In today’s CMC Markets review, we will read about how this broker delivers trading options and its various pricing models. The CMC Markets customer reviews had quite a few negative things to say about this broker so let’s find out more in the text below.
The CMC Markets review Australia-based especially, shows there is a selection of over 12,000 tradeable instruments, and its Next Generation trading platform has a few interesting trading tools that we will discuss more.
CMC Markets is a broker that does trading in forex and CFD trading and was founded in 1989. The broker is regulated by the UK FCA and it provides a range of trading assets like stocks, cryptocurrencies, and indices. The foundation of this broker is the fact that it is FCA regulated and offers segregated accounts for clients. The broker also has a risk management program and as the CMC Markets review show, it is most popular in Australia.
The CMC Markets Australia review shows that there are 12,000 CFDs offered at this broker with a large number of forex pairs and access to equity markets. The platform also quotes 158 currency pairs and this feature doubles the number of available pairs.
Cryptocurrency: crypto trading is available via CFDs but it is not available for trading with Bitcoin for example. Crypto CFDs are not available for retail traders for the ones based in the UK. The platform offers clients a catalog in the online forex brokerage community and the clients can trade up to 10,000 instruments that can bring them many opportunities such as:
90 indices, 330 FX pairs, 12 cryptocurrencies, 110 commodities, and 50 treasuries.
The spreads are low compared to the other market competitors but the individual shares have a specified margin percentage. The margin rates on the shares start from 20% but the different margin rates apply for bigger position sizes depending on the tier of the position which it falls under.
CMC Markets Customer Service Review
An online broker nowadays doesn’t pay much attention to the needs of its customers in an efficient way because of the worldwide market and the many inquiries that traders make. This is one of the reasons why many brokers fail.
CMC markets offer 24/7 phone support, email support, and also support libraries if you want to find the answer by yourself. Live chat can also be used from the Next Generation platform and also check the FAQ section which is well organized. The chat waiting time is up to 40 seconds.
CMC Markets Education Resources
The CMC Markets customer reviews pointed out the educational tools that were better than most competitors. The trader’s library will help beginner traders to get up to speed faster and learn the technical and fundamental aspects of this platform. A bigger share of the educational resources is devoted to the software instruction of the Next Generation platform.
The introductory guides to start trading offer a section of videos that can help traders learn about trading strategies visually. There are also a few online webinars that are offered alongside Trade With Precision but the downside is that there’s no archive of the previous webinars held.
The educational resources are fine but they lack search functions and make it harder to find some less popular topics which leaves the impression that this is poorly organized.
Security of Funds
The review CMC Markets shows that the broker is regulated via the Financial Conduct Authority and It takes more steps to ensure client funds are not co-mingled with other corporate funds as per the requirements of the UK FCA client money rules.
This makes sure that the client assets are protected if CMC becomes insolvent and they are holding these funds in segregated accounts at regulated banks. These funds are held in a number of EU Banks and UK banks to mitigate risks.
The clients have another layer of asset protection via the Financial Services Compensation Scheme of $85,000 but no layers of private insurance. The negative balance protection is mandated under the ESMA rules from 2018 and the dealing desks also act as an initial couter-party of the CFD trades.
The broker’s software is aligned with the industry practices and has two-factor authentication that can log the user out of the mobile app if not used.
CMC Markets Fees
For our annual CMC Markets review Australia, we can see that the broker offers low spreads and is available for all customer segments.
Average spreads: the CMC markets broker offers competitive pricing above the industry average which is one of the negative sides that the users noted.
Active trader program: CMC Markets revised its offering as a part of its price plus scheme and this program allows the realization of discounts based on the trading points in the user’s account. The trading points are calculated based on the markets and the monthly volumes. Two points can be earned for a standard lot traded for example.
Commission pricing: in 2022, CMC markets launched a new pricing structure that charged a commission per trade on the competiive spreads and it is available in New Zealand, Uk, Canada, and Australia.
It’s always important to look up the average spreads rather than the minimum spread when comparing the costs. With that said, CMCMarkets have not deviated quite a lot from the minimum spreads.
Alpha rebates: this ALpha offering by CMC Markets provides free access to services like market data, premium reports, and more. It consists of three tiers: Classic, Active, and Premium each with its own requirements. The Classic tier requires 11 trades per month, the Active up to 30 and the premium is available if you place more than 30 transactions per month.
Guaranteed Stop-loss order: these orders guarantee the stop-loss order price will be respected but there’s a premium for using this feature. The extra cost is displayed in a ticket window and the broker is able to refund this cost automatically.
Is CMC Markets regulated?
CMC Markets is a regulated broker by several authorities including:
UK’s Financial Conduct Authority
Germany’s Bundestalt fur Finanzdienstelistungsaufsicht
Canada’s Investment Industry Regulatory Organization
Australia’s Securities and Investment Commission
New Zealand’s Financial Markets Authority
Singapore’s Monetary Authority of Singapore and
Dubai’s Financial Services Authority
Is CMC Markets safe?
When making sure whether a broker is sure, make sure to learn how you will remain protected if something goes wrong, and learn about the background of this broker.
What is the minimum deposit?
There’s no minimum deposit requirement.