The recent expansion of CMC Markets entails the global provider adding to its offerings list. The product on the line is cash-equities trading. Plans are underway to include UK Cash Equities in the initial phase. Moving forward, CMC Markets, via CMC Connect, will include more equities and assets to diversify its offerings further.
Cash Equities, in the most basic sense, is a product that makes cash available quickly to investors. The biggest advantage known to the trading sphere is that cash equities yield some of the highest gains in the market. As a matter of fact, gains could be as high as enough to conveniently beat inflation.
Having said that, there is a downturn in cash equities as well. There are risks involved, and traders may end up losing their funds altogether. The worst-case scenario is incurring losses on investment. Nevertheless, it is a choice that traders choose to make to the level at which they can afford to lose their funds in the most pessimistic situation.
Benefits for investors
Known for offering access to over 500 instruments, CMC Markets excels primarily in providing an enhanced experience to CFDs (Contract for Difference) and Spot FX traders. An intention to inculcate cash equity stems from a major benefit that it offers to traders – Profit Margin.
To reiterate, Cash Equities could be risky at a time when the market is headed toward a bearish environment. However, it fetches better profits when the market gets a green light under the bullish umbrella. Investors have earned handsome profits based on Cash Equities alone before expanding their portfolios with reliable options.
Lucera Financial Infrastructures and CMC Invest are supporting Cash Equities by CMC Markets.
- Lucera Financial Infrastructures is CMC Markets’ strategic partner. The collective objective is to boost CMC’s FX connectivity via its LumeFX suite. It will help CMC Markets serve a broader customer base.
- CMC Invest is a stock platform catering to Singaporean customers and a broader Southeast Asian region. It was launched in September and is on the way to include OTC options and wealth management tools for customers. The development depends on license acquisitions.
Both have been defined as pivotal steps in the direction of fortifying the in-house forex connectivity of CMC.
As for Cash Equities, one can get started on CMC Markets by first creating an account on the platform. This gives them access to the web platform and mobile application for seamless trading. Learning tools related to trading—forex and cryptocurrency—are easily accessible and recommended for a brief review.
Key sources available from CMC Markets for traders are:
- A list of help topics plus FAQs on a separate webpage
- Contact through email and call for a quick resolution
Experienced traders and novice traders can equally make the best use of a Demo Account before jumping to a Live Account. Demo Account is the best way to test the individual capabilities and tools of the platform. CMC Markets provides virtual funds with a risk-free environment, enabling traders to understand how things work.
CMC Markets has already launched US Cash Equities. UK Cash Equities are next on the list.
Having said that, CMC Markets has released the interim results for the first half of the fiscal year 2024. At best, they show optimistic signs in Other Income due to a rise in global interest rates. Other sections don’t precisely paint a brighter picture. For instance, the net operating revenue is down by 20% on a year-to-year basis, touching the mark of £122.6 million.
Its active client number is also down by 7%, contributing to the pre-tax loss of £2 million. The trading net revenue is down to £87.4 million, a dip of approximately 32%.
Conclusion
No trading product is a sure shot for either party—the platform or investors—to yield better results. However, CMC investment choices are opening the door to expanding portfolios and diversifying how wealth is managed by novice and experienced investors. A new offering of Cash Equities is in line with expanding the list of trading products and better serving the broader customer base.
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