CM Trading launched its FX brokerage services in 2012 and is one of the latest entrants in the market that is trying hard to earn a respectable reputation in the industry by catering to the largest retail trading market in the world. CM Trading has a diversified trading products portfolio that incorporates numerous assets including currencies, metals, commodities, indices, and CFDs. Even though the broker has covered the widest range of financial markets, it remains to be seen whether CM Trading is indeed a reliable broker that can offer the best services to its clients.
Take Us Through The CM Trading Regulatory Status
CM Trading is regulated by the FSB in South Africa and also has its headquarters in Seychelles. The company is not your typical broker that has a European regulatory tag, which is more synonymous with trader trust and safety of client funds. Nevertheless, FSB is a high-quality regulatory agency that follows stringent regulatory guidelines that are designed to ensure a fair and transparent marketplace for all companies operating in the financial markets. The FSB does not have the amount of reputation that other regulatory agencies possess, which can act as a hindrance to the company while advertising their services to the global pool of retail traders. Expectedly, the US market remains closed to CM Trading, and EU traders will also find it difficult to garner enough support from the broker due to the absence of an EU regulation. CM Trading holds all of their clients’ funds in segregated accounts in Barclays PLC and Nedbank. The funds are kept strictly away from the company’s accounts, and it is impossible for the broker to misuse a client’s trading capital for any other purposes. FSB’s CM Trading regulation also states that the broker should keep the company financials separate from their trader’s financials, and routine audits will serve as a sound reference point to ensure that the broker only indulges in fair and honest financial dealings.
Types Of CM Trading Accounts & Trading Specifications
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Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
Type of Brokers
Platform for trading Forex, analysing financial markets and using expert advisors.
CM Trading has divided its trading accounts into four different categories according to the initial investment and the trading environment. The most basic account available to the traders is the Mini account that starts with a $250 minimum deposit and a maximum CM Trading leverage of 1:400. We are not sure why the broker has stipulated such a high amount of minimum deposit for their minimum account, especially since modern traders expect a tiny initial deposit for Mini and Micro accounts. The spreads are also high for the Mini account, with the spread on the main currency pairs starting from 2 to 4 pips on an average. The Mini account is also a market maker account, and it ‘s hard to enjoy the best trading conditions.
The Standard account offers comparatively acceptable CM Trading spreads that hover around the 2 pips on average, but it is still expensive for a Standard account that has a minimum initial deposit starting at $1000. The leverage is lowered to 1:200, and traders get access to FX webinars and educational materials due to the premium. You can also enjoy one risk-free trade using the Standard account, but if you choose the Executive account, you are offered two risk-free trades. The leverage for the Executive account stays at 1:200, but the spreads do get smaller to average around 1.5 pips spread. The Gold Account is the top-of-the-line account available for traders depositing more than $25,000, which promises the tightest spread, but in reality, traders should not expect ECN-like trading conditions. CM Trading does not offer an ECN account, and this cannot be considered as an oversight since there are brokers that offer ECN as the standard for deposits as low as $5. The absence of ECN account takes a point away from CM Trading’s overall ability as a reliable broker. Traders making a deposit greater than $500 get a 20% CM Trading bonus. Deposits of $1000 and above qualify for the CMTrading Debit Card, which allows CM Trading clients to withdraw funds to a debit card for instant cash withdrawal at global ATMs or POS payments. Other payment options include credit cards, Neteller, CashU, UnionPay, and MoneyNet International.
What Is The CM Trading CopyKat Feature?
CopyKat is CM Trading’s version of the social trading platform that allows traders to copy trades from other successful traders. The CopyKat platform is still in an initial phase, as some of the most successful accounts under the scheme are essentially demo accounts. Demo trading performances are largely inconsequential, as there is no fixed risk/reward and demo traders usually resort to gambling due to the low-risk nature of demo trading. Replicating a high-risk demo strategy on a live account is a disaster, especially due to the high amount of leverage available for the CM Trading Mini account.
The Tools of Trade
Clients can commence trading using various CM Trading platforms including the MT4 terminal, the CMT Web Trader, the SIRIX tablet trader, and the CMT Mobile Trader. The SIRIX tablet trader is a modified version of the MT4 mobile app, which is designed for trading on large screen smartphones and tablets. The CMT mobile apps are also available for download on the respective iTunes and Play stores. Since MT4 is the most widely adopted trading platform in the financial markets, there is little surprise in store for regular Meta Trader users. For any issues or concerns, the CM Trading customer service department is available 24 hours a day, and can be contacted via live chat, phone, or through email. The broker has a multi-lingual customer support staff for up to 5 different languages. CM Trading has excellent educational resources that include eBooks, training videos, webinars, and a host of other technical as well as fundamental analysis to help their traders to make accurate predictions of the market. The sheer number of educational materials is a good sign that the broker is committed to the success of their traders, but CM Trading should radically evolve their services to compete the most modern offerings of their immediate competitors.