Plus500 vs CMC Markets

CMC Markets are one of the most well known brokers for share trading but are they better than contracts for difference specialist Plus500? Both offer great trading platforms with over 80 technical indicators and 10+ charting tools.  We compare key trading features to to decide a winner.

Plus500 review. CMC Markets Review

Strengths

1. No Commissions
2. Guaranteed Stop Loss
3. Wide Range of CFDs offered
4. Excellent Client Money Protection
5. 24/7 Customer Support

1. Award Winning 'Next Generation' Platform
2. Offer Risk Management features including Guaranteed stops
3. Widest Range of CFDs

Weaknesses

1. Inactivity Fee
2. Overnight Funding Chargest
3. Relatively High Spreads
4. No Automated Trading Available
5. Limited Analysis Tools on Plus500 Platform

1. Spreads are wider than ECN style spreads
2. Cant Use Same Account for Each Platform
3. Limited in Deposit and Withdrawal Options

Spreads + Commissions

Spread Value

8.5
Commission Value

10
Spread Value

8.8
Commission Value

10

Forex Trading Platform

Plus500 platform - iPhone/iPad, Android, Windows Phone App, Windows 10 Trader, Web Trader

1. CMC Next Generation
2. MetraTrader 4

Execution Speeds

Trading Speed

8
Trading Speed

8

Leverage

1:300

0.20% Margin (400:1 Leverage)

Risk Management

1. Guaranteed Stop Loss
2. Negative Balance Protection
3. Stop Limit /Stop Loss / Trailing Stop
4. Segregated Accounts
5. ASIC Regulated

1. Stop Loss and Guaranteed Stop Loss Orders
2. Fixed Percentage Position Sizing
4. Australian Securities and Investment Commission Regulated
5. Risk Management Education

Other CFDs (eg Crypto)

1. Indices
2. Energy Commodities
3. Metals
4. Soft Commodities
5. Cryptocurrency
6. Shares CFD
7. Options
8. ETF

1. Indices
2. Soft and Hard Commodities
3. Metals
4. Treasuries
5. Shares / Stockbroking Investments
6. Cryptocurrencies

Customer Support

1. 24/7 Chat Support
2. Email via Web Portal
3. No Phone Support
4. No Education Library

24/6 (Monday morning to Saturday morning)
Email
Live Chat
Phone
Education Resources

Bonus Programs

1. Trading credits for initial deposit
2. Rebate program

$250 Refer a Friend Bonus

Funding Methods

1. Bank Transfer
2. Debit/Credit card (Visa, Mastercard)
3. Electronic Wallets (Paypal, Skrill)

Credit Card
Debit Card
Bank Transfer
PayPal
BPay
PoLi

Reviews

Trust Pilot 7.1/10 (679 reviews)

2/5 TrustPilot

Recommended For

Beginner Traders
Traders who desire risk management tools

1. Risk Averse Traders Wanting Risk Management Tools
2. Traders Requiring All-In-One CFD Broker
3. Traders Who Want Features offered on CMC Markets Next Generation Platform

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services

Recommended For

Beginner Traders
Traders who desire risk management tools

1. Risk Averse Traders Wanting Risk Management Tools
2. Traders Requiring All-In-One CFD Broker
3. Traders Who Want Features offered on CMC Markets Next Generation Platform

Spreads + Commissions

Spread Value

8.5
Commission Value

10
Spread Value

8.8
Commission Value

10

Execution Speeds

Trading Speed

8
Trading Speed

8

 

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services
  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stop Loss
  • Guaranteed Negative Balance Protection
  • No Fees On Deposits + Withdrawals
  • Stockbroking Services

Trading Spreads and Fees – Plus500 vs CMC Markets

Broker/Currency PairsEUR/USDUSD/JPYAUD/USDGBP/USD
CMC - April 20190.70.70.71.0
Plus500 - April 20190.60 or 0.000060.70 or 0.070.080 or 0.0000080.90 or 0.000009

Spreads are one the main costs for each forex trade you do. Spreads are your trading fee, which is what you pay when you do a forex trade.

Our sample of spreads for April 2019 for some major currency pairs show spreads are very similar for each broker.  At most, there the spreads appear to differ by no more than 0.1 pip between Plus500 and CMC Markets.

Spreads Conclusion

Given the lack of difference in spreads for each broker, spreads need not be a major factor when choosing between Plus500 and CMC Markets.

Open a demo account >>Visit Plus500 >>

 

Other Costs

Inactivity Fees

AccountInactivity PeriodAmount ChargeHow Often
Plus5003 Consecutive Months$10One off
CMC12 Consecutive Months$12Monthly

Funding Costs

Payment MethodPlus500 FeesCMC FeesPlus500 Withdrawal TimeCMC Withdrawal Time
Debit Card (Visa/MasterCard)Free0.6%N/AN/A
Credit Card (Visa)Free1%Varies by BankN/A
Credit Card (MasterCard)Free1%Varies by BankN/A
PayPalFreeN/A3-7N/A
bPayFreeN/AN.AN/A
PoliFreefree3-7 daysN/A
SkrillFreeNot Offered3-7 daysN/A
Bank TransferFreeFree5-7N/A

Funding charges may apply for the following situations

  1. When international credit cards are processed via a foreign acquirer.
  2. Bank Transfers to/from a bank account to Plus500 (in rare instance).
  3. Forex conversion when payment method does not support currency type.

Other notes:

  1. With Plus500 you may incur fee where maximum monthly withdrawal limit is breached.
  2. CMC Markets have no withdrawal limits but if withdrawing to a credit or debit card you can only withdrawal up to the amount you deposited using the card. In other words, if you made profit then this amount cannot be withdrawn to your card.
  3. With CMC Markets, if a margin call has been made because your account balance is at risk then you will need to call CMC Markets support in order to add or withdraw funds.
  4. CMC Markets do not offer Paypal for those with a share trading account.

Other funding costs include

  • Overnight Holding Costs
  • Guaranteed Stop Loss Orders Premiums

Leverage – Plus500 vs CMC Markets

Both Plus500 and CMC Markets use margin rate rather than leverage. Margin rate is the minimum deposit you will require to open and maintain your trading position. From this margin, one can determine how much leverage the broker will lend you.

CMC Markets have a more generous margin rate of 0.20% (500:1) than Plus500 which only offer 0.37.5% (300:1).

CMC Leverage

CMC required margins for currency pairs

Leverage is a useful tool in a traders arsenal. Currency pairs only change a few cents most of the time which makes it hard to make large profits without large investment allows you to turbo charge your earnings. More money invested mean greater returns when prices move in your favour.

It is however important to understand that leverage can also lead to large losses when price movement do not more in your favour. It is therefore important to understand the risks when using leverage and use it responsibly.  Risk management tools can provide some protection against your losses.

Conclusion

CMC Markets offer better margin rate than Plus500 therefore we recommend CMC Markets.

Risk Management Inclusions

In addition to common risk management features like trailing stop, take-profit and call margin both brokers and standard guaranteed stop loss both Plus500 and CMC Markets off ‘Guaranteed Stop-Loss Orders’.

For a premium, clients can guarantee their stop-loss threshold on their trading position. A GSLO ensures you are protected against slippage that can occur with a standard stop-loss. Premiums will vary depending on the currency pair chosen but you only need to pay this if the GSLO is executed.

Plus500 vs CMC Markets Risk Management Tools

You might appreciate using Guaranteed Stop Loss Orders if you are trading in a volatile market or if you are not an experienced trader. GSLO can provide a high level of protection against losing your money.

Conclusion

Both Plus500 and CMC Markets off the same basic risk management tools for spread betting. For this reason we will call this category a draw.

Open a demo account >>Visit Plus500 >>

 

Trading Platforms – Plus500 vs CMC Markets

Plus500 Trading Platforms

Plus500 only offer one trading platform. The Plus500 platform is available on desktop, web and mobile.

This platform is popular with casual investors due to its clean design and emphasis on simplicity. The platform however does lack advanced features which more advanced traders will appreciate. For example, the platform does not offer social trading, trading direct from charts or drawing tools. The mobile version is missing features available on desktop version such as drawing tools.

Plus500 offers the following

  1. 103 technical indicators (18 indicators on mobile version)
  2. 10 fields for watchlists
  3. Custom chart templates that can be saved

Plus500 Platform

CMC Markets Trading Platforms

Clients have a choice of two trading platforms. These are CMC Markets own proprietary ‘Next Generation’ trading platform and MetaTrader 4. Both of these platforms are available to clients on web browser, tablet and mobile (Android, Windows, Mac, iOS). Those using ‘Next Generation’ on mobile will have access to the same features as those on browser however those using a browser will have a wider range of choice among those features.

Generation Next Trading Platform has the following features

  1. 81 Trading Indicators – great for in-depth technical analysis (note: Mobile version on has 23 indicators)
  2. Expandable trade ticket design – users can add features such as stops and limits and level 2 pricing
  3. Chart pattern recognition –  tool to analyse trading and pricing. Tool can auto-adjust when time-scales of charts are changed to show updated patters.
  4. Alerts for chart patterns
  5. Sentiment Tool for social trading
  6. 24 drawing tools
  7. Trading direct from charts
  8. 8 fields for watch list

CMC Standard Advanced Trading Platform

MetaTrader 4

In late 2018, CMC Markets began to offer MetaTrader 4 (MT4) as a trading option. MT4 platform is the worlds most used trading platform and is offered by more brokers than any other platform.

Introducing MT4 could be smart move by CMC Markets given this will encourage traders using MT4 with other brokers to switch to CMC Markets.  MT4 is a great platform in its own right but has one big advantage over many other platforms in that it does no lock you into a particular clients eco-system. By this we mean you can switch brokers also offering MT4 with little issue.

If you choose to use MetaTrader 4 you will still need a Next Generation Account. CMC markets require this to overcome funding limitations with their MT4 platform.

It is important to note that you cannot trade shares via the CMC Markets MT4 platform. CMC Markets allow trading of Forex, Indices and Commodities. Users can still trade shares via the Next Generation Platform.

Pros of MT4

  1. Same functionality on mobile as on web browser except for Expert Advisors.
  2. 30 technical indicators (can be expanded with add on)
  3. 24 drawing tools
  4. 3 differ Interactive charts with 9 time periods which are customisable
  5. Inbuilt Expert Advisors
  6. Hedging allowed
  7. Good level of customisation available

Cons

  1. No support for futures and options
  2. Built for FX market. Support for other asset classes available but better platforms available
  3. Cannot trade shares

CMC Markets MetaTrader 4

Conclusion – Plus500 vs CMC Markets

Plus500 is a great platform for beginner and intermediate traders. If you wish for more advanced trading tools then we suggest you use one of the CMC Markets platforms.

Open a demo account >>Visit Plus500 >>

 

Contracts for Difference (CFDs) – Plus500 vs CMC Markets

CMC Markets are better known as a broker offering shares and forex along with other commodities and this is shown in the sheer volume of shares and forex options available. Plus500 however actually offer a more diverse range if you wish to trade cfds.

 Plus500CMC  
Forex71338
Commodities22117
Indices6799
Shares18164925
Treasuries055
Cryptocurrencies1412
ETF80+0
Options100+0

Conclusion – Plus500 vs CMC Markets

If your looking for a broker with a wide range of contracts for difference then we recommend Plus500. If your looking for a broker that offers a large range of shares then we recommend CMC Markets.

Bonus Offers – Plus500 vs CMC Markets

Plus500

Plus500 lack customer support features when you compare with the main online forex brokers. While they do offer 24/7 live chat and email support and even WhatsApp, the absence of phone support is glaring. While you can certainly use live chat or email to resolve your issues, its safe to say, many people still do like to have phone access as an option when needed.

Not only are the customer support features weak, Plus500 do not offer much in the way of customer services. Plus500 do not offer much in the way of education. Given most broker offer their own education suite as a standard, this is an interesting policy.

Plus500 ContactEducation:

Not  only do Plus500 not offer much in the way of education, they do not offer much in the way of specialised technical analysis. Many brokers engage analyst to provide input, education and updates on news or trends in the market.  Plus500 offer neither in-house or 3rd party technical analysis. They also do not offer economic calendars which is a basic standard in the industry.

All this said, the lack of these features do not make Plus500 a bad product. Not everyone needs these features and much is available for free elsewhere.  If you don’t have a need for these features then these features may not matter so much as long as the trading execution is good.

Demo Account:

Plus500 demo account has 2 key benefits that make it superior to other brokers demo accounts. Firstly there is no access restriction. This means you have access to the demo account for the life of your account. Secondly there is no funds restriction which means you have all the virtual funds you need to practice your trading with.

CMC Markets Customer Support

Unlike Plus500, CMC Markets offer customer support via phone along with live chat and email. This service is available Monday 8am to 8am Saturday. You can also reach the CMC Markets support team via the CMC Markets twitter and facebook account.

Its interesting to note that if you use the live chat via the website, you will be dealing with the stock market support team. This can lead to some confusion given the support team will assume your asking questions relating to CMC Markets stock market accounts.

If you have questions regarding CFDs then you will need to log in with your account to chat to the live chat team. This is not much good if you don’t have a CFD account which  means you will need to call help desk if you have questions.

CMC Markets Contact

CMC Markets Customer Services

CMC Markets offer a great collection of customer service tools.

Research: CMC Markets offer a range of news and analysis features that help you stay on top of all the latest news and events in financial markets. These include:

    • Dedicated team of In-house analysts that offer their own insights and content published on their websites. Australia have two analyst in their panel. Michael MaCarthy and Ric Spooner. These analysts regularly appear on CNBC, Sky, ABC and BBC so you can be sure they know their chops.
    • Third party resources – Morningstar. Reuters news etc.

Economic Calendar.Plus500 vs CMC Markets ResearchEducation: CMC Marekts offers a wealth of education material, these include:

    • Webinars on a range of topics including Trading, Market Analysis, Technical Analysis.
    • Articles, guides, ebooks and whitepapers.
    • CFD trading and Forex education program.
    • Glossary of key trading terms.
    • FAQ.

Demo Account: CMC Markets give you access to $10,000 of virtual funds in a demo account. The account is free for your to use as long as you have a CMC Markets Account.

 

Conclusion – Plus500 vs CMC Markets

CMC Markets offers a superior customer experience. Not only is the customer support team easier to reach than with Plus500 but they offer a wealth of research and education tools which can make you a better trader.

Bonus Programs – Plus500 vs CMC Markets

Plus500

Plus500 have a first deposit and rebate program where you will be rewarded with credits based on size of your deposit or trading volume. The more trader points you earn the more credit you will receive.

Below is shows the credits you will earn for the trading points you have along with amount you receive for first deposit.

Plus500 Deposit

 

Below shows a sample of the trader points you will earn for trading forex. You need to trade at least $1500 and points earned will vary for each currency pair. You will also receive points for trading with other CFDs.

Plus500 Bonus

 

CMC Markets

Deposit Bonus

CMC Markets will top up your account with 20% of your deposit throughout your first month of trading.

CMC Markets First Deposit

Rebate

If you trade a minimum 25million a month then you will qualify for for CMC Markets rebate program.

CMC Markets Rebate

Refer a friend

You can also receive a bonus if you refer a friend

CMC Markets Bonus

Conclusion

Plus500 thanks to its on-going rebate program are likely to offer better value than CMC Markets.