CMC Markets Options Trading Expert Review

Account: CMC Markets Options Trading
Description: CMC Markets has added spreading betting options to its product library. The new options sit alongside the firmβs existing over-the-counter (OTC) options, which include CFD options.
Is CMC Markets good for options trading?
CMC Markets lets you trade options on major US and European indices including the S&P 500, Nasdaq 100, FTSE 100, DAX, CAC 40 and Euro Stoxx 50. More stocks and markets will be added soon, but the key differentiator is that they are fractional options so you can take a position size as small as a hundredth of an option (0.01 of a unit).
CMC Markets CFD options trading also gives you a bit more flexibility with either daily or longer-term time options expiry for yield enhancement strategies and the ability to trade in non-volatilie markets and protect your downside and mitigate potential losses to an existing portfolio.
However, as you can options with CMC as a spread bet they can be used to hedge your exposure with tax-free profits.
CMC doesnβt charge commission on the trading of options, but makes money from the difference between the ask price and the bid price of instruments as well as a currency conversion fee of 0.5%.
It doesn’t really matter that CMC Markets don’t offer loads of options markets because that’s not their target market. CMC Markets traders are generaly active day traders in the UK and other regions where options trading hasn’t really become a thing.
Pros
- Options as a spread bet
- Good trading platform
- Fractional options trading
Cons
- Very limited market range
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Pricing
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Market Access
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App & Platform
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Customer Service
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Research & Analysis
Overall
4.3
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com