CMC Markets vs Interactive Brokers Comparison
Comparing forex brokers side by side is no easy task. For our 2022 annual forex broker review, we spent hundreds of hours assessing 39 forex and CFD brokerages to find the best forex broker. Let's compare CMC Markets vs Interactive Brokers.
Can I trust CMC Markets?
CMC Markets has a trust score of 99, giving it a "Highly Trusted" trust label.
- "Highly Trusted" (90-99) - These brokers are considered the most trustworthy firms in the industry. Simply put, we would not hesitate to open and fund an account with a Highly Trusted broker
- "Trusted" (80-89) - These brokers are reliable and trustworthy. "Trusted" firms are a solid choice, and may simply hold fewer regulatory licences or feature different corporate structures than those brokers that have earned our top Trust Score rating.
- "Average Risk" (70-79) - Average Risk brokers are firms we generally consider to be safe, but that may warrant a closer inspection before you open and fund a live trading account. At the least, we always encourage traders to check the regulatory licenses for Average Risk firms to verify that they are regulated in their own country of residence.
- "High Risk" (60-69) - High-risk firms should be scrutinized and carefully reviewed before opening an account. These forex brokers are – in most cases – operating without credible regulatory licensing, and likely have a history of legal or financial issues. Before considering an account with a high-risk firm, we recommend checking our country guides for your country of residence to see if a more trusted broker is available.
- "Do Not Trust" (<59) - We do not recommend opening an account of any kind with a broker that earns a “Do Not Trust” rating.
Can I trust Interactive Brokers?
Interactive Brokers has a trust score of 99, giving it a "Highly Trusted" trust label. Here's what each trust score label means:
What tier-1 jurisdictions is each broker regulated in?
Tier-1 regulators go above and beyond by requiring additional capital requirements, checking in on brokers more frequently, and putting brokers through a tougher screening process. Interactive Brokers is ASIC Authorised (Australia), IIROC Authorised (Canada), SFC Authorised (Hong Kong), CBI Authorised (Ireland), FSA Authorised (Japan), MAS Authorised (Singapore), FINMA Authorised (Switzerland), FCA Authorised (U.K.) and CFTC Registered (USA), while CMC Markets is ASIC Authorised (Australia), IIROC Authorised (Canada), MAS Authorised (Singapore), FMA Authorised (New Zealand) and FCA Authorised (U.K.).
What tier-2 jurisdictions is each broker regulated in? What about tier-3?
Tier-2 and tier-3 licenses are still important in evaluating the overall trustworthiness of forex brokers. As far as tier-2 licenses go, Interactive Brokers is NSE Authorised (India), while CMC Markets is DFSA / Central Bank Authorised (UAE). Both do not have CBRC Authorised (China), CySEC Authorised (Cyprus), ISA Authorised (Israel), CBR Authorised (Russia), FSCA Authorised (South Africa) and SEC Authorised (Thailand). When comparing tier-3 licenses unfortunately, neither CMC Markets nor Interactive Brokers are SCB Authorised (Bahamas), IFSC Authorised (Belize), BMA Authorised (Bermuda), FSC Authorised (British Virgin Islands), CIMA Authorised (Cayman Islands), FSC Authorised (Mauritius) and VFSC Authorised (Vanuatu). Both do not have VFSC Authorised (Vanuatu)..
Which broker offers more trading platforms?
Both CMC Markets and Interactive Brokers offer a Proprietary Platform and Desktop Platform (Windows). Both do not have cTrader, DupliTrade and ZuluTrade
Does CMC Markets offer MetaTrader? Does Interactive Brokers offer MetaTrader?
For MetaTrader CMC Markets provides MetaTrader 4 (MT4), while Interactive Brokers provides neither of these. If MetaTrader is a must for you, read our guides on the best MT4 brokers or best MT5 brokers. Both do not have MetaTrader 5 (MT5).
How do CMC Markets and Interactive Brokers differ in terms of minimum deposit? What about average spreads and funding options?
CMC Markets requires a minimum deposit of $0, while Interactive Brokers requires a minimum deposit of $0. From our testing we found CMC Markets offers spreads of 0.73 (August 2021), while Interactive Brokers offers spreads of 0.6 (From 09/25/21 - 10/02/21). Interactive Brokers supports Bank Wire (Deposit/Withdraw) for popular funding options, where CMC Markets supports Bank Wire (Deposit/Withdraw), Visa/Mastercard (Credit/Debit) and PayPal (Deposit/Withdraw). Both do not have Skrill (Deposit/Withdraw).
Which brokers offers more tradeable asset classes, CMC Markets or Interactive Brokers?
Interactive Brokers offers a more diverse selection of investment options than CMC Markets allowing you to trade Forex Trading, Trading - Forex or CFDs, Metals, Agriculturals, ETF and U.S. Stocks (CFD). Looking at total tradeable symbols, CMC Markets has 11927, compared to 7400 from Interactive Brokers.
Can I trade cryptocurrency with CMC Markets or Interactive Brokers?
Crypto trading is popular with forex traders. Most crypto assets are offered either as the underlying physical asset or as a CFD or other derivative — including spot forex contracts. In terms of trading physical cryptocurrency neither CMC Markets nor Interactive Brokers allow you to trade physical cryptocurrencies.
Who offers more research tools, CMC Markets or Interactive Brokers?
In terms of research and research tools Interactive Brokers gives traders the following tools: Daily Market Commentary, Stock Charts, Forex News (Top-Tier Sources) and Trading Central (Recognia). In comparison CMC Markets has the tools listed here: Autochartist, Daily Market Commentary, Stock Charts, Forex News (Top-Tier Sources), Trading Central (Recognia) and Social Trading / Copy Trading.
