CMTrading Review – Trade Forex in a safe environment
There are not many brokerage firms originating in South Africa. Few of them who are more or less known to a larger audience does not have a decent reputation and have a very small customer base. However, there always is an exception and we present you the CMTrading Forex broker. CMTrading is an international brokerage firm and it initially originated in South Africa. After few years, the broker already managed to position itself as one of the most reliable Forex brokers South Africa has ever witnessed.
CMTrading offers a very diverse portfolio of financial instruments. The competitive trading environment along with tight spreads, several account types, and flexible leverage attracts tens of thousands of users every month. Furthermore, the brokerage firm is considered to be safe and secure for the traders since it holds a license from a reputable regulatory authority. Since its establishment in 2012, CMTrading has been introducing the latest trends to its clients. Due to the excellence of its services and the dedication to its client base, the broker has received a plethora of awards for the last few years. The company was even named as the best performing Forex broker in Africa in 2017.
Regulatory Background of CMTrading
Our review of CMTrading Forex broker starts with the regulatory and legal framework within which the brokerage firm operates. The regulation is crucial in any financial market. Otherwise, traders risk losing all of their financial resources to non-legit Forex brokers or scam companies. Even if the unregulated broker has good intentions, it cannot operate without the guidelines and not posing the risk for the customers’ funds’ safety without the license. The license makes sure that the broker provides segregated accounts for traders to keep their money safe and obliges the broker to undergo regular financial audits.
CMTrading is regulated by South Africa’s most recognized and reputable regulatory authority. The South African Financial Authority, or FSCA as frequently mentioned, is a highly reliable regulatory body even overseas. Therefore, the two parent companies of the brokerage firm – Global Capital Markets Trading and Blackstone Marketing SA (Pty) Ltd managed to get the license from the authority. Therefore, the brokerage firm now lawfully operates all of its services and at the same time guarantees the security of both the funds of the clients that are deposited with the broker and personal data to avoid identity theft or money laundering crimes.
The trading environment at CMTrading
CMTrading broker review analyzed in-depth the business model of the broker. Usually, the main source of the brokerage firm’s revenue is the income from either spreads or commission fees. Depending on the type of trader, trading style, and the budget size some traders might prefer spreads over commissions and vice versa. CMtrading, however, operates without any commission charges. Generally, when the brokers do not charge commission fees, they offer inconvenient spreads to compensate for commission-free trading. But this is not the case with CMTrading. Surprisingly, the spreads provided by this broker are quite competitive and tight compared to the market standards and the average of the international brokers.
The spreads for CMTrading customers are determined by several factors. First and foremost spread is affected by the individual trading assets and will vary according to financial markets. However, another significant determiner is the type of live trading account that the trader registers with CMTrading Forex broker. For the Bronze account holders or standard account users, the spreads are approximately the same as the market average. For instance, for the most popular currency pair, EUR/USD, the spread on the Standard account will be around 1.5 pips. The higher the live trading account grade tighter the spread gets. For instance, for the Premium account holders, the spread on EUR/USD currency pair will be 0.9 pips.
Beware of the sky-high leverages that the brokers offer – this is one of the fundamental lessons in Forex that many lecturers preach. Partially, it is true though, as high leverages impose a great risk to your financial resources. However, at the same time, they will reward you greatly if you manage to profit from your trades. Therefore, the preference for high or medium leverage depends on the trader’s experience, style, and trading strategy, as well as the financial assets in which the trader invests. With a CMTrading broker, the maximum leverage on Forex assets can go up to 1:200 for all types of users and on all kinds of real trading account types.
CMTrading operates four different live trading account types on its trading platform. All of these accounts come with the same limit to the leverage – maximum leverage can go up to 1:2000. At the same time, all four account types allow registering a demo account at first. Demo accounts are useful to test how convenient the platform is for you, or if it is your first time trading, then you will observe how attractive the Forex market is to you.
The accounts range from Bronze to Premium. The traders can choose among the Bronze, Silver, Gold, and Premium account types. According to the broker’s statistics, the most popular account type is the Silver account. Below are the key differences between the accounts:
- Bronze: investment 250 – 999 USD, regular spreads, webinars, eBooks,
- Silver: investment 1000 – 9999 USD, spreads from 1.2 pips, 1 risk-free trade, Personal Assistant
- Gold: investment 10,000 – 99,000 USD, spreads from 0.9 pips, 3 risk-free trades, Account Manager, Cashback rebates, ECN account
- Premium: investment 100,000+ USD, spreads from 0.9 pips, 3 risk-free trades, Account Manager, ECN account, Special offers
Trading Software at CMTrading
Trading platforms are very important. They play probably the most significant role in the success of the trades. The execution speed, technical indicators, and so many different things are unique features of various platforms. Most of the Forex brokers will usually support MetaTrader 4 software, which is the most popular choice for Forex traders. The software is indeed highly advanced with various features that make trading extremely user-friendly but also come with advanced functions for more professional traders. However, for beginner traders usually starting immediately on the original MetaTrader 4 is confusing and hard to grasp. Therefore, CMTrading supports another solution – WebTrader Sirix.
WebTrader Sirix comes with exactly the same set of functions and features, however, it is operated from the browser instead of the desktop. Therefore, traders do not need to download and install the WebTrader in contrast to the original MetaTrader software. Furthermore, Sirix has an overly user-friendly interface and loads of indicators, market analysis, and so on. It is extremely secure and comes with the data encryption of all the client information, as well.
In addition to these platforms, CMTrading broker also provides mobile trading applications. Mobile trading is a recent concept that is attracting more and more traders globally. It is the best solution for the traders who would like to trade on the go. The mobile applications support the same exact functions and display similar charts, trading tools, and indicators as the original PC-based platforms. The traders can check their trades, profiles, account balances, or market news. The apps are supported both on IOS and Android devices.
Is CMTrading legal?
Concluding our review of CM Trading broker, we can confidently say that it is a decent choice for local South African traders, as well as for international traders. The broker does not discriminate between these two and dedicates equal attention to the high quality trading experience for both of them. If you are a beginner trader, then the broker can provide multiple education resources to help you learn more about trading Forex or any other financial assets. If you are an intermediate one, you could use the educational resources to boost your knowledge and also test out new strategies on advanced trading platforms offered by the brokers. And for the professional traders, the Premium account or the Gold account seem to be the ideal choice, as they provide maximum freedom, tight spreads and a lot of opportunities to develop as a successful trader.
Therefore, we would highly recommend trading with CMTrading brokerage company as it is becoming one of the top-rated Forex brokers for all kinds of traders.