CM Trading Review

CM Trading

Regulated by the Financial Services Board (FSB) in South Africa, financial company Global Capital Markets Trading is owner of the CM Trading brand name. The broker offers more than 40 trading instruments separated into currency pairs, indices and commodities.

There are two platforms – the world-leading MetaTrader 4 (MT4) and gaining popularity Sirix. Sirix is available as a web-based platform and as an application for iOS and Android devices. CM Trading provides so-called CopyKat Trading (also known as Social Trading), available on its the web-based Sirix platform, which allows customers to copy deals made by other traders. This can be done manually or automatically.

There are four types of accounts differing mainly in the minimum deposit amount, maximum leverage and spreads:

• Mini account requires deposits within USD250-999, customers receive daily and weekly market reviews and the maximum leverage is 1:400;
• Standard account requires a deposit amount within USD1,000-4,999, customers receive a regular CMT debit card, the maximum leverage is 1:200, regular spreads, and access to webinars;
• Executive account requires deposits within USD5,000-24,999, customers receive a VIP CMT debit card, tighter spreads and access to webinars and the maximum leverage is 1:200;
• Gold account is for deposits above USD25,000. Customers receive ‘competitive’ spreads, access to 2 trading strategies and to webinars and the same day withdrawals.

The higher leverage could increase the risk of loss. Moreover, there is no negative balance protection and clients can lose their entire deposit but also a large additional loss. The company’s execution policy shows that stop loss orders are non-guaranteed and could be executed at the first quoted price, thus the realized losses can be greater than expected. The document informs about possible existence of slippage as well.

CM Trading is always the counterparty of all client’s deals. It acts as a market maker and doesn’t transmit trades to its liquidity providers. So, the company earns from client’s losses, which leads to potential conflicts of interests with the customers.

Website provides some useful features such as daily technical analysis, economic calendar, daily trade signals and some expert advisors. There is a section for education, containing plenty of tools for traders.