CMC Markets Review: 5 Things You Need to Know Before Trading With CMC Markets
Contract for difference (CFD) trading offers investors a tremendous opportunity to trade regardless of the market direction. With the ability to trade long or short, and utilise leverage, investors will be able trade under all situations even if the price of the underlying financial instrument moves by a relatively small amount.
An additional advantage is the wide range of instruments that you can trade. CFDs are available for forex pairs, indices, shares and ETFs, commodities, and Treasuries.
Of course, CFD trading is risky as well. You risk losing your initial deposit and in fact, your losses could be even greater than the sum that you have placed as margin.
However, there are several measures that you can take to control the level of risk that you are exposed to. These include limiting the amount of each trade and following a disciplined approach towards entering and exiting a trade.
But in addition to the strategy that you adopt to limit your losses and maximise your gains, you must also ensure that you select a quality CFD broker.
CMC Markets, which started operations way back in 1989, could be the most appropriate choice. It offers among the most advanced trading platforms and its customer service levels are absolutely top-class.
Here is a brief description of the top 5 reasons to pick CMC Markets as your CFD broker:
1. Control your level of risk with a guaranteed stop loss order (GSLO)
It’s important to exit a losing trade at the correct time. If you don’t, it’s quite possible that you could see your losses mounting very quickly.
One way to avoid this situation is to place a stop loss order that is activated at a pre-determined price level. Although this is a common feature offered by CFD brokers, CMC Markets goes one step further.
You can opt for a guaranteed stop loss order (GSLO). While you are required to pay a small premium charge for this facility, it is absolutely free if the GSLO is not triggered.
These are the scenarios in which you will not need to pay for the GSLO that you have placed:
- You remove the GSLO from an open trade.
- You change over to a regular stop loss order or trailing stop loss order.
- A take profit order is triggered.
- An open trade is manually closed.
The GSLO feature offered by CMC Markets can help to control your losses in a trade that moves in the wrong direction. Additionally, its flexibility allows you to control your losses and you might get to enjoy lower margins for leverage. Find out how you can enjoy different margins on our GSLO here.
2. Get the advantage of module linking
Your trading performance is inextricably linked to the level of information that is available to you and the speed at which you can access it. CMC Markets’ module linking feature allows you to quickly obtain the information that you need.
Here is how module linking works. When you look at one product, you are able to select a chart with a shorter time frame, and then select another with a longer time frame for a side-by-side comparison.
What’s more, you can change the product with a click of a button, while retaining the timeframes set previously.
To illustrate this point, consider that the product your screen is currently displaying is gold. If you switch over to the Euro/Dollar by clicking on the product name, all the modules will be updated to show you the currency pair.
With these details in front of you, you can carry out a quick review of the information and enter into a trade. CMC Markets has made it very convenient to link up the order ticket and lock in your position once you spot a trading opportunity, in a click of a button.
3. Control your costs with the lowest fees and spreads
One of the key things you should look out for when trading, is your costs, because lower costs can help to optimise your returns.
CMC Markets has an economical and transparent fee structure. Here is how much you can expect to pay towards share CFD commissions:
|Country/market||Commission charge||Minimum commission charge|
|US||2 cents per unit||US$10|
|Canada||2 cents per unit||C$10|
Another area that you should watch out for is the spread that your CFD broker quotes. That’s the difference between the buy price and the sell price. Remember that the buy price will always be higher than the sell price and that the market price for the security will be somewhere in between.
A tight spread is beneficial for the investor. This indicates that there isn’t much difference between the buy and sell prices. CMC Markets offers among the tightest spreads to investors. Consequently, each trade that you enter into will give you a larger profit/smaller loss.
4. Over 10,000 financial products to choose from
Although it’s likely that you will be trading in only a handful of securities, it’s important that your CFD broker offers the widest possible range of trading options.
Why is that? If you decide to profit from a trade in a stock that is available in a particular market, it is ideal to be able to manage your portfolio and your risk in a one-stop shop.
This is the range of CFDs that CMC Markets offers:
|Instrument||Number offered by CMC Markets|
|Shares and ETFs||9,000+|
5. Improve your trading knowledge
You can upgrade your trading skills by studying the techniques and practices followed by experienced traders. CMC Markets offers a trading library that provides access to a host of resources for new traders as well as those who have been in the market for years.
Here’s an indicative list of the material that you can access:
- 5 Powerful Forex Trading Strategies
- How To Swing-Trade Stocks
- Learn Stop Loss Trading
- Top Tips From Successful Traders
A few minutes spent on studying the information in CMC Markets’ trading library on a regular basis can help to enhance your market knowledge.
Now, you can even take advantage of the experience and knowledge of others, with CMC Markets’ Chart Forum, a community forum where you can feel free to exchange and comment on market movements that you might have on CFD trading, and exchange trading strategies and tips with other like- minded traders.
You can trust in a market leader
Your success as a CFD trader is based on two factors. The first, of course, is your trading expertise. But it is equally important that your CFD broker provide you with a reliable platform and good customer service.
CMC Markets is consistently improving their award-winning platform to ensure their investors have the best trading experience.
Additionally, you will have access to a local Singapore-based, multi-lingual team of client service representatives, including Malay and dialect speaking representatives. This facility is available from 8am to 11pm, Mondays to Fridays.
In fact, CMC Markets’ was awarded the “Best Customer Service” award in Investment Trends for two years running in both 2016 and 2017.
At the same time, over the past 2 years, the company has won nearly 50 global industry awards. These are a strong testament to its high levels of innovation and its focus on delivering best-in-class service to its clients.
If you make the switch to CMC Markets, it’s a decision that you are unlikely to regret.