CMC Markets Review: Risk, Rewards, & Methods

CMC Markets is a reputed CFD and forex broker that has been around since 1989. It is regulated by several global authorities, including the UK’s Financial Conduct Authority, one of the best (FCA). There is also a listing for the company on the London Stock Exchange.

Due to leverage, CFDs are complicated instruments with a high risk of losing money quickly. When small investors trade CFDs with this provider, 76% of their accounts lose money if you understand how it works and whether you can risk losing much money.

CMC Markets is a reliable company because it has been around for a long time and is listed on a stock exchange. Also, it is regulated by top-level authorities. For more detailed information, keep on reading this CMC markets review below.

Pros and Cons of CMC Markets

Pros:

  • CMC Markets has low fees for forex, and most ways to deposit and withdraw money do not cost anything. 
  • The trading platforms for the web and mobile devices are well-made, easy to change, and full of features like an advanced order panel. 
  • There are also many advanced tools for research and education.

Cons:

  • On the other hand, fees for stock CFDs are high. 
  • The product line only includes CFDs (forex, indices, commodities, shares, ETFs, bonds, crypto – except for UK clients). 

CMC Markets Trading Fees

Let’s talk about the fee here that CMC charges.

When you trade, you pay fees. These are commissions, spreads, financing rates, and conversion fees.

Fees that have nothing to do with trading, like withdrawal fees or fees for not doing anything, are called “non-trading fees.”

The following sections will find CMC Markets’ most essential fees for each asset class. For example, spreads, commissions, and financing rates are the most critical fees in forex and stock index trading.

This choice is based on things that are not subjective, like the products offered, the type of clients, how fees are set up, etc. 

Trading Fees With CMC Markets

Let’s start with the trading fees to get a clear picture of CMC Markets.

Forex and stock index CFD fees are low at CMC Markets, but stock CFD fees are high. CMC Markets is one of the market’s most open brokers, making it easy to figure out how much it costs to trade with them. For instance, we liked that you could look at past financing costs.

We know it’s hard to compare how much CFD brokers charge to trade. So how did we make their fees clear and easy to reach? We compare brokers by adding up all the costs of a typical trade for specific products.

We picked well-known instruments from each asset class:

Stock index CFDs: SPX and EUSTX50

Apple and Vodafone are both stock CFDs.

EURUSD, GBPUSD, AUDUSD, EURCHF, and EURGBP are all forex pairs.

In a typical trade, you buy a position with leverage, hold it for a week, and then sell it. For the volume, we chose a $2,000 position for stock index and stock CFDs and $20,000 for forex transactions. What we did to get our way was:

20:1 for stock index CFDs 5:1 for stock CFDs

30:1 for forex

All brokers pay these fees, which cover spreads, commissions, and financing costs. Let’s find out what the answer is about CMC Markets fees.

CFD costs

CFD trading costs vary at CMC Markets. The fees for stock index CFDs are low, but the prices for stock CFDs are high.

Types of Accounts

CMC Markets has two different types of accounts. These accounts are available in other countries and have different prices and taxes.

You can also open a Pro account, which gives you forex highest leverage.

For business clients, CMC Markets has Pro accounts. As a professional client, you don’t get the extra protection that retail clients do, like protection against negative balances.

To sign up for a Pro account, you must meet the following requirements:

Your assets are worth more than €500,000.

At least one year of your work was in the financial field.

Base Currencies For Accounts

You can choose ten base currencies if you open a CFD account at CMC Markets. But you cannot use all 10; customers from most countries usually only choose between two or three major currencies (like EUR and USD) and their currency (if it is among the 10ten currencies).

Only British pounds and euros can be used to open a spread betting account.

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