CMC Trust – Are They Safe?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
CMC Trust - DO NOT TRADE WITH THIS PROVIDER
2.6/10
$100
Minimum Depositupdated 2024
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://cmc-trust.com
Founded: 2023
Regulations: None
Languages: English
Deposit Methods: Credit Cards, Debit Cards
Minimum Deposit: $10,000
Free Demo Account: None
Number of Assets: Not Specified
Types of Assets: Stocks, Indices, Commodities, Forex, Cryptocurrency
Trading Accounts and Conditions
CMC Trust offers their clients the following types of trading accounts:
- CMC Trust Standard: The minimum deposit is $10,000. Leverage is up to 1:100. Spreads are standard.
- CMC Trust +: The minimum deposit is $50,000. Leverage is up to 1:200. Standard spreads.
- CMC Trust Gold: The minimum deposit is $100,000. Leverage is up to 1:400. Gold spreads.
- Expert Account: Minimum deposit is $250,000. Leverage is up to 1:400. Expert spreads.
- Platinum Account: Minimum deposit is unspecified; contact broker for information. Leverage is up to 1:600. Platinum spreads.
CMC Trust – Advantages
There are no advantages to trading with CMC Trust.
CMC Trust – Disadvantages
Given below are all the issues we have found with CMC Trust. These issues clearly tell us that we are dealing with a scammer:
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Lack of Regulation
The first issue we can find with CMC Trust is their lack of regulation.
This broker gives an address in Zurich, Switzerland and the footer of their website. However, the broker does not give other details such as their contact numbers and email address. The only way to get in touch with this broker is via their Contact Us page form. Most importantly, the broker has not given any details whatsoever about their regulation status.
If a broker is based in Switzerland, then they need to be regulated by the country’s financial authority, the Swiss Financial Market Supervisory Authority, or FINMA. Checking whether a broker is regulated by a particular authority is a simple task. We simply need to check that authority’s online register of companies. If a broker is listed there, it means that they are appropriately regulated by that authority.
So, we checked the FINMA’s database, and came up empty-handed. This means that CMC Trust is not regulated by the FINMA at all. And since this broker has not mentioned any other regulation, we can assume that this broker is not regulated at all.
When a broker operates without permissions, they are scammers. And that makes them extremely unsafe. CMC Trust must be avoided.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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Poor Trading Platform
On their website, CMC Trust boasts of providing their customers with a trading platform that is so good that all types of traders – novice or professional – can use it and enjoy it.
The truth is far from this boast. When we checked their trading platform, we found out that this broker is offering their clients a basic, web-based trading software that has little functionality. You cannot do more than buy/sell a limited set of assets.
At this point, we need to point out that the only product a broker offers is their trading platform. Therefore, a legitimate broker will ensure that this software is of the best quality. This usually means offering their clients trading software such as the MetaTrader 5 platform. This platform, created by MetaQuotes is the best in the market today. It has a massive range of functions and a 3rd-party marketplace where you can get even more trading-related apps.
When a broker (like CMC Trust) compromises on the quality of their key product offering, then you know that they are scammers.
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Issues with Trading Conditions
Along with the product comes the service. In the case of forex brokers, the service is their trading conditions. These are the conditions brokers put in place for you to use their trading platform. Therefore, real brokers ensure that these conditions are not only fair to the themselves, but also to the traders – they create a win-win situation.
With CMC Trust, we once again see their scam. The minimum deposit this broker asks for is massive and completely unreasonable at $10,000. In comparison, some of the best forex brokers in the market ask for a simple $50 or less as a first deposit to open an account with them.
The leverage is much too high at a maximum of 1:600. High leverage is high risk. Using too high a leverage also means that you stand to lose a massive amount of money. This has happened quite frequently to the point where traders have gone bankrupt. To prevent such situations from arising, many authorities around the world have placed limits on how much leverage brokers in their jurisdictions can offer.
In Switzerland, which is a member of the European Union, that limit is set at 1:30. So, this massive leverage of 1:600 that CMC Trust offers is not only dangerous, it is illegal.
This broker does not specify what spreads they offer. The only way we found out was when we checked their trading platform. And a spread of 2.0 pips is too high and unfavorable for traders.
Other trading conditions such as commissions and order execution methods are simply not mentioned anywhere.
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Limited Payment Options
The only way that you can transaction with CMC Trust is via debit or credit cards. This limited payment option does not cater to the needs or even preferences of traders, which is another negative.
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Issues with Withdrawal Policy
If you wish to withdraw your money from your CMC Trust account, you are going to face a lot of challenges. First, you will be levied fees for withdrawals, but the broker doesn’t tell you how much.
And second, you need to meet a massive trading turnover target to be able to withdraw your funds. If you do not meet that target, then you will be charged a whopping 20% fee – over and above the withdrawal fees – before you will be allowed to take your money out of your account.
These practices are unfair and clearly point to CMC Trust’s scam.
Conclusion
CMC Trust is not a safe broker to deal with. This broker is a scammer.
CMC Trust
Pros
- None
Cons
- Lack of Regulation
- Poor Trading Platform
- Issues with Trading Conditions
- Limited Payment Options
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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