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Is CMC Markets a good choice for beginner investors?

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Getting started with CMC Markets

Considering taking your first steps into investing but unsure if CMC Markets is the right choice for beginners like you? Curious about transaction costs at CMC Markets or how user-friendly their platform is?

Unfortunately, CMC Markets is not considered good for beginners. If you'd like to see alternatives, check out our picks for the Best brokers for beginners.

CMC Markets is not the best choice for new investors
András
András Régely
Investments • Stock Market • Market Analysis

Together with my brokerage analyst colleagues, I have thoroughly tested the services of CMC Markets by opening a real-money account. Here’s what you need to know about CMC Markets:

  • A broker is good for beginners if it has low fees and an easy-to-use platform.

  • CMC Markets has a user-friendly mobile platform.

  • CMC Markets has Low transaction costs and a minimum deposit of $0.

  • Account opening at CMC Markets takes 1-3 days.

  • CMC Markets is a legit and trusted broker.

  • Browse the Best brokers for beginners for some great alternatives.

BrokerChooser score
4.5 4.5 /5
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69% of retail CFD accounts lose money

CMC Markets is a CFD broker

Just a quick heads up: CMC Markets focuses mainly on CFDs (contract for difference). Usually we don’t recommend CFD products for beginners. If you are a beginner looking to trade mostly stocks, choose a stockbroker where you can buy the actual shares of a company instead of a CFD contract for the stock.

Some CFD brokers offer you the opportunity to place orders on the price movements of some popular stocks; some might even offer company shares as a so-called stock CFD. While this might be convenient for some short-term traders, there are many drawbacks to it: for starters, you’ll need to pay the broker a so-called financing charge as long as you hold the CFD. This could add up to a significant amount if you hold the CFD for more than a few weeks.

If you’d like to stick with CFDs, you might want to take a look at our article on CFD trading tips.

How to determine if a broker is good for beginners?

There are many factors to consider when evaluating a broker's services, possibly too many to list. However, in general, beginner-friendly brokers should have:

  • an excellent web and mobile trading platform
  • low fees
  • an easy account opening process
  • low minimum deposit
  • great educational tools
  • good customer service

Let’s explore how CMC Markets compares to its peers when it comes to platforms, fees, account opening and education tools. We're rating each category on a scale from 1.0 to 5.0, where 1.0 is the lowest and 5.0 is the highest.

CMC Markets services vs. similar brokers
IG
XTB
Web platform score
5.0 stars 5.0 stars 4.4 stars
Mobile platform score
5.0 stars 5.0 stars 4.4 stars
Fees
Low Average Low
Account opening score
4.4 stars 4.4 stars 5.0 stars
Deposit and withdrawal score
4.5 stars 4.4 stars 4.4 stars
Education score
5.0 stars 5.0 stars 5.0 stars
Customer service score
4.5 stars 2.4 stars 4.5 stars

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69% of retail CFD accounts lose money

Do CMC Markets's platforms cater to beginners, and is assistance provided?

Navigating the complexities of trading can be challenging. Easy-to-use interfaces and comprehensive learning materials can simplify these complexities, especially for new investors like you. So, choose a broker known for its user-friendly platform and robust educational resources.

CMC Markets's web trading platfrom vs. competitors
IG
XTB
Web user-friendliness
Great Great Great
Web two-step authentication
Yes Yes No
CMC Markets's mobile trading app vs. competitors
IG
XTB
Mobile user-friendliness
Great Great Great
2-step authentication
Yes Yes No
Biometric authentication
Yes Yes Yes
Educational reasouces are useful, especially for novice investors.

Educational resources, such as demo accounts and platform tutorial videos, can really help you get the hang of trading platforms and make smarter investment choices. CMC Markets's educational resources have the following advantages: Demo account. Trading platform tutorial. Educational videos. However, they also have some disadvantages which could be improved: .

Similarly, effective customer support is also vital as it ensures that you receive timely assistance with account issues, trading problems, and general inquiries.

CMC Markets's customer support is generally quite reliable and helpful. At CMC Markets, customer support can be reached via live chat, phone and email.

What are the fees like at CMC Markets and is there a minimum deposit?

Transaction costs at a brokerage, including commissions and spreads, can eat into investment returns, especially for active traders. Choosing a broker with low fees is crucial as it allows more of your money to stay invested and grow, enhancing overall profitability.

Think of broker fees like admission to an amusement park. Just as you pay to enter and enjoy rides, you have to pay flat fees or commission-based charges to access trading services. Like different amusements parks offering various experiences and prices, brokers offer varied fee structures tailored to specific types of traders or investment strategies. Ultimately, like weighing park costs against fun, investors consider broker fees relative to trading benefits.

What about deposit requirements? At CMC Markets, the minimum deposit is $0. This means that you can deposit as little money as you wish.

Brokers that don't require a minimum deposit do so to encourage people to try their services without requiring a large initial commitment. Many brokers no longer require a minimum deposit nowadays; so if you want to compare CMC Markets and its rivals along other criteria, you can do so using our broker comparison tool.

Broker
Minimum deposit
Bank transfer
CMC Markets
$0
IG
$0
XTB
$0
Deposit requirement and funding methods

So what if you made a deposit but decide later that you want to switch brokers and invest your money elsewhere? No worries - you can always opt out and withdraw your funds.

BrokerChooser score
4.5 4.5 /5
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69% of retail CFD accounts lose money

How is the account opening experience at CMC Markets?

Account opening at CMC Markets is fully online, meaning you can do it from the comfort of your chair. In fact, you don't even need a chair: you can simply do it on the go on your mobile phone.

Opening a brokerage account is always free of charge, but the time it takes differs from broker to broker. At some brokers, it's as quick as signing up for a new Gmail account. At others, it might take a couple of days as they run a background check on your data. At CMC Markets, it usually takes 1-3 days to have your account up and running.

Is CMC Markets legit?

We hear more and more stories each day about clients who lost their money to scammers through unregulated services. BrokerChooser only features brokers that have top-tier financial regulators. As such, CMC Markets is a legit and trusted broker.

Top-tier regulators are regulatory or self-regulatory authorities that apply, oversee and enforce the strictest requirements and standards to ensure that brokers supervised by them do not engage in fraudulent activities. Oversight by a top-tier regulator is a good indicator that the broker adheres to the highest regulatory standards and practices. CMC Markets is regulated by FCA in the UK, CIRO in Canada, and ASIC in Australia.

If CMC Markets is not the right broker for you, go ahead and check out our top picks for Best Brokers for Beginners in 2024 for some alternatives.

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69% of retail CFD accounts lose money

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Author of this article

András Régely

Investments • Stock Market • Market Analysis

As a Broker Analyst at BrokerChooser, I'm dedicated to providing data-driven insights that simplify the world of investments. With a solid academic background, including an MSc in Accounting and Finance from LSE, I bring a deep understanding of financial markets to my role. My mission is to assist retail investors in finding the perfect broker fit by leveraging my trading experience and analytical skills. At BrokerChooser, I merge my passion for trading with a keen eye for market trends, helping clients navigate online brokers confidently and effectively.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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