Is CMTrading Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with CMTrading try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether CMTrading is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker CMTrading
The CM Trading broker has been providing financial services in the international Forex market since 2012. The company is focused on working with active traders and provides optimal trading conditions. CM Trading allows advisors, provides a vast array of instruments for market analysis, and its seasoned professionals always have your back. CM Trading is regulated by the FSCA 38782 (Financial Sector Conduct Authority of South Africa) and the FCA (Financial Conduct Authority of Seychelles).
The broker's portfolio of trading instruments includes currency pairs, cryptocurrencies, indices, and CFDs. There are few assets for long-term investments in the company, so the broker offers investors another way to get passive income. It can be done using the services of trade copying agencies or apps.
| 💰 Account currency: | USD, EUR |
|---|---|
| 🚀 Minimum deposit: | 250 USD, EUR |
| ⚖️ Leverage: | 1:200 |
| 💱 Spread: | From 0.9 pips |
| 🔧 Instruments: | Currency pairs, indices, cryptocurrencies, commodities, CFDs |
| 💹 Margin Call / Stop Out: | From 20% |
Pros and cons of CMTrading
👍 Advantages of trading with CMTrading:
•A vast array of trading accounts, including ECN accounts and an Islamic account.
•The presence of a service for copying transactions, which allows you to receive passive income.
•Tons of training materials and instruments for market analysis.
•Segregated accounts are used to store clients’ funds and the broker does not have access to them.
•For trading, you can use built-in advisors or those offered by the MT4 platform.
•Fast registration procedure on the site.
•Demo account availability.
👎 Disadvantages of CMTrading:
•The minimum deposit amount is 250 EUR or USD, which is not always a top-tier option for beginners.
•Trading accounts can be opened in only two currencies: euros or US dollars.
•The broker offers a small number of payment systems for deposits and withdrawals.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is CMTrading Regulated? Broker’s license
Security (Protection for Investors)
The CMTrading broker is regulated by two bodies: the Seychelles Financial Services Authority FSA (license: SD070) and the South African Financial Sector Conduct Authority (FSCA).
The broker uses segregated accounts at Barclays Bank PLC and Nedbank to store clients’ funds. Thus, the broker does not have access to traders' money, and the funds can only be used for trading. Data protection is guaranteed by an SSL certificate of encryption and the use of firewalls at the hardware and software levels.
👍 Advantages
- Clients’ funds are reliably protected and are used exclusively for trading on the CMTrading platform
- CMTrading is regulated by two bodies: FSA and FSCA
- Data centers are SSL certified to ensure the safe operation of traders and the protection of their confidential information
👎 Disadvantages
- This broker doesn’t cooperate with compensation funds
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by CMTrading, which you can see below.
CM Trading was analyzed by specialists at the Traders Union. They were looking for the presence of trading fees, non-trading fees, and hidden commissions. There is no information about commissions for replenishing an account, withdrawing funds, of maintaining an account on the broker's website. The spread size depends on the trading account and instrument used.
| Account type | Spread (minimum value) | Withdrawal commission |
| Bronze Account | $10 | Not indicated |
| Silver Account | $12 | Not indicated |
| Gold Account | $9 | Not indicated |
| Premium Account | $9 | Not indicated |
Brokers that are similar to CMTrading
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of CMTrading conditions with its closest competitors.
Comparison of CMTrading with other Brokers
| CMTrading | RoboForex | Pocket Option | Exness | FBS | Tickmill | |
|---|---|---|---|---|---|---|
Trading platform |
MT4 SIRIX |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MT5, Tickmill Mobile App |
Min deposit |
$250 |
$10 |
$5 |
$10 |
$1 |
$100 |
Leverage |
From 1:200 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 1 point |
From 0 points |
From 1.2 point |
From 1 point |
From 0.2 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
STP |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
$1 |
No |
No |
No |
$5 |
$30 |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
The broker CM Trading offers acceptable trading conditions for active traders with different trading experiences. There are no investment instruments.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
FBS is a broker for those who appreciate a variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
Tickmill is a suitable broker for both professional traders and novices. The company is good for robotic trading as well as for short-term strategies.
Conclusions
CMTrading is a quite reliable broker for trading. CMTrading operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.