CMC Markets: What Makes a Trustworthy Brokerage

CMC Markets: What Makes a Trustworthy Brokerage

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Upon searching for online testimonies about the brokerage, CMC Markets, the effort renders a number of positive assessments, much of these owed to the firm’s competitive fee infrastructure, provision of comprehensive educational aids, and outstanding customer support.

Alongside these offerings, the review team had performed an exhaustive examination of all of CMC Markets’ services. This review emerges from months of conducting test trades through the firm with concentration on the following facets of its services: 

1. The regulatory financial bodies that sanction all of CMC Markets’ trading activities

2. The assets that are accessible through the firm’s trading accounts

3. The live trading accounts that CMC Markets allows to open through the minimum deposits 

4. The trading platforms that come with each live account

CMC Markets: What Makes a Trustworthy Brokerage

About CMC Markets: A Long Industry Tenure

Established back in 1989, CMC Markets is considered a stable institution in the trading of Foreign Currency Pairs and CFDs. In the long run, the firm expanded its trading services to include Spread Betting, thus catering to its popularity.

CMC Markets is listed over at the London Stock Exchange (LSE) and as with other popular brokerages of the company’s stature, it does not serve traders from the United States.

As of writing, the firm is known as one of the trading solutions providers that offer a wide selection of assets that permits its clients to build stronger and well-rounded investment portfolios.

All of CMC Markets’ trading activities see regulation through the Financial Conduct Authority (FCA) within the United Kingdom.

The brokerage fortifies its system further as it allows the storage and trade financial instruments through isolation of corporate funds. These assets are deposited into separate accounts through its affiliate banks. CMC Markets performs this as it goes under the rules of the FCA on the clients’ chosen assets and funds with great consideration to the firm’s possible insolvency.

CMC Markets: What Makes a Trustworthy Brokerage

CMC Markets’ Wide Range of Offers and Services

Numerous Assets

The assets available through the firm amount to over 10,000. You may see these below:

  • Over 110 Commodities
  • More than 12 Cryptocurrencies
  • More than 330 FX pairs
  • Over 90 Indices
  • Over 9000 Shares and ETFs
  • 50 and above Treasuries

The Spreads available for these assets are at a low. The margin the firm provides is 20% for both UK and US Shares. The other margin rates depend on the position sizes and on their level.

The Two Live Accounts Available Through CMC Markets

CMC Markets offers two types of trading accounts that observe the type of trader that uses the firm’s services. 

1. The CFD Account

The CFD Account allows traders to profit from markets either these are about to rise or fall. The account offers one-click trading, regular and trailing stop-loss and Take-Profit orders, and over 80 technical indicators and other tools through the MT4 platform just to mention a few.

2. The Corporate Account

Not unlike the CFD Account, the Corporate Account permits greater earnings regardless of the rise or fall of the markets. It also offers a number of order executions and trade alerts and provides users mobile trading.

The Trading Platforms Provided by CMC Markets

CMC Markets provides Next Generation to its clients, its own proprietary platform. This trading software is able to come to part with the industry-leading platform, MetaTrader 4 (MT4). 

While this is the case, the review team noted that Next Generation still lacks a number of features present in MT4. However, the matter stands that clients would be able to lodge complex orders through the platform. One of the things that might turn users off is Next Generation’s lack of back testing capacity.

CMC Markets also offers MT4 despite being limited to CFDs. 

CMC Markets gives its clients the choice of either getting the platform as either an add-on or a trading account. MT4’s only shortcoming is that it does not come with a sharing capacity.

Apart from this, it would also be recommendable for CMC Markets to offer VPS service and API interface so that traders would be given the chance to do more sophisticated trades such as algorithmic trading.

CMC Markets: What Makes a Trustworthy Brokerage

The Takeaway: Conclusion and Recommendations

With over 30 years of industry tenure, CMC Markets is truly a multi-asset brokerage worthy of traders’ trust. The range of trading instruments available through the brokerage is wide. As already mentioned, such allows for the building of more well-rounded and stronger investment portfolios.

The CMC Markets accounts, while seemingly limited, are wholly efficient and places its holders well where they are supposed to be.

The trading software the brokerage provides are also able to provide multiple features that allow for multiple advantages. While these stand, the MT4 platform offering is admittedly limited. The firm could also benefit if it were to widen its offerings to include VPS service and an API interface.

All in all, the review team recommends CMC Markets to the more novice of traders as they would obviously benefit from its range of asset offerings.