Are CMCs regulated?

Are CMCs regulated?

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CFDs are complex instruments and are associated with a high risk of losing money quickly due to leverage. 73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take a high risk of losing your money.

When you open an account with CMC Markets, you are classified as a retail/private client. Unless we notify you otherwise and you explicitly consent to transfer ownership of your funds to CMC Markets, your funds will be treated as retail client funds.

Retail/private client funds are kept separate (segregated) from CMC Markets’ own funds so that client funds are protected and out of the reach of the company’s creditors in the event of bankruptcy.

Retail client funds are held in segregated accounts at top-tier banks. The funds of retail clients who have opened accounts through branches are pooled and are subject to the same treatment, regardless of the European office from which they originate.CMC Markets uses the following bank: Barclays Bank Ireland PLC, Frankfurt branch.This means that clients’ funds are not necessarily held in their country of residence.


However, despite the disadvantages of lower leverage in Europe and Australia, regulated broker trading also provides certain benefits. These include various state guarantee schemes and mechanisms to compensate clients’ losses in the event of broker bankruptcy. For example, all customer deposits in the UK are insured by FSCS for up to £85,000.

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In terms of trading platforms, CMC Markets has gone its own way and developed its own Next Generation trading platform. The platform runs directly in the browser without the need to download software, and has an advanced but intuitive interface.

Today, CMC Markets offers clients a choice of approximately 10, 000 different trading instruments, including over 300 currency pairs, CFDs on over 9, 000 stocks and ETFs, as well as 60 major stock indices, 90 commodities, 30 bonds and 15 cryptocurrencies. In addition, UK traders have access to spread betting.

Cmc markets

CMC Markets is regulated by no less than 4 major bodies, although among the diversity of account types you will not find a zero spread or swap-free account. That said, it has no commissions on foreign exchange and the initial spreads are very low. It also offers a wide variety of base currencies which will save you from paying conversion fees and allow you to invest in your future thanks to an excellent training section.

Some of the drawbacks that you can find in CMC Markets is obviously the non-existence of a swap-free account, as well as the absence of social trading even from an external platform. This could deter traders who demand these elements.

It is also one of the few brokers that does not support algorithmic trading. This means that, although it offers an extensive range of currency pairs to trade on, it is not the right choice for an algorithmic trader.

Instead, you will find an exhaustive range of assets on which to trade. Over 10,000 to choose from, with over 4,900 of them from exchanges around the world and over 200 currency pairs.

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The UK’s IG Group, with a capitalization of around £2 billion, falls more than 40% from its August 2016 highs. Its revenue for the first three quarters of its fiscal year, ended Feb. 28, fell 27% in ESMA-regulated countries to £202.4 million. CMC Markets, also based in London, estimates that its annual results – its fiscal year ended March 31 – fell by 37%, although it will publish final figures on June 6. Its share price plunges 70% from the 2016 record.

Plus 500, also British, suffered a first-quarter revenue cut of 82% to £53.9 million. From the highs, in this case August 2018, it plunges 70% on the stock market.

The restrictions on CFDs, which some supervisors have blamed for being instruments more akin to casino gambling than investment tools, consist mainly of a reduction in leverage. CFDs allowed up to 200 times the available money to be wagered. In the most extreme cases and during the most aggressive promotions, even up to 400 times. This level would mean investing the equivalent of 400,000 euros with only 1,000 in the account.

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