CMC Invest was founded back in 1989 by Peter Cruddas under the name Currency Management Corporation (CMC). It was later abbreviated to CMC before changing its name to CMC Markets in 2005. CMC Markets has over 30 years of experience in the financial services sector and currently services investors in over 16 countries and is the second biggest stockbroker in Australia. CMC Invest is the company's UK investment platform, launched in 2022.
In this article we explain how CMC Invest works, including a breakdown of its features and fees as well as how it compares to other low-cost trading apps including Freetrade, Dodl, Moneybox and Trading 212.
What is CMC Invest?
CMC Invest is an investment platform and app, launched in 2022 by UK investment firm CMC Markets. It allows investors to buy and sell a number of shares, ETFs and Investment Trusts fee-free, with access to other types of investment accounts and additional features if they sign up for a monthly subscription.
How does CMC Invest work?
CMC Invest provides commission-free investing for its customers. Investors can place unlimited trades from a range of over 3,250 UK & US shares, as well as access over 400 ETFs. There are no admin fees or annual management charges, unlike many other UK investment platforms, however, if investors wish to invest via a Stocks and Shares ISA, then they would have upgrade to the CMC Invest Plus plan which costs £10 per month.
There is no minimum initial deposit requirement meaning investors can open an account without having to commit any money. CMC Invest pays 2% interest on uninvested cash on all of its plans, meaning investors will get a return on their cash even when it is not invested. You can see how the rates of interest compares to other platforms in our article "Investment platforms paying the highest interest rate on cash".
Money can be withdrawn for free at any time. Withdrawals take 3-5 business days, however, if you need access to you money sooner then you can request an urgent withdrawal which attracts a fee of £15.
How to set up a CMC Invest account
In order to open a CMC Invest account, you'll first need to download the CMC Invest app. Simply search for 'CMC Invest' via the Apple or Google Play store or visit the CMC Invest website and scan the QR code. Those wishing to invest via the CMC Invest app will need hold a UK address and be over the age of 18.
Once downloaded, you'll be asked to provide some basic personal information including your National Insurance number. Once you are ready to invest you can add money to the app at any time using a UK debit card.
CMC Invest features
- Commission-free investing - Investment platforms usually charge a fee for share dealing with a trade costing anything from £1 to more than £10. CMC Invest does not charge a fee for share dealing.
- No minimum initial deposit - There is no minimum initial deposit amount meaning you can open an account without having to deposit any money. In order to start investing you'll need to make an initial deposit of £10.
- Invest in more than 3,250 UK & US shares - Invest in over 3,250 stocks and shares from the UK and the US with access to live share prices. All trades are fee-free.
- Earn interest on cash held - CMC Invest currently pays 2% interest on uninvested cash. The interest is paid on all of its accounts, including the free 'core' account.
- EUR and USD wallets - Save money on foreign exchange fees by converting and holding your money in other currencies. Requires a subscription to the CMC Invest Plus plan at £10 per month.
- Stocks & Shares ISA - Earn interest and dividends from shares tax-free through an Individual Savings Account (ISA). Requires a subscription to the CMC Invest Plus plan at £10 per month.
How much does CMC Invest cost?
Below we provide a breakdown of CMC Invest's fees.
|CMC Invest Cost|
|ISA with plus account||£10 per month (First 3 months free)|
|SIPP with premium account||N/A (CMC Invest says that its SIPP is coming soon)|
|Standard bank transfer||Free|
0.50% (On UK shares)
FREE (Takes 3-5 days)
|Urgent cash withdrawal||
£15 (Usually same day)
CMC Invest Core vs CMC Invest Plus vs CMC Invest Premium
CMC Invest has three subscription plans, however, only two plans are currently available. We provide a more detailed breakdown of each of the CMC Invest plans below, as well as a handy comparison table.
CMC Invest Core Plan
CMC Invest Core plan is a free plan that allows investors to buy and sell shares commission-free, via a general investment account.
CMC Invest Plus Plan
The CMC Invest Plus plan costs £10 per month and allows investors access to a Stocks and Shares ISA as well as some additional features
CMC Invest Premium Plan
The CMC Invest premium account is due to be released later in 2023 and will ensure that investors gain access to a Self Invested Personal Pension (SIPP). The cost of the CMC Invest Premium plan is not yet know, however, we will updated this article as soon as more information is available.
How do the CMC Invest plans compare?
Is CMC Invest safe?
CMC Invest is a trading name of CMC Markets UK PLC, which is authorised and regulated by the Financial Conduct Authority, under reference number 173730. In addition, the Financial Services Compensation Scheme (FSCS) ensures that investors are protected up to £85,000 in the event that CMC Invest goes bust. If you choose to invest via CMC invest then, as with all investments, the value could go down as well as up and so you could get back less than you originally invested.
Alternatives to CMC Invest
CMC Invest vs Freetrade vs Dodl
CMC Invest works in a similar way to a number of trading apps including Freetrade, Dodl and Money, however, there are some subtle differences. We provide a brief summary of how CMC Invest compares to each below.
CMC Invest vs Freetrade
CMC Invest pays 2% interest on uninvested cash on all of its accounts whereas you can only earn interest on cash with Freetrade if you upgrade to one of its paid accounts. You can access over 3,250 shares with CMC Invest's core account, whereas you are limited to around 1,500 with Freetrade's basic account. It is slightly cheaper to invest via an ISA with Freetrade where you will pay £5.99 per month, compared to £10 per month with CMC Invest.
CMC Invest vs Dodl
Dodl has more account options, allowing you to invest in a General Investment Account, ISA, Lifetime ISA and Pension. Dodl doesn't offer a free basic account, meaning there is a minimum monthly charge of £1 or 0.15% on the total value of investments per account. That said, it does not charge an additional monthly fee for holding an ISA, whereas CMC Invest charges £10 per month. Dodl only has around 80 shares to choose from, compared to over 3,250 with CMC Invest. You'll earn 2% interest on uninvested cash with CMC invest, something that Dodl doesn't currently offer.
CMC Invest customer reviews
CMC Invest is relatively new to the market and so independent online reviews from existing customers are limited. It is currently rated 3.4 out of 5.0 on independent customer review site Trustpilot, however, this is from less than 10 customer reviews. The positive reviews mention how easy the app is to use and that it has a good range of US stocks. Of the negative reviews, some users have experienced delays when trying to withdraw funds. We will continue to monitor independent online reviews and will ensure that this article is updated regularly.
CMC Invest Pros and Cons
- Easy to set up - You can be invested in the stock markets with a fast and simple setup process.
- Low cost - Buying and selling shares can be expensive but CMC Invest provides commission-free access to over 3,250 UK and US shares.
- 2% Interest on cash - Uninvested cash earns 2% interest (Gross) on all plans, a feature that some providers only offer on their paid subscription plans.
- Core plan is not restricted - Some investment apps limit the number of shares you can access via its free plans, however, CMC Invest allows full access to its range of shares irrespective of the plan you choose
- Lack of managed portfolios - One of the advantages of using a traditional investment platform or robo-adviser is that they also allow you to easily diversify your investments via managed portfolios, as well as providing investors with a number of investment tools, online guidance. CMC Invest does not offer managed portfolios.
- Limited range of stocks - While CMC Invest provides access to over 3,250 shares, you can access more with other providers including Hargreaves Lansdown (8,000+) and Interactive Investor (40,000+)
- 3-5 day wait for cash withdrawals - Although cash withdrawals are free, investors will need to wait 3-5 business days for their money to arrive in their chosen account. This is a similar situation with many other platforms.
- Lack of research tools on core plan - CMC Invest does provide tools and guidance to help beginner and novice investors, however, the most helpful information is only available to investors who upgrade to the CMC Invest Plus plan. Some other platforms provide additional research tools free of charge so that you can get a good sense
Investors can buy and sell shares commission-free with CMC Invest. Its core account is free, however, investors will need to upgrade to its plus plan in order to invest via an ISA at a cost of £10 per month. Those looking to invest via an ISA will find cheaper options elsewhere and should consider looking at either Freetrade at £5.99 per month or Interactive Investor, which charges £4.99 for its Investor Essentials plan. It is refreshing to see an investing app launch with cash savings in mind and investors can earn 2% interest on uninvested cash, irrespective of the plan they choose. CMC Invest has added a number of features since launch and it will be interesting to see what will be included in its premium plan when it launches and crucially, how much it will cost.
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