CapTrader vs CMC Markets — which broker is better?

Pros

• BaFin-supervised German investment firm (institution number 10156708) with a Düsseldorf address, German contract law and a free German hotline until 20:00
• Eurex options and futures at EUR 2.00 per contract, Mini-DAX futures at EUR 1.00 and CME Micro E-minis at USD 1.25 — competitive with anything available to German retail traders
• Access to over 160 market destinations, more than 1.2 million instruments, one million-plus bonds and 37,000 funds from a single multi-currency account
• No account fee, no custody fee, no inactivity fee, and free real accounts on TWS, CapTrader Desktop, AgenaTrader Andromeda and the TraderFox Trading-Desk
• German shares on Tradegate, gettex, Chi-X and Turquoise DE from a EUR 2.00 minimum — noticeably cheaper than the EUR 4.00 Xetra minimum for small orders
• Trustpilot rating of 4.9 from more than 800 reviews, with support consistently named as the reason
• Interactive Brokers' execution stack underneath: SmartRouting, real-time margining, more than 60 order types and a mature API

Cons

• No Abgeltungsteuer is withheld. German investors gain a compounding advantage but must declare everything themselves via Anlage KAP, and a Freistellungsauftrag is not possible — for many people that alone rules CapTrader out
• Commissions are a visible markup on Interactive Brokers' own schedule: 0.10% with a EUR 4.00 Xetra minimum against IBKR's 0.05% and EUR 1.25, and USD 0.01 per share against IBKR's USD 0.0035
• Currency conversion costs 0.3 basis points with a EUR 3.75 minimum — one and a half times what IBKR charges direct, and the minimum bites on every small conversion
• Investor compensation for EEA clients is the Irish scheme's 90% of EUR 20,000, thin against the German EUR 100,000 deposit guarantee investors are used to
• EUR 2,000 minimum deposit and per-order minimums make small, regular ETF purchases uneconomic; there are no free savings plans
• No spot crypto — only Bitcoin futures and exchange-traded products — and real-time market data is a paid monthly subscription per exchange

Pros

• Next Generation is one of the strongest charting suites bundled with a retail CFD account —115+ indicators, 70 chart patterns, 12 chart types and pattern-recognition scanners, at no extra cost
• 0% commission on UK and European share CFDs (Greece the sole exception at 0.45%), against IG's spread-plus-conversion model
• EUR/USD averages around 0.7 pips on the standard account, and FX Active delivers from 0.0 pips for USD/GBP 2.50 per side per 100,000 notional
• No minimum deposit at all — CMC only suggests around GBP 100 to cover margin, which makes it genuinely testable with small money
• Three FCA licences (173730, 170627, 948126) plus ASIC AFSL 238054, BaFin and MAS, with FSCS cover of GBP 85,000 and client money segregated at NatWest, Barclays and Lloyds under annual PwC audit
• Cash-settled OTC options, available as a spread bet or through the CFD account, carry no commission and no holding or financing charge — the whole cost is in the spread
• 12,029 instruments on Next Generation, all of which are also tradable from TradingView charts
• Ten account base currencies including NOK, SEK, PLN and SGD, which removes conversion drag for Nordic and Asian clients

Cons

• None of CMC's derivatives is exchange-traded: the options it quotes are OTC and cash-settled, and there are no cleared futures at all, so CMC is the counterparty on every derivative contract and no clearing house stands behind it
• The 0.7% FX conversion charge on realised profit, loss and costs is high; IG applies 0.8% on the equivalent CFD trades
• Inactivity fee of GBP 10 per month starts after just 12 months without trading activity
• ASIC required CMC to remediate Australian retail clients in 2023 over CFDs offered above the product intervention leverage limits, and an Australian class action over 2011–2021 marketing remains outstanding
• MT4 carries only about 220 instruments against 12,029 on Next Generation, so algo traders who need MT4 lose most of the product range
• CMC does not publish a fixed index spread table, which makes cost comparison against brokers that do quote fixed minimums harder than it should be