Is CMC Markets Safe? Security & Trustworthiness
Fact Checked
How we test
At The Investors Centre, we pride ourselves on our rigorous fact-checking process. To delve deeper into our meticulous testing procedures and discover how we ensure accuracy and reliability, visit our dedicated page on how we test.
Risk Warning
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Updated 19/03/2025
If you are thinking about trading with CMC Markets, I understand why safety is your top concern. Over the years, I have tried multiple brokers, and if there’s one lesson I’ve learned, it’s that not all trading platforms are created equal. Some look great on the surface but lack the security and oversight needed to truly protect your funds and data.
CMC Markets, however, stands out as one of the more trustworthy brokers I’ve used. But don’t just take my word for it—let’s break down its regulatory status, fund protection policies, and security measures so you can decide for yourself if it’s the right choice.
Quick Answer: Is CMC Markets Safe?
Yes, CMC Markets is a safe and regulated broker. It is licensed by top-tier authorities like the FCA, ASIC, and IIROC, offers segregated client funds, negative balance protection, and strong cybersecurity measures, making it a trusted choice for traders worldwide.
Featured Platform - CMC Markets
- Advanced Analytics
- Diverse Assets
- Award-Winning App
70% 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.
Why is Choosing a Safe Broker is Essential?
I have seen traders jump into the markets without checking if their broker is regulated or financially stable—big mistake. Without proper safeguards, your money could be at risk if the broker goes under or engages in shady practices.
From my experience, the best brokers are the ones that:
✅ Are regulated by reputable financial authorities
✅ Keep client funds separate from their own
✅ Offer strong security measures against cyber threats
✅ Provide clear risk protections
CMC Markets ticks all these boxes, which is why it’s worth taking a closer look.
CMC Markets Safety Overview
Here’s a quick snapshot of CMC Markets’ safety and trustworthiness:
| Factor | Details | CMC Markets' Safety Rating |
|---|---|---|
| Regulation & Licensing | CMC Markets is regulated by multiple top-tier financial authorities, including the FCA (UK), ASIC (Australia), IIROC (Canada), MAS (Singapore), and BaFin (Germany). These regulators enforce strict compliance and financial oversight, ensuring the broker operates fairly. | ✅ Strong regulatory oversight |
| Client Fund Protection | CMC Markets follows segregated client fund rules, meaning traders' deposits are kept separate from company funds. In the UK, EU, and Canada, compensation schemes like FSCS (£85,000) and CIPF (CAD 1 million) protect eligible traders in case of insolvency. | ✅ Funds stored securely with top-tier banks |
| Security Measures | CMC Markets implements high-level cybersecurity protections, including SSL encryption, Two-Factor Authentication (2FA), anti-fraud measures, and regular security audits to protect personal and financial data. | ✅ Advanced cybersecurity protection |
| Company Reputation | Established in 1989, CMC Markets has been in the industry for 35+ years and is publicly listed on the London Stock Exchange (LSE: CMCX), ensuring financial transparency. It serves 1 million traders and investors worldwide. | ✅ Long-established, financially stable |
| Negative Balance Protection | Retail traders are protected from losing more than their initial deposit through negative balance protection, which is required under FCA and EU regulations. However, professional traders do not receive this protection. | ✅ Available for retail traders |
| Past Security Breaches | CMC Markets has never suffered a major hack, data breach, or cyberattack. They have a strong track record in platform security and regularly update their systems to prevent fraud and unauthorised access. | ✅ No reported incidents |
Now, let’s get into the regulation side of things, because that’s the foundation of any broker’s trustworthiness.
Is CMC Markets a Safe, Regulated and Legitimate Broker?
Short Answer: Yes. And Here's Why.
One of the first things I check before signing up with a broker is who regulates them. If a broker isn’t licensed by a top-tier regulator, that’s usually a red flag.
Thankfully, CMC Markets is one of the most heavily regulated brokers worldwide. It operates under strict oversight from multiple financial authorities, which means they have to follow strict financial laws, transparency requirements, and risk management protocols.
Regulatory Oversight
CMC Markets holds licenses from some of the most respected regulatory bodies in the world:
CMC Markets’ Regulatory Licenses
| Regulator | Country/Region | License Number | Client Protection & Key Regulations |
|---|---|---|---|
| Financial Conduct Authority (FCA) | United Kingdom | 173730 | FSCS protection up to £85,000 per client in case of broker insolvency. FCA-regulated brokers must segregate client funds, provide clear risk disclosures, and adhere to strict trading practices. |
| Australian Securities and Investments Commission (ASIC) | Australia | 238054 | ASIC enforces strict financial compliance, ensuring that brokers operate with sufficient capital reserves and transparent risk policies. No compensation scheme is available, but client funds are held in segregated accounts. |
| Investment Industry Regulatory Organization of Canada (IIROC) | Canada | N/A | CIPF protection up to CAD 1 million per client in case of insolvency. IIROC-regulated brokers must comply with risk control measures and capital adequacy requirements to safeguard traders. |
| Monetary Authority of Singapore (MAS) | Singapore | CMS100917 | MAS regulates CMC Markets under the Securities and Futures Act, ensuring financial stability, transparent trading conditions, and risk management oversight. |
| Financial Markets Authority (FMA) | New Zealand | 41187 | The FMA oversees consumer protection, fair trading practices, and financial stability. CMC Markets must comply with New Zealand’s Financial Markets Conduct Act. |
| European Regulators (BaFin, CNMV, CONSOB, etc.) | Various EU countries | Varies by country | CMC Markets operates under MiFID II regulations, ensuring investor protection, transparency, and financial market stability across the European Economic Area (EEA). |
Why Does Regulation Matter?
I’ve seen traders sign up with unregulated offshore brokers, only to have their funds frozen or lost when the broker suddenly disappeared. This is why trading with a regulated broker like CMC Markets makes a huge difference.
✅ Ensures Transparency & Fair Trading – Regulators require brokers to publish financial statements and maintain fair trading conditions for clients.
✅ Protects Client Funds – Regulated brokers must hold client money in separate accounts, preventing misuse.
✅ Prevents Fraudulent Activity – Authorities regularly audit brokers to make sure they’re following ethical business practices.
Since CMC Markets is regulated by multiple financial authorities, I know I’m trading with a broker that is held to the highest standards of safety and fairness.
Now that we have established CMC’s legitimacy, let’s move on to how safe your money actually is when you trade with them.
How Safe Are Client Funds with CMC Markets?
When I’m choosing a broker, I want to know that if I deposit money into my account, it is protected—even if something goes wrong.CMC Markets does a great job of providing strong client fund protection, and I appreciate the level of transparency they maintain. Here’s how they keep user money safe.
What are Segregated Client Funds? – What This Means for You
One of the first things I checked before trading with CMC Markets was whether they keep client funds separate from company funds—and they do.
Your money is held in segregated accounts – This means CMC Markets can’t use your deposits for business expenses, investments, or operations.
Funds are stored with top-tier banks – This significantly reduces financial risk in the event of liquidity issues.
Strict regulatory oversight – Because they’re licensed by major financial authorities (like the FCA and ASIC), they have to follow strict client money protection rules.
I’ve seen cases where unregulated brokers misused client funds, leading to massive losses for traders. That’s not a risk with CMC Markets, thanks to these security measures.
What Happens if CMC Markets Goes Bust?
No one wants to think about their broker going out of business, but it is always smart to plan for worst-case scenarios. Thankfully, if CMC Markets ever became insolvent, traders may be eligible for compensation schemes, depending on where they’re based.
Investor Compensation Schemes by Region
| Region | Protection Scheme | Maximum Coverage | How It Protects Traders |
|---|---|---|---|
| United Kingdom (UK) | FSCS (Financial Services Compensation Scheme) | £85,000 per client | If CMC Markets becomes insolvent, eligible traders can claim up to £85,000 in compensation. Funds must be held in segregated accounts, ensuring they are not used for company operations. |
| European Union (EU) | Investor Compensation Scheme (varies by country) | €20,000 per client | Under MiFID II regulations, EU-based traders may be compensated up to €20,000 if CMC Markets fails. Each EU country has its own investor protection fund, which follows local financial regulations. |
| Canada | CIPF (Canadian Investor Protection Fund) | CAD 1,000,000 per client | Canadian traders using CMC Markets are protected under CIPF, which provides one of the highest coverage limits globally. It ensures traders can recover funds if the broker collapses. |
| Australia | No statutory protection | N/A | ASIC-regulated brokers like CMC Markets must hold client funds in segregated accounts, but there is no official compensation scheme for traders in case of insolvency. |
Key Takeaways:
- The UK and Canada offer the strongest compensation protection for CMC Markets traders.
- The EU provides moderate protection, but the compensation amount is significantly lower.
- Australian traders do not receive compensation, though fund segregation rules does help Traders mitigate risk.
If you’re in the UK, for example, and CMC Markets were to go under, you could be compensated up to £85,000 through the FSCS. That’s a big deal—it means your money is still protected even in extreme scenarios.
Overall, CMC Markets provides a high level of protection for traders’ money. The combination of segregated funds, top-tier banking partnerships, and investor compensation schemes makes me feel confident that my money is in safe hands.
Does CMC Markets Provide Negative Balance Protection?
Negative balance protection is one of those features you don’t think about until you really need it. If you are trading leveraged products like CFDs or forex, this can make or break your trading experience.
I’ve personally used leverage before, and while it can be a great tool to amplify gains, it can also wipe out your account faster than you expect if the market moves against you. That’s where negative balance protection comes in.
What Does Negative Balance Protection Do?
✅ Retail traders are protected – You can’t lose more than your initial deposit. If your balance goes negative due to high market volatility, CMC Markets will reset it to zero.
❌ Professional traders are NOT covered – If you qualify as a professional trader, you won’t get this protection, meaning you could owe more than you deposit.
Why Negative Balance Protection Matters
- Prevents traders from going into debt – You’ll never owe the broker money beyond what you’ve deposited.
- Critical for leveraged trading – Especially in fast-moving markets like forex and CFDs on indices or when trading commodities.
- Regulated in certain regions – In the UK and EU, regulators require brokers to offer negative balance protection to retail clients.
For retail traders, negative balance protection adds an extra layer of security. It means users can trade with confidence, knowing that even if the market turns against them, they won’t be left in debt to my broker.
If you plan on using leverage, this feature is a must-have, and it is great to see that CMC Markets provides it as a standard for retail accounts.
What Other Features Can I expect with my CMC Markets Account?
CMC Markets offers a flexible trading account with multiple base currencies like GBP, USD, EUR, AUD, and CAD, helping me avoid conversion fees.
There’s no minimum deposit, so traders can start with any amount. Once you sign up you can get access to commodities, forex, indices, shares, and more, plus risk management tools like negative balance protection and stop-loss orders. The platform is user-friendly, packed with advanced charting tools, and includes a demo account to practice before trading live.
How Secure Is CMC Markets Against Cyber Threats?
One of my biggest concerns when trading online is cybersecurity. In an age where data breaches and hacking attempts are all too common, CMC Markets has built a strong reputation for its robust security measures. I want to know that my personal and financial information is fully protected, and after using the platform, you can see they take cybersecurity very seriously.
What are the Security Features That Keep Your Data Safe?
There are a few key security features I always check when evaluating a broker, and CMC Markets passes with flying colors:
Two-Factor Authentication (2FA) – Every time I log in, I can add an extra layer of security with 2FA, making it much harder for unauthorised access.
SSL Encryption – All my data (from login credentials to financial transactions) is encrypted, reducing the risk of hacking attempts.
Regular Security Audits – CMC Markets follows strict compliance and security audits, ensuring that their platform remains safe from vulnerabilities.
Has CMC Markets Ever Been Hacked?
CMC Markets has never suffered a major security breach—which is a big deal in today’s digital age.
- They have a clean cybersecurity record
- They implement strict anti-fraud measures to detect and prevent suspicious activity.
- Their encryption and security protocols meet industry best practices.
After using CMC Markets myself, I can confidently say that it’s one of the most secure brokers out there. If you’re worried about cyber threats, this broker does a great job of protecting your account and funds.
Is CMC Markets a Trusted Broker?
When I’m choosing a broker, trustworthiness is just as important as security. After all, I’m not just handing over my money—I’m trusting them with my trades, withdrawals, and overall financial well-being.
CMC Markets’ Reputation & Track Record
There are a few key things I look at when judging whether a broker is trustworthy, and CMC Markets checks all the right boxes:
✅ Founded in 1989 – That’s over 35 years of experience, which is rare in the online trading world. Brokers that last this long usually have a solid reputation.
✅ Publicly Listed on the London Stock Exchange (LSE: CMCX) Publicly listed companies have to meet strict financial disclosure requirements.
✅ Millions of Traders Worldwide – A broker with a global presence and a large client base is usually doing something right.
How Does CMC Markets Compare to Other Brokers?
When I was deciding whether to use CMC Markets, I compared it to some of its biggest competitors:
CMC Markets vs. Other Brokers
| Feature | CMC Markets | IG | eToro | Trading 212 |
|---|---|---|---|---|
| Regulation & Licensing | FCA (UK), ASIC (Australia), IIROC (Canada), MAS (Singapore), BaFin (Germany), and more | FCA (UK), ASIC (Australia), FINMA (Switzerland), CFTC (US) | FCA (UK), CySEC (Cyprus), ASIC (Australia) | FCA (UK), FSC (Bulgaria) |
| Negative Balance Protection | Yes, for retail traders (required under FCA & EU rules) | Yes, for retail traders | Yes, for retail traders | Yes, for retail traders |
| Publicly Listed? | Yes, listed on the London Stock Exchange (LSE: CMCX) | Yes, listed on the London Stock Exchange (LSE: IGG) | No, privately held | No, privately held |
| Segregated Client Funds | Yes, funds held with top-tier banks and separated from company funds | Yes, follows FCA/ASIC regulations for fund segregation | Yes, client funds stored in segregated accounts | Yes, follows FCA rules for fund segregation |
| Asset Selection | Forex, CFDs, indices, commodities, shares, ETFs, bonds, cryptocurrencies | Forex, CFDs, shares, ETFs, indices, commodities, options, cryptocurrencies | Forex, CFDs, stocks, ETFs, crypto (limited selection) | Stocks, ETFs, forex, CFDs (fewer asset classes than others) |
| Minimum Deposit | $0 for CFD trading, varies for other account types | $250 minimum for most accounts | $10 minimum for real stock trading, $200 for CFD accounts | $1 minimum deposit |
| Trading Fees & Spreads | Competitive spreads on forex & CFDs, commission-free share trading | Low spreads but higher commission on some assets | Higher spreads, especially on forex and crypto | Commission-free stock trading, low spreads on CFDs |
| Platform & Technology | CMC Next Generation Platform + MetaTrader 4 | Proprietary IG trading platform + MT4 + ProRealTime | Web-based & mobile platforms, no MT4 support | Web-based & mobile app, no MT4 support |
Key Takeaways:
- CMC Markets is publicly listed, making them more transparent than other platforms, which are privately owned.
- CMC Markets offers more asset classes than other brokers, making them better suited for diversified traders.
- CMC Markets provides access to MetaTrader 4, which other brokers don’t
In my experience, CMC Markets is one of the most transparent and reliable brokers available. With strong regulatory oversight, decades of experience, and a commitment to security, it is easy to see why millions of traders trust them.
If trust and financial stability are important to you when choosing a broker, CMC Markets is definitely a top contender.
What Are the Risks of Trading with CMC Markets?
While CMC Markets is one of the safest brokers I’ve used, it’s important to remember that trading itself always carries risks. Even the most secure platform can’t protect you from market fluctuations or poor risk management.
Main Risks to Be Aware Of
Market Volatility – I’ve seen trades go from profit to loss in a matter of seconds. Market prices can swing dramatically, especially in forex and CFD trading.
Leverage Risks – Leverage is great when it works in your favor, but it can wipe out your account just as quickly if the market moves against you.
How CMC Helps Traders Manage Risk
One thing I appreciate about CMC Markets is that they provide several tools to help traders manage risk:
Stop-Loss Orders & Guaranteed Stops – These allow me to cap potential losses automatically.
Guaranteed stops come with a fee, but they ensure my trades close at the exact price I set—no slippage.
Educational Resources – CMC offers webinars, trading guides, and market analysis, which have helped me refine my strategies and make more informed decisions.
Demo Accounts – Before risking real money, I used CMC’s demo account to test the platform and practice trading without financial risk.
If you’re planning to trade, having a risk management plan is crucial. Even though CMC Markets is a secure and regulated broker, the responsibility of managing risk still falls on the trader.
What Fees and Costs can I expect at CMC Markets?
CMC Markets Fee Structure Overview
| Fee Type | Details | Typical Charges |
|---|---|---|
| Forex Trading Fees | Costs are based on spreads, which vary by currency pair and market conditions. No commission on forex trades. | EUR/USD: 0.7 – 1.0 pips |
| GBP/USD: 0.9 – 1.3 pips | ||
| CFD Trading Fees | No commission on indices, commodities, or forex CFDs. For stock CFDs, a commission applies. | UK Shares: 0.10% (min £9 per trade) |
| US Shares: $0.02 per share (min $10 per trade) | ||
| Overnight Holding Fees (Swap Fees) | Charged for holding positions overnight, based on interbank interest rates + broker markup. | Varies by asset and position size |
| Currency Conversion Fees | Applied when trading an asset in a currency different from the account’s base currency. | 0.50% per transaction |
| Inactivity Fee | Charged if an account is inactive for 12 months or more. | £10 per month |
| Deposit Fees | Most funding methods are free. | No charge for bank transfers, cards, and PayPal deposits |
| Withdrawal Fees | Standard withdrawals are free, but international bank transfers may have third-party charges. | No fee for most withdrawals |
| Bank wire transfers may incur charges |
CMC Markets Fee Structure Explained
CMC Markets offers a competitive and transparent fee structure, but traders should be aware of various costs associated with their trades. CMC Markets does not charge deposit fees, and most withdrawals are free, except for certain international bank transfers, which may incur third-party charges.
However, traders should be mindful of currency conversion fees (0.50%) when trading in a non-account currency, as well as inactivity fees if the account is dormant for 12 months or more.
Final Verdict: Should You Trade with CMC Markets?
So, after testing CMC Markets and analysing all its safety measures, would I recommend it? Absolutely. The platform is:
✅ Highly Regulated & Trustworthy – CMC is licensed by top-tier regulators like the FCA, ASIC, and IIROC, meaning they operate under strict financial laws.
✅ Strong Security Measures & Client Fund Protection – Segregated funds, SSL encryption, and negative balance protection for retail traders all contribute to a secure trading environment.
✅ No Major Security Breaches or Data Leaks – Unlike some brokers, CMC Markets has never been hacked or suffered major security failures.
Interested in trying CMC Markets? Open a free demo account and see if it suits your trading style.
CMC Markets is one of the most secure and reputable brokers out there. If safety, regulation, and transparency matter to you, it’s a solid choice for your trading journey.
Spread Betting & CFD Trading
- Advanced Analytics
- Diverse Assets
- Award-Winning App
70% 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.
FAQs
Yes, CMC Markets is regulated by top financial authorities, including the FCA (UK), ASIC (Australia), IIROC (Canada), and MAS (Singapore), ensuring strict compliance and trader protection.
Yes, retail traders are protected from losing more than their initial deposit through negative balance protection, but professional traders do not receive this coverage.
CMC Markets segregates client funds from company accounts, storing them with top-tier banks. UK and EU traders may also be eligible for compensation schemes like FSCS (£85,000) and CIPF (CAD 1 million).
No, CMC Markets has never experienced a major security breach. It uses SSL encryption, Two-Factor Authentication (2FA), and regular security audits to protect traders’ data and funds.
No, CMC Markets is transparent about its fees. While it offers commission-free trading on shares and forex, traders should be aware of spreads, overnight holding costs (swap fees), and currency conversion charges when trading assets in different currencies.
References
- Financial Conduct Authority (FCA) – Official registry confirming CMC Markets’ UK regulation
- Australian Securities and Investments Commission (ASIC) – CMC Markets’ regulatory status in Australia
- Investment Industry Regulatory Organisation of Canada (IIROC) – Details on CMC Markets’ Canadian oversight
- Monetary Authority of Singapore (MAS) – Compliance and regulation for Singapore-based traders
- CMC Markets Official Website – Broker transparency, security measures, and trading policies
- Trustpilot Reviews on CMC Markets – Real user feedback on safety, trading conditions, and customer service
Featured Blogs
Spread Betting & CFD Trading
70% 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.
