This CMC Markets review is based on the Australia subsidiary of the UK based firm.
The forex broker was rated the second best forex broker based on there:
– Market leading leverage of 500:1
– Guaranteed Stops
– The award winning forex platform (2014 winner)
What Leverage Does CMC Markets Offer?
The best forex broker leverage levels in Australia are 500:1 while firms like OANDA only offer 50:1.
CMC Markets offers the market leading 500:1 leverage which is also known as a margin level of 0.20%. By having this forex leverage level traders can have more efficient use of their funds as a lower percentage of the overall value needs to be held by an Australian forex trader while full exposure occurs. This means that higher profits can be achieved but on the flip-side larger losses can be incurred as well.An example of a 500:1 forex leverage strategy at work would be having $200 as underlying equity which would ultimately provide traders with $100,000 worth of funds for trading currency. Any changes in the currency pairing will amplify the losses or gains incurred which is a critical issue as explained below and must be understood when using our forex broker comparison. They also offer this same leverage for CFDs trading.
What Is Guaranteed Stop Loss Technology?
The best forex brokers in Australia not only need to offer high leverage for brokers but also help forex traders manage their risk.
Guaranteed stop losses are an excellent way to ensure you don’t lose more then a predefined amount and is offered by CMC Markets.
As the only Australian forex broker to offer both 500:1 leverage and guaranteed stop losses this is the ideal platform for intermediate forex traders who require high leverage. It should be noted that without a guaranteed stop loss feature a broker can lose more then their deposit, especially when high volatility occurs such as during interest rate announcements. This is commonly called spreads betting with more risk associated with the higher leverage.
Another nice feature of CMC markets is their trailing stop losses. This ensures stop gaps are moved when a currency pairing moves in the predicted direction leading to profits. When the currency then moves the other way by a certain amount of points the stop loss will come into force at the more favourable price.
How Does CMC Markets Compare On Spreads & Fees?
The best forex brokers all universally offer competitive spreads and low fees. As the table below highlights, these charges can very dramatically impacting any Australian forex traders long-term profits.
A CMC account has a highly competitive spreads and fees but they are not the best forex broker in this area. The table below shows how the minimum spread for AUD/USD is 0.7 with a typical spread of 0.899 in early November 2015.
Now compare this 0.7 minimum spread to a forex broker like IC Markets or Pepperstone. It’s evident that these fx brokers offer lower spreads but it should be noted when you compare their typical spreads the difference is considerably closer. Overall, therefore, there is a balance an Australian forex traders needs make between the requirements for leverage, the peace of mind associated with guaranteed stops and the requirements to have low spreads.
Unlike more of CMC Markets competitors this best forex broker Australia doesn’t offer a range of forex trading platforms to choose from. Instead they focus on their own propriety forex platform called the ‘Next Generation platform‘. This platform has features such as 100% automated execution, accurate pricing with no requotes and a customisable platform layouts.
The CMC Nextgen platform has apps for the iPad, iPhone and Android which can be helpful for those on the go but most traders will want a mainstream platform for their office.
The CMC Nextgen platform also allows you to trade on other financial markets including a stockbroking and CFD service. These services have one of the lowest trading fees of the major share trading providers in Australia backed by outstanding research based on the trading volumes made each month.
Another advantage of using the Next Generation Platform when you open a CMC account is that you get a free feed from Reuters news. You can even filter the news to make sure it’s relevant to your forex trading needs.
The platforms demo account has no expiry time-frame and offers unlimited trade volume. For this reason the demo feature is popular as a first step to currency trading.
Forex Broker Comparison Of Customer Service & Reputation
As one of the worlds oldest currency traders it’s no surprise that our CMC Markets review found the broker was one of the leaders in customer service.
The broker has won several ‘Canstar outstanding value’ awards and has positive reviews from experts in the field.
Not only is their strong customer service but there is extensive training including on-demand videos, events across Australia and trading smart series. For intermediate and beginner traders these free services can have strong appeal to improve their trading strategies. The reviews and ratings of a CMC account is also strong on several forex forum sites.
CMC Markets has a financial services licence and meets Australia’s guidelines for training, capital requirements and other requirements.
Security of Client Funds
Part of being rigorously regulated by the Australian watchdog is ensure client money is held in trust or at least a segregated account. In line with the Australian Client Money Rules, CMC Markets Asia Pacific Pty Ltd uses its own money only for hedging purposes.
Clients both existing and potential of CMC Markets can rest assured the company not only meets, but exceeds, Australian regulatory guidelines. When updating our CMC Markets review in early 2017, we were more than satisfied with the lengths the company goes to in protecting client funds.
Overall, Authors CMC Markets Review
Our CMC Markets review found it was the best forex broker for intermediate Australian forex traders. This is because it offered high leverage, competitive spreads a strong trading platform and guaranteed stop loss options.
The company has also stood the test of time having been founded way back in 1989. With the ever increasing rate of Forex & CFDs brokers going out of business, CMC’s 25 years’ experience is reassuring. While it shouldn’t be the determining factor when selecting a reliable broker, knowing your hard earned capital is in safe hands provides traders with confidence.
The only reason that CMC Markets in our best forex broker comparison was voted higher for experienced forex traders was due to that brokers marginally lower spreads which is noticeable when day-trading or adopting automation trading techniques. There was also improved execution speeds for both IC Markets and Pepperstone reducing issues such as slippage.
Overall, this broker should be considered by 90% of traders in Australia looking for high leverage.