Plus500 vs CMC Markets

Trading Spreads And Fees – Plus500 vs CMC Markets

Spreads are one of the main costs for each forex trade executed. Spreads (the difference between bid/ask prices) are the trading fee charged to clients, and how brokers are compensated for facilitating trades and providing market access.

Our sample of spreads shows a selection of major currency pairs. 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. Both online brokers offer competitive spreads that are conducive to scalping and other trading styles.

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*Your capital is at risk ‘72% of retail CFD accounts lose money’

Other Costs

Inactivity Fees

Funding Costs

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 (rare).
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 In other words, if you made a profit then this amount cannot be withdrawn to your card.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 customer 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. The 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, yet this varies between asset class and the subsidiary’s local regulator.

• Plus500 operate in Australia (ASIC), NZ (FMA), Europe (CySEC), the UK (FCA), South Africa (FSCA) and Singapore (MAS).
• CMC Markets operate in Australia, the UK, NZ, Singapore, Canada (IIROC), and Dubai (DFSA).

CMC Markets in NZ and regulated by the FMA have a more generous margin rate of 0.20% (500:1) than Plus500, which only offers 0.37.5% (300:1) via its offshore branch in Seychelles regulated by the FSA.

Under ASIC (Australia), FCA (UK) and CySEC (Europe) regulation, both Plus500 and CMC Markets are restricted to offering maximum leverage of 30:1 for major forex pairs, and 20:1 for minor pairs.

Leverage is a useful tool in a traders arsenal. Currency pairs only change a few cents most of the time, making it hard to make large profits without a large initial investment. More money invested means greater returns when prices move in your favour.

It is, however, important to understand that leverage comes with a high risk that can lead to large losses when prices move in unfavourable directions. Therefore, it is important to understand the high risks associated with leveraged positions and use leverage responsibly. Trading platforms offer risk management tools that can assist in minimising losses and protecting capital.

Conclusion

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

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Risk Management Inclusions

In addition to common risk management features like trailing stop, take-profit and call margin both brokers as well as standard guaranteed stop-losses, both Plus500 and CMC Markets offer Guaranteed Stop-Loss Orders (GSLO).

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.

Some traders employ Guaranteed Stop Loss Orders when trading in volatile markets or if they lack experience. GSLO is a great risk management feature that can provide a high level of protection against losing your money.

For trading accounts held with both online brokers, the Financial Services Compensation Scheme (FSCS) provides further protection up to GBP 85,000 in the event the broker becomes insolvent. Additional protection is also offered through the negative balance protection policy, which prevents clients with both brokers to lose more than the deposited money.

Conclusion

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

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*Your capital is at risk ‘76.4% of retail CFD accounts lose money’

Trading Platforms – Plus500 vs CMC Markets

Plus500 Trading Platforms

Plus500 clients are restricted to the broker’s proprietary trading platform. The Plus500 platform is available on desktop, web and mobile (iOS and Android).

The Plus500 platform is popular with casual investors due to its clean design and emphasis on simplicity. However, the platform lacks advanced features that more advanced traders may require. For instance, the platform does not offer social trading, the ability to trade directly from charts, or drawing tools. The mobile version lacks certain essential features that are available on the desktop version, such as drawing tools.

Plus500 offers the following

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

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 a tablet or mobile (Android, Windows, Mac, iOS), as well as a Webtrader platform. Those using the ‘Next Generation’ app on mobiles will have access to the same features as those on Webtrader, however, those using a browser will have a more comprehensive selection of tools and features.

Generation Next Trading Platform has the following features:

1. 81 Trading Indicators: great for in-depth technical analysis (note: the 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 – a tool to analyse trading and pricing. The tool can auto-adjust when time-scales of charts are changed to show updated patterns.
4. Alerts for chart patterns.
5. Sentiment Tool for social trading.
6. 24 drawing tools.
7. Trading directly from charts.
8. Eight fields for the watch list.

MetaTrader 4

In late 2018, CMC Markets began to offer MetaTrader 4 (MT4) as a trading option. The MT4 platform is known as the gold standard of trading platforms and is offered by more brokers than any other platform.

Introducing MT4 was a 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 not lock you into a particular client’s ecosystem. By this, we mean you can switch brokers also offering MT4 with few issues.

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 only allow trading of Forex, Indices and Commodities, yet users can still trade shares via the Next Generation platform.

Pros Of MT4

1. The same functionality on mobile as on Webtrader (except for Expert Advisors).
2. 30 technical indicators that can be expanded with add-ons.
3. 24 drawing tools.
4. Three different interactive charts with nine-time periods that are customisable.
5. Inbuilt Expert Advisors.
6. Hedging allowed.
7. Customisable platform and charting.

Cons

1. No support for futures and options.
2. Originally built for the FX market. Support for other asset classes is available but may not be as accessible as other platforms.
3. No share trading.

Conclusion – Plus500 vs CMC Markets

Plus500 is a great platform for beginner and intermediate traders. If you require more advanced trading tools and analysis, then we suggest you use one of the CMC Markets platforms such as MetaTrader 4.

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*Your capital is at risk ‘76.4% of retail CFD accounts lose money’

Contracts For Difference (CFDs) – Plus500 vs CMC Markets

CMC Markets has a global reputation as a share and forex broker, with some commodities available. CMC Markets offer extensive market access to a range of share and forex instruments available. However, if you want to trade CFDs, Plus500 offers a larger CFD product range.

Disclaimer: The Financial Conduct Authority (FCA), the main regulator in the UK banned cryptocurrency trading, coming into effect on Jan 6, 2022. Neither Plus500 nor CMC Markets advertise the sales of financial instruments such as Bitcoin, Ethereum, Ripple, etc. to UK retail traders. Please take note that traders outside of the UK can still trade cryptocurrencies. 

Conclusion – Plus500 vs CMC Markets

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

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Customer Service – 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, it is safe to say, many people still do like to have phone access to customer support when needed.

Not only are the customer support features scarce, but Plus500 also does not offer much in the way of customer service and education. Most CFD and forex brokers offer educational resources to assist clients of all levels of experience. Plus500’s lack of such resources may hinder traders’ forex trading development.

Education:

Not only do Plus500 not offer much in the way of education, but Plus500 also fails to offer comprehensive technical analysis from experts. Many brokers engage analysts to provide input, education, and updates on news or trends in the market.  Plus500 offers neither in-house nor 3rd party technical analysis. They also do not offer economic calendars, which are a basic feature in the industry.

With all this said, the lack of these features does not make Plus500 a bad product. Not everyone needs these features, and much of the information provided by other forex brokers is available for free elsewhere.

Demo Account:

The Plus500 demo account has two key benefits that make it superior to other virtual accounts offered by brokers. Firstly, there is no access restriction. This means you have unlimited access to your demo account with no time restrictions. Secondly, there are no funds restriction, meaning 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, live chat and email. This service is available Monday 8 am to 8 am Saturday. You can also reach the CMC Markets support team via the CMC Markets Twitter and Facebook account.

It is 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 with the live chat team. This is not always convenient if you don’t have a CFD account, meaning you will need to call the help desk if you have questions.

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:

• • A dedicated team of in-house analysts that offer expert insights. Australia has two analysts in its panel. Michael McCarthy 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 and so on.
  • An economic calendar outlining significant corporate and economic events.

Education: CMC Markets offers a wealth of educational material, these include:

• • Webinars covering 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 provide access to $10,000 of virtual funds in a demo account. The account is free for you to use as long as you have a CMC Markets Account.

Conclusion – Plus500 vs CMC Markets

CMC Markets offers superior customer experience and provides quality educational and research resources, while Plus500 offers below-average support and education. Therefore, CMC wins this round by a mile.

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Bonus Programs – Plus500 vs CMC Markets

Plus500

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

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

CMC Markets

Deposit Bonus

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

Rebate

If you trade a minimum of 25 million in a month, you qualify for CMC Markets rebate program.

Refer A friend

You can also receive a bonus if you refer a friend

Conclusion

Plus500 wins thanks to its ongoing rebate program that is a better value than CMC Markets.

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*Your capital is at risk ‘76.4% of retail CFD accounts lose money’