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Contents

Admiral Markets Group consists of the following firms:

Admiral Markets Cyprus Ltd

Admiral Markets Pty Ltd

Admiral Markets UK Ltd

In 2020, traders and investors from all over the world experienced one of the most interesting years in the financial markets. Trade tensions between the United States and China, ongoing troubles with Brexit, and a crash in cryptocurrencies were just some events that took centre stage.

However, these events are setting up 2020 to be a very interesting year for financial markets. In today’s article, we take a look at the top 10 trading ideas for the new year that are available on the Admiral Markets’ platform. Remember: trading is not just about the idea but also the execution and risk management of the trade. After all, every trade will win or lose so be sure to trade responsibly.

Trade Idea #1: A 70% Stock Market Crash?

The Rationale:

2020 has been one of the most volatile years global stock markets have seen since the 2008 financial recession. This volatility, combined with rising interest rates, may prove to be an explosive combination and is just one reason many hedge fund managers are predicting a stock market crash in 2020.

In some cases, there have been predictions of a 40% – 70% crash in the stock market:

  • Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners, has forecasted a 40% drop.
  • The CIA’s Financial Threat and Asymmetric Warfare Advisor Jim Rickards has claimed that a 70% drop is the best case scenario.

At the last Federal Reserve meeting of the year on 19 December, Chairman Jerome Powell reiterated his bullish stance on hiking interest rates in the future. With interest rate hikes preceding more than 10 economic recessions in the past 40 years, it is little wonder that stock market investors are predicting the worst for 2020. The technical chart also has some investors concerned.

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – SP500 CFD, Monthly Chart – Data range: 1 May 2005 – 19 December 2020 – Performed on 19 December 2020 at 9:36 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In the above chart of the SP500 CFD, the market has rallied higher since 2008 with only three major corrections. With the magnitude of the last retracement already exceeding the amount (in points) of the previous two retracements, sellers are firmly in control of this market.

Source: Admiral Markets MetaTrader 5 Supreme Edition – SP500 CFD, Daily Chart – Data range: 27 April 2020 – 20 December 2020 – Performed on 20 December 2020 at 12:49 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In the above daily chart of the SP500 CFD sellers have struggled at previous levels of resistance. That makes the $2,603 price level an area to watch, as some traders may use that area to initiate fresh short positions. You may consider using price action based strategies to help identify entry and stop loss levels for 2020.

Trade Idea #2: Will central banks fuel a surge in Gold prices?

The Rationale:

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In the first quarter of 2020 demand for gold was up a whopping 42% year on year – according to the World Gold Council. It seems that most of the buying has come from central banks who – in 2020 – transitioned into being net sellers of gold to becoming net buyers of the yellow metal.

It is not yet clear why some central banks around the world have started to raise their gold reserves. One theory is that many emerging economies and fringe countries are trying to move away from the US dollar to end its status as the world’s reserve currency.

After all, Russia and China have been very active in gathering support from global governments into creating a new gold-backed currency. With a frosty relationship developing between China and the US due to ongoing trade tariff disputes, many investors have diversified their portfolios to include gold – such as the world’s biggest hedge fund manager Ray Dalio.

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – Gold, Daily Chart – Data range: 30 Aug 2020 – 20 December 2020 – Performed on 20 December 2020 at 2:26 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In the above chart of gold it’s clear to see that sellers were in control for much of 2020. However, in the latter part of 2020 buyers started to take control of the market. Technical indicators like moving averages can help in identifying possible entry points.

It seems that buyers are stepping in on the 10 day moving average but how far can it go? The $1,380 level represents a 5 year high that is sure to have some traders excited. Are you one of them?

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Trade Idea #3: Will a short squeeze in Treasuries send bond prices soaring?

The Rationale:

The 10-year Treasury yield reached a seven year high in 2020. As yields and bond prices have an inverse relationship, this has helped the price of a 10 year treasury bond reach a critical seven-year low.

China, which is the largest foreign holder of US government debt (via products like Treasuries), has been cutting its holdings of US Treasuries for most of 2020. The continued trade dispute with the Trump administration has been cited as just one of the reasons for China’s selling.

However, the short positions in the Treasury market are at the highest in history creating strong trading opportunities for some well known investors.

The Trade:

According to billionaire investor Jeff Gundlach the extreme short positions in Treasuries makes it ripe for a ‘short squeeze’. This is a situation where a heavily shorted asset moves sharply higher causing more short sellers to close their positions further accelerating the move upward – and it seems it has already started.

Source: Admiral Markets MetaTrader 5 Supreme Edition – USTNote_H9, Monthly Chart – Data range: 1 Aug 2020 – 19 December 2020 – Performed on 19 December 2020 at 10:22 PM GMT

Please note: Past performance is not a reliable indicator of future results, or future performance.

In the chart above, we can see that the 10-year Treasury Bond CFD is trading in between two horizontal lines – highlighted in blue – that represent historical highs and lows. Current price action shows price moving up as the short squeeze plays out.

Some traders will be looking to add to long positions with an eye for targeting the upper horizontal line at $133.37. To add further fuel to the move, if stock markets do crash in 2020 there is a tendency for investors to run to the safe haven of – you guessed it – Treasury bonds.

Trade Idea #4: Will Trump crash the US dollar?

The Rationale:

The US dollar spent much of 2020 moving higher thanks to rising interest rates from US Federal Reserve policy. However, according to JP Morgan Asset Management, who manage over $1.7 trillion, the dollar could slump in the second half of 2020 and it could last for years.

So why the negativity surrounding the US dollar?

First off, US president Donald Trump has been blasting Federal Reserve Chairman for increasing interest rates – stating that a higher dollar makes them less competitive in global economic trade.Secondly, some investment banks are forecasting a cooling of in US economic growth and a possible pause in the Federal Reserve’s hiking cycle. Both factors will cause investors to move their money into currencies and markets with better growth prospects – possibly sending the US dollar crashing lower.

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – EURUSD, Monthly Chart – Data range: 1 Aug 2020 – 19 December 2020 – Performed on 19 December 2020 at 10:22 PM GMT

Please note: Past performance is not a reliable indicator of future results, or future performance.

The screenshot above shows a chart of the EURUSD currency pair. When prices rise the euro is strengthening against the US dollar. When prices are falling the US dollar is strengthening against the euro.

After spending much of 2020 falling lower, the pairing has held at lower support – highlighted by the blue line. Sellers have struggled to break this level for the past four months. It seems it is just a matter of time before buyers take control making 2020 a big year for the euro currency and a possibly shocking year for the US dollar.

Trade Idea #5: Oil. The comeback king of 2020?

The Rationale:

In the last quarter of 2020 oil prices crashed more than 30% lower – making it the worst plunge since the 2008 financial crisis. But, is a reversal of fortune on the cards for the struggling black gold? Goldman Sachs seem to think so.

The investment bank has put a rebound in brent crude oil prices at the top of its list for trade ideas in 2020. And this was before the 7 December OPEC and Russia meeting where the cartel of oil-rich nations agreed to take off 1.2 million barrels of oil from the market every day for the first six months of 2020. While this news was highly favourable for Goldman’s long-term call, what do the charts now tell us?

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – BRENT, Weekly Chart – Data range: 12 April 2020 – 19 December 2020 – Performed on 19 December 2020 at 11:03 PM GMT

Please note: Past performance is not a reliable indicator of future results, or future performance.

In the above chart of brent crude oil, the aggressive fall in prices in the latter part of 2020 is clear. While investment banks may be bullish on prices in the long term, the market may keep on falling down to the lower trend line support highlighted in blue.

However, this could be the big buy opportunity for the first set of buyers to step in to the market. Analysing price action at these levels will be key in determining whether other buyers are going to join in and make oil the comeback king of 2020. Watch this space.

Trade Idea #6: Will 2020 see a resurgence in cryptocurrency prices?

The Rationale:

It was only in 2020 that Bitcoin led the cryptocurrency market soaring higher to over 2,000% at its peak. However, it only took a year for over $700 billion to be wiped off the market in the great cryptocurrency crash of 2020. But with cryptocurrencies trading at yearly lows is anyone betting big on cryptos in 2020? There are a few.

Hot new startup, Bakkt, is getting cryptocurrency and Bitcoin traders very excited. The new company has been launched by the New York Stock Exchange’s owner – the Intercontinental Exchange – and has backing from heavyweights such as Microsoft and Starbucks.

Given their backing from the Intercontinental Exchange, Bakkt aims to bring proper infrastructure and regulation to the tarnished crypto market. And they aren’t planning to stop there. They have also teamed up with Starbucks so sometime in the near future you’ll be paying for coffee by swiping your Bitcoin app.

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – BTCUSD, Daily Chart – Data range: 29 November 2020 – 20 December 2020 – Performed on 20 December 2020 at 3:03 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

Buyers of Bitcoin have been encouraged by this recent news, as prices rallied higher towards the latter part of 2020. With key technical resistance above – highlighted by the blue line – it seems that buyers have short term control of the market. A break above this and 2020 may be known as the year of the cryptocurrency resurgence. How will you be trading it?

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Trade Idea #7: Can 2020’s $20.5 billion worth of inflows into emerging markets continue in 2020?

The Rationale:

Inflows into emerging market ETFs have risen to over $20.5 billion for 2020. The ETFs, or Exchange Traded Funds, invest across a wide variety of developing nations and commodities. The week ending 23 November also marked the sixth consecutive week of inflows into emerging market ETFs – and this bullishness has not gone unnoticed.

Investment bank Morgan Stanley is so bullish on the sector that they gave it a ‘double upgrade’. They join other investors such as Aberdeen Standard Investments, Goldman Sachs Asset Management and BlackRock Inc in looking at the potential of emerging markets for 2020.

The Trade:

One of the best places to look for exposure to emerging markets is through the use of ETFs. For example, the Vanguard FTSE Emerging Market ETF CFD tracks the price of this fund which invests into large and mid cap companies in multiple emerging markets in Europe, Asia, Africa, Central and South America and the Middle East.

Source: Admiral Markets MetaTrader 5 Supreme Edition – #VMO, Weekly Chart – Data range: 13 February 2020 – 20 December 2020 – Performed on 20 December 2020 at 3:19 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In the above chart of the Vanguard FTSE Emerging Market ETF CFD, there has been a lot of interaction with the weekly 500 simple moving average. The market has bounced eight times off the moving average and broken three times. If buyers can get above the moving average – and stay above- then we may see billions of dollars worth of additional inflows into emerging markets. Then the question is whether you want to participate in it or not?

Trade Idea #8: Will Brexit save the British pound?

The Rationale:

The UK is set to leave the European Union on the 29 March 2020 at 11pm. Recently, the British pound has experienced heightened volatility due to the uncertainty on the future trading relationship between the UK and the EU.

The beginning of 2020 will be key to future direction of the British pound. UK prime minister Theresa May is due to put her deal to parliament for a vote. After cancelling the last vote due to the high possibility of the deal not being voted through it is the last obstacle that stands in between a deal or no-deal Brexit.

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – GBPUSD, Weekly Chart – Data range: 19 April 2020 – 19 December 2020 – Performed on 19 December 2020 at 11:45 PM GMT. Please note: Past performance is not a reliable indicator of future results, or future performance.

In the chart of GBPUSD above, the currency pairing is ending 2020 at a critical juncture. The fall in the pair has been held at the lower trend line support – highlighted in blue. If traders can hold above this level then the British pound may find some support to push higher. If that is the case, any short sellers will look to exit their positions creating a possible short squeeze and the beginning of a huge turnaround story for the currency.

Trade Idea #9: Is it time to like Facebook again?

The Rationale:

On the 26 July 2020 Facebook shocked the market after admitting a significant decline in user growth after the Cambridge Analytica breach of 87 million Facebook users. This helped the stock to wipe off over $119 billion in their market cap. Since then, the stock has continued to decline in the broader tech market sell off, with the most recent data privacy exposé resulting in another 7% hit to the share price.

However, is it time to like the stock again?

In Facebook’s third quarter earnings report for 2020 the numbers reflected a return to stability in their user base after three million European users left the social media platform earlier in the year. The company also seem to be taking recent events very seriously by doubling their safety and security staff from 10,000 to 20,000.

The Trade:

Source: Admiral Markets MetaTrader 5 Supreme Edition – #FB Weekly Chart – Data range: 19 April 2020 – 19 December 2020 – Performed on 19 December 2020 at 11:45 PM GMT.

Please note: Past performance is not a reliable indicator of future results, or future performance.

In the chart above of the Facebook CFD, sellers still remain in control of the market. Buyers have struggled to break through the 34 exponential moving average – highlighted in purple. If traders are starting to like Facebook again, then the market will be looking for buyers to take control by trading above this moving average. Then it’s up to the company to turn themselves around and attract even more buyers to the stock.

Trade Idea #10: The new STARS of the financial world

CNBC host Jim Cramer famously coined the term FANG for four of the hottest tech stocks at the time: Facebook, Amazon, Netflix and Google. However, while some stocks fared well for 2020, others haven’t.

And now there is a new acronym in town that has piqued the interest of stock traders – the STARS group of stocks. It includes:

The likes of Shopify and Square only became public and available to trade in 2020. Square made its public debut in 2020. While these companies are very young, they’re available to trade with Admiral Markets. Maybe one of these market leading internet-service stocks could be the next big thing in 2020 – how are you preparing for it?

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Admiral Markets offers the ability to trade with MetaTrader 5 in your browser, or to download the entire platform for FREE! Gain access to real-time market data, technical analysis, insight from professional trading experts, and thousands of trading instruments to trade and invest with. Start your trading journey the right way, click the banner below to get started!

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on the Author’s personal estimations.
  4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all therisks.

Forex trading

Discover forex trading and spread bet or trade CFDs on over 300 forex pairs, including EUR/USD, GBP/USD and AUD/USD, plus our customised range of 12 forex indices​.

  • 80,000 clients globally
  • No minimum deposit
  • Free sign-up

Why trade on forex with us?

We offer a number of benefits to trading on the global forex market – the largest and most liquid financial market in the world.

Tax-efficient trading*

There’s no capital gains tax on profits from forex spread bets and no stamp duty to pay when trading CFDs.

Go long or short

Take a long or short position on your chosen FX pair, to trade on rising or falling prices

Trade from 30:1 leverage

Deposit just 3.3% of the full value of your position to open a trade**.

A regulated provider

CMC Markets UK is regulated by the Financial Conduct Authority (FCA), registration numbers 173730 and 170627.

Trade 24 hours a day

As it’s a decentralised market, you can trade on forex 24 hours a day from Sunday night to Friday night.

Hundreds of FX pairs

Trade on over 330 forex pairs, including major, minor and emerging pairs.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.
**When trading using margin any losses will reflect the full value of the position.

Giving FX traders an edge

Continued investment in our HTML5 platform and mobile apps has been recognised through a number of industry awards, including Best Platform Features and Best Mobile/Tablet App, among spread betters, CFD and FX traders, in the 2020 Investment Trends UK Leverage Trading Report.

Create custom chart templates, save indicator settings and quickly organise charts to fit your trading screen(s) exactly how you like.

Use popular line, OHLC and candlestick charts, to more advanced charts such as kagi, line break and renko.

Forex trading – 12 different chart types

Get over 35 drawing tools to help you identify market structure and over 100 overlays, studies and inbuilt pattern scans including Bollinger Bands®, SMAs, ichimoku clouds, MACD, RSI, wedge patterns, double tops and many more.

Forex trading – Dozens of charting tools

Easily place and close trades, or edit stop-loss and take-profit levels directly from your charts. You can also display, modify or close any pending orders.

Forex trading – Trade directly from charts

Discuss and share chart analysis, trade setups and commentary from our analysts and other CMC Markets traders, helping you to identify potential key moves and patterns in the markets.

Forex trading – Chart forum community

Trade and manage your orders anywhere. Enjoy live streaming prices, live charts, advanced order ticket functionality and more.

Tailor your dashboard to suit you and your trading strategy. Simply resize, reposition or remove tiles and monitor the markets that matter to you.

Quickly see which instruments are experiencing significant movement. You can view the most traded instruments from the last seven days, hot products (based on recent trade volume), price movers and more.

Set up price, execution, market calendar, breaking news and price-mover alerts using the notification centre. Receive alerts in-app, or via push, SMS or email, so you never miss an important market event.

Quickly access your account and the markets, along with the reassurance that your account is always secure.

See the percentage of CMC Markets clients who have bought versus the percentage who have sold on a particular instrument. It’s updated every minute so you can gain an understanding of other clients’ expectations.

Scan over 120 of our most popular instruments every 15 minutes for emerging and completed chart patterns such as wedges, channels and head and shoulders formations.

Monitor market-moving events in our real-time economic calendar and get live financial market news, all within our platform (powered by Reuters). Share traders can also access Morningstar research to help make more informed investing decisions.

Create customisable watchlists that automatically sync across devices. Mobile app watchlists will also save your chart analysis to your device for future reference.

Uncover new opportunities by filtering instruments based on performance and volatility measures over multiple timeframes, by type, country or sector.

Manage risk on every trade using flexible order placements. Set up default stop-loss and take-profit orders, trailing stops, partially close-out trades and more. You can also create guaranteed stop-loss orders for 100% certainty that your stop-loss will be executed at the exact price you want, regardless of market volatility or gapping.

Use boundary orders to control slippage in volatile markets, our price ladder to fill large orders, trade using unrealised profit and go long and short simultaneously on the same instrument.

Receive platform pop-ups and get alerts emailed to you, sent by SMS, or pushed to your mobile device when important price levels you’ve set up are breached or your pending orders are triggered.

Market volatility and rapid changes in price can cause your account balance to change quickly. We give you the ability to choose a preferred close-out method in our platform in the event that your balance falls below the close-out level.

Competitive FX costs

View the spreads, margins and holding costs for our most popular forex pairs. Spreads on EUR/USD, AUD/USD and USD/JPY start from just 0.7 points.

Instrument Minimum spread 1 ​ (pts) Margin rate from 2 Leverage equivalent
AUD/USD 0.7 5% 20:1
EUR/CHF 2.5 3.3% 30:1
EUR/GBP 1.1 3.3% 30:1
EUR/JPY 1.5 3.3% 30:1
EUR/USD 0.7 3.3% 30:1
GBP/USD 0.9 3.3% 30:1
USD/CAD 1.7 3.3% 30:1
USD/CHF 1.0 3.3% 30:1
USD/JPY​ 0.7 3.3% 30:1
Instrument Minimum spread 1 (pts)​ Margin rate from 2 Leverage equivalent
AUD/GBP​​ 0.9 5% 20:1
AUD/JPY​ 1.2 5% 20:1
AUD/NZD​ 2.5 5% 20:1
EUR/AUD​ 2.5 5% 20:1
EUR/DKK​ 10.2 5% 20:1
EUR/NOK​ 33.8 5% 20:1
EUR/NZD​ 5.4 5% 20:1
EUR/SEK​ 4.0 5% 20:1
GBP/AUD​ 2.0 5% 20:1
GBP/CHF​ 2.1 3.3% 30:1
GBP/EUR​ 1.4 3.3% 30:1
GBP/JPY​ 2.5 3.3% 30:1
GBP/NZD​ 4.2 5% 20:1
NZD/AUD​ 3.4 5% 20:1
NZD/USD​ 1.8 5% 20:1
USD/DKK​ 5.0 5% 20:1
USD/HKD​ 5.0 5% 20:1
USD/NOK​ 25.0 5% 20:1
USD/SEK​ 3.0 5% 20:1
USD/SGD​ 2.0 5% 20:1
Instrument Minimum spread 1 (pts)​ Margin rate from 2 Leverage equivalent
EUR/TRY​ 20.7 5% 20:1
USD/CNH​ 10.0 5% 20:1
USD/CZK​ 3.0 5% 20:1
USD/HUF​ 20.0 5% 20:1
USD/MXN​ 50.0 5% 20:1
USD/RUB​ 1.6 5% 20:1
USD/TRY​ 15.0 5% 20:1
USD/ZAR​ 85.0 5% 20:1
Instrument Minimum spread 1 (pts)​ Margin rate from 2 Leverage equivalent
CMC USD Index​ 0.25 5% 20:1​
CMC GBP Index​ 0.3 5%​ 20:1​
CMC EUR Index​ 0.25 5%​ 20:1​
CMC AUD Index​ 0.3 5%​ 20:1​
CMC CAD Index​ 0.3 5%​ 20:1​
CMC CHF Index​ 0.3 5%​ 20:1​
CMC CNH Index​ 0.3 5%​ 20:1​
CMC JPY Index​ 5.0 5%​ 20:1​
CMC NOK Index​ 0.6 5%​ 20:1​
CMC NZD Index​ 0.5 5%​ 20:1​
CMC SEK Index​ 0.6 5%​ 20:1​
CMC SGD Index​ 0.3 5%​ 20:1​

What is forex?

If you’re new to forex trading, take a look at some of our helpful in-depth articles to get a better idea of what forex trading is and how it works.

Your questions answered

Learn more about trading forex with CMC Markets with our FAQs below. Can’t find what you’re looking for? Get in touch

Pricing and costs

How much does it cost to open an account?

There’s no cost when opening a live spread betting account. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports free of charge. You’ll need to deposit funds in your account to place a trade though.

What is the minimum trade size for forex?

You can spread bet from £0.30/point on EUR/USD, GBP/USD, USD/JPY and AUD/USD, and £0.40/point on EUR/GBP. You can see the minimum trade size for all instruments on the platform, in the ‘Product Overview’ under ‘Betting and Position Limits’.

What are the costs of spread betting?

There are a number of costs to consider when spread betting, including spread costs, holding costs (for trades held overnight – this is essentially a fee for the funds we ‘lend you’ to cover the leveraged portion of the trade), rollover costs and guaranteed stop-loss order charges (if you use this risk-management tool).

The spread is the key cost involved in spread betting, and is the difference between the buy and sell price of an instrument. The narrower the spread, the better value you receive, because the market only has to move slightly in your favour to offer the possibility of a profit on your spread bet.

Forex trades held open past the end of the trading day (5pm, New York time) are subject to holding costs, which can be positive or negative depending on your trade direction and the applicable holding rate. Holding costs for forex spread bets are based on the tom-next (tomorrow to next day) rate in the underlying market for the currency pair, plus 1% on buy positions or minus 1% on sell positions. Holding rates are expressed as an annual percentage and can be found in the ‘Product Overview’ for each instrument on the platform.

You can add a guaranteed stop-loss order (GSLO) to your trade, which guarantees to close you out at your specified level, regardless of market volatility or gapping. A cost is applied for using a GSLO, but if it’s not triggered we’ll refund 100% of the original GSLO charge. The charge, or ‘premium’, is calculated by multiplying the premium rate by the bet size.

You’re also able to roll forward positions over to keep a trade open beyond its expiry date. When you roll a forward position to the next contract, your profit or loss is realised and you enter the new trade at the mid-price, saving 50% on the spread cost.

What are your spreads on forex?

These are the minimum spreads for our most popular forex pairs:

Instrument Minimum spread 1
AUD/USD 0.7
EUR/CHF 2.5
EUR/GBP 1.1
EUR/JPY 1.5
EUR/USD 0.7
GBP/USD 0.9
USD/CAD 1.7
USD/CHF 1.0
USD/JPY 0.7

What are your margin rates on forex?

These are the margin rates for our most popular forex pairs, showing the percentage of the total trade value that you need to put forward to open a position.

Instrument Margin rate 2
AUD/USD 5%
EUR/CHF 3.3%
EUR/GBP 3.3%
EUR/JPY 3.3%
EUR/USD 3.3%
GBP/USD 3.3%
USD/CAD 3.3%
USD/CHF 3.3%
USD/JPY 3.3%

Where do your prices come from?

Our automated pricing engine collates and checks thousands of prices per second streamed from our liquidity providers. The most representative price is then used to create the quotes on our platform. Our pricing on forex aims to mirror the underlying market. Learn more

How does CMC Markets make money?

Our income comes mainly from our spreads, while other fees – such as overnight holding costs – make a minor contribution to our overall revenue.

We never aim to profit from our clients’ losses – this is simply not the way we want to do business. Our aim is to build long-term relationships with our clients by providing them with the best possible trading experience, through our technology and customer service.

Our clients usually offset each other’s trades, with some going long on a particular instrument while others are short. In this way, CMC Markets isn’t exposed to the profits or losses of clients trading that instrument. Occasionally, if a large number of our clients all trade in the same direction, we hedge in the underlying market to protect our exposure to risk.

Products and accounts

Why spread betting?

Spread betting allows you to trade tax-free on a wide range of financial markets 24 hours a day, from Sunday nights through to Friday nights. Trade on your phone, tablet, PC or Mac on a wide range of instruments using leverage. Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

What is leveraged trading?

One of the advantages of spread betting is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it’s important to manage your risk.

Is CMC Markets regulated by the FCA?

Yes, CMC Markets plc (registration number 173730) and CMC Spreadbet plc (registration number 170627) are fully authorised and regulated by the Financial Conduct Authority (FCA) in the UK. Retail client money is held in segregated client bank accounts and money held on behalf of clients is distributed across a range of major banks, which are regularly assessed against our risk criteria.

Is CMC Markets covered by the FSCS?

Yes, your eligible deposits with CMC Markets are protected up to a total of £85,000 by the Financial Services Compensations Scheme (FSCS), the UK’s deposit guarantee scheme. If CMC Markets ever went into liquidation, retail clients would have their share of segregated money returned, minus the administrators’ costs in handling and distributing these funds. Any shortfall of funds up to £85,000 may be compensated under the FSCS.

What can I trade?

Choose from a wide range of major, minor and emerging forex pairs covering currencies and economies from around the world.

You can spread bet on a wide range of cash and forward instruments across these asset classes:

300+ forex pairs – EUR/GBP, EUR/USD, AUD/USD, GBP/USD, USD/JPY and more
60+ indices – UK 100, Germany 30, US 30, US SPX 500, Australia 200 and more
90+ commodities – including Gold, Brent and West Texas crude oil, Silver, Natural Gas
9,000+ shares & ETFs – Apple, Netflix, Lloyds, Rio Tinto, BP, Tesco, Amazon, Google and more
15 cryptocurrency instruments – bitcoin, bitcoin cash, ethereum, litecoin, ripple and more
30+ treasuries – including UK Gilt, Euro Bund, Euribor, US T-Bond, US T-Note 10 YR

Do you offer a demo account?

If you want to try forex trading with a risk-free demo spread betting trading account, you can open a demo account now with just your email address and a password.

How to start trading on forex

Complete and submit our straightforward online application form. Apply now

Deposit funds with a debit card, PayPal or bank transfer.

Once you’ve funded your new account, you’re ready to start trading.

Ready to trade on forex?

You might also be interested in:

Markets to trade

Trade on FX, indices, cryptos, commodities, shares and treasuries from a single account.

Developing your trading skills

Access free trading webinars, platform guides, advanced trading strategies and more.

Breaking news & analysis

Get the latest economic news and analysis from our global market experts.

1 A minimum spread is the lowest spread that will be shown on the given product. If the underlying market spread widens throughout the trading day, or you are trading out of hours, the platform spread may also widen. The spreads shown are for the first price available for the average market trade/bet sizes in the relevant product. The spread will widen for larger trade/bet sizes; see our platform for more information.​
2 Spreads, commissions and margins (as applicable) are provided for information only.​​ Please refer to the ‘product overview’ area of our trading platform for the most up-to-date information including trading hours and spreads.​

CMC Markets Review

Through its offices regulated in major global financial centers, CMC Markets offers traders a wide range of financial products with excellent pricing and its Next Generation trading platform, which is packed with innovative trading tools and charting.

Top Takeaways for 2020

After spending five months testing 30 of the best forex brokers for our 4th Annual Review, here are our top findings on CMC Markets:

  • Founded in 1989, CMC Markets is publicly-traded, and regulated in four tier-1 jurisdictions alongside two tier-2 jurisdictions, making it a safe broker (low-risk) for forex and CFDs trading.
  • CMC Markets is a leader for low-cost trading and Professional Trading, which includes the largest selection of currency pairs in the industry. Our testing also found Customer Service to be excellent.
  • The CMC Markets Next Generation platform delivers terrific tools, comprehensive market research, an excellent mobile app, and a massive selection of nearly 10,000 tradeable instruments. And, while limited to just 54 available symbols, MetaTrader is also offered for MT4 preferred traders.

Overall Summary

Feature CMC Markets
Overall 5 Stars
Trust Score 99
Offering of Investments 5 Stars
Commissions & Fees 5 Stars
Platform & Tools 5 Stars
Research 5 Stars
Mobile Trading 4.5 Stars
Customer Service 4 Stars
Education 4 Stars

Is CMC Markets Safe?

CMC Markets is considered low-risk, with an overall Trust Score of 99 out of 99. CMC Markets is publicly traded, does not operate a bank, and is authorised by four tier-1 regulators (high trust), two tier-2 regulator (average trust), and zero tier-3 regulators (low trust). CMC Markets is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC), Investment Industry Regulatory Organization of Canada (IIROC), Monetary Authority of Singapore (MAS), and the Financial Conduct Authority (FCA). Learn more about Trust Score.

Regulations Comparison

Feature CMC Markets
Year Founded 1989
Publicly Traded (Listed) Yes
Bank No
Tier-1 Licenses 4
Tier-2 Licenses 2
Tier-3 Licenses 0
Trust Score 99

Offering of Investments

The following table summarizes the different investment products available to CMC Markets clients.

Offering Comparison

Feature CMC Markets
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs) 180
CFDs – Total Offered 9848
Social Trading / Copy-Trading Yes
Cryptocurrency traded as actual No
Cryptocurrency traded as CFD Yes

Commissions & Fees

If trading costs matter to you, CMC Markets has you covered. In 2020, CMC Markets finished Best in Class in this category, thanks to its low spread offering, which is available to all its customer segments and account types.

Average spreads: CMC Markets offers highly competitive pricing, with average spreads on the EUR/USD as low as 0.7 pips and typical spreads of 0.81 pips, according to CMC Markets price data for the month of October 2020.

Rebates: CMC Markets offers liquidity rebates to active traders that surpass at least $25 million in notional trading volumes per month. Liquidity rebate levels range from $5 to as much as $10 per million for those that trade even higher amounts.

VIP accounts: CMC Markets Alpha offering is a VIP account launched through its Australia entity for high-net-worth clients who have $3K in commission spend or have more than $2.5m in holdings.

Guaranteed Stop-Loss Order (GSLO): CMC Markets offers GSLOs, which, as its name implies, guarantees the stop-loss order rate clients choose when setting risk thresholds on their positions. There is a premium for using the GSLO – for example, $8 per 100,000 units using the EUR/USD, and the GSLO also affects the prime margin, which is the amount at risk specified in the GLSO based on the rate chosen. Most brokers charge for GSLOs, although if not triggered, CMC Markets refunds this cost automatically.

Fees Comparison

Feature CMC Markets
Minimum Initial Deposit $0.00
Average Spread EUR/USD – Standard 0.81 (as of Oct 19)
All-in Cost EUR/USD – Active 0.81 (as of Oct 19)
Active Trader or VIP Discounts Yes

Platforms & Tools

CMC Markets Next Generation trading platform is fast, reliable, and comes packed with several unique tools and numerous features to support traders of all skill levels. No question, it is a market leader and will impress even the pickiest of traders. That’s why in 2020 Next Generation won our award as the best Web Based Platform. And, for traders who prefer MetaTrader 4 (MT4), it too is also available as an alternative platform.

Charting: When it comes to charts, the experience is quite convincing as there are plenty of tools and a long list of 79 technical indicators and studies, and 74 chart patterns that are attachable to each chart. Another feature that stands out from the charting experience is the pattern-recognition tool, which offers traders numerous options for trading and analyzing price action. Patterns auto-adjust when the chart time-scale is changed, enabling traders to scan from a one-minute chart to a monthly chart and see any respective patterns identified.

Automated trading: The current version of the Next Generation platform doesn’t feature the ability to run automated trading strategies – even though pattern recognition and social-trading tools are available. Trader’s looking for automated trading can choose the broker’s MT4 platform offering.

Research

CMC Markets’ research offering is rich with in-house content, including its Insights News, CMC Markets Blog, CMC TV, and even publishes a print magazine called Opto, as well as third-party content from Reuters and Morningstar. Traders can also access additional tools within the platform, including pattern recognition software and client sentiment tools – both of which are available to live account holders.

Mobile Trading

The CMC Markets’ mobile app is cleanly designed and comes packed with multiple research tools, powerful charts, pre-defined watch lists for scanning, and much more.

Seamless platform experience: The overall look and feel of the CMC Markets mobile app closely resemble the web-based version of the Next Generation platform. No question, ample time was invested in the app’s development, especially given the challenge of organizing so much information with limited screen space.

Charting: Like much of the rest of the app, charting was just as impressive as the platform’s web version. Although only 29 of the 81 technical indicators are available on the mobile app, it’s still a strong offering compared to many of CMC Markets’ competitors, which often lack technical indicators altogether. While the charting experience was impressive, one minor drawback is that zooming in and out across different time frames was not always fluid.

Market research: For research purposes, another useful feature in the app is the economic calendar where you can subscribe to an event. Once subscribed to an event, an alert will notify you when the news release time approaches. There is also CMC TV, CMC Insights, the broker’s blog, Reuters News, educational content for trading strategies, the Trading Smart series, and webinar schedules.

Other tools: The pre-defined watch lists in the CMC Markets mobile app are great for identifying trade opportunities. Watch lists include popular products, price movers, and currently trending categories.

Customer Service

To score Customer Service, ForexBrokers.com partnered with customer experience research group Customerwise to conduct phone tests from locations throughout the UK. For our 2020 Review, 330 customer service tests were conducted over six weeks.

Results

  • Average Connection Time: th (22 brokers)

Final Thoughts

CMC Markets is a great choice for forex and CFD traders. The company’s Next Generation platform is powerful and versatile, with plenty of configuration options and tools for traders to customize the platform to meet their needs. CMC Markets finished Best in Class across eleven categories in 2020, continuing its streak near the top of the Industry in all key areas including as one of the most trusted brokers.

With nearly 10,000 instruments to choose from across nearly every asset class and global market, CMC Markets is a great choice for traders looking for a multi-asset solution and broad range CFDs and forex pairs at competitive prices. The broker’s expansion into stockbroking in Australia, coupled with its frequent trader program and Alpha service for VIP clients, helps CMC Markets further distinguish itself as a brilliant multi-asset broker.

About CMC Markets

Founded in 1989, CMC Markets (LSE: CMCX) has grown to become one of the leading retail forex, and CFD brokerages globally. The broker offers an extensive range of nearly 10,000 CFD instruments across major asset classes, including forex, commodities, and securities markets.

CMC Markets serves over 50,000 clients worldwide through its 15 offices globally, with a staff count of 687 people across its entities regulated in the UK, Canada, and Australia. CMC Markets holds over £200 million in Tier 1 regulatory capital and £332.4 million in client segregated funds as per its latest annual report. The company has a market capitalization of over £290 million as of September 2020. Read more on Wikipedia about CMC Markets.

CMC Markets Trading Features

Feature CMC Markets
Virtual Trading (Demo) Yes
Proprietary Platform Yes
Desktop Platform (Windows) Yes
Web Platform Yes
Social Trading / Copy-Trading Yes
MetaTrader 4 (MT4) Yes
MetaTrader 5 (MT5) No
cTrader No
Charting – Indicators / Studies (Total) 79
Charting – Drawing Tools (Total) 24
Charting – Trade From Chart Yes
Watchlists – Total Fields 8
Order Type – Trailing Stop Yes

CMC Markets Research Features

Feature CMC Markets
Daily Market Commentary Yes
Forex News (Top-Tier Sources) Yes
Weekly Webinars Yes
AutoChartist No
Trading Central (Recognia) Yes
Delkos Research No
Social Sentiment – Currency Pairs Yes
Economic Calendar Yes

CMC Markets Mobile App Features

Feature CMC Markets
Android App Yes
Apple iOS App Yes
Trading – Forex Yes
Trading – CFDs Yes
Alerts – Basic Fields Yes
Watch List Yes
Watch List Syncing Yes
Charting – Indicators / Studies 23
Charting – Draw Trend Lines Yes
Charting – Trend Lines Moveable Yes
Charting – Multiple Time Frames Yes
Charting – Drawings Autosave Yes
Forex Calendar Yes

2020 Review Methodology

For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers over a five month time period. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

“There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.” Learn more.

Trade Automatically With 10markets

Key to Markets is completely at your side, no matter what. We work hard to provide you with the best technology, services and spreads available on the market.

True ECN regulated broker

Trade with a regulated broker with branches in Auckland(NZ),London(UK) and Dubai(UAE)

Our Group

Last year our customers traded $14 Bn on the physical energy markets and $20 Bn on the Derivatives markets.

Segregated client Funds

Key to Markets client funds are held in segregated accounts with custodian banks.

Funding Methods

Our ECN Metatrader 4
on your favourite device

It doesn’t matter whether you are an Apple fan, a Windows supporter or a mobile trader:
Key to Markets brings ECN MT4 to your favourite Operating System as well as to your smartphones and tablets.

KEY TO MARKETS NZ Limited is a company registered in New Zealand under number 4472148 KEY TO MARKETS NZ Limited does not offer any services to residents of New Zealand, USA, Iran, North Korea and other countries where restrictions apply. For the full list of restricted countries please contact us. KEY TO MARKETS NZ Limited is wholly-owned and controlled by KEY TO MARKETS (UK) Limited.

KEY TO MARKETS (UK) Limited is a company registered in the United Kingdom and regulated by the Financial Conduct Authority (FCA register number 527809) and with the MiFID passport is able to carry on its business in all the European countries subject to MiFID regulations.

KEY TO MARKETS DMCC is a company registered in Dubai (UAE) – DMCC free zone under number DMCC95681 and regulated by the DMCC with trading license number DMCC-344359.

London (UK): Vicarage House – 58-60 Kensington Church Street – London, W8 4DB – United Kingdom
Auckland (NZ): Level 10, 21 Queen Street – Auckland, 1010 – New Zealand
Dubai (UAE): Unit 2725, DMCC Business Centre Level 1, Jewellery and Gemplex 3, Dubai, United Arab Emirates

Risk warning and disclosure

Trading in Margined Foreign Exchange carries a high level of risk to your capital and is subject to rapid and unexpected price movements. A key risk of leveraged trading is that if a market moves against your position you can incur additional liabilities far in excess of your initial margin deposit. Only speculate with money you can afford to lose. The products listed on this website may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary. Nothing on Key to Markets’ websites, emails or any other form of communication or advertisement is intended to be a recommendation to buy or sell in any financial derivative markets. No representation, implicit or explicit, has been made that any account will or is likely to realize any particular profit or loss.

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