Forex trading

When trading forex, you speculate on whether the price of one currency will rise or fall against another. For example, if you believe that the value of the British pound will rise, relative to the value of the US dollar, you would trade the GBP/USD pair.

To open a position you first need to deposit an amount of money known as a margin. The margin required reflects a percentage of the full value of the position. Trading on margin means you place an initial deposit, rather than the full value of the trade upfront.

The margin requirement for forex starts at 3.34%, which means you only have to put up 3.34% of the full trade value. This gives you greater exposure to your chosen financial instrument. It's very important to remember that your profits and losses will be magnified, as they're based on the full value of your trade and not just your initial margin.

One of the advantages of trading CFDs is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it's important to manage your risk.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

CMC Markets operates 15 offices located around the world such as the UK, Australia, Germany, Canada, New Zealand, Singapore and Bermuda. CMC Markets’ entities are licenced and regulated by the local authorities, for example, CMC Markets Bermuda is licenced to conduct investment business and digital asset business by the Bermuda Monetary Authority (‘BMA’).

As a CMC Markets’ client, your money is held separately from CMC Markets’ own funds. It is held in segregated client bank accounts distributed across a range of major banks, which are regularly assessed against our risk criteria. Under the BMA rules, retail clients must be provided with negative balance protection. This means the maximum amount you can lose is what you initially deposit with us.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.