At CMC Markets, most trading expenses are covered by the spread, which is affordable for the sector. Additionally, CMC gains revenue from the spread via customer trades which “cross” the bid/ask spread. Only Next Generation is eligible for guaranteed stop losses (GSLO), which comes with an additional premium that is deducted from your account.
If the GSLO is not activated, this fee is reimbursed. When trading individual shares & ETFs, there is a commission fee that is applied. Depending on whether your account is a CFD or spread betting account, this may be added to either side of the spread or charged directly to your account following order execution. CMC Markets is one of the Best Trading Platform Australia have. But before starting the trade with it you should go through the cmcmarkets review.
Larger positions have wider spreads, according to disclosure notes, but the specifics depend on the platform, which obscures the situation.
- On regularly traded main FX pairs, advertised minimum spreads range from 0.7 pips (EUR/USD, USD/JPY, AUD/USD) from 0.9 pips (GBP/USD), and up to 1.0 pips (USD/CHF),
- However, the fine print shows modest holding cost changes that could influence financial results.
- Legal disclosures also acknowledge that similar instruments on the two platforms may have different spreads shown.
- Overnight holding costs and margin are average or competitive.
On the index cost disclosures, a five-point S&P 500 spread for CFDs & spread bets that was significantly higher than typical popped out like a sore thumb. For most account holders, this spread makes it an unattractive trading instrument because it is paid during the entire trading day, even local time in the U.S. The DJIA spread of 1.6 points and the NASDAQ spread of 1.0 points, however, are closer to industry standards.
Customers who want to register a live account with CMC are not required to make a minimum deposit, but it stands to reason that this sum will be subjected to the margin requirements of the lowest trade size the customer desires to place. A personal account manager, rebates, rewards, priority access to new products, segregated accounts, and other premium services are available to clients with significant account balances.
CMC does not impose any other non-trading-related fees aside from a £10 (or its equivalent in the user’s base currency) per month inactivity cost for each live account with no trading activity in the previous 12 months and a market data fee for specific CFD shares.
Experience in a Trade
Clients looking to upgrade from the equally available MetaTrader 4 will be pleased with the exclusive Next Generation trading platform for browser, tablet, and mobile. However, despite the fact that this interface is jam-packed with capabilities, navigation is not as simple as it is on some other platforms. Spread betting and CFD trading on cryptocurrencies are frictionless and don’t need a particular exchange or interface, but clients’ interest may be waning due to the relatively high average spreads.
A live Reuters feed, fully adjustable watchlists, client sentiment, complex charting with 115 indicators/overlays, 12 chart formats, and 35 drawing tools, are all included in the platform. To design and optimize complex desktop arrangements, charts can be popped out. Price histories for the most popular instruments going back 20 years are available to customers who want to research long-term patterns. The platform also offers tools for pattern recognition and price forecasting, as well as an integrated connection to the client-based trader’s community.
Next Generation has the ability to add “take profit” and/or “stop loss” instructions to its three basic order types. Additionally, the trader can specify an initial stop loss for market orders at the time of execution and change it to a guaranteed stop loss later on. When filling up the order ticket prior to execution, the trader can select guaranteed and/or trailing options for pending orders.
- Market: The simplest order, used to request that a trade be carried out at the going rate in the market.
- Limit: A pending order with an entry that, depending whether it is a buy or sell order, is at a predefined point above or below the current market rate. The time at which this order expires can also be chosen by the trader.
- Stop: A pending order with an entry that, depending on whether this is a buy or sell order, is at a predefined position above or below the current market rate. The time at which this order expires can also be chosen by the trader.