Market Coverage
Very wide range of markets here at CMC Markets – coverage of all UK 350, SmallCap and Top 300 Aim stocks plus wide coverage of leading US, European, Asian and other international shares. In addition, CMC offers top indices from Europe, Asia, America and Australasia as well as coverage of main industry sectors and over 70 currency pairs. The Next Generation Platform, launched in 2010 and continually updated, has replaced the old Market Maker platform. It supports good market coverage with user-friendly tools for both beginners and advanced traders.
Sectors
Traders can also take a view on the performance of major UK stock market sectors. These are made up of a selection of five to 100 companies in particular industries as a weighted average of their share prices (say telecoms or pharmaceuticals) and spread betters can then use them as a speculative or hedging tool, depending on how other aspects of their investment portfolio are constructed.
Account Types
CMC’s standard account offers competitive spreads, but its Professional Account is restricted to traders meeting strict criteria, excluding many retail users who might benefit from the higher leverage. A risk-free demo account with £10,000 in virtual funds is available to test strategies and platforms. While the demo account is a useful feature, it could be improved by allowing longer durations for testing beyond the default limits.
Deposit and Withdrawal Requirements
- Minimum Deposit: £200 remains the requirement to open an account, but the £100 minimum balance rule, which results in automatic closure of all positions if breached, can feel restrictive, especially for smaller traders.
- Fees on Deposits: While CMC no longer charges credit card fees, withdrawal times for non-UK accounts can still be sluggish, trailing behind other platforms offering near-instant withdrawals.
Interest Rates
CMC no longer advertises interest on account balances, likely due to shifting regulatory landscapes. This can make the platform less attractive for traders who maintain large cash reserves.
Fees
There is a 1.8% fee on credit card deposits, however, CMC say that they can waive this fee for your first deposit. Other ways to deposit without incurring fees consist of BACS or Wire. CMC positions itself as competitive with no inactivity fees, but overnight holding costs can accumulate quickly, especially on leveraged trades. This isn’t always transparent, which could catch newer traders off-guard. Additionally, some traders report wider-than-expected spreads during volatile periods, which erodes profitability.
Typical Spreads
- UK Shares: 0.075% either side
- US Shares: 0.075% either side
- FTSE 100: 2 points
- Wall Street: 4 points
- EUR/USD: 3 points
- GBP/USD: 3 points
Financing Charges
2.50% over SONIA if Long – 2.50% under SONIA if short.
Rolling Policy
Rollover of positions and the Profits and Losses are calculated on a daily basis everyday at 10pm (end of trading day) in the process known as Mark to Market. Your spreadbets keep rolling until you close out the position, at which point your profit or loss is then crystalised.
Futures
Futures are rolled over automatically at the end of the contract at no extra charge.
Execution
The Next Generation Platform delivers on speed and reliability but still has some pain points:
- Requotes and Rejections: Despite promises of no requotes, some users report trade rejections in volatile markets.
- Slippage: While common across the industry, slippage seems more frequent with CMC during high-impact news events.
With CMC if a trade is declined you get a re-quote meaning that a box jumps up showing the next best bid or offer (depending on whether you tried to buy or sell), and a chance to either deal on the price or not. If you do not deal, nothing gets done. You can also add to your existing positions, eg. buy, and buy again later (before you eventually sell), but it will not be treated as 2 separate positions, it will just be increasing the exposure on an existing position. You can do this as many times as you like. Clients can see CMC Markets’ top 10 levels of price depth for the instrument corresponding to the size of the trade they are placing, where available. Price depth ladders also allow clients to view a single price available to them for their selected trade size and instrument.
Stop and Limit Orders Available
Market orders, stops, limits, OCO’s, guaranteed stop orders and if done’s (contingent orders) are available. Guaranteed Stop Orders are available on some markets.
Basis for Triggering of Stops
Stop triggers are based on the spread betting firm’s traded prices adjusted for total spread.
A sell stop is triggered at an equivalent or higher price (depending on the product) than the your stop, to allow for the commission built into the spread.
An example :- You set a sell stop for a Barclays : BARC (UK) Cash at 285.00. This will trigger at 285.21. The 0.21 is 7.5 basis points commission. This is 0.00075 * 285 = 0.21375 (rounded to 0.21). Another example :-
You set a sell stop at 5300 in the UK100 Cash. This will be triggered at 5300 as there are no basis points added on for this product.
Trading Platform
The Next Generation platform offers extensive tools but comes with a steep learning curve for those new to trading. The design, while customizable, can feel cluttered, and the mobile app, though robust, occasionally lags when navigating charts or executing trades in volatile markets.
The Next Generation Platform has advanced features, including:
- Real-time charting tools with over 115 indicators.
- Pattern recognition technology to scan markets for technical setups.
- Price alerts, advanced orders, and custom layouts to suit individual trading needs.
- Mobile apps for trading on-the-go with full access to trading functionalities.
Education
CMC’s Learn Hub is a welcome improvement, but much of the material feels targeted at novice traders, leaving intermediate and advanced users wanting more. The quality of free webinars varies significantly, with some feeling like thinly veiled marketing pitches for their platform.
Seminars and Events
CMC offers both free and paid seminars, but the paid events, while informative, might not justify their cost when compared to free educational resources offered by rivals.
Social Features
The platform’s social tools, such as message boards, lack the vibrancy of true social trading platforms like eToro or ZuluTrade. Interaction feels limited, and requiring a £1,000 account balance to post excludes smaller traders.
Spreads and Costs
CMC Markets boasts tight spreads on forex and indices, but some instruments, particularly smaller stocks and exotic forex pairs, feature much wider spreads. This, combined with overnight financing costs, makes it less competitive for certain trading styles, like swing trading.
International Clients
CMC has explicitly stopped offering spread betting to non-UK/Irish clients, which limits its appeal globally. International clients can only use CFDs, which lack the tax-free benefits of spread betting.
Developments
CMC regularly updates its platform, but some updates seem more focused on aesthetic changes than meaningful improvements to usability. Features like pattern recognition scanners sound innovative but often provide generic or low-confidence setups.
Recent platform updates include:
- Dynamic margining, allowing flexibility in leverage requirements.
- Enhanced mobile apps with biometric login.
Final Thoughts
While CMC Markets remains a solid choice for traders seeking a wide range of instruments and a professional-grade trading platform, it falls short in key areas like fees transparency, usability for smaller traders, and execution consistency. The platform feels increasingly geared towards experienced traders with larger accounts, potentially alienating beginners or casual users who might find its tools overwhelming and costly.
