CMC – Are They a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
CMC - DO NOT TRADE WITH THIS PROVIDER
2.5/10
$100
Minimum Depositupdated 2023
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-trader.com
Founded: 2023
Regulations: None
Languages: English, German
Deposit Methods: Bitcoin, Visa, MasterCard, Wire Transfer
Minimum Deposit: $250
Free Demo Account: Unavailable
Number of Assets: 500+
Types of Assets: Forex, Indices, Crypto, Stocks, Commodities
Trading Accounts and Conditions
CMC offers their clients 4 different types of trading accounts:
- Standard: For the Standard Account, the minimum deposit is $250. The minimum spreads for this account are 1.5 pips, and the maximum leverage is 1:200. There is an up to 30% bonus.
- Silver: For the Silver Account, the minimum deposit is $5,000. The minimum spreads are also from 1.5 pips, and the maximum leverage is increased to 1:300. The bonus is up to 50%.
- Gold: For the Gold Account, the minimum deposit is $10,000. The minimum spreads are from 0.8 pips, and the maximum leverage goes up to 1:400. The bonus is up to 70%.
- VIP: For the VIP Account, the minimum deposit is $50,000. The minimum spreads are from 0.0 pips, and the maximum leverage is 1:500. The bonus is up to 100%.
Other trading conditions such as commissions, order execution methods and so on are missing.
CMC – Advantages
We could not find anything positive to say about CMC since all our investigations into this broker has revealed that they are a scam.
CMC – Disadvantages
Given below are all the reasons why CMC is a scammer and therefore not a broker that traders should trust:
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Unregulated and Blacklisted
The first indication that a broker cannot be trusted is their lack of regulation.
If the broker is legitimate, they will make sure all information that proves their legitimacy is presented on their website: their company information (name, location, contact information) as well as their regulation information (registration or license number, the name of the regulator, location).
With CMC, we see there is a distinct lack of most of this information. The broker tells us that the company that operates their website is called CMC Trader Ltd and that they are authorized by the German regulator, BaFin (Federal Financial Supervisory Authority). The broker also provides us with a registration number. However, the telephone number provided is a UK-based number.
We checked the BaFin’s online database to verify CMC’s claims and we found out that this broker has been blacklisted by the German regulator for operating illegally in their jurisdiction. In fact, the regulator stated clearly that this broker is a scammer and in all probability a clone firm – one that steals a legitimate firm’s identity and passes it off as their own.
When a highly reputed regulator such as the BaFin brands a broker a scammer, there is no other proof necessary. CMC is a scammer.
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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No Legal Documents
If the BaFin’s warning does not satisfy traders, then here is more proof of CMC’s scam. This broker has no legal documents. Legal documents are necessary as they are what constitute the contract between traders and brokers. These documents detail what the services a broker offers, under what terms these services are offered, what the cost of those services are, and what policies are adopted by the broker for these services.
Traders need to take the time to go through these legal documents and find out what they can and cannot get from that broker. If these documents are missing, traders can be scammed easily as the brokers can do what they like with the traders’ money as well as personal information.
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Issues with Trading Platform
CMC claims that they have their in-house trading platform – an award-winning one at that. However, these claims are unsubstantiated; this broker has not been awarded any prizes for the quality of their trading platform.
CMC claims to offer a demo platform so that you can check out their software and trading conditions before you invest with them. However, there is a demo platform, but you cannot do anything with it. It is just for show.
Furthermore, we were unable to access their live trading platform as we could not complete the registration process. The broker demands that we make an initial deposit before we will be allowed to access their trading platform.
The fact that CMC will not allow you to even view their platform before you deposit money with them is a huge red flag. This is another clear sign of this broker’s scam.
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Issues with Trading Conditions
We can also tell that CMC is a scammer just by looking at their trading conditions.
Legitimate brokers ensure that all trading conditions are clearly spelled out on their websites. With scammers, trading conditions are missing, skewed, incomplete or exaggerated.
CMC’s minimum deposit is $250, which, today, is rather on the higher side. There are so many great brokerages available today that allow account openings for as little as $10.
Next, the spreads at 1.5 pips look really good. And this broker claims that there are no commissions. However, we could not check these spreads for ourselves on their live platform, so we have to take this claim with a pinch of salt.
The leverage is a dead giveaway of a scam. Germany – which is where this broker claims to be based – is a part of the EU, and all EU member nations are limited on how much leverage their brokers can offer, which is 1:30. So a leverage of 1:500 is illegal – not to mention extremely risky.
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Issues with Payments
On their website, this broker shows us logos of Visa, MasterCard, Bitcoin and Wire Transfer. In their FAQs the broker states they accept debit/credit cards, wire transfers and some e-wallets. This lack of consistency on what is offered is a red flag.
This broker also does not tell us what their withdrawal policy is, which is another cause for concern.
Conclusion
CMC is another scammer that should not be trusted at all. Traders will lose their funds if they invest with this broker.
CMC
Pros
- None
Cons
- Unregulated and Blacklisted
- No Legal Documents
- Issues with Trading Platform
- Issues with Trading Conditions
- Issues with Payments
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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