CMC Markets vs Fidelity Investments — which broker is better?

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

Pros

• USD 0 online US stock and ETF commissions, and Fidelity does not accept payment for order flow on equity orders
• Zero-expense-ratio index mutual funds (the FZROX family) — no other major US broker matches this on fund cost
• Options exercise and assignment cost USD 0, and buy-to-close orders at USD 0.65 or less are free
• No outgoing account transfer fee, no domestic wire fee and no inactivity or maintenance fee
• Idle cash defaults into the SPAXX money market fund rather than a near-zero bank sweep, so uninvested balances earn a market-linked yield without manual intervention
• International trading in 25 markets with settlement in 16 currencies, at GBP 9 for the UK and EUR 19 for euro-zone markets
• Best-in-class research: roughly seven third-party report providers plus the proprietary Equity Summary Score, and consistently rated first for research and education
• Fractional share investing from USD 1 across a broad US universe, not just large-cap index constituents

Cons

• No futures, no futures options and no retail forex — a hard stop for macro and commodity traders
• No paper trading or simulator, so there is no way to rehearse a strategy inside the platform
• Crypto is limited to Bitcoin, Ethereum and Litecoin with a spread of up to 1% built into the price, and is not SIPC-protected
• New accounts are effectively US residents only; Fidelity states it does not open accounts for customers residing outside the United States and restricts existing accounts when clients move abroad
• Charting and drawing tools in Trader+ are weaker than thinkorswim's, and there is no backtesting engine
• The FX markup on international trades settled in USD starts at a full 100 basis points below USD 100,000 — expensive for small foreign orders