CMC Markets Alpha – what is it and is it worth it?

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CMC Markets has launched a new Alpha initiative for active clients and with reduced spreads and perks for high volume traders.

What is CMC Markets Alpha?

CMC has launched Alpha a sort of members club for traders. Membership comes with a number of benefits that are designed to allow clients, to get more out of their trades.

Like all private members clubs, membership is restricted. Of course, anyone can apply, however, you’ll need to meet certain criteria to qualify for Alpha membership.

Firstly you will need to have, or apply for a standard CMC Markets CFD or Spread Betting account.

Secondly, you will need to have an existing balance of or be prepared to deposit £25,000.

What do CMC Markets Alpha members get for their money?

Alpha membership is free, and clients will have access to a range of perks, these include a free subscription to the Financial Times, premium customer support from a dedicated London-based team.

Alpha members will be able to access and interact with market experts, such as Michelle Schneider and Jack Schwager, at exclusive webinars and other events.

There are also financial rewards available to Alpha members, and these come in the form of discounted spreads under the CMC Price+ scheme.

The discounts are tiered and volumed related, Alpha members are immediately bumped up to tier 3, of the 5 tier Price + hierarchy.

That means that Alpha members can earn discounts of up to 14.30% on the spreads they pay.

How do Alpha members qualify for the spread discounts?

To get the discount, traders need to earn trading points. These are awarded by CMC Markets on every trade a client makes in the firm’s cash contracts.

Trading $10,000 notional in FX will earn you 6 points, a $100,000 notional trade on Treasury bonds will earn 5 points, whilst a $10,000 trade, in one of CMC Markets, share baskets, generates a reward of 3 points.

To get your up to 14.30% discount, you need to accrue 2500 trading points.

This means you will need to trade just over $416.0 million worth of FX  that’s around 42 standard lots of EURUSD, for example, and do that within a calendar month.

Once you hit your points target, the spread discounts are applied to your account and if you hit the points target for the tier above, which in the case of tier 4 is 5000 points, then you will be promoted and start the following month in that higher tier.

Discounts in Tier 4 run at up to 20.0%, whilst those clients in Tier 5, that accrue 25,000 trading points per month, will receive discounts of up to 28.60%

However, by the same token, it’s also possible to be moved down the tiers, if you don’t hit the relevant points or activity target. Though demotions only happen one tier at a time.

Is CMC Markets Alpha suitable for you?

If you are an active trader turning over a sizeable number of lots, or significant notional values each month, then Alpha membership could be for you, particularly if you are already a CMC Markets client.

These types of deals are designed by brokers to attract and retain active clients, but end-users shouldn’t trade simply to hit promotional targets and certainly not without doing the maths to make sure it’s worth their while if they do.

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