CM Trading Broker Review - The broker offers unique, limited risk free trades

cmtrading.com
Writer
Written by:
Calendar
Written on:
16 August 2022
Date
Last edit:
5 February 2023
Our rating:
2.45

2.45

User rating:
5.73

5.73

CM Trading Broker Review - The broker offers unique, limited risk free trades

cmtrading.com
Writer
Written by:
Calendar
Written on:
16 August 2022
Date
Last edit:
5 February 2023
Our rating
2.45

2.45

User rating
5.73

5.73

"CFDs are sophisticated assets with a high risk of rapidly losing capital because of leverage. 79% of retail investor accounts lose money when trading CFDs with this broker. Make sure you understand the ins and outs of CFDs and whether taking such a high risk of losing money is something you can afford."
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Main summary

CM Trading is an international broker founded in 2012. Trusted by more than one million clients, CM Trading’s main market is the African continent. The broker has won Best Financial Broker Africa awards for 5 years in a row from 2017 to 2021. It has offices around the world, namely in Sandton, Johannesburg, South Africa, as well as in Nigeria, Bulgaria, Dubai, and Cyprus.

CM Trading is not as strongly regulated as many other western brokers and the provided trading platforms are very limited. The broker has been regulated by FSCA( The Financial Sector Conduct Authority) since 2012, the same year the company was founded, and by FSA (Financial Services Authority).

However, the broker has a very unique offer that makes CM Trading stand out. Do you want to know more? Follow our detailed review of CM Trading and decide for yourself if the broker is suitable for you.

Here Are the 11 Pros and Cons:

  • Regulated by FSCA and FSA
  • Offers access to MetaTrader 4 and CopyKat
  • Rich and very useful educational material for traders
  • Fast and digital account opening/verification
  • Customer support is not very helpful
  • Platforms are limited
  • Only 400:1 leverage
  • Charges inactivity fee
  • The portfolio is mostly limited to CFDs
  • High fees
  • Not part of the Compensation Fund

CM Trading Fact sheet

Main features
Regulations Seychelles, South Africa
Fees on deposits $0
Fees on withdrawal -
Inactivity fees $15/m after 60 days of inactivity
Minimum deposit $100. $100 for Bronze account. $1,000 for Silver, $10,000 for Gold, $100,000+ for Premium
Minimum account activation $100
Number of available assets 200
Leverage up to 1:200
Available trading markets Forex, Shares as CFDs, Indices, Commodities, Cryptocurrencies
Account currencies EUR, USD
Demo account Yes
Live account types Bronze, Silver, Gold, Premium
Islamic account Yes
Security
Negative balance protection Yes
Part of compensation fund -
Keeps funds on segregated bank account Yes
Assets
Forex 50
Shares 0
Cryptocurrencies 23
Indices 17
Commodities 15
Total 200
Fees & spread
Forex From 0.9 pips. From 1.2 pips on Silver Account
Shares N/A
Cryptocurrencies N/A
Indices From $0.75. Avg. spread in points for US500 is 150
Commodities From $0.04. Avg. spread in points for Gold vs USD is 35
Software
Platforms MetaTrader 4, CopyKat CopyKat is for social trading
Mobile trading support Yes
Mac device support Yes
Commodities Yes
Payment systems
Payment methods -
Minimum deposit Visa, Mastercard, fasapay, Skrill, Neteller, UPayCard, AstroPay, OROUNDA, Bank Wire, OZOW, Mpesa, Local Mobile Money, Crypto
Minimum withdrawal Visa, Credit/Debit card, Bank Wire, OZOW, Skrill, Neteller, Mpesa, Crypto. Min amount per withdrawal is $20
Withdrawal processing time Instant. Bank Wire deposits and all withdrawals take up to 3 business days
Time to open an account -
Show all

Safety & Security of CM Trading

Safety and security are top priorities for retail and institutional investors alike. You don’t want your broker to be benefiting when you lose your money. You want your broker to be transparent, secure, and comfortable. Having a vast number of trusted regulators is the most important factor that can inform you about how safe the broker is. 

CM trading does not shine when it comes to regulations. It is regulated by second and third tier regulators and the number of regulators is limited to only 2. What’s more, the broker is not a part of the trader’s compensation scheme. These factors make the broker less trustworthy. 

CM Trading.PNG

CM Trading is regulated by the FSCA (Financial Sector Conduct Authority). FSCA was founded in 1991 and is based in South Africa. The financial regulator is trusted throughout the world and has average requirements to acquire a license.

In addition, CM Trading has been licensed by FSA (Financial Services Authority) since 2021. The regulatory body is based in Seychelles and is known for mild regulatory requirements. 

CM Trading is also not a part of the Compensation Fund, thus we can conclude that the broker's trustworthiness level is average.

Trading Assets Offered by CM Trading

There are 200 trading instruments available for the customers of CM Trading. As you can see, the number of assets offered is not as impressive compared to many other brokers’ offerings. The company is using MetaTrader 4 and the platform is famous for limiting itself to trading mostly currency pairs.

While the available assets are limited, CM Trading manages to offer major ones from different industries to its customers.

Forex trading on CM Trading

Forex is the world's largest trading market that offers retail investors, banks, institutional investors, funds, and commercial institutions the chance to buy, sell, and exchange currencies. Forex trading is very popular among new traders for its simplicity and affordability when it comes to getting started with trading. 

CM Trading offers 50 currency pairs that you can trade 24 hours a day, 5 days a week. The currency types vary from major to exotic ones. Keep in mind that exotic pairs are more volatile due to less liquidity and the unstable nature of these currencies. Major currencies are very stable and investors are trusting them more, resulting in higher levels of liquidity and low spreads. Major currencies include the Euro, USD, Swiss Franc, GBP, and more. 

It’s important to note that the more liquid the market, the less of a spread you will pay. Some brokers place a markup on spreads for each trade and you can be taxed more than you anticipated when trading exotic pairs that offer lower liquidity. 

CM Trading charges a 0.9 to 1.2 pip markup. They offer 400:1 leverage and different account types for trading in the FX markets.

Stock trading on CM Trading

CM Trading offers 95 stocks as CFDs to its clients. Leverage for trading stocks is much lower, only 10:1. Having 10:1 leverage means that for every $1000 in your account, you have buying/selling power of $10 000. While high leverage can increase your profits, it can increase your losses too, resulting in a blowing-up of your account.

One more difference between trading stocks and currencies is that you can trade currencies 24 hours a day, 5 days a week and the stocks are only available from 16:31-22:59 GMT+3 from Monday to Friday. 

Indices trading on CM Trading 

Indices show market direction, but they can be traded as CFDs. CM Trading gives its clients the opportunity to profit from price movements of 17 indices. 

You can trade DAX, DOW, FTSE, AEX, SP, etc. But what are the indices exactly?

Indices measure the performance of certain stocks, for example, FTSE shows the performance of Britain's top 100 companies that are traded in the stock market. 

In today’s world, many trades are done by robots thus causing many stocks to follow their index. 

For instance, if the FTSE is bearish, a certain British stock that is in FTSE 100, might lose its value. At the same time, a bearish FTSE 100 might be an indication of a weak British economy and might be a good sign to sell GBP.

Whether you decide to trade Indices or not, you should keep an eye on them, as they are a good measure of the economic health of certain economies.

Cryptocurrency trading on CM Trading

Cryptocurrencies have become very popular lately. There are urban legends about people who became millionaires in a short period of time. Success stories attract many novice traders who don’t understand the risks accompanying investing in crypto assets.

CM Trading offers 23 crypto assets. Keep in mind that these are CFDs (Contracts for Difference), and buying the CFD asset does not mean you have ownership of it.

Trading crypto CFDs gives investors opportunities to profit from price fluctuation without owning an actual crypto. Moreover, you don’t have to worry about crypto wallets and where to cash out the currency since you’re only trading the CFD.

With this broker, maximum leverage is 5:1 and the spreads are based on liquidity. 5:1 leverage simply means that for every $1 you have in your account, you can have access to trading $5 worth of assets using borrowed funds.

Commodities trading on CM Trading

Commodities are raw materials that can be mined and grown. They are used to create consumer goods later. 

CM Trading offers 15 popular commodities, namely Crude Oil, Brent Oil, Sugar, Corn, Wheat, etc. Maximum leverage for trading commodities ranges from 50:1 to 100:1.

Commodity prices are largely influenced by the global economy. Growth in consumption increases demand for consumer goods, and production of consumer goods requires raw materials, resulting in increased prices of commodities. Likewise, inflation and recession can lead to commodities losing value.

Account Types Available for Traders on CM Trading

Finally, we can talk about the account types. Generally, brokers try to offer different types of accounts to make opening an account more attractive to their customers. Some investors are short in funds, some want tight spreads, and some need swap-free accounts. 

CM Trading offers 4 types of live accounts. Let’s review each type in detail to find out what each one has to offer.

Pros & cons of CM Trading account types

ProsCons
Accounts available for both retail and professional tradersHigh fees
There is an Islamic version of the accounts offered by CM TradingThere is no micro account version
It’s easy to open an account 

CM Trading Demo Account

Demo trading is super important when you are learning how to trade. Trading platforms have many features and tools to conduct technical analysis, make trading decisions, and analyze your results. Every trader should be using their platform of choice smoothly before going live to minimize mistakes. Demo trading can help you develop and test your trading strategies.

CM Trading offers demo versions for all 4 trading accounts. You can use these accounts as long as you'd like free of charge.

CM Trading Bronze account

The Bronze account is suitable for investors that are short on funds, as the minimum deposit amount is only $100. You won’t be able to receive live trading signals and market analysis for this account type.

However, you might be considering investing much larger amounts of money into your trading account and the Bronze account can benefit you by giving you a better understanding of how good their services are. By opening the $100 account you can test the money transfer systems, live order execution, and customer service without risking much.

Fees are high and the leverage is 400:1. You can open an account on MetaTrader 4. In case you want to open an account on the CopyKat platform, the minimum initial deposit will be $250.

The CopyKat platform allows you to mimic other traders. When a trader you follow places an order, your order will be placed automatically. 

CM Trading Silver account

The required minimum initial deposit for a Silver account is $1 000 with a maximum of $9 999. Spreads start from 1.2, which is pretty high compared to the industry’s standard. The broker will send you trading signals and you will receive market analysis. 

Moreover, the broker provides you with 1 risk-free trade. You’ll be able to trade using 1 instrument with a 0.01 lot size and if the trade goes against your forecast, CM Trading will cover the loss and credit the account with a bonus for the amount that was lost. Keep in mind that the compensation only applies if the trade is within a 24-hour timeframe.

The risk-free trade concept is very uncommon in the business of trading and it’s usually characteristic of casinos. 

If you decide to become a professional trader, you should have a businessmen’s approach and not gamble with your money. 

CM Trading Gold account

In order to open the Gold account, you need to deposit anywhere between $10 000 and $99 999. The spreads are lower compared to the Silver account, starting from 0.9 pips. 

If you open the Gold account, you’ll still be able to receive market analysis and trading signals, but this time, you get the opportunity to place 3 risk-free trades. 

By using a Gold account, you’ll have access to an ECN account. ECN stands for Electronic Communication Network and eliminates the delay in order execution.

CM Trading Premium account

When it comes to opening a premium account, you need to deposit more than $100 000. You’ll get market analysis and live trading signals by trading central, 3 risk-free trades, a trading guru, an ECN account, and special offers.

If you are considering throwing $100 000+ at this broker, maybe you should test their services using the Bronze account first. Trading can turn a poor person into a rich and it can also make a rich one broke. 

CM Trading Islamic Account

CM Trading offers Islamic accounts to its customers. Islamic accounts are also known as swap-free accounts, as they don’t charge interest for leaving positions open overnight. 

However, please be informed that brokers ask for administration fees for Islamic account holders in order to balance the prices.

Keep in mind that you won’t be able to trade stocks and cryptocurrencies using the Islamic account.

Getting started on CM Trading - Main steps

If you have decided to experience trading live with CM Trading, you’ll need to take some steps.

Generally, opening a live trading account and registration will not take more than a couple of days as you need to send photos of certain documents to the broker and the process will be smooth.

We’ll walk you through the steps you need to take to get started with CM Trading.

Step 1: Sign up

Go ahead and press sign up at the top of the right corner of the broker’s webpage. Fill in the form and after they will send you an email from which you can access your client portal.

CM Trading Sign up.PNG

Step 2: Time to send additional documents

The broker requires additional documents such as proof of identity, which includes a photo ID, passport, driving license, or third-party document.

In addition, you’ll be asked to provide proof of residence. Any of the following documents are valid for proving your residence: Utility bill, bank statement, affidavit, lease agreement, or third party documentation.

CM Trading Client area.PNG

Step 3: Time to choose a platform

You can choose between MetaTrader 4 and CopyKat or the WebTrader platform. You’ll find platforms at the bottom of the company’s webpage. 

CM Trading CopyKat.PNG

Step 4: Make your deposit

Funding an account is an exciting moment for every trader, as it’s the last step towards trading live.

You can use a lot of methods to fund your account. Just keep in mind that in case you choose a Nedbank Bank Wire method, you’ll be charged 2% on the exchange rate. Processing time differs as well, therefore, you should be very attentive when choosing the funding method.

CM Trading Deposit options.PNG

Step 5: Start trading

If you’ve made it this far, congratulations! Just remember that live trading is not easy. The vast majority of beginner traders lose money. It’s important to plan a trade and trade your plan. Don’t let greed and fear intervene with your trading. 

As you advance on your trading journey and make some profits, you should know that the minimum withdrawal amount is $20 and the funds will be transferred to the same account that you used to make your initial deposit. 

Fees & Commissions of CM Trading

Fees charged by CM Trading are quite high compared to other firms. Not every trader can afford to open Gold and Silver accounts that require a minimum initial deposit of $10 000 +. And these accounts offer spread sizes of 0.9 pips. 

As for the Silver account, spreads can get even larger, starting from 1.2 pips per trade. This means that in a live trading environment, spreads can get much bigger if you’re trading with less-liquid assets.

In addition, CM Trading has high inactivity fees. You will be charged $15/m, after 60 days of inactivity and 100$/year fees. 

Comparing CM Trading fees with other brokers

Low fees are as important as safety, trading systems, and risk management. In order to better understand the difference between CM Trading and other firms’ fee structure, let’s look at a comparison.

CM Trading fees compared to Interactive Brokers fees

Type of FeeCM TradingInteractive Brokers
EUR/USD SpreadFrom 0.9From 0.6
Fees on DepositsNo1%
Inactivity feeYes, $15/m, after 60 days and 100$/ after a year of inactivityNo*

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

CM Trading fees compared to eToro fees

Type of FeeCM TradingeToro
EUR/USD SpreadFrom 0.9From 1
Fees on DepositsNo$5 on withdrawals
Inactivity feeYes, $15/m, after 60 days and 100$/ after a year of inactivityYes, $10/m

CM Trading fees compared to IG fees

Type of FeeCM TradingIG
EUR/USD SpreadFrom 0.9From 0.8
Fees on DepositsNoNo
Inactivity feeYes, $15/m, after 60 days and 100$/ after a year of inactivityYes, $10/m

CM Trading fees compared to XM fees

Type of FeeCM TradingXM
EUR/USD SpreadFrom 0.9From 0.6
Fees on DepositsNoNo
Inactivity feeYes, $15/m, after 60 days and 100$/ after a year of inactivityYes, $15 after 12 months, +$5/m

CM Trading fees compared to AvaTrade fees

Type of FeeCM TradingAvaTrade
EUR/USD SpreadFrom 0.9From 0.9
Fees on DepositsNoNo
Inactivity feeYes, $15/m, after 60 days and 100$/ after a year of inactivityYes, $50 after 3 months, $100 administration fee after a year

CM Trading fees compared to Capital.com fees

Type of FeeCM TradingCapital.com
EUR/USD SpreadFrom 0.9From 0.9
Fees on DepositsNoNo
Inactivity feeYes, $15/m, after 60 days and 100$/ after a year of inactivityYes, $50 after 3 months, $100 administration fee after a year

Trading Platforms of CM Trading Reviewed

CM Trading is using MetaTrader 4, CMTrading Webtrader, CopyKat, and mobile apps as their trading platforms. 

MetaTrader 4 is the world’s leading platform for trading currencies. It is specifically designed for that purpose. The platform was released in 2005 and was created by MetaQuotes. 

It’s worth mentioning that many brokers offer MetaTrader 5 alongside MetaTrader 4 as the MT5 is a newer version of MT4 and offers more tradable assets. It’s a pity that CM Trading does not have MT5 on its list of platforms.

CopyKat is very useful for beginner traders as the platform helps them copy the trading ideas of other investors. Trades are executed automatically, when the trader you copy places an order, your trade is placed at the same time. 

What’s more, your privacy is well protected. The signal provider never sees your information.

CM Trading Webtrader enables traders to place orders from any device connected to the internet without the need of downloading and installing the platform.

Mobile Trading on CM Trading

You can get the CM Trading mobile app from Google Play, and App Store or download the app directly from the company's webpage.

The mobile app allows you to place an order, take profits or close the trade without the need of sitting in front of the computer. Trading on the go makes the process incredibly convenient.

CM Trading mobile app.PNG

Education and Research Tools

When it comes to education and research, CM Trading offers great material to novice traders. But there’s a catch. Yes, ebooks, webinars, and “how to” videos are accessible to everyone, but only Premium account holders can get in touch with trading gurus, top news and analysis, and other services. 

Silver, Gold, and Premium account holders get Live trading signals and Market analysis from Trading Central.

Keep in mind that although trading signals and learning about strategies are great ways to prepare yourself for creating a trading system using your own ideas, they are not very effective. No professional trader waits for other people to tell him where to buy/sell or place a stop-loss. You might teach the same system to two different traders and you will get different results, due to the fact that every trading system needs to be well-suited to the investor who is using it.

Customer Support of CM Trading

Customer service is the heart and soul of every company. CM Trading offers 24/5 customer service. You can call them, send them an email or press the live chat button from their webpage to contact them. 

The customer support experience was not very helpful as the agents were generally trying to resolve the issue fast and end the chat extremely soon. In some cases, instead of answering questions directly, they were sending links to their webpage. 

Conclusion

To sum everything up, CM Trading has average customer support, high fees, a limited number of platforms, and average safety when it comes to regulators.

One very unique offer that sets CM Trading apart from other brokerage firms is the concept of risk-free trades. To be honest the concept seems something like a marketing idea coming from a casino rather than from a reputable broker. 

5.73

5.73

Average based on 7 user reviews
Safety 4.57
Assets 5.71
Accounts 6.29
Fees 4.86
Desktop platforms 7.14
Mobile platforms 5.71
Education 6.29
Support 5.43
Have experience with CM Trading? Login to leave a review
aubrey.hart reviewed 9 days ago
Live 1-3 months experience, $1,000 - $5,000 account size
5.75

5.75

Average: Leaves much to be desired
Pros
The thing I like about CM Trading is their trading platform. It is easy to use and got hand of it pretty easy
Cons
The terms on each account was really bad. Their top account is like mid range on most other brokers.
bailey.johnson reviewed 9 days ago
Live 1-3 months experience, under $1,000 account size
5

5

Average: Avoid this broker
Pros
It was easy to open account but trading with them was not a good experience.
Cons
They have terrible customer service. Agents do not know about anything. I didn't feel that my funds were in safe and educational materials were terrible.
conrad.cash reviewed 9 days ago
Live 1-3 months experience, under $1,000 account size
5.75

5.75

Average: Not a good look at all
Pros
The trading platform was okay-ish.
Cons
Not much to like about CM Trading. Subpar broker
turner.clay reviewed 9 days ago
Live 1-3 months experience, $1,000 - $5,000 account size
4.38

4.38

Average: Better to skip this broker
Pros
None
Cons
I don't think anyone should trade with them. There are so many great brokers out there. Customer support is terrible, the broker is not well regulated and assets are not that many.
jenson.harris reviewed 10 days ago
Demo Less than a month experience
6

6

Good: Okay for FX, not intended for stock traders
Pros
The desktop app works well. I've been testing it out for about a week and it seems to be working as intended.
Cons
Nothing else really stands out from CM Trading. No stock trading was also a massive downgrade for me.
zeph.simon reviewed 10 days ago
Demo
5.88

5.88

Average: Looks not that bad, but still testing it out - will update this when I have better insight
Pros
Nothing from CM stands out for me to complement, they have a decent desktop version of the trading platform and that's it. Other than that, it is behind most of the other exchanges I have used thus far.
Cons
Looking at their safety and regulations I am a little wary of their legit status or at least protection of my funds, this is why I'm only using their Demo trading for now. They also have pretty bad spreads and fees, but there are other brokers that have way worse terms, so can not call them the worst in that regard.
guinevere.curry reviewed 10 days ago
Live 1-3 months experience, under $1,000 account size
7.38

7.38

Good: Good for Forex, not so great for stocks trading
Pros
Trading majors was cool and normal with low spreads. Well, not low spreads, but still sufficient for day trading. You can't trade scalping strategies with 1 pips, but for other purposes I had an average experience.
Cons
Very low leverage with stocks, I had to only trade currency pairs with my cent account. It requires above $1000 to trade stocks reasonably. Mobile experience is below average TBH.

FAQs on CM Trading

Is CM Trading regulated? 

Yes, CM Trading is regulated by FSCA and FSA. It’s worth mentioning that the FSCA is an average regulator when it comes to the strictness of policies and the FSA has low licensing requirements compared to other regulatory bodies.

What is a risk-free trade?

Ar risk-free trade is only available to Silver, Gold, and Premium account holders and the concept simply means that your losses will get covered by the company if a trade goes against you. Keep in mind that the number of risk-free trades is limited for each account type and the trading timeframe is 24 hours.

Can I withdraw money to a different bank account?

Unfortunately, no. You can get the withdrawal to the same account you used to transfer the deposit. This measure is used to increase the safety of your funds. Please note that the minimum withdrawal amount is $20.