City Index Versus CMC Markets
CMC Markets is more technology-focused and is building a business that can provide data services and brokerage to institutions and other third parties as well as its individual traders. City’s focus is almost entirely on trading and making prices to its spread betting and CFD customers, areas which have stood it in good stead for several decades.
City may expand its products and services as it becomes further integrated into its new parent company Stonex.
In terms of choosing between City Index and CMC Markets the decsion will probably come down to their respective market coverage and products, and which of the two trading platforms chimes with you the most.
Both brokerages are aimed at clients at all stages of their trading journeys from newbies through to pros, though City’s educational offering is probably more approachable as far as novice traders are concerned.
Which trading platform has the best customer reviews?
CMC Markets has better customer reviews than City Index when ranked using the unique Good Money Guide multi-factor scoring system to assess and rank customer reviews. CMC Markets are the clear winner here both in terms of the average scores in our system and on key metrics such as the number of customer reviews posted and app store ratings. City Index comes second in 6 out of 7 of our multifactor criteria.
CMC Markets scores 4.50 in our Good Money Guide ratings compared to City Index‘s score of 3.0. CMC Markets mobile trading app has been reviewed 1200 times in the Apple app store and over 2000 times in the Google play store. The CMC Markets app scores 4.1 out of 5 in the app store and 3.1 out of 5 in Google play compared to scores of 3.9 and 3.1 out of 5 for City Index mobile app.
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Which trading platform offers the most markets?
City Index offers 33% more markets to trade for clients to trade than rivals CMC Markets. From the data in our broker matrix, we find that City Index offers the most trading instruments with 12,000 available to its customers versus just 9300 offered at CMC Markets. Though CMC does offer more commodity markets, with 33 markets available compared to City Index’s 25. CMC Markets offers 22 equity index instruments compared to CityIndex’s 21.
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Which trading platform offers the most platforms?
CMC Markets and City Index have the same score in this metric, each of them offers their own in-house web-based trading platform, alongside Android and iOS mobile versions of the same. Both brokers also offer the Metaquotes MT4 platform, in its desktop and mobile versions.
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Which trading platform offers the most different types of account?
CMC Markets offers more account types than City Index as they also offer prime brokerage. CMC Markets and City Index offer FX, CFD and Spread Betting accounts, to both retail and professional customers.
Neither firm currently has accounts that offer Direct Market Access (DMA) or on-exchange futures and options trading. Nor do they have accounts for physical share dealing and investing for UK customers. However CMC Markets also provides institutional accounts and Prime Brokerage, whilst it’s possible to trade on exchange futures, through City Index’s parent company StoneX Group. Neither firm currently has accounts for physical share dealing and investments.
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Which trading platform is a more established business?
City Index is more established compared to CMC Markets as it was founded in 1983, six years before CMC Markets was founded. City Index has been through several owners including Gain Capital and the Stonex Group. Whilst CMC Markets was in private ownership before listing on the London Stock Exchange. CMC Markets is UK listed and a FTSE 250 constituent, whilst City Index is part of the StoneX Group, which is listed on Nasdaq
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Which trading platform has the lowest trading costs?
City Index has the lowest average spreads across the 10 actively traded pairs that we sampled. Whilst in equity indices CMC Markets have the tightest spreads and therefore the lower trading costs. When it comes to trading individual equities CMC markets are cheaper for CFDs and Spread Bets on UK stocks, whilst City Index is the most competitive in US equities.
When we look at trading costs City Index edges ahead of CMC Markets as far as average FX spreads are concerned.
In commodity markets, it’s less clear cut with CMC Markets having the tightest spread on gold, whilst City Index is cheaper on Brent crude for example. In equity indices, CMC markets are the leader with an average spread, in the products we sampled, of 3.28 points compared to City’s 4.48 points.
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Which trading platform offers the most margin?
CMC Markets offers higher rates of leverage to professional customers than City Index, with ratios of up to 500:1 compared to a maximum of 400:1 at City Index.
Margins for retail traders are set at the FCA/ESMA thresholds at both CMC Markets and City Index, these are the maximum leverage ratios permitted under the current UK and European legislation.
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Which trading platform offers the lowest overnight financing rates?
CMC Markets is more expensive than City Index, In those instruments where we can market a direct comparison, such as UK equities. Charging +/- 2.93% over LIBOR or equivalent sterling benchmark, whilst City Index charges +/- 2.50% over LIBOR. City Index is also cheaper than CMC Markets when it comes to the overnight funding of US equity positions.
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Which trading platform offers the most added value?
CMC Markets is the winner here with 6 points of added value compared to the 5 points provided by City Index. The main point of difference is the sentiment and positioning tools that CMC Markets offers its customers, which City Index doesn’t have. Each of these brokers trading platforms is feature-rich and both firms offer educational programs, alongside research and analysis.
These educational programs allow clients to learn about trading and trading strategies and market terminology etc, whilst research and analysis provides insight on market-moving events and can highlight trading opportunities to clients.
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