Menu
CMC Markets (CMC), founded in 1989, is a well-established, publicly traded, and highly regarded U.K. forex broker that has successfully adapted to the ever-changing online brokerage landscape. The company is listed on the London Stock Exchange (LSE) under the ticker symbol, CMCX. Like many forex brokers, CMC does not accept U.S. traders.
Platform usability: During my testing of CMC Markets’ platforms, I was extremely impressed with Next Generation’s design, which focuses on speed and usability. The platform’s layout wizard lets you choose between floating or fixed windows, in addition to predefined layouts or custom setups. Module linking is supported and features five color-coded levels. This useful function saves time, by prompting an update to the instrument displayed on your chart when you click on the corresponding symbol in your watchlist. Though it takes some time to set up the platform if you don’t use the default layout, the ease-of-use factor is comparable to Saxo Bank’s SaxoTraderGO platform – another favorite of mine.
Charting: The Next Generation platform features rich charting, with 80 technical indicators and studies, 40 drawing tools, and 60 easily attachable candlestick patterns (or 73 if you count the 13 available chart patterns). Standout charting features for the Next Generation platform include its Breakout and Emerging Patterns tools. These chart patterns auto-adjust when the chart time-scale is changed, enabling traders to scan from a one-minute chart to a monthly chart, and easily identify any existing patterns.
Automated trading: CMC Markets’ Next Generation platform doesn’t feature the ability to run automated trading strategies – though advanced order types (such as its Boundary Order) are available to help traders set deviation parameters and limit potential slippage. Traders looking for an automated trading experience can use CMC Markets’ MT4 offering – though its product range is far more limited.
MetaTrader: The range of forex pairs that CMC Markets offers on MetaTrader was boosted from 38 to 176, bringing the total tradeable products to 220. This doesn’t yet compete with the staggering 12,000 that are offered on the CMC Markets Next Generation platform, but CMC Markets’ MT4 offering continues to improve with numerous enhancements rolled out in 2022 designed to align the execution quality with its proprietary platform.
In this day and age, an online broker that does not place a high priority on addressing the needs of its customer in an efficient and satisfactory manner may be doomed to failure. CMC Markets is well aware of this. Contact options cover all the bases, with email for clients and prospective clients, 24/5 local phone support, and comprehensive FAQ and support libraries. Live chat can also be launched from within the Next Generation platform, which is very convenient. The FAQs are quite informative and well organized. Chat waiting times averaged 30 to 40 seconds during several contact attempts. The broker also runs 13 satellite offices on 4 continents to support licensed operations in other venues. Twitter and Facebook accounts were filled with up-to-date comments and active client interactions.
CMC Markets is regulated through the Financial Conduct Authority (FCA) under registration number 173730. The broker also takes steps to ensure client funds are not co-mingled with corporate funds, in accordance with the U.K. FCA’s client money rules. This ensures that client assets are protected in the unlikely event that CMC becomes insolvent by holding those funds in segregated accounts at regulated banks. Furthermore, these segregated funds are held in a number of U.K. and European banks so as to disperse risk further.
Clients also have additional asset protection through the Financial Services Compensation Scheme (FSCS), up to £85,000, but no layers of private insurance, which is an omission, given CMC’s large industry footprint. Negative balance protection is now mandated under ESMA rules that went into effect in 2018. The broker’s dealing desk acts as the initial counter-party on all CFD trades and spread bets but pricing is automated through the platforms, reducing conflict of interest potential.
CMC’s software security is aligned with the best that the industry has to offer. In addition to two-factor and bio-metric authentication, there is a timer that will log the user out of the mobile application if it is not being used.
We only found one minor drawback; indicators added in the web version do not automatically sync with its mobile counterpart – a feature provided by industry titans Saxo Bank and TD Ameritrade. That being said, watchlists do sync with the web-version, and once indicators have been added, the layout can be saved as a preset to apply to other charts on CMC Markets’ mobile app.
CMC Markets offers an excellent fit for all types of traders, with a wide product offering, an accessible, feature-rich platform (Next Generation), a plethora of research amenities, useful educational resources, and an emphasis on customer service.
Being FCA regulated lends credibility, as do the extents to which CMC emphasizes account security. Negative balance protection gives clients peace of mind, and the premium for guaranteed stop loss execution is reasonable, given the account-saving risk management it provides in volatile market conditions. There are no unwieldy costs, and free withdrawal through wire transfer is a welcome feature.
It’s harder to recommend the broker for mid- and higher level accounts without professional designation because they can’t access active trader rebates or the API interface. Conversely, professionals and institutions will find broadly attractive feature sets that make the service a suitable fit with a few exceptions, such as the high spread costs for certain instruments (S&P 500).
Please note that by investing in and/or trading financial instruments, commodities and any other assets, you are taking a high degree of risk and you can lose all your deposited money. You should engage in any such activity only if you are fully aware of the relevant risks. BrokerSelect does not provide investment or any other advice, for further information please read our General Terms and Conditions.