CMC Markets vs. IG: What You Need to Know

Which is better, IG or CMC Markets? Both are constantly compared to one another to determine which broker is better. Naturally, you’ll want to know CMC Markets and IG’s track record and how long they’ve been in operation. Additionally, you may need to determine whether each suits your trading requirements.

Like anything else, your final choice of broker should depend on the type of trading you intend to do. This guide offers a comprehensive comparison to make it easier to decide which option is best for you. But first, let’s briefly discuss the main types of online brokers today.

Types of Online Brokers

A stock trader or investor usually has two primary categories of brokers to consider: full-service brokers and discount brokers. A discount broker might be right if you feel confident managing your investments. However, it’s worth considering using a full-service broker if you’re new to investing or need assistance. Let’s break them down a little. 

Full-Service Brokers

A full-service broker offers its clients a wide range of services. They provide the best range of various financial services and typically pair each client with a licensed individual broker. Investors with diverse interests and varying degrees of expertise can receive support and assistance from these brokers through specially designed brokerage plans and services. Clients might hire professional service managers with substantial holdings to manage their portfolios.

Full-service brokers often charge 0.3% to 0.5% in commission per trade, which is on the higher side. However, these brokerage firms often bill higher commissions or a percentage of the assets. However, the additional cost may be justifiable given the variety of products and services. 

Discount Brokers

As their name suggests, discount brokers gained popularity by charging lower trading commissions. These brokers offer basic banking services, independent research, and mutual fund access to investors at lower commissions than full-service brokers. Since they serve active investors and day traders, the platforms typically feature more trading and research capabilities than full-service brokers. The commissions for each trade ticket would typically be in the $4.99–$9.99 range. Nonetheless, zero-commission trading is now available from most discount brokers as of 2019. 

Factors to Consider When Choosing the Right Brokerage Firm

Consider some factors before choosing a broker if you’re looking to invest in a few individual stocks or long-term retirement funds. You can begin assessing brokers using a few criteria, such as: 

Commissions

Bonds, individual stocks, mutual funds, exchange-traded funds (ETFs), and options are among the investment options brokers typically provide. Some will also provide you access to markets for foreign exchange and cryptocurrencies.

Your investment needs and the commissions you’ll pay will depend on the investments the broker offers. Keep a close eye on the commissions tied to your favorite investments.

Account Minimums

Numerous brokers with a high ranking and no account minimum can be found. However, a few brokers have a minimum investment requirement, typically $500 or higher. Several brokers have similar minimum investment requirements, so it could be difficult to invest even if you can open a brokerage account with a small sum of money. Mind you: it’s not impossible.

Account Fees

Account fees may not be entirely avoidable, but they can be minimized. Most brokerage firms will charge a fee for moving investments out of your account or canceling your account. Your new brokerage firm might offer to pay your transfer fees back (at least up to a certain amount) if you’re switching to them.

Other fees can be avoided by selecting a broker that doesn’t impose them or declining to use unnecessary services.

Reliability

While some brokers have been active for many years, others are very new, but this does not imply that the new brokers are unreliable. The Securities and Exchange Commission likely regulates these new brokers if they handle trades for other people. However, it does imply that they have yet to be tested under different stock market conditions. For example, during the GameStop trading frenzy of 2021, several brokers restricted trading in some form while others didn’t, mostly because the largest, most reputable brokerages have the funds necessary to ensure their clients’ deals are completed (as required by regulators). Trading restrictions had to be put in place by brokers who lacked the funds necessary to meet capital needs.

Educational Resources and Features

Finding a broker that provides free educational resources may be the best option if you’re new to investing. Furthermore, kindly ensure you do your homework on the broker’s ability to assist clients in understanding the risks associated with advanced trading strategies, which could entail assistance through a live chat feature, an on-call customer service team, or detailed instructions on how to use a platform.

CMC Markets vs. IG 

When choosing a broker, such as the CMC Markets platform or IG, it is crucial that you feel comfortable giving them access to your funds. In light of this, we shall examine their key similarities, services, benefits, and drawbacks, among many other things. 

Similarities

Significant similarities exist between the core trading environments of IG and CMC Markets. They include the following.

• Forex Trading Spreads: Even though they are both market makers, neither broker uses a trading desk. Instead, both of them use their network of interbank providers to source their rates. The rebate programs offered by IG Markets and CMC Markets are also beneficial to high-volume traders. 
• Platforms: Both brokers provide various platforms in addition to MetaTrader 4 (MT4). Additionally, both brokers provide in-house market research and excellent educational resources for new traders. Another similarity is the need for more funding options for both UK publicly traded brokers.
• Contracts For Difference (CFDs): Compared to other brokers, both firms have a relatively wide selection of CFDs. The huge number of currency pairs that CMC Markets offers should be noted. These forex pairs come in minor, major, and exotic denominations. There are also more commodities available at CMC Markets. However, you will discover that IG offers a much wider selection of indices and stocks. 
• Cryptocurrencies: IG and CMC offer a healthy range of cryptocurrencies for trading, with CMC providing a few more options. Although they carry a high level of risk, cryptocurrencies are popular among traders because they can make significant returns. 
• Security and Trust: In addition to providing negative balance protection, CMC Markets and IG separate client deposits from corporate funds. They both have a track record of good business practices and are publicly listed companies that provide equally safe and reliable trading environments.

Comparing Services

The broker with the lowest deposit option will appeal more to you if your budget is low. IG’s minimum deposit is 200, compared to CMC Markets’ minimum deposit of zero. However, you can open a brokerage account with IG with zero minimum deposit if you fund your account via bank transfer.

While IG’s trading platform has about 17,000 financial instruments, CMC Markets allows investors to trade up to 9,300 financial instruments. Your options for buying and selling financial instruments for your portfolio increase as additional products become accessible on the CMC Markets and IG trading platforms. Thus, it is essential to have a diversified portfolio because a user will always have various options. 

Users can trade the following assets on CMC Markets’ trading platforms: CFDs, forex, spread betting, and binary options. Alternatively, IG offers investors access to their trading platforms for trading stocks, CFDs, spread betting, and forex. IG has 8,000 stocks available, compared to 9,000 on the CMC Markets trading platform. 

Benefits

IG

• Over 17,000 trading instruments
• Investments in IPOs and exchange-traded funds
• Customer support is 24/7
• Segregates clients funds
• Minimum deposit of $0 (if you’re funding your account via bank transfer)
• The trading platform is simple to use
• It is easy to access data and tic charting.
• Compatible with most operating systems, including Mac
• Spreads from 0.6 pips
• CFDs are available for every futures market, heaps of stock markets, and some British and European ETFs/ETCs.
• Share CFDs at transparent market prices starting from just 0.1% commission.
• Supports MetaTrader 4 (MT4)
• Licensed by seven regulatory bodies
• Access to an account manager that can assist you in all aspects of your trading.
• Great deposit and withdrawal options
• Superb educational resources
• Margin rates are affordable and easy to understand
• Access to more than 80 currency pairs

CMC Markets 

• Dynamic charting capability
• Three decades of experience
• Dedicated support, 24 hours a day
• A wide range of assets
• Multiple cutting-edge trading platforms
• Excellent research material
• Supports MetaTrader 4 (MT4)
• Live news feeds
• No minimum deposit
• Valuable rebates for high-volume traders
• Regulated by FCA
• Offers protection for client accounts
• Advanced risk management tools 

Drawbacks

IG

• Stock CFD fees are high
• High financing rate
• Deposits and withdrawal options can be limited.
• Spreads can be a little higher than some other major forex brokers in the industry
• No copy or social trading features
• No negative balance protection under some jurisdictions
• Only for Irish and UK clients

CMC Markets

• Stock CFD fees are high
• The product portfolio covers only CFDs
• Customer service is available only from Sunday nights through to Friday night
• Does not accept US clients
• Spread betting only for UK residents
• No social trading
• MetaTrader 4 is offered only for desktop

Comparing Fees and Commissions

CMC Markets 

• Min trade: Varies
• Max trade: Varies
• Commission: Available at 0.10%
• Deposit fee: Varies
• Inactivity fee: Yes
• Withdrawal fee: Varies
• Minimum deposit: $0

IG

• Min trade: $1
• Max trade: Varies
• Commission: Available at 0.10%
• Deposit fee: Varies
• Inactivity fee: Yes
• Withdrawal fee: No
• Minimum deposit: $0

Comparing Customer Support

CMC Markets

The customer service team can be reached via phone, live chat, or email. Twitter and Facebook are other ways to contact the CMC Markets support team.

The customer services offered by CMC Markets include the following.

• Education: CMC Markets have various educational resources for traders at different levels. And these tools walk you through nearly all of the CFD trading information you’ll need.
• Research: There is a ton of information available for profitable forex trading. Experts from CMC Markets are available to share their experience, and access to charts, technical analysis, and fundamental analysis is also offered.

IG

Customer service for IG Markets is generally always available. IG offers customer service over the phone, via email, live chat, and Twitter. Additionally, IG offers a community forum where all users can support one another. While customer service is provided every day of the week, Saturday hours are limited. 

Final Thoughts

After comparing IG and CMC Markets, we determined that both are credible and reliable brokers with strong international offerings and a well-regulated environment. Ultimately, it’s up to you to decide which online broker is better. If you are an active trader, it would be best to use a broker that offers a variable spread because it will cost less than a fixed spread. The same is true with trading instruments; if you want to explore various markets, look for a broker who offers a broader range of trading instruments.