CMC Markets vs IG Markets

CMC Marktes and IG Marktes are both higher reputed London brokers with years of experience. CMC Markets was established in 1989. The original idea was to offer retail clients wholesale pricing and service. Later, CMC Markets officially opened its office in Singapore and quickly grew to be one of the leading CFD and FX trading provider. IG Markets Established in 1974, is the leading CFD broker in the world. IG Markets writes new CFDs if demand exists, and is a liquidity provider for smaller brokers. Although IG Markets was established earlier than CMC Markets, it seems that the experience will be more, but they are very different in the specific Platforms, instruments, fees and spreads, regulation and security , and each has its own advantages. Let's take a look.

Company Profiles

CMC Markets was founded in 1989 and is headquartered in London, UK. The company is publicly traded on the London Stock Exchange and has a market capitalization of over £1 billion. CMC Markets is known for its innovative trading platform and award-winning customer service. CMC Markets provides a range of financial products, including but not limited to, CFDs (Contracts for Difference), spread betting, and forex trading. They also offer access to a variety of global markets such as shares, indices, and commodities. When you open a free 'gold' account in CMC Markets, many fees will be reduced or even not, there is no platform, inactivity, settlement and custody fees .For commission, there are 2 commission-free monthly trades in SG and 5 commission-free monthly trades in US, UK, HK and CA.

IG Markets, on the other hand, was founded in 1974 and is headquartered in London, UK. The company is also publicly traded on the London Stock Exchange and has a market capitalization of over £3 billion. IG Markets is known for its comprehensive range of trading instruments and educational resources. IG Markets has a variety of trading markets, spread betting, CFD, and forex trading across a wide range of markets, providing customers in 17 countries with the best trading environment at an affordable rate. In addition, IG Markets also provides a variety of trading platforms and tools, including ProRealTime, MT4 and L2 Dealer, to help investors better trade and implement their trading strategies.

Trading Platforms

CMC Markets provides two platforms: MT4 and its own trading platform called Next Generation.Next Generation is a web-based platform that can be accessed through a browser or mobile app. The platform offers a range of advanced trading tools, including charting and technical analysis, as well as access to a wide range of financial instruments, including ESG investing, SG shares, global shares, and ETFs.

ESG investing is a strategy that considers environmental, social, and governance factors in addition to traditional financial metrics when making investment decisions. This approach has gained popularity in recent years as investors increasingly seek to align their investments with their values and support companies that are committed to sustainable practices. SG shares refer to shares of companies listed on the Singapore Stock Exchange, which can provide investors with access to the Singaporean market. Global shares, on the other hand, refer to shares of companies that are listed on stock exchanges around the world. By investing in global shares, investors can gain exposure to a diverse range of companies and industries from different countries.ETFs are investment funds that are traded on stock exchanges like individual stocks. They can provide investors with exposure to a broad range of assets, such as stocks, bonds, and commodities, and can be a cost-effective way to diversify their portfolio.These platforms offer investors a range of options for building a diversified and sustainable investment portfolio.

IG Markets offers two trading platforms: MT4 and its proprietary platform, IG Trading is a web-based platform which offers advanced charting tools, news feeds, and trading signals.In addition, The broker also offers a range of trading tools to suit different needs and preferences.ProRealTime, L2 Dealer, terminals and APIs

ProRealTime is a platform that provides advanced charting tools, technical indicators, and the ability to backtest trading strategies. L2 Dealer is designed for professionals engaged in high-frequency trading, offering direct market access (DMA) to financial instruments with advanced order types. For those who prefer to use terminals installed on their computers, the broker offers advanced trading functionality that can be customized to suit a trader's style. Additionally, the broker provides an API that allows developers to build custom trading applications that can connect to the broker's trading platform, providing access to real-time market data and the ability to execute trades programmatically.

Both CMC Markets and IG Markets offer a wide range of financial instruments for trading, including stocks, forex, commodities, and indices. CMC Markets offers access to over 9,000 instruments, while IG Markets offers access to over 17,000 instruments. In general, in terms of trading market platforms and tools, IG Markets will provide more than CMC Markets.

Fees and Spreads

Spreads

CMC Markets and IG Markets both charges a variable spread in forex market. In standard account spreads,CMC’s the lowest spread is 0.857 in EUR/GBP,IG Markets’ the lowest spread is1.01 in AUD/USD.it seems that CMC Markets offer competitive spreads.Let’s make a more intuitive comparison through the table.

Commissions

In CMC Markets , Commissions are charged for share trading and range from 0.1% to 0.3% per trade.In addition, there are 2 commission-free monthly trades in SG and 5 commission-free monthly trades in US, UK, HK and CA. 

In IG Markets, commissions are charged for share trading and range from £3 to £10 per trade.it looks like IG Markets have higher commissions. 

Fees

IG Markets

Spread fees: IG charges variable spreads on its trades, which can range from 0.6 pips to 1.5 pips depending on the asset being traded.

Overnight fees: If you hold a position overnight, IG charges a financing fee based on the size of your position and the current market interest rate.

Inactivity fee: If you don't trade for two years, IG will charge an inactivity fee of £12 per month.

CMC Markets

Spread fees: CMC Markets also charges variable spreads on its trades, which range from 0.3 pips to 0.7 pips depending on the asset being traded.

Overnight fees: If you hold a position overnight, CMC Markets charges a financing fee based on the size of your position and the current market interest rate.

Inactivity fee: CMC Markets does not charge an inactivity fee.

Regulation and Security

Both CMC Markets and IG Markets are regulated by top-tier financial authorities such as the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC) and Federal Financial Supervisory Authority (Bafin).In different,CMC Markets have IIROC (Canada) regulation, IG Markets have FINMA (Swiss) and NFA (USA) regulation,In addition,they both have many‘tier 2’ regulations.CMC Markets have FMA in New Zealand and MAS in Singapore. But IG Markets have more than 5 regulators, CySEC in Cyprus, DFSA in Dubai (UAE), FMA in New Zealand, FSCA in South Africa and finally MAS (Singapore).On the whole, IG Markets is subject to more supervision than CMC Markets, and it will be safer in comparison.

Pros and Cons

CMC Markets:

Pros: 

1.proprietary platform provide a pattern recognition scanner and 40+ indicators and drawing tools

2.lower spreads

3.no deposit or withdrawal fees

4.Comprehensive suite of market research tools

5.24/5 customers supports

Cons: 

1.higher spreads for some instruments

2.limited educational resources

IG Markets:

Pros:

1.Comprehensive range of instruments, advanced trading platforms,

2.Over 17,000 assets are available spanning stocks, forex, commodities, baskets, futures, options and more

3.great educational materials

4.longer term investing in Share dealing and ISAs term investing

5.Opening an account takes less than 5 minutes

6.24/5 customer support

Cons: 

1.higher commissions for share trading 

2.complex pricing structure

Conclusion

Both CMC Markets and IG Markets are reputable forex brokers with their own strengths and weaknesses. Ultimately, the choice between the two will depend on your individual trading needs and preferences. If you value an innovative trading platform and top-notch customer service, CMC Markets may be the better choice for you. If you prefer a wide range of markets and more advanced trading tools, IG Markets may be the better choice.