CMTrading Review – Africa’s best performing broker
The international traders’ community does not know many brokerage firms that come from South Africa. However, many of them would definitely recall CM Trading broker which is a Forex and CFD broker based in South Africa. The broker provides high-quality brokerage services to a wide range of clients, both international and local. Throughout almost 10 years of operations, CM Trading gained a lot of loyal customers, strengthened its reputation, and positioned itself as one of the most reliable and transparent brokers in the Forex industry. The brokerage services of CMTrading are suitable for both newcomers in the Forex industry and professional traders with almost every trading strategy out there.
Multiple live trading account types allow the clients of CMTrading maximum freedom in deciding what trading conditions they find the most suitable and convenient. The diversity of financial instruments portfolio also plays a significant role in attracting new customers for the brokers. Furthermore, the industry-leading and ground-breaking trading platforms provided by the brokerage firm make its services easily accessible for traders of all backgrounds. CMTrading Forex broker is one of the most influential brokers originated in South Africa. Learn more about the broker and the quality of its services in the review below.
Quick Recap: CMTrading
CMTrading was born as a brokerage firm in 2012 in South Africa. The company was initially built by a group of professional international traders who were seeking to establish an advanced trading platform suitable for various types of clients. Nowadays, the company represents one of the largest online Forex brokers coming from the South African region with multiple representatives worldwide. The headquarter of the broker is located in Johannesburg.
The first aspect that drew the attention of thousands of traders initially was the broker’s regulatory framework. CMTrading put a lot of effort to develop a safe and secure trading environment, therefore, it quickly applied for the financial regulations within the region. So, is CMTrading legit? Yes! The broker received authorization and an official license from one of the region’s most reliable and recognized regulatory authorities. CMTrading is regulated by the Financial Sector Conduct Authority of South Africa, or FSCA as an international community calls it. The regulatory body ensures the safety and security of the broker’s clients, their financial resources, and traders’ rights.
CMTrading has shown significant progress over the years. The company never stopped growing and till today it has diversified its trading portfolio that offers hundreds of trading assets, implemented the most notable trading platforms worldwide, and supports MetaTrader 4 software and its various modifications for its customers. Furthermore, the broker developed different trading account types with various benefits and opportunities for the account holders. Therefore, CMTrading is now a favorite broker of multiple investors of both the local and international trading scene.
Safety of traders’ funds
No one can argue that the safety of your financial resources and personal data as a trader is not a top priority in any trading environment. Especially, in the Forex industry, one has to be extremely careful when depositing the funds with a random broker. Primarily, the security reasons require the broker to be licensed by the most recognized regulatory organs around the world. Of course, a lot of people will suggest that unregulated brokers have some kind of advantage for specific types of traders. However, in an already risky world of Forex, it is not recommended to simply trust any unregulated firm, as it imposes significant risks to your financial wellbeing and legitimacy matters.
As we have already mentioned, CMTrading broker holds license from the Financial Sector Conduct Authority of South Africa, or FSCA. The FSCA is an authority that is well respected and renowned in almost every region of the world, but especially in South Africa. The FSCA regulations limit the freedom of the Forex broker in several ways, however, these regulations also guarantee the security of any kind for the traders.
First, as per FSCA’s regulations, the broker is required to keep segregated accounts for their clients’ funds. The broker cannot access these segregated accounts of their clients which obviously protects the traders from any unlawful behavior or money laundering crimes. Additionally, in case the broker struggles financially for some reason and files for bankruptcy, the traders’ funds will not be affected on the segregated accounts. Even in the case of liquidation of the broker, traders will receive their financial resources fully without any losses. Secondly, the FSCA obliges CMTrading to conduct a regular financial audit of the company’s finances. In this way, the regulatory organ makes sure that the broker is acting and operating the business in compliance with the set of rules and market standards established by the regulatory framework of the Financial Sector Conduct Authority.
Why Forex regulations are important?
We cannot deny that the unregulated trading scene has some attractive features. For instance, unregulated brokers have the freedom to offer sky-high leverages as no one limits their leveraged product trading conditions. Furthermore, these brokers can offer every kind of promotional campaign. They can also allow their traders to use all sorts of trading strategies, such as scalping, hedging, and Expert Advisors, which is frequently limited in the trading environment offered by the regulated Forex brokers.
However, there is a huge BUT. Not being regulated means that there is a very limited possibility for the trader to receive a refund if anything unlawful happens. The traders do not have any authority to be responsible for frauds or money-laundering crimes committed by the brokers. Therefore, the maximum they can do is file a lawsuit against the broker in court. It is going to be extremely expensive and unfortunately, in most cases not really effective. If dealing with an international unregulated broker operating worldwide, then the jurisdiction matters overcomplicate the process. Furthermore, most scam brokerage firms will simply lie about their residential address, legal credentials, and even the customer support contact details.
Trading Portfolio of CMTrading
Despite the fact that originally CMTrading was formed as a Forex broker, the company now incorporates multiple financial instruments within its trading portfolio. The brokerage firm encompasses several financial markets and offers in total more than 200 trading assets. The trading conditions vary from one asset to another. The portfolio available for traders includes the following instruments:
The great share of the CMTrading portfolio belongs to the Forex currency pairs assets. Since, the Forex market is the largest financial market, the broker provides convenient trading conditions, tight spreads, and a great variety of currency instruments. Traders can access both the popular and exotic currency pairs. There are over 50 assets within the Forex portfolio of CMTrading broker review shows. The leverage on the currency pairs is quite competitive and it can go up to as much as 1:200. The spreads vary according to the live trading account types that the traders hold on the CMtrading platform.
Indices are other leveraged products that the CMTrading opinion includes in the trading portfolio. The broker provides numerous popular and common indices of the market. The traders can also go for stock index CFDs, which allows them to go either long or short on their traders. Indices are overly liquid and somewhat volatile, which is undoubtedly an attractive aspect of the asset. CMTrading provides indices like S&P 500, Nikkei, Dow 30, and many more. The spreads are tighter than the market average. The maximum leverage that the traders of CMTrading can have on indices can go up to 1:100.
Metals and Commodities
Most of the precious metals are frequently referred to as safe haven, as they are known to be one of the most stable valuables. Therefore, metals are always a good idea to have in the trading portfolio. CMTrading platform includes silver, gold, and other precious metals. As for the commodities, the broker offers both soft and hard commodities to its clients. Traders can choose among the wide variety of assets including energies and metals and they range from coffee and sugar to oil and natural gas.
CFDs or Contracts for Differences are becoming increasingly popular among traders day by day. CFDs have a significant advantage, traders can trade in the direction of securities and do not need to own the underlying assets. CFD trading is especially common in the Forex and commodities products since it is a brilliant way of benefiting from the fluctuating prices on financial markets. However, CFDs that are listed on the website of CMTrading brokerage firm have a specific expiration date.
Live Trading Account Types CMTrading
Our review of CMTrading broker also analyzed different account types that the broker provides to its customers. Usually, the account types diversity is extremely important, as it is impossible to design a single universal account that would suit every kind of trader, all trading strategies, goals, and trading skills. Understanding that CMTrading offers four live trading account types:
- Bronze Account
- Silver Account
- Gold Account
- Premium Account
This account type is the best suitable option for beginner traders or the ones who would like to try implementing a new trading strategy in their daily operations. The bronze account requires the minimum investment capital in the size of 250 USD to 999 USD. It is the lowest deposit requirement among other account types. However, being the standard account, it also provides average spreads on the leveraged products, such as Forex. The regular spreads on popular Forex currency pairs, such as EUR/USD currency pair would be a market average, so approximately 1.4-1.5 pips. The users can also access various educational material including eBooks, webinars, and market reviews.
According to the broker’s report, the Silver account type is the most popular choice among the CMTrading Forex broker’s customers. Probably due to the fact that the account comes with a medium size investment requirement with a capital size of 1000 USD to 9999 USD. The account comes with multiple benefits, too. The spreads on leveraged Forex products are relatively tight. To compare, the spread for the EUR/USD currency pair on the Silver account would be as low as 1.2 pips. The Silver account holders have access to market reviews, CMTrading eBooks, and webinars, as well. In addition to all these benefits, they get one risk-free trade along with the personal assistant.
Gold Account is the favorite choice of intermediate to advanced traders who are still seeking a relatively cost-efficient trading environment. The capital size requirement is from 10,000 USD up to 99,999 USD. The spreads for Gold Account holders are considerably low compared to the market average. This account type offers EUR/USD currency pair with the lowest spreads of 0.9 pips. All of the benefits that are listed for Silver account and Bronze account types also are applicable to the Gold account traders. In addition, the clients with the Gold account receive 3 risk-free trades, cashback rebates and a special designated Account Manager.
Premium Account is indeed for the VIP clients of the broker. This account comes with the best trading conditions, as well as numerous promotions for the clients. Furthermore, Premium Account holders get access to exclusive treats provided by the broker. In order to open the Premium account, traders need to invest at least 100,000 USD or more. Along with the benefits of all the other three account types, Premium Account gets spreads as low as 0.9 pips, 3 risk-free traders, cashback rebates, and a customized account. The account also comes with the trading specialist and special access to the Trading Room. Premium clients have top news and analyses available for them and are eligible for the special offers of the broker.
To sum up – CMTrading broker review
Our experts have put a lot of effort to examine the broker in great detail. As you could see from the review, CMTrading is legit, reliable and a high-quality brokerage firm dedicated to providing above-average brokerage services to clients globally. The funds and personal data of the clients are safe and secure with the broker and the traders can enjoy the competitive and convenient trading environment with CMTrading. Furthermore, customers of the broker have the freedom to choose from the wide array of the financial instruments available to trade on the broker’s platform and to choose among the four account types with more than satisfactory trading conditions. We definitely recommend trading with the CMTrading brokerage firm.