Our CMC Markets vs FP Markets forex broker comparison found one broker is a market maker with a large range of markets to trade, including 330 forex pairs, while the other is a no-dealing desk broker with tight spreads. Let’s have a closer look.
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Our full comparison covers the 10 most important trading factors. Here are five noticeable differences between FP Markets and CMC Markets:
In our comparison between FP (aka First Prudential) Markets and CMC (aka Currency Management Corporation) Markets, we discuss the pros and cons you face trading with each broker to help you pick your next forex broker.
FP Markets is an Australian Forex broker established in 2005, that operates using a no dealing desk model meaning low spreads with STP execution. CMC Markets is one of the oldest brokers, having been founded in London in 1989. This broker operated using a market maker model.
When it comes to trading fees, one of the primary considerations for most traders is the spread. The spread is the difference between the bid and ask price of a trading instrument. Both FP Markets and CMC Markets have competitive spreads, but there are some differences to note:
Verdict: While both brokers offer competitive spreads, CMC Markets has a slight edge with a lower minimum spread of 0.7 pips for the EUR/USD.
View FP Markets ReviewVisit FP Markets
CMC Markets has a slightly limited platform offering, with only MetaTrader 4 (MT4) plus a proprietary platform available. MT4 is the Forex Platform you could possibly use, packed full of everything you would need to trade better. MT4 is also renowned for the availability of Expert Advisors (EAs), which you can code (or simply download from someone else), to automatically trade for you.
The CMC Markets proprietary platform is the ‘Next Generation Platform’. The platform comes with a wide variety of features to make it simpler to use and more convenient. You can fully customise the platform to your own liking, making you more comfortable when trading.
FP Markets has a lot of platforms for you to choose between. Alongside MT4, they also offer MetaTrader 5 (MT5), a newer upgrade on MT4. On mobile (android/iOS), you can also use FP Markets’ trading app, allowing you constant access to the markets wherever you are.
On FP Markets, you also have the IRESS platform available but only to Australian traders. IRESS uses direct-market-access trading execution to give you the best prices, and you can go long or short on their global range of trading products. You have access to over 59 different technical indicators and over 50 drawing tools, allowing you to carefully conduct analysis into the instruments you trade. This platform is best for trading shares and Indices as the range of Forex and commodity products is limited.
Using a standard account means zero commissions, however, this means the bid-ask spread is artificially widened. Spreads are wider to cover brokerage fees.
We’ve compiled the average spreads for different brokers’ standard accounts into the following table for you to compare.
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Standard Account Spreads
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|---|---|---|---|---|---|
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1.10 | 1.20 | 1.30 | 1.30 | 1.30 |
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1.12 | 1.64 | 1.30 | 1.30 | 1.38 |
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1.10 | 1.20 | 1.40 | 1.40 | 1.40 |
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1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
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1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
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1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
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1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
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1.20 | 1.80 | 1.90 | 1.90 | 1.60 |
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1.32 | 1.95 | 1.37 | 1.70 | 1.40 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
View CMC Markets ReviewVisit CMC Markets
As you can see, we found that CMC Markets has a slight edge on standard spreads. While the minimum spread you can get is 0.7 pips, a typical spread cost would come in at around 1.2 pips for the EUR/USD.
Meanwhile, FP Markets have higher spreads all-round. The minimum spread with FP Markets is 1 pip, and typical spreads for popular pairs like the EUR/USD or EUR/GBP are at 1.3 pips and 2.2 pips.
In truth, if you want lower spreads for this kind of account, it may be better to consider another broker such as Pepperstone, IC Markets, which have spreads from 0.6 pips.
CMC Markets doesn’t have a minimum deposit to open an account. FP Markets does have a minimum deposit; however, this is only a recommendation. At the end of the day, you will need to make a deposit to commence trading, and this amount needs to meet the margin requirements to open a position.
If you have a need for swap-free trading to comply with Sharia law, then FP Markets is your only option.
View FP Markets ReviewVisit FP Markets
Standard Account Spreads
Looking at the data, it’s clear that there are some differences in the standard account spreads between FP Markets, CMC Markets, and the industry average.
FP Markets has an average spread that is generally lower than the industry average, particularly for pairs like EUR/USD and AUD/USD. This suggests that FP Markets could be a more cost-effective choice for traders who frequently trade these pairs.
On the other hand, CMC Markets has a slightly higher average spread for most pairs compared to FP Markets. However, it’s worth noting that their spread for EUR/GBP is significantly lower than both FP Markets and the industry average. This could make CMC Markets a more attractive option for traders who focus on this particular pair.
| Forex Pair | FP Markets | CMC Markets | Industry Average |
|---|---|---|---|
| EUR/USD | 1.1 | 1.12 | 1.35 |
| USD/JPY | 1.3 | 1.38 | 1.54 |
| GBP/USD | 1.3 | 1.3 | 1.68 |
| AUD/USD | 1.3 | 1.64 | 1.63 |
| USD/CAD | 1.5 | 1.32 | 1.93 |
| EUR/GBP | 1.3 | 0.857 | 1.69 |
| EUR/JPY | 1.5 | 1.55 | 2.04 |
| AUD/JPY | 1.6 | 1.8 | 2.31 |
Standard Account Analysis Updated April 2024[1]April 2024 Published And Tested Data
Overall, I would argue that FP Markets offers a cheaper option for most forex pairs. However, the best choice will ultimately depend on which pairs you trade most frequently. It’s always important to consider the specifics of your own trading habits when choosing a broker.
What Are The STP-style Account Details And Spreads?
While standard accounts are commission-free with higher spreads, an STP-style or ‘raw’ account is the opposite. With this type of account, you get market-priced spreads, however, there will be a commission fee when you open and when you close your trading position.
CMC Markets doesn’t offer a raw account type when forex trading, so this section will focus only on FP Markets, the FP Markets RAW Account.
The table below is a snapshot of average spreads taking data the brokers publish on their websites.
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ECN Broker Spreads
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|---|---|---|---|---|---|
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0.20 | 0.30 | 0.10 | 0.30 | 0.20 |
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0.40 | 0.60 | 0.10 | 0.40 | 0.20 |
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0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
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0.30 | N/A | 0.30 | 0.50 | 0.40 |
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0.24 | N/A | 0.17 | 0.54 | 0.30 |
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0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
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0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
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0.77 | 1.41 | 0.44 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
View FP Markets ReviewVisit FP Markets
Spreads with the FP Markets’ Raw Account (like most good STP brokers) start from 0.0 pips. As you can see from the table above, most brokers average 0.10 to 0.20 pips for the EUR/USD.
Commission fees come in at $6.00 USD per standard lot with FP Markets, lower than the typical commission offered by other brokers. This represents the amount of commission you have to pay round-turn for a standard lot of 100k units.
Note: FP Markets also has an IRESS trading account for those using the IRESS Trading Platform. This platform is only available for Australian traders, and while you can trade forex, it is best for traders wanting to trade stocks since it has DMA trading.
Verdict
For the standard account, the broker with the lower brokerage fees is CMC Markets. They have slightly lower average spreads and a lower minimum spread at 0.7 pips wide; however, you may wish to consider some other brokers. When it comes to a true no dealing desk style account, FP Markets is an excellent choice, even when compared to other competing brokers.
View FP Markets ReviewVisit FP Markets
Having dived deep into both FP Markets and CMC Markets, I’ve noticed some distinct features that contribute to the overall trading experience. At FP Markets, the availability of multiple platforms, including MT4, MT5, and their proprietary trading app, ensures that traders have a variety of tools at their disposal. Their interface is user-friendly, and the seamless integration of platforms provides a smooth trading journey.
On the other hand, CMC Markets primarily offers MT4 and their ‘Next Generation Platform’. This proprietary platform is packed with features, making it both intuitive and efficient. It’s fully customisable, ensuring traders can set it up to their liking. From our own testing, here are some key points to consider:
Verdict: While both brokers offer commendable trading experiences, FP Markets edges out slightly due to its diverse platform offerings and recognition as the ‘Best CFD’ provider.
CMC Markets Trust Score
FP Markets Trust Score
A broker is safely regulated if they have regulatory oversight in the region you are trading from.
FP Markets are regulated by two top-tier regulators. These are:
FP Markets also has a subsidiary operating out of St Vincent and the Grenadines. Clients outside Australia and the European Union have the option of signing up with this entity. While this entity is not regulated, it operates to the same standard as their ASIC and CySEC-regulated entities. Clients with this entity will be able to access leverage of 500:1, which is greater than the maximum 30:1 the Australian and Cyprus entities can offer.
CMC Markets are regulated by many more regulators compared to FP Markets. They have six top-tier regulators, who are:
| FP Markets | CMC Markets | |
|---|---|---|
| Tier 1 Regulation | ASIC (Australia) CYSEC (Cyprus) |
ASIC (Australia) FCA (UK) BaFin (Germany) FMA (New Zealand) CIRO (CANADA) MAS (Singapore) |
| Tier 2 Regulation | DFSA (Dubai) | |
| Tier 3 Regulation | FSA-S (Seychelles) FSC-M (Mauritius) FSCA (South Africa) |
Verdict
To stay safe, we recommend trading with a broker regulated in the country you are trading from. As a result, if you are trading from Canada, New Zealand, or Singapore, you may be safer with CMC Markets.
Forex pairs are the most commonly traded CFD instrument, but there is also a wide range of other CFD products available. These include indices, crypto, shares and ETFs, as well as commodities.
FP Markets makes 63 different forex pairs available to you. You can trade forex on 30:1 leverage as a retail trader in Australia, but if you are a pro trader or outside of Australia, you can get up to 500:1 leverage. There is also an impressive range of stocks available with FP Markets on the IRESS platform; you can trade over 10 thousand stocks.
CMC Markets advertises that they have more forex pairs than everyone else, and with 338 different forex pairs, they might just be right. As a top stockbroker, CMC Markets provides you with 9000 stocks to trade on markets ranging from the NYSE to the ASX and the LSE.
Verdict
Both FP Markets and CMC Markets have an impressive range of currency pairs and stockbroking capabilities. However, we ultimately give the win to CMC Markets. Their 338 forex pairs available are incredible and simply unmatched, and you can be sure that any forex pair you’re looking to trade will be available.
FP Markets:
CMC Markets:
Verdict: Based on our comprehensive testing, FP Markets offers superior educational resources compared to CMC Markets.
In the world of online trading, customer service can make or break a trader’s experience. It’s not just about resolving issues but also about providing timely and accurate information. Both FP Markets and CMC Markets understand the importance of this and have invested in their customer support teams.
FP Markets prides itself on offering a multi-lingual support team available 24/5. They offer various channels of communication, including live chat, email, and phone support. Their response time is commendable, and the support team is well-trained to handle a wide range of queries.
CMC Markets, on the other hand, also offers 24/5 support with multiple contact options. Their team is knowledgeable and strives to provide solutions in a timely manner. However, based on our testing, there were slight delays in response times compared to FP Markets.
| Feature | FP Markets | CMC Markets |
|---|---|---|
| Support Availability | 24/5 | 24/5 |
| Live Chat | Available | Available |
| Email Support | Available | Available |
| Phone Support | Available | Available |
| Response Time | Fast | Moderate |
| Multi-lingual Support | Yes | Limited |
Verdict: Based on our comprehensive testing and the scores provided, FP Markets offers superior customer service compared to CMC Markets.
In the ever-evolving world of online trading, funding options play a pivotal role in ensuring seamless transactions for traders. Both FP Markets and CMC Markets have made significant strides in offering diverse and efficient funding methods to cater to their global clientele. While FP Markets boasts a wide array of funding options, CMC Markets is not far behind, ensuring that traders have multiple avenues to fund their accounts.
Our extensive testing and data analysis has revealed the various funding options available for both brokers. It’s evident that while some funding methods are universally accepted by both, there are distinct differences that traders should be aware of. The table below provides a comprehensive comparison of the funding options available for FP Markets and CMC Markets:
| Funding Option | FP Markets | CMC Markets |
|---|---|---|
| Bank Wire Transfer | ✅ | ✅ |
| Credit Card | ✅ | ✅ |
| PayPal | ❌ | ✅ |
| Neteller | ✅ | ❌ |
| Skrill | ✅ | ✅ |
| POLi | ✅ | ❌ |
| BPay | ✅ | ❌ |
| Klarna | ❌ | ✅ |
| UnionPay | ✅ | ✅ |
| Broker to Broker | ✅ | ✅ |
It’s crucial for traders to choose a broker that aligns with their preferred funding method, ensuring that they can capitalize on market opportunities without any hindrances. Both FP Markets and CMC Markets have showcased their commitment to providing traders with a plethora of funding options, but it’s always advisable to review the specifics before making a final decision.
To be able to trade, you need to fund your trading account.
With FP Markets, you need a $100 AUD minimum deposit or $50 USD/EUR/GBP.
Funding methods range from a simple bank transfer to Visa/Mastercard credit cards or debit cards to e-wallets like Neteller, Skrill and PayPal. In Australia, you can also deposit via BPay or POLi.
CMC Markets has no minimum deposit, but remember that you need to meet the margin requirements if you intend on utilising leverage. You can deposit funds using many of the same methods as on FP Markets.
FP Markets is the winner because it excels in multiple categories, offering a comprehensive trading experience for its users. The table below summarises the key information leading to this verdict:
| Criteria | FP Markets | CMC Markets |
|---|---|---|
| Lowest Spreads And Fees | ❌ | ✅ |
| Better Trading Platform | ✅ | ❌ |
| Superior Accounts And Features | ✅ | ✅ |
| Best Trading Experience And Ease | ✅ | ❌ |
| Stronger Trust And Regulation | ✅ | ✅ |
| Top Product Range And CFD Markets | ❌ | ✅ |
| Superior Educational Resources | ✅ | ❌ |
| Superior Customer Service | ✅ | ❌ |
| Better Funding Options | ✅ | ✅ |
| Lower Minimum Deposit | ❌ | ✅ |
For those just starting out in the trading world, CMC Markets offers a more user-friendly platform and resources tailored for beginners.
For seasoned traders looking for advanced tools and features, FP Markets stands out as the preferred choice.
CMC Markets generally offers lower costs when compared to FP Markets. For instance, CMC Markets boasts a minimum spread of 0.7 pips for the EUR/USD, which is slightly better than FP Markets. Traders are always on the lookout for brokers that offer competitive spreads, as it directly impacts their profitability. For a deeper dive into brokers with the most competitive commissions, explore our low commissions awards.
Both CMC Markets and FP Markets offer MetaTrader 4, but FP Markets stands out due to its diverse platform offerings and additional features tailored for MT4. MetaTrader 4 is a popular choice among traders globally, and having a broker that optimises its features is crucial. For a comprehensive analysis of top MT4 brokers, check out our best MT4 brokers review.
FP Markets offers social trading features, allowing traders to copy the strategies of experienced traders. Social or copy trading has gained immense popularity as it allows novice traders to benefit from the expertise of seasoned professionals. If you’re keen on exploring platforms that excel in this domain, delve into our top copy trading platforms overview.
Neither CMC Markets nor FP Markets offer spread betting as a primary service. Spread betting is a popular form of trading in the UK, allowing traders to speculate on the price movement of financial instruments without owning the underlying asset. For those interested in spread betting, it’s essential to choose a broker that specialises in this area. You can explore our top spread betting brokers in the UK for more information.
In my opinion, FP Markets stands out as the superior choice for Australian forex traders. Founded in Australia and regulated by ASIC, FP Markets has a strong foothold in the Australian market. Their commitment to offering competitive spreads and a diverse range of trading platforms makes them a top choice. CMC Markets, while also offering services in Australia, is headquartered overseas. If you’re an Australian trader looking for a reliable broker, our guide on Australian forex brokers provides a comprehensive overview.
For UK traders, I believe CMC Markets offers a more tailored experience. Being FCA regulated and having a significant presence in the UK, CMC Markets understands the unique needs of British traders. While FP Markets also offers services in the UK, they are primarily based overseas. CMC Markets’ robust platform offerings and commitment to transparency make them a top choice for UK traders. For a detailed look at the best brokers in the UK, check out our comprehensive review of UK forex brokers.
No commission account spread propiety testing data and published wesbite spread information, centralised on our standard account spread page..
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