CFD Broker Comparison (Updated For 2017)

A CFD broker offers a range of exciting services to the benefit of customers.
However, not all CFD brokers are tailored to beginner traders with a high risk threshold.

Compare forex brokers that have features and customer service suitable for beginner traders while still offering generous leverage levels when CFD trading.

  • Leverage
  • Speed of Execution?
  • Guaranteed Stops?
  • Cuts Out A Dealing Desk?
  • Minimum Deposit?
  • Spread Fee – AUD/USD
  • MetaTrader Supported?
  • Compatible Devices
  • Regulated In
  • Payment Methods
  • Reviews
  • Promotional Bonus?

CMC Markets Is The Recommended Broker For CFD Beginners With A High Risk Tolerance

On January 2nd 2017 a comparison of the best forex brokers for Australian forex traders who are new to currency markets but are looking for high leverage. CMC Markets was found to be the ‘best value’ CFD broker and Forex trading provider due to their:

  1. 500:1 Leverage – The highest around
  2. Guaranteed Stops – Critical for beginner traders!
  3. An Easy To Use Proprietary Trading Platform – Perfect for beginners
  4. Has an Australian Financial Service Licence

Visit CMC Markets Website

Leverage Provided By CMC Markets

CMC Markets offers the highest leverage for CFD broker and forex traders of 500:1

Most Australian forex traders are aware of the need to trade high volumes on currency markets due to the faction of a cent (pips) that pairings move each day. Successful Forex trading Australia strategies therefore rely on leverage which starts at 50:1 and from mainstream forex brokers can reach 500:1 as it the case for CMC Markets.

At 500:1 leverage, traders control 500 times the cash deposited in their trading accounts effectively multiplying whatever earnings earnings made by 500. If a cfds trading participant deposits $100, he or she effectively can play with about $50,000 worth of currency pairings. If markets move in the traders favour by just 0.1% they stand to make $500. However, as currency markets are incredibly volatile, great losses can also ensue. For beginner traders with a high tolerance to risk, these losses can be mitigated through the use of handy tools such as guaranteed stops.

Why Are Guaranteed Stop/Losses Are Vital For Beginner Forex Traders?

At higher leverage levels any unexpected movement in currency markets can lead to significant losses that may exceed the traders deposit. To ensure that a negative deposit balance never occurs or to limit the exposure of any one trade the broker must have a guaranteed stop loss option. 

As the table above highlights, CMC Markets is one of the few forex & cfd brokers that offers guaranteed stop losses. This is a key reason why CMC Markets was recommended for beginner forex traders with the ability to set a predetermined limit on any trade.

Unfortunately, CMC Markets is just one of 3 Australian regulated Forex brokers that offer guaranteed stops with Plus500 and Easy Forex being the others. In fact CMC Markets are the only cfd broker in Australia that offers a combination of 500:1 leverage AND guaranteed stop losses.

Traders desiring 100% certainty when it comes to closing trades at their exact specification can take advantage of CMC’s Guaranteed Stop-Loss Orders (GSLOs). It does cost a small premium, however, it could save traders thousands of dollars if markets move against them unexpectedly. A small price to pay for piece of mind and something we would definitely recommend to any beginner, regardless of their risk appetite.

Guaranteed Stop Loss Orders (GSLOs)

What Platform Does CMC Markets Offer?

CMC Markets is the only forex broker to offer The Next Generation platform which includes the following features:

– Up-to-date pricing information with high reliability
– Layouts which can be personalised for forex trading strategies
– Mobile applications for iPhone and Android devices
– Client service during market hours

There are 5 layouts created for forex traders that can be customised further to suit different forex trading Australia styles. An advanced charting package also exists on The Next Generation platform which includes technical indicators (80+), candle patterns (60+), comparison charts and pattern recognition scanning capabilities.

CMC Markets cfds trading platform

The Next Generation forex platform also allows informed forex trading with regular Reuters News feed, economic Dow Jones calendar, economic announcements, price & technical patter alerts.

The Next Generation software is also mobile compatible supporting iPad, iPhone and Android. The platform is well suited to beginners just starting out in the world of Forex or in CFDs trading. Moreover, the charting tools are state of the art and even rival the more well known platforms.

A new feature just released by CMC is their innovative Chart Forum. This can be accessed directly within the Next Gen platform and allows traders to connect with a global web of like minded analysts and traders. This forum is designed to spark inspiration and foster the sharing of effective trading ideas and strategies.

The CFD Broker's Chart Forum

CMC Markets Customer Service & Reputation

CMC Markets was founded in 1989 making is one of Australia’s oldest forex trading Australia brokers. Not only do they have a strong reputation nationally but they also offer strong customer service appropriate for beginner forex trading.

As mentioned earlier, the broker offers customer service during all hours that the currency markets are open. Those new to currency traders are supported from face-to-face interaction and online in either English or Chinese language. This customer service level was reviewed favourably on forums and review sites, especially for beginner traders.

CMC Markets also are involved in the community. An example of this is their ongoing sponsorship of the NSW Waratahs, one of Australia’s largest sporting clubs and the winners of the 2014 premiership. This CFD Broker Sponsors The NSW Waratahs

Australian Financial Service Licences

CMC Markets is licensed to operate and practice in Australia under AFS license 238054. They are regulated in Australia and trade under the business name CMC Markets Asia Pacific PTY LTD.

CMC Asia

As an Australian regulated forex broker all customer deposits are segregated in a separate bank account giving forex traders peace of mind. Australian regulation also has other requirements such as the regular external audits and a minimum training level for relevant employees within the organisation. Beginner (and really any) forex traders should only consider a forex broker regulated in Australia to avoid any forex scams which have occurred overseas in the past.

Overall Conclusion

CMC Markets is the best forex broker if your a beginner forex broker due to features ranging from training, customer service, an easy to use platform and ‘stop loss’ order options when forex trading. The broker also offers the highest leverage level of 500:1 which can mean a lower deposit is required to trade with high volumes on currency markets.

About Our CFD Broker Comparison Table

The team at Compare Forex Brokers has spent a number of months extensively researching the best Forex & CFD brokers for beginners with a high risk tolerance. We deemed CMC Markets to be the best for this type of trader due to a number of the features presented above, especially their guaranteed stop losses and highest leverage of 500:1. Please remember that the information presented in our comparison tables is compiled manually (last updated on the 2nd of January 2017) and therefore prone to the odd human error. Before selecting a CFD broker be sure to double check all information on your provider of choice’s website. Also have a read through our ‘What Is CFDs‘ and modelling guide. There’s plenty of money to be made trading CFDs online if you research this niche effectively, adequately protect yourself against the risks and select the right software.

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