Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.

BrokerDNA

The BROKERDNA score tells you, overall, how reputable, suitable, and affordable a broker is compared to other brokers.

This score is algorithmically-generated based on 31 factors. Neither our team, nor the brokers featured on our site, are able to change this without changing their service offering. Learn more here.

CMC Markets
9 /10

The BROKERDNA score tells you, overall, how reputable, suitable, and affordable a broker is compared to other brokers.

This score is algorithmically-generated based on 31 factors. Neither our team, nor the brokers featured on our site, are able to change this without changing their service offering. Learn more here.

VISIT CMC MARKETS
London Capital Group
9.8 /10

The BROKERDNA score tells you, overall, how reputable, suitable, and affordable a broker is compared to other brokers.

This score is algorithmically-generated based on 31 factors. Neither our team, nor the brokers featured on our site, are able to change this without changing their service offering. Learn more here.

VISIT LONDON CAPITAL GROUP
AvaTrade
9.7 /10

The BROKERDNA score tells you, overall, how reputable, suitable, and affordable a broker is compared to other brokers.

This score is algorithmically-generated based on 31 factors. Neither our team, nor the brokers featured on our site, are able to change this without changing their service offering. Learn more here.

VISIT AVATRADE
About

CMC Markets is regulated by the Financial Conduct Authority, NFA and ACN. CMC Markets have provided Forex trading services since 1989.

London Capital Group is regulated by the Financial Conduct Authority. London Capital Group have provided Forex trading services since 1996.

AvaTrade is regulated by the Central Bank of Ireland, ASIC (Australia), FSA (Japan), FSB (South Africa) and BVI. AvaTrade have provided Forex trading services since 2006.

Why choose them?
  • Yes Over 29 years in business
  • Yes Segregates clients funds
  • Yes Regulated by Financial Conduct Authority
  • Yes Over 22 years in business
  • Yes Segregates clients funds
  • Yes Regulated by Financial Conduct Authority, CIMA, and CySEC
  • Yes Over 12 years in business
  • Yes Segregates clients funds
  • Yes Regulated by Central Bank of Ireland, ASIC, FSA, FSB and BVI
Headquarters London, UK London, UK Dublin, Ireland

TRADING SERVICES OFFERED

Spot Forex Yes Yes Yes
Forex (CFD) Yes Yes Yes
CFD Yes Yes Yes
Spread Betting Yes Yes Yes
Social Trading No No Yes
MARKETS & INSTRUMENTS
Forex (currency pairs) 32 66 59
Commodities Offered 0 10 16
Stocks Offered 9000 99
Bitcoin No No Yes
Majors Yes Yes Yes
Indices Yes Yes Yes
US Stocks Yes Yes Yes
Penny stocks No No No
Energies Yes Yes Yes
Metals Yes Yes Yes
Agriculturals Yes Yes Yes
FTSE No Yes Yes
Dow Jones No Yes Yes
Dax Yes Yes Yes
Nikkei No Yes Yes
ETFs No Yes Yes
IPO No No Yes
See all instruments

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

See all instruments

79% of retail investor accounts lose money when trading CFDs with this provider

See all instruments

71% of retail investor accounts lose money when trading CFDs with this provider.

PLATFORM & FEATURES

See the platforms and features offered by each broker

Screenshot image image image
MT4 No Yes Yes
MT5 No No Yes
MT4 Mac No No Yes
WebTrader Yes Yes Yes
Mirror Trader No No Yes
ZuluTrade No No Yes
Sirix No No No
cTrader No No No
PAMM Yes No No
Custom Platforms Next Generation LCG Trader AvaTradeAct, AVAOptions

APPS

iOS image Yes Yes Yes
Android image Yes Yes Yes
Windows image No No No
Available Languages

English, German, French, Polish, Spanish, Swedish, Italian, and Norwegian

English, Russian, Malaysian, Korean, Swedish, German, French, Indonesian, Turkish, Norwegian, Chinese, Italian, Arabic, Portuguese, Spanish, Polish, Thai, and Vietnamese

English, Italian, German, French, Greek, Hebrew, Spanish, Arabic, Malay, Russian, Chinese, Portuguese and Dutch

See platform & features

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

See platform & features

79% of retail investor accounts lose money when trading CFDs with this provider

See platform & features

71% of retail investor accounts lose money when trading CFDs with this provider.

ACCOUNT INFORMATION

From micro accounts to ECN accounts, compare the accounts offered by CMC Markets and London Capital Group

Demo account Yes Yes Yes
Mini account Yes Yes Yes
Micro account No No Yes
Standard account Yes Yes Yes
ECN Account No Yes No
Islamic account No Yes Yes
Zero spread account No Yes No
VIP account No Yes Yes
Fixed spreads No No Yes
Variable spreads Yes Yes Yes
See account options

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

See account options

79% of retail investor accounts lose money when trading CFDs with this provider

See account options

71% of retail investor accounts lose money when trading CFDs with this provider.

TRADING CONDITIONS

Scalping Yes Yes Yes
Hedging Yes Yes Yes
Expert advisors (EAs) No Yes Yes
Virtual private server No No No
Direct market access No No Yes
STP broker No Yes No
Market maker Yes Yes Yes
Min trade Varies £0.50 0.01 Lot
Max trade Varies None None
Min deposit $200 $0 $100

RISK MANAGEMENT

Stop losses Yes Yes Yes
Limit orders Yes Yes Yes
One-click trading Yes Yes Yes
Trailing stops Yes Yes Yes
Price alerts Yes Yes Yes
Signal trading Yes No Yes

FUNDING METHODS

Credit card Yes Yes Yes
Bank transfer Yes Yes Yes
Standard account Yes Yes Yes
Paypal No No Yes
Neteller No Yes Yes
Skrill No Yes Yes
Payment processing time 1-5 business days Varies Varies
Withdrawal processing time 1-2 business days Varies Varies
See all funding options

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

See all funding options

79% of retail investor accounts lose money when trading CFDs with this provider

See all funding options

71% of retail investor accounts lose money when trading CFDs with this provider.

DETAILED INFO

Excluded countries US, CA, NZ, JP, BE US, CA, NZ, JP, BE BE,BR,NZ,US,KE,IN,GH
Contact email Send Email Send Email Send Email
Phone number +1300 303 888 44 (0) 207 456 7020 (44) (0) 8005200423
Live Chat No Yes Yes
Website https://www.cmcmarkets.com www.LCG.com http://www.avatrade.com/
Spreads:
EUR/USD (Average: 0.7 pips) 0.7 pips + $0.00 0.75 pips + $1.00 0.9 pips
GBP/USD (Average: 1.1 pips) 0.9 pips + $0.00 1.2 pips + $1.00 1.6 pips
USD/JPY (Average: 1.1 pips) 0.7 pips + $0.00 0.85 pips + $1.00 1.1 pips
AUD/USD (Average: 0.8 pips) 0.9 pips + $0.00 0.8 pips + $1.00 1.1 pips
USD/CHF (Average: 2.3 pips) 1.5 pips + $0.00 1.9 pips + $1.00 1.6 pips
USD/CAD (Average: 2.9 pips) 1.7 pips + $0.00 1.2 pips + $1.00 2.0 pips
NZD/USD (Average: 3.6 pips) 2.0 pips + $0.00 1.8 pips + $1.00 1.8 pips
EUR/GBP (Average: 2.4 pips) 1.1 pips + $0.00 1.1 pips + $1.00 1.5 pips
View all spreads

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

View all spreads

79% of retail investor accounts lose money when trading CFDs with this provider

View all spreads

71% of retail investor accounts lose money when trading CFDs with this provider.

FEES

Inactivity Fee Yes No No
Commission Yes, 0.10% Yes (0.1% - 0.25%) No
Deposit Fee Varies No No
Withdrawal Fee Varies No No
View All Fees

78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider

View All Fees

79% of retail investor accounts lose money when trading CFDs with this provider

View All Fees

71% of retail investor accounts lose money when trading CFDs with this provider.

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Last update

All information collected from https://www.cmcmarkets.com. Last updated on 01/12/2019.

All information collected from www.LCG.com. Last updated on 01/12/2019.

All information collected from http://www.avatrade.com/. Last updated on 01/12/2019.

Company

CMC Markets were founded in 1989 and are one of the leading CFD and spread betting providers. The main differentiator about CMC Markets is their bespoke award-winning trading platform. CMC Markets also offer very reasonable spreads and offer a wide range of instruments.

For more information about trading with CMC Markets, we have put together an indepth CMC Markets review with all the pros and cons about this broker.

London Capital Group is an online forex trading service provider who are regulated by the Financial Conduct Authority. To open an account with London Capital Group, minimum deposits start from No minimum, except for $10,000 for ECN and premium accounts respectively.

With London Capital Group you can trade Forex, indices, shares, commodities, bonds and interest rates. If you like to trade on the go, London Capital Group have iPhone, iPad and Android apps so you can trade from anywhere on your phone.

London Capital Group offer LCG Trader, MT4 platforms to make your trades and support 1 different languages.

The spreads offered by London Capital Group for the most popular instruments are:
0.95 EUR/USD, 1.0 FTSE 100, 0.4 GOLD,
1.8 GBP/USD, variable DOW/JONES, 4.0 Crude Oil,
see all the spreads here.

For more information about trading with London Capital Group, we have put together an indepth London Capital Group review with all the pros and cons about this broker.

Since 2006, Avatrade have attracted over 20,000 traders to their platform. While their spreads are not the most competitive, they do offer traders a range of great features, such as guaranteed stop losses, the ability to hedge / scalp, and low margins.

For more information about trading with AvaTrade, we have put together an indepth AvaTrade review with the pros and cons about this broker.

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Popular comparisons feat. London Capital Group

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CMC Markets or London Capital Group?

A wide range of instruments or access to MT4?

If you’re a trader looking for a broker that offers a wide variety of instruments to trade, CMC Markets is likely the better option out of these brokers. However, if you want a broker that offers MetaTrader4 as a trading platform, London Capital Group may be more suitable.

Which broker is more reliable?

You can determine a broker’s reliability & trustworthiness by looking at eight factors:

  • Who are they regulated by?
  • How long have they been around for?
  • Do they hold your money in a separate bank account?
  • Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?
  • Have they been fined or penalised in the last five years?
  • The popularity of their service/website
  • Are they publicly listed?
  • Where are they located?

Based on these eight factors, we consider CMC Markets to be the more reliable broker. We’ve broken down why below:

Who are they regulated by?

CMC Markets is regulated by Financial Conduct Authority, while London Capital Group is regulated by Financial Conduct Authority, CIMA, CYSEC.

As the Financial Conduct Authority are one of the most stringent regulators in the world, both CMC Markets and London Capital Group will have very strict guidelines to follow to ensure they protect their retail trader clients.

AvaTrade are regulated by Central Bank of Ireland, ASIC, IIROC, FSA, FSB, UAE and BVI

How long have they been around for?

If a broker has been around for a long period of time, they’re likely to be more reliable (in comparison, most scam brokers only exist for several years before they disappear).

This also suggests that a broker has good risk management processes that have prevented them being caught out by major financial events, as was the case with Alpari UK going bust when they were there was a policy reversal of capping the Swiss Franc against the Euro.

CMC Markets has been around for 30 years, while London Capital Group have been around for 23 years. Our third alternative broker, AvaTrade, have been around for 13 years.

Do they hold your money in a separate bank account?

You wouldn’t want your broker paying their staff out of the same bank account account that you’re depositing your trading funds into, would you?

Fortunately, all regulated brokers must use segregated bank accounts to hold client money. This is one of the reasons why we only feature regulated brokers here on BrokerNotes.

All three brokers above will hold your money in a separate bank account.

Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?

Most tier-1 banks like Barclays and HSBC have been around for over 100 years and manage trillions of dollars of assets, proving that they have stood the test of time.

Both CMC Markets and London Capital Group use tier one banks, but we are not sure of which bank specifically.

Have they been fined or penalised in the last five years?

If a broker has been penalised by a regulator in the past five years, it may mean that they were caught doing something they shouldn’t be doing - which may be of concern to you as an end client.

We’re not aware of any penalties or fines imposed by regulators on CMC Markets or London Capital Group in the past five years.

How popular is their service/website?

While not always the case, the number of traders a broker has can be a good metric for understanding how reputable a brokers is.

Are they publicly listed?

Companies that are publicly listed on a stock exchange tend to be considered more reputable as they will be required to disclose their financials, and aspects of their operations, to the public.

Both CMC Markets and London Capital Group are public limited companies.

Where are they located?

Most reputable brokers tend to be headquartered in a major capital city or a financial hub such as Cyprus.

Both CMC Markets and London Capital Group are based in London, UK .

Do they offer the features you need?

Assuming the brokers you’re choosing between are reputable, the next point to consider is whether they offer all of the features you require to trade.

This can be broken down into three categories:

  • Services & instruments
  • Platforms & account types
  • Trading features, risk management tools & funding methods

Services and Instruments

If you’re looking to trade currency pairs, both CMC Markets and London Capital Group offer forex trading. London Capital Group have a slightly larger variety of currency pairs with 66 pairs, compared to 32 offered by CMC Markets. Also, if you’re looking to trade cryptocurrencies,

Both CMC Markets and London Capital Group allow you to trade commodities like gold, silver and crude oil.

Platforms & Account Types

In addition to the platform, you’ll also want to ensure that the broker you choose offers the account type best suited to your needs. London Capital Group, for example, offer a mini account, standard account and VIP account.

Trading features, risk management tools & funding methods

If you have a certain trading style (e.g. scalping, hedging, or using EAs), you’ll want to double check that the broker you choose allows this, as not all of them do.

CMC Markets does allow scalping and hedging. While London Capital Group also allows scalping and hedging. You can't trade with EAs (expert advisors) on CMC Markets but you can trade EAs (expert advisors) with London Capital Group.

In terms of risk management tools, CMC Markets doesn't offer negative balance protection, but London Capital Group does. Negative balance protection prevents you owing your broker more than you’ve deposited.

CMC Markets also offer stop losses, limit orders, and price alerts to help you automate aspects of your trading strategy.

CMC Markets accept Payoneer while London Capital Group accept Neteller.

Are they affordable for what you need?

Comparing the fee structures of different brokers can be a minefield at times. The important thing to consider is what the spreads & fees are on the specific instruments and account type that you will be using.

For trading EUR/USD, CMC Markets charges 0.70 points, while London Capital Group charges 0.30 points. Therefore, London Capital Group is the more affordable for this instrument. If you want to compare their spreads across more instruments, You can jump back up to our comparison of their currency pair & indice spreads above.

Another consideration is whether or not your broker charges inactivity, deposit/withdrawal fees, or commissions on trades. If you’re a frequent trader, inactivity fees are unlikely to be an issue.

The Verdict: CMC Markets or London Capital Group?

There’s no such thing as a perfect broker, but some are going to be a better fit for you than others.

Objectively, CMC Markets is more reliable based on our criteria above. CMC Markets has a wider range of instruments to trade. London Capital Group offer lower spreads on popular forex instruments like EUR/USD and are used by more traders.

Both brokers offer demo accounts, allowing you to test their platforms to see which is suitable for you. You can test drive their demos using the links below:

Finally, if you’re really not sure you can always use our free tool (takes 15 seconds) that will help you find a suitable broker based on your precise requirements here.