Plus500 vs CMC Markets
If you are reading this article, you are likely having trouble deciding whether Plus500 or CMC Markets is the better trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Plus500 or CMC Markets review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Plus500 vs CMC Markets - Verdict
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Headquarters | Israel | United Kingdom |
Regulators | ASIC, CySEC, FCA, FMA, FSCA, MAS | FCA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2008 | 1989 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $100 | N/A |
Negative Balance Protection | N/A | |
Trading Platform(s) | Proprietary platform, Web-based | MetaTrader 4, Proprietary platform, Web-based |
Average Trading Cost EUR/USD | 1.3 pips | 0.6 pips ($6.00) |
Average Trading Cost GBP/USD | 1.7 pips | 0.9 pips ($9.00) |
Average Trading Cost WTI Crude Oil | $0.04 | $0.03 |
Average Trading Cost Gold | $0.34 | $0.34 |
Retail Loss Rate | 80.00% | N/A |
Minimum Raw Spreads | Not applicable | N/A |
Minimum Standard Spreads | Not applicable | N/A |
Minimum Commission for Forex | Commission-free | N/A |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Get Started | Get Started |
Features and Platforms
N/A N/A Get Started Get Started
Plus500 and CMC Markets maintain a listing on the London Stock Exchange, but while the former provides merely a below standard proprietary trading platform, the latter developed a cutting-edge webtrader. CMC Markets additionally supports automated trading solutions via the MT4 trading platform. Plus500 does not offer research, and only limited, marketing-inspired educational content. CMC Markets features a more in-depth and high-quality approach to both. Plus500 caters to clients since 2008, but CMC Markets has significantly more experience, being operational since 1989. Per data from both brokers, 76.4% and 79.0% of retail traders operate their portfolios at a loss, at Plus500 and CMC Markets, respectively.
Available Markets
N/A Get Started Get Started
The asset selection at CMC Markets, with almost 10,000 assets, including over 9,400 equity CFDs, is excellent. While CMC Markets offers equity traders with outstanding market coverage, traders have access to over 330 cash and forward currency pairs, offering one of the most extensive choices among online brokers. Completing the selection are over 90 index CFDs, 100 commodities, 40 treasuries, and ten cryptocurrencies. Plus500 maintains over 2,000 assets, with an acceptable choice across seven categories, including options. One of the most appealing products remains sector indices, allowing traders a more focused trading product. Retail traders will determine the choice of products at both brokers more than sufficient, while CMC Markets can cater to more advanced and professional traders.
Typical Spreads and Fees
1.3 pips 0.6 pips ($6.00) 1.7 pips 0.9 pips ($9.00) $0.04 $0.03 $0.34 $0.34 $78 $75.00 Not applicable N/A Not applicable N/A Commission-free N/A N/A N/A $10 monthly after 3 months N/A Get Started Get Started
Both brokers offer commission-free Forex trading. Plus500 traders may achieve lower costs due to dynamic spreads dependent on market conditions versus a minimum of 0.7 pips at CMC Markets. Equities remain commission-free at Plus500, and CMC Markets charges a minimum of 0.10%, but a rebate structure lowers overall expenses. Traders must pay financing costs on leveraged overnight positions, known as swap rates, but CMC Markets also charges for market data from Australia and Hong Kong. Both brokers levy a monthly $10 or a currency equivalent inactivity fee. The pricing environment remains more competitive at Plus500.
Security and Trust
United Arab Emirates, Australia, Cyprus, Estonia, Israel, New Zealand, Seychelles, Singapore, United Kingdom, South Africa United Arab Emirates, Australia, Canada, Germany, New Zealand, Singapore, United Kingdom ASIC, CySEC, FCA, FMA, FSCA, MAS FCA 509909, 250/14, 417727, 486026, 47546, SD039, 100648-1, NOT AVAILABLE, 4.1-1/18, F005651 173730, 170627,154814, 238054, 41187, 101320, F002740, Undisclosed but confirmed N/A 1, 1, 1, 1, 1, 2, 2 Get Started Get Started
From a security perspective, Plus500 and CMC Markets are roughly equal. Both are publicly listed companies, adhering to strict capital requirements and business ethics. The UK Financial Conduct Authority (FCA) regulates both, but Plus500 maintains an additional six regulators for more comprehensive global coverage. Client deposits remain segregated at both broker, negative balance protection is available, and the Financial Services Compensation Scheme (FSCS) protects UK deposits up to a maximum of £85,000 in case of default. CMC Market is more trustworthy than Plus500. All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.
Plus500 vs CMC Markets – Verdict
CMC Markets maintains a competitive cost structure, but despite elevated spreads at Plus500, the commission-free CFD trading environment can result in notable cost savings. The asset selection at CMC Markets remains significantly broader, allowing traders to take advantage of more trading opportunities and achieve better cross-asset diversification. The trading platform at Plus500 does not support automated trading, and while the user interface is clean, it presents traders with an uncompetitive choice. The CMC proprietary trader offers an excellent trading environment, and the MT4 trading platform is equally available. Plus500 does not provide research to clients, which is where CMC Markets adds additional value via a high-quality department. The valuable educational content echoes the quality add-on service, where Plus500 also falls behind. The slightly higher cost structure at CMC Markets pays off amid an overwhelmingly superior product and services portfolios. Plus500 focuses on the core trading environment, where it does not remain competitive.
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FAQs
Does CMC Markets or Plus500 offer lower pricing?
Plus500 shows a minimum spread of 0.8 pips, bested by the 0.7 pips at CMC Markets. While the former offers commission-free CFD trading, the mark-ups remain higher. Therefore, frequent traders can achieve lower pricing at CMC Markets, despite the 0.10% commission per trade. The CMC rebate structure improves the final cost structure further, making Plus500 the more expensive choice.
Is CMC Markets or Plus500 safer for Forex and CFDs trading?
Both brokers are publicly-listed companies on the London Stock Exchange and abide by strict financial regulation and capital requirements. The FCA remains the primary regulator, but Plus500 has more global oversight. While CMC Markets has a spotless record, Plus500 had one FCA fine in 2012. Client deposits are segregated at Plus500 and CMC Markets alike, FSCA compensation up to £85,000 exists, and negative balance protection is available.
Which trading platform is better: CMC Markets or Plus500?
Since Plus500 only offers its proprietary webtrader, the trading platform at CMC Markets remains significantly better. The latter also provides the MT4 trading platform, supporting tens of millions of automated trading solutions, which the former ignores. Manual traders have a cutting-edge webtrader at CMC Markets versus a below-average one at Plus500.
Which is better, CMC Markets or Plus500?
Plus500 is unable to compete with CMC Markets, where traders have access to a broader selection of assets from a superior trading platform selection. Once traders consider the pricing environment, quality educational content, and in-depth research, the gap between both brokers widens notable, placing CMC Markets well-ahead of Plus500.
What about MetaTrader and copy trading?
Besides providing clients with a superior proprietary trading platform, CMC Markets additionally maintains the MT4 trading platform. While it does not support direct copy trading, MT4 allows traders to engage in copy trading via add-ons or by following accounts registered as signal providers from inside the trading platform. Plus500 neither provides the MT4 nor the MT5 trading platforms from MetaTrader. Adding to missing features is the absence of copy trading in any form.
What are the minimum deposits for these brokers?
CMC Markets does not force traders into a minimum deposit, making it dependent on the payment processor. It does recommend traders commit at least $200 to start trading leveraged products, a reasonable suggestion. The minimum deposit at Plus500 is $100, and while it remains less than the recommended amount at CMC Markets, traders enjoy greater flexibility and complete control at the latter.