CMC Markets is a broker who has been in the forex market for nearly 30+ years. CMC Markets was founded in 1989 in the UK. In 1996, he became the first broker to offer an online forex trading platform.
Since that day, it has made many successes and has received many awards. At present, it offers services to investors from many countries of the world. The broker’s official website has more than 1 million visits per month.
One of the highlights of CMC Markets is that it offers a large number of trading instruments. More than 330+ forex pairs and 10.000 CFDs are offered by the broker for trading. It can be the highest number among reliable forex brokers.
I reviewed CMC Markets based on the following criteria.
- Regulated broker
- Low ECN Spreads
- Segeregates client funds
- Supports copy trading platforms
- Fixed spreads are not available
Following all this information, the question is: Is CMC Markets safe or scam broker? What is the source of its reliability? What are its account types and spreads? Is there any withdrawal problem? You can find all these questions in this CMC Markets review.
Regulation and Client Protection
When it comes to regulation, it’s pretty well known in the forex market how important it is for a forex broker to be regulated and licensed via a big name of the financial regulators who monitor the activity and performance of the broker, along with their activities with their clients.
The regulation doesn’t only provide reliability and trustworthiness to the name of the broker but it also allows traders to trade with that broker knowing their funds are safe and secure against any kind of sudden financial crisis that is likely to happen in such a vast and liquid market like the forex and CFD trading.
Some of the licenses carry a heavy impact on the way clients see the broker, some of these big names are the ASIC regulation in Australia and CySec regulation in Cyprus and FCA regulation in the UK. These ones, for example, are known to be one of the toughest and stickiest financial regulators in the market as they force their brokers to meet certain criteria in order to not only obtain but also maintain their licenses.
Other regulators even apply a compensation fund for their traders to protect their trades from any scams or disputes.
CMC Markets Singapore Pte. Ltd. (Reg. No./UEN 200605050E.) is regulated by the MAS ( Monetary Authority of Singapore) and holds a capital markets services license for dealing in capital market products that include over-the-counter derivatives and leveraged foreign exchange.
The broker makes sure your money is held separately from its own funds so that under property, trust and insolvency law, your money is protected. Therefore your money is unavailable to general creditors of the firm if the firm fails.
Two-factor authentication, or 2FA, is also available which involves receiving a one-time password (OTP) from your bank, and entering that OTP when prompted, when you log into your account or make an online payment.
Account Types and Spreads
Account Types & Spreads at CMC Markets
CMC markets account types seem to be on the thinner side of the road since there is only one type of CFD account type presented to the trades. I find this to be a major con when it comes to this CMC markets review as its quite known within the forex market how it’s essential to have a variety of options and choices to navigate from especially in such a volatile and highly liquid market, the forex and CFD trading.
CMC Markets called their CFD account type FX Active. Within this account, spreads can reach as low as 0.0 pips on six major pairs. An extra low commission is applied of 0.0025% per transaction. You can trade with FX Active on both MT4 and Next Generation platforms which the broker is providing for trade.
This account is mainly targeting high volume traders which allows them, when trading with FX Active, to get even more options and choices when trading in forex. Tight spreads and a fixed rate commission, enable pure price transparency.
The broker is offering maximum leverage of 1:50.
A demo account option is presented to traders who would like to try out different things before going into the live market of forex and CFD trading. The main concept of having a demo account is how useful it can be for both beginners and expert forex traders since beginners would use it to try out new knowledge and test out what they’ve learned.
In the meanwhile, expert traders would use it to try out the broker or test out new trading strategies and techniques that might be the first trial. The demo account concept provides risk-free trading and trials to all sorts of traders that’s why it makes sense to try it out first before opening a new real account with any broker.
Different types of payment methods are offered even though there is only 1 live trading account as an option.
- Credit and Debit cards via Mastercard/Visa are available as deposit options with immediate processing time and 2% as a Transaction Fee will be applied.
- UOB Telegraphic Transfer takes 1 working day and the broker doesn’t apply any fees yet UOB retail banking might apply
- Non-UOB Telegraphic Transfer which takes 2-3 working days and a bank charge of SGD$10.00 or its equivalent apply.
- DBS (Over Counter Transfer) transfers on the same day where the fees applied are DBS Bank charge of SGD$ 5.00 flat (within DBS only)
- Non-DBS Telegraphic Transfer which takes 2-3 working days and a bank charge of SGD$10.00 or equivalent take place.
- Cheques would take the same day as processing time if done before 1 pm. and no charges applied.
Withdrawals take place via the following steps:
- Log in to your account
- Access the Payments dropdown menu item
- Click on the Withdrawals tab
- Follow the on-screen instructions
Transferring funds to an account in Singapore typically take 1-2 working days and incurs no charge, while overseas telegraphic transfers can take 3-4 working days, and charges may be levied by the receiving bank.
CMC Markets Trading Instruments
CMC markets offer different categories of trading products that manage to keep the diversity of traders satisfied as well as provide them with different tools to add to their trading profiles.
These products include:
Forex: With over 330+ forex pairs available for trade, that contains majors, minors and exotic pairs. With spreads that range from 0.7 pips and risk management tools that are provided make sure to lower your risk as low as possible.
Indices: here you can open a position on the price movement and make a profit on the rise and fall of prices. You can choose from over 90 cash and forward indices products, including the Singapore Free, US 30, Australia 200, US SPX 500 and more.
Commodities: energies like oil including Brent and West Texas crude oil plus natural gas, and Metals including Gold, silver and Copper are examples of the available commodities you can trade with. With spreads on Gold from 0.3 points, 2.5 points on crude oils and 0.3 points on Natural Gas. In addition to agricultural products that include Cocoa, Coffee Arabica, Corn, Cotton and more.
Shares: with over 9400 shares to be traded with including popular stocks, including DBS, StarHub, Keppel Corp, Apple, Facebook and Rio Tinto. There is a commission added on transactions made when trading share CFDs is 0.10% (min S$10) for Singapore shares and 2 cents (min US$10) for US shares.
Treasuries: 40+ treasury products available in addition to 20% margins. Spreads range from 1.0 pip on Euribor, Schatz and Short Sterling.
Cryptocurrencies: Bitcoin, Ethereum, Litecoin, Dash, EOS and more are all examples of the present cryptos you can trade with vis your trading platform with CMC markets. The chance to go long or short is available in addition to the option to trade on margin meaning to take a position on a cryptocurrency without tieing all your capital to it. Which is a great way to diversify your trading account.
There are 2 different types of trading platforms presented by CMC which provide adequate variety to traders who prefer to have choices while investing.
These platforms include the forex market’s most popular and used platform which is MT4. The other trading platform presented is called CFD Next Generation platform which provides some extra features that might not be presented via the MT4.
|MT4||CFD Next Generation platform|
|Insights Built-in News||Absent||Present|
|Reuters Built-in News||Absent||Present|
|Needs Downloading||Needs to download||No Need|
|Built-in Stop loss Guaranteed||Absent||Present|
Via this CMC markets review, we made sure the broker is a regulated one which provides certainties to their clients that their accounts are protected and segregated.
CMC markets account types are only limited to one presented to the individual clients in addition to the demo account types that provide risk-free trials choice to the traders. CMC markets minimum deposit is zero where you get to start you trading with whichever amount you want. Spreads are low that can reach 0.0 pips in some forex pairs.
CMC forex broker has different types of trading instruments that allow the trades to distribute their risks by using all these different tools to diversify their accounts and profit on all the rise and fall of prices.
This CMCmarkets review also showed the different types of trading platforms the broker offers to their traders which includes forex’s basic platform, MT4, in addition to another platform called CFD next-generation platform, in which both provides characteristics special to its own and making sure they each provide a new experience to the traders.
Funding methods seem to be various and the channels being provided are based on the currency used, seems o be a detail with some importance to international traders.