If you are reading this article, you’re likely having trouble deciding whether AvaTrade or CMC Markets is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this AvaTrade vs 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
- AvaTrade vs CMC Markets - Verdict
Ireland United Kingdom ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID FCA 2006 1989 Market Maker Market Maker $100 N/A N/A Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ MetaTrader 4, Proprietary platform, Web-based 0.9 pips 0.6 pips ($6.00) 1.5 pips 0.9 pips ($9.00) $0.03 $0.03 $0.29 $0.34 77.82% N/A Not applicable N/A 0.9 pips N/A Commission-free N/A Visit Website Visit Website
Features and Platforms
N/A N/A Visit Website Visit Website
Irish-based AvaTrade has been serving traders since 2006, but UK-based FTSE 250 constituent CMC Markets has been around since 1989, long before online trading came into existence. While the former caters primarily to retail traders, the latter serves the entire spectrum. Both brokers provide traders with a proprietary webtrader, but the one deployed by AvaTrade pales in comparison to what CMC Markets offers. The MT4 trading platform is available at both brokers, but AvaTrade also maintains MT5 and AvaOptions developed for options trading. AvaTrade and CMC feature a dedicated mobile trading app, which is superior at CMC Markets, where it also has an edge in research and education. AvaTrade is unable to compete with the product and services portfolio at CMC Markets. Still, 72% of retail traders operate at a loss at AvaTrade versus 79% at CMC Markets, which shows.
Available Markets
N/A Visit Website Visit Website
CMC Markets extends its leadership over AvaTrade in asset selection. With more than 330 currency pairs, Forex traders have access to one of the most comprehensive choices compared to all brokers. Over 110 commodities and 90 indices expand trading opportunities at CMC Markets. The bulk of assets remain in equity CFDs and ETFs, where traders have more than 9,000 instruments, while over 50 treasuries and ten cryptocurrencies complete the selection. AvaTrade provides traders with more cryptocurrencies, fourteen, and offers 42 options contracts. All other assets are significantly less with 55 currency pairs, 24 commodities, 26 indices, and just above 1,000 equity CFDs and ETFs. While AvaTrade's offering is certainly more than suitable for new and intermediate traders, advanced traders with sophisticated needs will find the assets more suitable at CMC Markets.
Typical Spreads and Fees
0.9 pips 0.6 pips ($6.00) 1.5 pips 0.9 pips ($9.00) $0.03 $0.03 $0.29 $0.34 $39 $75.00 Not applicable N/A 0.9 pips N/A Commission-free N/A N/A N/A $50 quarterly after 3 months N/A Visit Website Visit Website
AvaTrade features commission-free CFD trading with an average mark-up of 0.13%. CMC Markets charges 0.10% on all equity trades except for US and Canadian ones, where the cost is $/C$0.02 per share, but a minimum applies, depending on the traded market. It grants AvaTrade a pricing advantage. Currency pair spreads at AvaTrade commence at 0.9 pips versus 0.7 pips at CMC Markets. Swap rates on leveraged overnight positions exist at both, and so do third-party payment processor costs. CMC Markets charges market data fees for Australia and Hong Kong, but traders van receive a 100% refund. AvaTrade charges an above-average $50 per month inactivity cost after three months, while CMC Markets deducts just $10 after one year.
Security and Trust
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa United Arab Emirates, Australia, Canada, Germany, New Zealand, Singapore, United Kingdom ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID FCA C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 173730, 170627,154814, 238054, 41187, 101320, F002740, Undisclosed but confirmed N/A 1, 1, 1, 1, 1, 2, 2 Visit Website Visit Website
AvaTrade and CMC Markets both provide traders with a trustworthy and secure trading environment. The Central Bank of Ireland is the primary regulator of AvaTrade, and six additional ones complete the excellent global oversight. CMC Markets is regulated by the FCA in the UK. Additionally, as a publicly listed company, it adheres to strict capital reserve requirements and best business practices. A 2018 profit-warning, revealing a drop of 76%, triggered a massive sell-off in its share price, and after recording a record low, the CFO/COO resigned. Client deposits remain segregated from corporate funds, negative balance applies, and select AvaTrade subsidiaries, as well as CMC Markets, provide an investor compensation fund in the event of default. Simply put, both of these brokers have an excellent reputation for trust and security.
AvaTrade vs CMC Markets – Verdict
AvaTrade is a safe choice for all new retail traders, where the educational section offers one of the most valuable services at this broker. The asset selection is more than sufficient for most portfolios and grants a competitive choice across seven sectors. Social traders have broad options via DupliTrade, ZuluTrade, and MQL5 Signal Service. The cost structure remains above average, and AvaTrade only provides the out-of-the-box versions of the MT4/MT5 trading platforms. CMC Markets deploys a market-leading proprietary webtrader, and AvaTrade cannot compete in the trading platform selection. CMC Markets also trumps AvaTrade in asset selection. From a pricing perspective, the commission-free CFD offer at AvaTrade can yield superior pricing compared to the commission-based one at CMC Markets. The educational section at CMC Markets remains excellent, and this broker also provides market commentary and trading ideas. New retail traders have sufficient tools to get started at AvaTrade, but more advanced ones will benefit from the trading environment at CMC Markets.
You might also be interested in reviewing the below broker comparisons:
- CMC vs FP Markets
- CMC vs eToro
- CMC vs Pepperstone
- Avatrade vs CM Trading
- Avatrade vs Trading212
- Avatrade vs Coinbase
