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Markets.com

Offers five ways to trade: Forex, Shares, Indices, Commodities, ETF and CFD

 
Markets.com
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Trust Score:

B

Established in:

2008

Regulated by:

CySEC, Financial Services Boar...

CFDs are leveraged products and can result in the loss of your capital. Rankings are influenced by affiliate commissions. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For CAC 40

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose Markets.com
For CAC 40?

Markets.com scored best in our review of the top brokers for cac 40, which takes into account 120+ factors across eight categories. Here are some areas where Markets.com scored highly in:

  • 9+ years in business
  • Offers + instruments
  • A range of platform inc. MT4, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 2.0 pips
  • Used by + traders
  • Allows hedging
  • 5 languages
  • Leverage up to 100:1

Markets.com offers five ways to trade: Forex, Shares, Indices, Commodities, ETF and CFD. If you wanted to trade CAC40 through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

Markets.com have a B trust score, which is good. This is largely down to them being regulated by CySEC, Financial Services Board, segregating client funds, being established for over 9 years, and much more. For comparison:

Trust Score comparsion

Markets.com
Trust Score B
Year Established 2008
Regulated by CySEC, Financial Services Board
Uses tier 1 banks
Company Type Public Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who Markets.com is (& Isn’t)
Suitable For

As mentioned, Markets.com allows you to trade in five ways: Forex, Shares, Indices, Commodities, ETF and CFD.

Suitable for:

  • CFD Trading
  • Forex Trading

Not Suitable for:

To trade with Markets.com, you'll need a minimum deposit of $100. Markets.com offers a range of different account types for different traders including a mini account, vip account.

Finally, Markets.com isn't available in the following countries: AF, DZ, AS, AO, AU, BE, BA, BR, KH, CA, CN, CU, KR, GU, GY, HK, ID, IR, IQ, IL, JP, LA, MO, MY, MM, NZ, MP, PA, PG, PH, PR, RU, SG, KR, SD, SY, TW, TH, TR, UG, VI, VU, USA, VN, YE.

Part 3

A Comparison of Markets.com vs. vs.


Want to see how Markets.com stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
Markets.com
Fixed Spreads
Variable Spreads
EUR/USD Spread 2.0
GBP/USD Spread 2.0
DAX Spread 2
FTSE 100 Spread 2
S&P500 Spread 1

Comparison of account & trading features

Markets.com
Spread type Fixed
EUR/USD Spread 2008
EUR/GBP Spread CySEC, Financial Services Board
Crude Oil Spread
Gold Spread Public Private Private
DAX Spread

Part 4

The CAC 40 Index

The CAC 40 (Cotation Assistée en Continu 40) is a market index that tracks the performance of the 40 largest, most actively traded companies on the Euronext Paris exchange (previously known as the Paris Bourse). It is one of the most influential and well-known indices in Europe.

The CAC 40 index was founded on the 31st of December 1987 and is currently operated and compiled by Euronext NV, a financial services company providing market solutions and serving as a marketplace. This pan-European group operate exchanges in Paris, Brussels, Amsterdam, and Lisbon.

The CAC 40 is weighted according to free float adjusted market capitalisation, which means that larger companies within the index carry more weight than those with smaller market caps. A free float weight is used to ensure the shares included in the calculation are tradeable.

A broad range of industries representing much of the French economy are included in the CAC 40. The index is therefore widely used as a means to gauge economic growth as well as investor confidence. Just some of the sectors represented include banks, healthcare, oil & gas, construction & materials, food & beverage, and technology, amongst others.

Companies listed on the CAC 40

Components are selected from stocks listed on the regulated Euronext Paris stock exchange. Only one listing is accepted per company, and companies must fulfill certain criteria regarding their trading form, trading currency (which should be Euros) and classification, for example. Employing a high proportion of French citizens and high trading volumes also serve as positives when entry is being considered.

The Independent Conseil Scientifique oversee the index and hold quarterly reviews of its composition on the third Friday in March, June, September, and December, as well as annual reviews in September.

Top ten current components by weight:

Company Cnty Sector (ICB) Weight (%)
TOTAL FR Oil & Gas 9.1
SANOFI FR Health Care 8.59
BNP PARIBAS ACT.A FR Banks 6.26
LVMH FR Personal & Household Goods 5.39
AXA FR Insurance 4.11
L’OREAL FR Personal & Household Goods 4.06
AIR LIQUIDE FR Chemicals 3.72
AIRBUS FR Industrial Goods & Services 3.69
VINCI FR Construction & Materials 3.54
DANONE FR Food & Beverage 3.44

 

Source: Euronext CAC 40 Factsheet June 2017

How is the value of the CAC 40 derived?

The CAC 40 index is a free float market capitalisation index, with the total market value of all the available shares determining the index weight for each company. The index value at the time of calculation is arrived at by taking the number of equities comprising the index, the number of shares of the equities included in the Index, the free float factor of the equities, a capping factor – which ensures that no individual component has more than a 15% weight, and the price of the equity. These elements are incorporated into a formula to calculate the value against a base value of 1000, using a base date of 31st December 1987.

How to trade the CAC 40

Indices differ from stocks in the fact that they can not be traded directly. They can, however, be traded using a number of instruments such as Exchange Traded Funds (ETFs), futures contracts and Contracts for Differences (CFDs). These products are offered by brokers as products that use the CAC 40 as their underlying instruments. Their price is therefore affected by movements in the index.

Advantages of trading CAC 40 as a CFD

As the trader does not need to take ownership of any stocks, this is an easy and convenient way to trade the companies that comprise the index. Also, the risk is spread across many companies which can also serve as a buffer, potentially reducing the volatility that can be present when trading a single stock.

Generally speaking, brokers will not charge a commission for a CFD, and will instead obtain compensation for their services through the spread.

As an example, when placing a buy order in the France 40 CFD from London Capital Group, which uses the CAC 40 index as the underlying, a minimum contract value can be calculated as follows: (Minimum spread of 1) x (minimum trade size 0.1 lot) x (value of one lot of €10) x price of stock at time of buying – in this case, 5128.4) x Margin requirement of 0.40%) = €20.51.

*All information collected from LCG as at 20:30, 29th July 2017. Please refer to the LCG website for full terms and conditions.

In contrast, when taking a buy order of the France 40 CFD from IG, a minimum contract value would be as follows: (Minimum spread of 1) x (minimum trade size 0.1 lot) x (value of one lot of €10) x price of stock at time of buying – in this case, 5134.2) x Margin requirement of 0.40%) = €20.54.

*All information collected from IG Markets as at 20:30, 29th July 2017. Please refer to the IG website for full terms and conditions.

Summary

In conclusion, the CAC 40 is one of the world’s most recognised indices, and represents the top companies in France by market capitalisation, and covering all sectors. For traders wishing to increase their exposure to the index using leverage, CFDs can be an appropriate product. It is important to be aware, however, that leverage can also amplify losses. Regulated brokers such as London Capital Group (LCG) and IG Markets provide traders with access to a variety of different underlying instruments on a single platform.


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