Before you invest in a brokerage firm, it is important to research and make sure their brokerage is safe to invest in. Here you will know whether the CMC Market is safe or a scam.
CMC Markets review
The CMC Market is an online trading platform. It provides excellent financial services to its customers and investors. The CMC Market was established in London in 1989 by Peter Krudas. It has spread its branches in Australia, the UK, the EU, Canada, Singapore and the Middle East etc.
CMC Market offers trading instruments like forex, commodities, stocks & ETF, bonds, indices, and treasuries. The highest-level regulators oversee it. This high-level oversight controls scams and manipulation through regular audits, licensing requirements and stiff penalties for violations.
The market received various awards for its customer service and safety precautions such as best mobile trading platform, no.1 most currency pairs, best for CFDs, best forex broker and more.
Is CMC Market safe?
Yes, CMC Markets are considered a safe brokerage due to its regulatory bodies, negative balance protection, segregated account, compensation fund, fraud awareness, transparency, 2 FA (two-factor authentication), etc.
Here are some basic factors that make the CMC Market feel safe:
- CMC Market regulation
- Negative balance protection
- Segregate account
- Compensation fund
- Account features
- Fraud Awareness
- 2FA (Two-factor Authentication)
- Data protection
- Evaluation of third-party risk
- Customer service
CMC Markets regulation
Is CMC Market legit? The broker CMC Market is reputable. Because it was regulated by the top-tier regulatory bodies. These are given below:
| Regulated country | Regulated by |
|---|---|
| UK | Financial Conduct Authority (FCA) |
| EU | Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) |
| Australia | Australian Securities and Investments Commission (ASIC) |
| Canada | Canadian Investment Regulatory Organization (CIRO) |
| Singapore | Monetary Authority of Singapore |
| New Zealand | Financial Markets Authority |
| Middle East | Dubai Financial Services Authority (DFSA) |
| China | Shanghai – National Financial Regulatory Administration (NFRA) Beijing – National Financial Regulatory Administration (NFRA) |
| Austria | Financial Market Authority Austria |
| Norway | CMC Markets Germany GmbH Filial Oslo |
Negative balance protection
Protection against negative balances guarantees that traders will not losing your money more money than is in their account. This feature is part of their Shield Mode, which includes guaranteed stop loss and other tools like limited risk and leverage.
It helps traders avoid paying the broker, which is especially useful for beginners who don’t expect rapid market swings.
Segregate account
CMC Markets segregate bank accounts to protect client funds from the firm’s funds. It does not use client money for hedging or meeting the trading obligations of other clients. This segregated bank account is protected by the regulated banks. Funds are held in a way that is identifiable as customer money.
In the event of liquidation, customers in segregated accounts will receive a share of the segregated cash pool.
Compensation fund
These schemes compensate clients if a broker goes bankrupt and cannot recover their investments. The table below shows the coverage amounts available when you register with CMC Markets.
| Country based clients | Compensation amount |
|---|---|
| UK clients | $85000 |
| EU clients | €20000 |
| Canadian | CAD 1 MN |
| Other clients | $0 |
Account features
CMC Market provides useful trading account features for their clients. There are three account types such as spread betting, CFD account, and FX active account. These accounts do not require a minimum deposit.
Opening an account in simple steps:
- Fulfill the application form
- Receive verification code within 60 seconds
- Fund your account
Fraud Awareness
CMC Markets offer scam advice for investors on its official website. They explain the scams that are prevalent today and what to expect as a customer. They also provide insights into how a typical scam works.
By speaking directly to their specialist advisors on 0300 123 2040, they will advise you to report activity fraud.
- CMC Market employees do not provide their products and services via social media.
- Don’t try to arrange payments of any kind through social media channels.
- Do not share account updates or balances through private texts or direct messages on social media.
2FA (two-factor authentication)
Every time you log into your online account that requires you to enter a verification code and password. Authentication using two factors provides an extra layer of security. When logging your account you must enter the OTP. You can choose to receive OTPs through your mobile apps, which is usually by scanning a QR code on the screen, or via SMS.
Data protection
They appreciate your trust in sharing your data with them and are committed to protecting your privacy under GDPR rules. They use best security practices like data encryption and strong authentication to keep your information safe. Their staff are trained to protect your privacy, and they’re open about what they use and how they use it.
Evaluation of third-party risk
They evaluate all third-party suppliers before working with them and regularly review key suppliers to ensure compliance with standards and regulatory requirements.
Customer service
CMC Market excels in its customer service. It continues its services in various ways.
- Live chat: https://www.cmcmarkets.com/en/
- Email address: clientmanagement@cmcmarkets.co.uk
- Phone: +44 (0)20 7170 8200
- Lines open: 24/5 (Monday to Friday)
Conclusion
CMC Markets is a UK-based online platform that specializes in spread betting and CFD trading. It is regulated by the top-tier regulators. Because of regulations, negative balance protection, compensation fund and fraud awareness the CMC Market is the safest investment brokerage firm.
On the other hand, spread betting and CFDs are sophisticated products that offer significant risks of losing money quickly because of leverage. 69% of retail investor accounts lose money while utilizing this provider’s goods. Make sure you understand how they work and if you can afford the high risk of losing money.
Pro Tip
CMC Market is a safe and legitimate broker. We advise you to invest in the CMC Market. Improve your trading knowledge with our trusted forex broker. We also offer some trading instruments like stock, cryptocurrency, CFDs, banking, and more.
