CMC Markets vs IG

CMC Markets and IG are two of the largest forex brokers offering MetaTrader 4 or their own forex trading platform and regulated by ASIC (Australia) and FCA (UK), with IG providing spread betting and EUR/USD spreads from 0.6 pips vs CMC Markets who offer 339 currency pairs and cryptocurrency CFD trading.

You can view the complete CMC Markets review, IG Markets review and the CMC Markets vs IG markets table below.

By Justin Grossbard / Updated: Tuesday, February 18th, 2020

CMC Markets Vs IG

Broker Reviewed

CMC MarketsIG
Our Rating
7.17
6.67
CMC Markets Review Review of IG Markets
Trade with CFDs and on Stock Market Widest choice of markets for trade

Regulations and Licenses

FeatureCMC MarketsIG
ASIC (Australia)
FCA (UK)
MAS (Singapore)
CFTC (U.S.A)
FSCA (South Africa)
FINMA (Switzerland)
CYSEC (Cypus)
IIROC (Canada)
FMA (New Zealand)

Brokerage

FeatureCMC MarketsIG
No Commission Account Spreads From (EUR/USD): 0.7 0.6
Commission Account Spreads From (EUR/USD):
Commission (per 100k traded side trip)
Minimum Deposit
$0
Volume Commission Rebates
Has Islamic Account
No Inactivity Fees
Funding Methods 6 4
No Deposit/Withdrawal Fees

Markets and Instruments

FeatureCMC MarketsIG
Forex Currency Pairs CFDs 339+ 80+
Cryptocurrency CFDs 12+ 5+
Index CFDs 46+ 34+
Share CFDs 9000+ 12000+
Commodities CFD 111+ 38+
Stockbroking 9000+
Retail Maximum Leverage 500:1 200:1
Professional Maximum Leverage 500:1 200:1

Trading Platforms + Tools

FeatureCMC MarketsIG
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Proprietary Platform
Automatic / Robot Trading MetaTrader 4 only
Social + Copy Trading
MetaTrader 4 onliy
Standard Stop Loss
Guaranteed Stop Loss Order
Guaranteed Negative Balance Protection Only in ESMA regulated territories ESMA regulated territories only
Demo Account
Unique Feature 1 Offers both CFD and Stock trading Guaranteed stop loss orders
Unique Feature 2 Trade treasury notes Range of platforms

Overall

Shares Review – CMC Markets vs IG

CMC Markets and IG are two of the biggest and oldest financial derivatives dealers on the market. Unlike many other brokers, we have reviewed in the past, CMC Markets and IG are as well known for their stock services along with their IG services. So we will start by reviewing each broker’s share services before resuming our usual review structure.

Broker/ AccountIGCMC Brokerage Rate
CMC Classic - Maximum 10 trades a month$11 or 0.10% for first 10 trades
$9.90 for 0.08% for 11th to 30th trade
$9.90 or 0.075% for 31+ trades
CMC - Active Investor - Make 11-30 trades each month$9.90 or 0.10% for first 10 trades.
$9.90 for 0.08% for 11th to 30th trades
$9.90 or 0.075% for 31+ trades
CMC Premium Trader - more than 30 trades each month$9.90 with minimum 30 trades
IG Personal Account$7 or 0.08%
CHESS sponsorNOYES

Shares fee comparison

Looking at the above table we can see that IG fees are more simple, straightforward and cheaper when we compare with CMC Markets. CMC Markets on the other hand fees are a little more complex in that they vary depending on the number of trades you make each month. So if you are after the cheapest fees, then IG might be the broker. There are however a couple of caveats to be aware of. IG is not a CHESS sponsor, they only provide Issuer sponsored shares.

Issuer sponsored shares like IG offer, is not ideal because this means more administration work for you as you will need to register the title of your shares on a register. Issuer sponsored shares also make it more difficult to transfer shares between platforms if you need to do so. It is recommended to choose CHESS sponsored shares.

It is also worth mentioning that the more your trade, the more ‘bonus’ features CMC Markets will give you access to. For example, Active investors will get access to free live data and free access to technical analysis and eScreener research reports. Premium traders will get access to free educational resources and tax and portfolio reporting.

IG Shares

IG Shares

CMC Shares

CMC Shares

Shares other considerations

Broker / ConditionsIGCMC
Margin5% for AUS and US5% for AUS and US
No. Shares on Australian Market60002000
No. Shares on International Market80009000
Cost for international SharesUSD$15 or 2c* $0-$5000 is $19.95
* $5000-$10,000 is $29.95
* Over $10,000 is 0.31%
Order by Phone (AUS/US)$7 / USD$25$59.95 (up to $20,000) / All $59.95 or 0.59%
Guaranteed Stop Premium0.3% to 1%based on GSLO formula
Live Data Fees (otherwise 20 min delayed)Additional fee applied if activated$10 a month for live data (free if minimum monthly volumes are achieved)
Rolling / Overnight FeeYesYes
Inactivity Fees$50 per quarterN/A

The table above also shows some other considerations when choosing your broker. International shares are cheaper with IG when you order online with CMC Markets notoriously expensive if you order by phone. The biggest issue with IG however, might be if your not an active trader. If you don’t trade for a certain period you will incur large inactivity fees.

Shares Conclusion

IG shares are generally cheaper and have a simple cost structure however CMC Markets offer more shares and these shares are CHESS sponsored. We believe the effort you will need to register IG issue sponsored shares will outweigh any potential cost saving. Therefore we recommend CMC Markets.

Visit CMC Markets Website

 

 

Leverage – CMC Markets vs IG Markets

CMC Markets offer superior leverage of 500:1 when you compare with IG of 200:1.  Greater leverage means you can achieve greater earnings with less of your own capital on hand.  This means you can maximise the return on your investment when movements are favourable.

CMC Markets and IG use margin rather than leverage. Margin specifies how much you need in your account to take your positions. The margin will vary for the currency pair being traded which can be as low as 0.20% (which is equal to 500:1) in the case of CMC Markets and 0.50% (200:1) in the case of IG.

Margin RequiredMaximum Leverage
520:1
333:1
250:1
1100:1
0.5200:1
0.25400:1
0.20500:1

Both brokers also use a tiered margin system. This means the less volume you trade (defined by lots) the better margin you can use.

We believe higher leverage when used properly and skillfully is a good thing however it is important to understand the risks involve. Leverage does mean you are taking on debt, so if price movements are not in your favour then you risk incurring significant losses.

Leverage

Conclusion – Leverage

This is an easy one. CMC Markets win as they offer better larger margins.

Visit CMC Markets Website

 

 

Risk Management – CMC Markets vs IG Markets

Both CMC Markets and IG offer the standard suite of risk management tools common to all brokers. These risk management tools include order execution tools such as market, limit and stop entry order, regular stop-loss orders, trailing stop-loss order and take-profit orders. They also offer common none execution features such as snapshots of your balance so you can manage your liquidity, alerts so you can be notified of issues that may impact your investments and risk management education so you can protect your investment intelligently.

The main risk management feature to be aware of that both CMC Markets and IG offer however is Guaranteed stop-loss orders (GSLO). GSLO provide watertight protect against slippage. This means you will not lose more than you are willing to lose. Both brokers allow you to place the GSLO for free however you will pay a small premium in the event your stop is applied. The margin you require may also change.

GSLO is especially great for inexperienced investor or new investors who may be more vulnerable to poor investment decisions. To help these type of investors, IG offers a limited risk account option. This simply means that all your positions will have GSLO applied by default. Once the trader’s skills have grown and they no longer always need GSLO then they can move to a standard risk account.
IG Guaranteed Stop Loss Limit

Conclusion – CMC Markets vs IG Markets

Both CMC Markets and IG offer the same basic risk management tools. There might be some differences in the premium you pay when using a GSLO but this will depend on the volume and currency pair you trade with. For most traders, it won’t matter which broker you choose however if your new to trading then the limited risk account IG offer can be beneficial.

Visit CMC Markets Website

 

Bonus Offers – CMC Markets vs IG Markets

CMC Markets have 3 bonus programs. These are the rebate on deposit, high volume rebate program and refer a friend program.

Deposit Rebate Bonus

When you open a trading account, CMC Markets will reward you with a bonus 20% of your deposit throughout your first month of trading.

CMC Rebate Bonus

Rebate Program:

The rebate program is for high volume traders. If you trade a minimum $25 million a month you can qualify for a rebate. In the case of FX, you will receive the following:

CMC Markets Rebate Bonus

Refer a friend program:

CMC Markets Refer a Friend

IG Markets

IG markets high volume rebate program and ‘refer a friend’ program. In addition to this, they have a QANTAS frequent flyer points program.

Refer a friend:

The refer a friend program also earn you trading credits. Each friend you introduce will earn you move trading credits.

IG Refer a Friend

 

Rebate program:

This program is for high volume traders. As long as you trade at least $25 million each month, you will receive a rebate.

IG Rebate Program

QANTAS Frequent Flyer Points program:

If you use QANTAS frequent flyer you might find the IG frequent flyer points program beneficial. If you are a new member you can receive up to 20,000 QANTAS frequent flyer bonus points.  If you are an existing member you can receive QANTAS frequent flyer points each month providing you meet minimum trading requirements.

New IG Members

IG QANTAS Frequent Flyer Points

Existing IG Members

IG QANTAS Points

Conclusion – CMC Markets vs IG Markets

CMC Markets offer a first deposit rebate program. These rebates can lead to greater returns for all deposits you make into your account in the first month. We, therefore, consider CMC Markets the better option.

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