is one of the most popular CFD brokers on the market. With decades of experience, it is renowned for its cutting-edge trading experience, robust safety measures, and wide range of assets.
To find out more about CMC Markets UK, read on to discover our comprehensive review, so you can decide if this is the right broker for your needs.
CMC Markets: what is it and how does it work?
CMC Markets is a leading online brokerage firm that enables individuals to trade a wide range of financial instruments, including stocks, indices, currencies, commodities, and more, via CFDs and spread betting. Operating through intuitive trading platforms, CMC Markets allows users to speculate on price movements, either going long (buying) or short (selling) on various assets, and potentially profit from both rising and falling markets.
Main features of CMC Markets
Here is a short summary of CMC Markets’ main features:
|Regulations||Locally regulated by the FCA|
|Guarantee||Up to £85,000 (FSCS)|
|Products||CFDs, spread betting|
|Markets||Forex, indices, shares, commodities, ETFs, bonds, interest rates|
|Costs||Variable (i.e., $0.02 per US share, from 1 pip with spread-betting, or 2 pips with CFD trading, 0 pips with FX active account)|
|Withdrawal fee||£0 for cards, bank transfer, or PayPal|
|Account types||CFD Account, Spread Betting, FX active, demo|
|Platforms||Next Generation, MetaTrader 4 and mobile app|
Phone: +44 (0)20 7170 8200
Is CMC Markets safe? | Regulation and protection fund
One of the primary considerations when venturing into investments is the choice of a reliable and secure platform.
In this regard, it can be confidently stated that CMC Markets is not involved in any fraudulent activities. With a remarkable international track record spanning over 35 years, CMC Markets has firmly established itself as a trustworthy broker operating under proper regulations.
As an international broker, it adheres to various regulatory frameworks. Within Europe, it operates under the supervision of the German BaFin and the British FCA. Moreover, being a publicly listed company on the London Stock Exchange (CMCX.L), its financial accounts and transactions are subject to greater transparency and scrutiny.
Is CMC Markets reliable? | CMC Markets protection fund
The broker is highly reliable, but what would happen with your funds in the event of bankruptcy?
Thanks to the stringent regulations it adheres to, CMC Markets ensures that all retail customer funds are segregated. What does segregation entail? It means that the funds belonging to retail customers are kept separate from CMC Markets’ own funds, thereby safeguarding the funds, even in the unlikely event of CMC Markets facing bankruptcy.
Furthermore, the Financial Services Compensation Scheme (FSCS) provides additional assurance by offering compensation of up to £85,000 if the custodian of the funds declares insolvency.
Main financial assets of CMC Markets in the UK
With CMC Markets you will have access to over 12,000 different assets via CFDs or spread bets. This is a summary of its offer:
|Shares||Access to more than 10,000 CFDs on stocks|
|ETFs||More than 1,000 listed funds|
|Forex||Over 330 currency pairs|
|Indices||Over 80 indices from Europe, USA, and Asia|
|Bonds||Over 50 products on interest rates and bonds|
|Commodities||Over 120 different assets|
With CMC Markets, you have access to over 10,000 CFDs (Contracts for Difference) on stocks from major markets, including the most prominent securities.
It’s important to note that when trading CFDs, you aren’t purchasing the underlying stock directly, nor do you become the owner of the securities. However, if you have an open long position at the time of dividend distribution, you will receive the dividends accordingly.
It’s worth noting that trading with leverage is possible, which can magnify potential gains, but it also entails an increased risk of losses.
The platform makes available to users more than 1,000 ETFs.
Another prominent market offered by CMC Markets is the extensive range of over 330 currency pairs, encompassing major currency crosses as well as some more exotic options. The platform ensures automated and swift order execution for a seamless trading experience.
Over 80 indices can be traded via spread betting or CFDs.
Interest rates and bonds
More than 50 bonds and interest rates can be traded with CMC Markets.
Trade over 120 different assets including major raw materials such as gold, silver, Brent and palladium.
Which markets can you trade via CMC Markets?
CMC Markets provides access to virtually all major global markets, along with a selection of more exotic ones. With an extensive offering of 12,000 different assets through CFDs and spread betting, there are very few markets that fall outside your trading opportunities.
Types of CMC Markets accounts: CFDs, spread betting, FX active, and demo
Trading with CMC Markets is straightforward. To commence trading, you have the option to select between a CFD, spread betting, FX active, or a demo account.
The CFD account allows you to trade with leverage on the full offering of assets via CMC Market’s own web platform or MT4.
This account grants you access to all operations and tools available on CMC Markets. In particular, the leverage level for forex trading with this account is up to 30:1. Furthermore, the CFD account provides protection against negative balances, ensuring that you cannot lose more funds than what is available in your account.
CMC spread betting account
The spread betting account is characterised by tight spreads and no FX fees. It is available only when using CMC Markets’ proprietary platform (no MT4). The spreads start from only 0.3, just like other account types, and there are no commissions. Also, there are no market data fees with this account.
FX active account
The FX Active account is a CFD account ideal for experienced, high-volume traders. It is compatible with CMC web platform and MetaTrader 4 and the spreads start at 0 pips for six major forex pairs. Also, there is a 25% spread discount on more than 300 forex pairs. Just like with other account types, you can short-sell, there is no minimum deposit requirement, but commissions are payable on shares (min. $10). You also need to pay for market data.
The demo account offered by CMC Markets is a simulated account that can be easily opened. You have the flexibility to create multiple demo accounts, and each account provides access to a wide range of 10,000 products, starting with a virtual currency balance of $10,000.
How to open a CMC Markets account in the UK?
The process of opening an account with CMC Markets and initiating trading is straightforward and can be summarised in five simple steps:
- Access the CMC Markets website.
- Add the email address and password you want to use and choose the platform (CFDs or MetaTrader 4).
- Complete the online form with your relevant personal data, which includes your employment situation and experience as an investor.
- Verify your identity and address.
- Deposit money into your account and start trading.
Fees and commissions of CMC Markets
Is CMC Markets considered an expensive or affordable broker? The fees are dependent on the specific asset you choose, although they are generally competitively priced. Here are the costs associated with each product.
These are the costs and commissions of each product. It’s worth noting that, apart from the costs detailed below, all CFD positions (regardless of the asset you trade) will incur holding costs. These are charged unless you open and close your position during the same trading day and vary according to asset and market conditions, such as volatility.
CMC Markets costs: stocks
Stocks have a variable commission unless you open a spread betting account.
The minimum commission depends on which market you trade. For example, if you trade UK stocks, the commission charge is 0.1% and you need to pay a minimum of GBP9, regardless of the trade size. For US stocks, the minimum commission is $0.02 and you need to pay a minimum of $10.
CMC Markets costs: ETFs
If you want to buy or sell ETFs, you need to cover the holding cost only. This is calculated daily and varies.
CMC Markets costs: forex
The minimum spreads with CMC Markets start from 0.3, but the FX Active account boasts 0 pips on major forex pairs and a discount on over 300 forex pairs.
CMC Markets costs: indices
These are some of the spreads for CFDs on indices:
|Index||Minimum Spread (points)|
|US SPX 500||0.5|
|US NDAQ 100||1|
CMC Markets costs: bonds
The costs and commissions for bonds are:
|Asset||Minimum Spread (points)|
|US T-Note 10 YR||3|
|US T-Note 5 YR||1.5|
|US T-Note 2 YR||1.5|
CMC Markets costs: commodities
The minimum spreads for trading with commodities are also competitive:
|West Texas Crude Oil||2.5|
|Brent Crude Oil||2.5|
Also, you can opt for guaranteed stop loss orders, which must be paid in full, but they are refunded if the order is not triggered.
CMC Markets platforms: New Generation and MetaTrader 4
The broker allows you to trade through its own platform, New Generation or through the well-known MetaTrader4. In addition, it has its own mobile trading app.
Let’s see the basic features of each one.
CMC Markets’ trading platforms
CMC Markets is a specialised broker that focuses on trading activities. As such, it offers its own proprietary trading platform, in addition to integration with MetaTrader 4. Let’s take a closer look at these options.
CMC Markets Next Generation
Next Generation is CMC Markets’ proprietary trading platform, meticulously designed to cater to both novice and professional traders. It offers a comprehensive suite of features, including over 115 technical indicators, more than 70 patterns, and 35 integrated drawing tools.
Notably, the platform allows for extensive customisation, enabling users to create up to 5 distinct workspaces. Furthermore, Next Generation is available in versions compatible with iPhone, iPad, and Android devices, providing seamless access on the go.
With Next Generation, you can access valuable market sentiment information from CMC Markets’ customers. This includes insights into the number of customers who are taking short or long positions on a particular asset, providing a glimpse into the prevailing sentiment surrounding that asset.
MetaTrader 4 is widely recognised as one of the most popular trading platforms globally, and its features are widely known. It enables the utilisation of automated programs (Expert Advisors or EAs) developed by both third parties and traders themselves, facilitating the replication of strategies from other traders.
App for mobile phones
The broker has also developed a dedicated trading platform specifically designed for use on mobile devices. This mobile version of the Next Generation web platform offers a majority of the essential features and has received recognition from ForexBrokers.com in 2021.
It has garnered a positive reputation, as evidenced by its 3.6-star rating (out of 5) in the Google Play Store, with notable praise.
Customer service at CMC Markets UK
Customer service is regarded as one of the platform’s key strengths. They offer multiple channels for contacting their support team, including email and phone support during regular office hours.
These are their contact details:
- Office: CMC Markets UK plc 133 Houndsditch London EC3A 7BX
- Phone: +44 (0)20 7170 8200
- Email: email@example.com
In addition, CMC Markets provides a highly valuable help section that assists users in getting started with the platform and trading. It covers various topics, ranging from trading basics to account applications.
Furthermore, they offer a comprehensive training area that includes informative articles and tutorials, enabling users to learn about stock market trading and gain an understanding of the functionality of different assets available on CMC Markets, among other topics.
The broker also organises webinars and events dedicated to analysing market trends and explaining various trading strategies. In summary, they undertake an important and commendable effort in educating and empowering their trader community
Is CMC Markets for beginners or for experts?
CMC Markets caters to both beginners and experts in trading. While they provide a comprehensive trading platform with numerous features, it remains user-friendly and accessible.
However, it’s important to note that CMC Markets may not be the ideal platform for absolute beginners – in this case, you may want to check out the best brokers for beginners or the best copytrading brokers. This is primarily due to the nature of trading with CFDs, which may not be the most suitable product for individuals who are just starting their journey in the financial markets. Alternatively, you may want to have a look at the best brokers to trade CFDs if you already have some experience in the markets.
CMC Markets: users reviews UK
The opinions of users regarding CMC Markets are generally positive, indicating a high level of satisfaction with the platform. To illustrate this, Trustpilot provides valuable insights.
CMC Markets has garnered a rating of 4.2 out of 5 stars based on over 1,500 reviews, with approximately 65% of them being 5-star ratings. These statistics suggest that a significant majority of users have expressed their contentment with the platform’s performance and services.
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Summary: CMC Markets review
CMC Markets is indeed regarded as an excellent broker. It stands out as one of the largest intermediaries in the field of CFD trading and has been at the forefront of innovation in recent years.
This recognition is further reinforced by the awards received from respected trading platform assessors in the forex industry, so it undoubtedly stands as a prominent figure alongside the best forex brokers. The platform offers a wide array of analysis tools and advanced features for traders, along with access to numerous markets.
As a result, if you already possess some knowledge and training in the realm of finance, CMC Markets can be one of the most compelling brokers for gaining exposure to the market through derivatives. It combines three essential factors: a fully secure broker, a robust proprietary platform alongside MetaTrader 4 (MT4), and competitive spreads. However, like any platform, there are areas that can be further improved.
Pros and cons of CMC Markets
|Pros of CMC Markets||Cons of CMC Markets|
|✅ Local supervision by regulatory bodies||❌ Only CFD and spread betting trading|
|✅ Allows trading with many assets||❌ Not recommended for absolute beginners|
|✅ Competitive costs|
|✅ Educational section|
Is CMC Markets regulated and considered a safe broker?
Yes, CMC Markets is a regulated broker and is considered safe. For example, in the UK, it is supervised and licensed by the FCA.
What trading platforms are available with CMC Markets?
CMC Markets offers two primary trading platforms. Firstly, they have their proprietary platform called “Next Generation,” which is a feature-rich platform suitable for both beginners and experienced traders. Additionally, they offer integration with MetaTrader 4 (MT4), a widely popular and highly regarded trading platform known for its advanced charting and automated trading capabilities.
Can I access educational resources and support from CMC Markets?
Yes, CMC Markets provides a range of educational resources and support for traders.