Trading in the financial market requires the intervention of a financial service provider. The broker you choose is entirely up to you. Various firms are trying to lure traders with unrealistic offers. The ultimate aim is profit maximisation and charges unnecessary fees, which directly impacts the profit size of traders. It is crucial to stay away from such frauds. One such broker charging high fees and offering outdated services is CMC Markets. Learn more about the broker in this CMC Markets review 2021.
About CMC Markets
The firm came into existence in 1989. It falls under the list of one of the oldest brokerage firms but offers poor services. It largely contradicts the fact that experienced brokers offer better and trusted services. Moreover, they allow trading through some random and not popular next-generation platform and outdated MetaTrader 4. Sadly, the broker is playing with traders’ sentiments by charging extremely high fees for outdated services.
The home page reflects the entire mechanism, services and charges of the brokerage firm. Unfortunately, the website does not contain relevant information on the home page. We need to scroll internal pages for this information which consumes much time. It is the main issue, and due to this, many traders who do not have time and want to read concise data find it irritating and leave the site. Unfortunately, it has been more than 30 years, and the firm has not taken any initiative to upgrade things.
Is CMC Markets Safe or not?
CMC has several branches. Some of them are regulated by central financial authority and others with the random and local financial body. It opens the door for several questions on the authenticity of the broker. Why does the broker need numerous authorities? Why cannot it work under single, central and authentic regulation? Clearly, it reflects that the broker wants to keep users in illusion.
CMC Markets does not accept clients from the biggest economy, i.e. the United States of America, because of regulatory constraints. It eliminates the broker from being global and also gives us a warning sign. Moreover, the brokerage firm does not offer a segregated bank account, robust safeguard tools and the latest encryption techniques. Hence, your personal details and transactions are not safe.
It is entirely a risky venture to think twice before investing with such firms.
Markets and products
The broker offers to trade on limited markets, and the choice of assets in each market is also restricted. Thus, it blocks all ways of trading portfolio expansion and pushes trades towards risk.
There is no information about the broker’s official website’s leverage, which compels us to think that the broker does not allow trading on margin. Leverage is an essential trading component that allows you to own a relatively larger asset by paying a small upfront amount. Almost all authentic firms provide trading on leverages. Unfortunately, you cannot enjoy this benefit with CMC Markets.
Types of trading account
We do not find types of trading accounts offered by the broker on the website. Usually, all brokerage firms mention this detail on their website as it is an essential part. How can the firm be so irresponsible that it has not mentioned these vital details? Traders can find a whole lot of irrelevant data on websites, leaving these important ones.
Anyone can conclude from this that the broker is trying to hide these details to trap novice traders. A seasoned trader will never opt for such a firm that hides these details.
Spreads, commission and fees
Higher the spreads, less is the total profit amount left with traders. CMC Markets charges much higher spreads than the industrial average. It crosses its limits in the case of indices. For example, on the S&P 500 index, the spread charged is as high as 5pip. It comes as a shock because this number is twice of which charged by other renowned firms. The firm is entirely playing with traders’ sentiments.
Commissions associated with trade are also high. They come into play when traders opt for ETFs or individual shares. This amount may be charged directly from your account while executing trader orders, or it may be added to spread.
CMC Markets: Trading platforms
The entire financial world has shifted to MT 5, the successor of MT 4. However, the broker is still offering services though outdated MT 4 and some random next-generation platforms. The packages opted by the broker of these platforms are the cheapest one as it lacks several vital and basic features. Thus, the platforms of brokers reduce the interest of traders despite raising their trading standards.
Also, there are many differences between its MT 4 and the next generation in commission, spread, and tradable assets. It is one of the major issues. The next generation is not efficient at offering automated trading and back-trading. Also, MT 4 lacks stop-loss orders.
Deposits and withdrawals
The process of deposit and withdrawal with the broker is complex and time-consuming. Traders require to fill an online withdrawal request, and it takes 3 to 7 days for this request to proceed. The options available are also limited, and some of them are not global even. There is nothing mentioned about cash on the official websites.
The broker’s educational courses are not up to the mark and do not cover all concepts. It only covers forex, cfd and cryptocurrency trading courses and tutorials, entirely ignoring other markets such as stocks, indices, metals etc.
The customer support team of the broker fails in offering quality and quick response to traders. We have read many customer reviews complaining about this team. The response time for receiving the call is greater than one minute, and for email, it is 3 to 4 days.
The services disable on weekends. Also, the broker has not provided a live chat option. Thus, you do not have any option which to receive instant answers to queries.
Disadvantages of CMC Markets
- No information about leverage
- No information about types of trading account
- Poor user interface
- High commission and spreads
- Extremely high spreads on indices
- Poor customer support service
- Limited educational courses
- Outdated trading platform
- Restricted tradable assets
- Does not offer services in the United States
The Bottom Line
The CMC Markets Review 2021 contains every detail of the broker, its regulations, services and trading charges. By looking at each point, it is obvious that the broker is just focusing on trapping traders and charging high and additional fees in the name of commission and spreads.
There are some vital facts that the broker has not revealed on its official website. It seems like it is trying to hide these details. This is entirely an illegal way traders have the right to know everything before making any decision. It is better to choose other renowned and reliable firms over CMC Markets. This includes HFTrading, T1markets, ETFinance, Brokereo.
Frequently asked questions
Is CMC Markets global?
No, the broker does not offer service in the United States of America.
What is spread charged on the indices market?
The broker charges high and variable spreads on indices. E.g. the spread for S&P 500 is as high as 5pip.
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