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In numerous reviews, you will not only find information about which trading platforms brokers offer, whether there is an extensive training area, and how satisfied traders are with customer service. In addition, the so-called trading conditions are also an important part of the evaluation of each broker.
Perhaps you, especially as a beginner, cannot yet imagine much under the term trading conditions or you do not know in detail which conditions fall into this category. For this reason, it is our concern to inform you in more detail about the trading conditions with this guide to the broker CMC Markets. In particular, we would like to focus on the minimum deposit.
The good news is: CMC Markets doesn’t require a minimum deposit.
General information: the trading conditions at a glance
The comparison of Forex and CFD brokers has proven itself to be very useful for many traders in the past. Due to the wide range of products and services offered by the more than 50 brokers in this segment, an individual comparison would cost the individual trader a lot of time. Therefore it is much more effective to look at tabular comparisons for example. Furthermore, Forex broker tests can also be a very good help in finding the best broker. In this article, we want to give you an insight into the minimum deposit required by CMC Markets and what other conditions are important.
Especially when comparing trading conditions it is useful to use comparison in tabular form. Most trading conditions are in fact figures and values that can be displayed clearly for the individual brokers next to each other.
It is mainly the following conditions that fall under the so-called trading conditions for Forex and CFD brokers:
- Minimum margin
- Minimum deposit
- Minimum transaction amount
- Tradable underlyings
These and some other trading conditions can be found in our respective reports on the broker’s experience. For example, the spread is an extremely important condition for many traders, as it is the main cost factor for trading foreign exchange and CFDs. Leverage is in turn particularly interesting for professional traders, as they often want to work with the highest possible leverage and thus the chance of particularly large profits.
As mentioned at the beginning, in this guide to the broker CMC Markets, we would like to focus on the trading conditions minimum deposit. As the name suggests, this is a certain amount of capital that you must deposit as a minimum into your trading account. For this reason, depending on the broker, it may not always be referred to as a minimum deposit, but also, for example, a minimum deposit or a minimum amount to be deposited into the trading account. If you take a look at the various broker’s, you will quickly notice that the minimum deposit trading conditions can vary considerably from one provider to another.
Especially when taking into account certain premium or VIP accounts, for which brokers usually require a very high minimum deposit, the sums range from 100 to sometimes up to 10,000 euros. However, there are also some brokers on the market who do not require a minimum deposit. In this case, you as a trader are not forced to deposit at least the amount X to your trading account. While professional traders usually trade with a relatively large amount of equity anyway, so that the minimum deposit is rather unimportant, beginners, in particular, are often happy if no minimum deposit is required or if it is at a moderate level, for example, 100 euros.
No minimum deposit with the broker CMC Markets
CMC Markets is one of those Forex and CFD brokers who do not require a minimum deposit from their clients. This allows you to decide completely independently how much capital you want to add to your trading account. However, with the required minimum deposit, it is one of those things. Due to the fact that every broker requires a security deposit, called margin, for an opened position, you must deposit a certain minimum amount of money into your account anyway. The amount of the margin depends mainly on the leverage and the minimum transaction amount applicable to each broker.
We would like to use an example to illustrate what this can mean for trading via the broker CMC Markets, for example:
- The underlying asset traded: Euro / US dollar
- Minimum transaction amount: 1 lot (100,000 currency units)
- Lever: 500:1
- Margin: 0.20 percent
This example clearly shows that although there is no official minimum deposit with the broker CMC Markets, there is no minimum deposit required. Nevertheless, in this example case, you would have to deposit at least 200 Euros of your own capital on the trading account to be able to enjoy trading at all. Therefore, if you wish to trade the currency pair Euro / US Dollar, you are requested to deposit at least 200 USD into your account, taking into account the leverage of 200:1, the security deposit of 0.5 percent, and the minimum transaction amount of 100,000 currency units, if you wish to start trading standard lots.
Of course, you can also trade MIkrolots, which correspond to 10,000 currency units. In this case, you would only need to deposit 1/10, or 20 USD as margin with CMC Markets to open a position. However, you will also need to keep some funds in your account in case the position should ever go against you. We, therefore, recommend that beginners deposit at least 100 USD as a minimum deposit with CMC Markets.
This example also illustrates that the minimum deposit for professional and experienced traders is often a kind of “gimmick”. After all, if you want to actively trade Forex or CFDs, you often have to deposit an amount into your trading account anyway, which is sometimes even higher than an official minimum deposit.
Minimum Deposit: Pro and Contra
In particular, the previous section shows that although many Forex brokers still require a minimum deposit in their articles of association, this requirement is largely superfluous in practice. After all, if you want to trade actively via the broker, you usually have to deposit an amount of at least 100, 200, or more USD to your trading account anyway. Certainly, most brokers still require a minimum deposit for the main reason that, for example, a deposit of more than 25 USD would lead to a disproportionately high administrative burden. After all, deposits to the trading account have to be checked and processed, so that a certain amount of work is required from the broker.
On the other hand, the fact that some brokers now waive the minimum deposit shows that the resulting costs cannot be too high. For the trader, apart from relatively high minimum deposits beyond 1,000 USD, it often makes no difference anyway whether there is an officially required minimum deposit or not. Only beginners sometimes decide against a broker, who for example demands a minimum deposit of 500 or more dollars. However, since this does not apply to the broker CMC Markets, because it waives a minimum deposit, this is irrelevant for our guide to brokers in this case.
Conclusion on the minimum deposit with broker CMC Markets
The broker CMC Markets generally refrains from demanding a minimum deposit from its clients. Although this may be appreciated by some new traders, in practice, if a client wishes to trade actively through CMC Markets, a certain deposit must be made anyway. Depending on the underlying instrument, the required minimum trading amount, and leverage, the minimum deposit for the respective position is 50, 100, or 200 USD.
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