Press releases

CMC Markets is first to offer CFD trading to retail investors

Toronto - 26 October, 2009

CMC Markets, Canada's only provider of Contracts for Difference (CFDs), today announced that it has received regulatory approval in Ontario and Quebec to offer CFD and Foreign Exchange (FX) trading to retail investors. Until today's announcement, the company's innovative derivative products have only been available to Accredited Investors.

"The ability to offer CFDs and FX to retail investors is a major milestone for CMC Markets in Canada," said Bruce Seago, CEO, CMC Markets Canada. "In addition to trading access in Canadian and US markets, retail investors will now have more online trading options, including Foreign Shares, Indices, Currencies and popular commodities like Gold and Oil.

"With regulatory approvals in Ontario and Quebec, we are now able to expand our product offerings to a wider retail client base, strengthening our position as one of Canada's leading online trading firms, and addressing the needs of active traders and serious investors looking for a cost effective and efficient alternative to physical shares, ETFs and Futures," added Mr. Seago.

CMC intends to request similar regulatory approvals in other provinces and territories in order to be able to offer CFD and FX trading to all retail investors across Canada.

Currently, CMC offers CFDs to a broad range of clients in other major world markets, including the United Kingdom, Australia and Germany. CFDs are one of the world's fastest growing trading instruments, contributing up to 25% of the London Stock Exchange's volume. Although a relatively new investment product in the Canadian marketplace, CFDs continue to grow in popularity as they offer instant, cost-effective access to global Commodities, Indices, Equities and FX all across one real-time online platform.

During the fiscal year ended March 2009, the CMC Markets Group transacted over 30 million trades at a value of US$1.5 trillion and now has over 76,000 active client accounts. This represents a growth of 36% in active customers and a 50% growth in trading volumes over a one-year period.

All CFD and FX instruments traded with CMC Markets are traded on margin, with rates on Canadian and US Shares starting from 15%. Margin rates for Commodities, FX and Indices range from 2-12%. Investing with leverage, or on margin, means that you only need to deposit a percentage of the value of a position to secure the trade. This provides investors with an opportunity to diversify their portfolio by freeing up more capital for alternative trades or to magnify their return on investment. Since trading on margin may also increase your losses, trading CFDs and FX may not be suitable for all investors.

CMC Markets also offer a highly competitive $5 flat rate commission with no minimum trade requirements on Canadian and US shares.

As a member of the Investment Industry Regulatory Organization of Canada (IIROC), all client accounts of CMC Markets Canada are protected by the Canadian Investor Protection Fund (CIPF).