CMC Markets vs Plus500 Which Performs Better?

CMC Markets and Plus500 are two popular online trading platforms that allow users to trade stocks, forex, commodities, and more from the comfort of their own home. Both platforms offer a range of trading options, competitive fees, and access to a variety of global markets. However, there are also key differences between CMC Markets and Plus500, such as the user interface, customer service, and trading tools available. This article will explore these differences in more detail to help you decide which platform may be the best fit for your trading needs.

CMC Markets or Plus500?

When comparing CMC Markets and Plus500, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CMC Markets and Plus500.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CMC Markets has a dividend yield of 0.04%, while Plus500 has a dividend yield of 3.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CMC Markets reports a 5-year dividend growth of -7.66% year and a payout ratio of 4.17%. On the other hand, Plus500 reports a 5-year dividend growth of -25.76% year and a payout ratio of 32.81%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CMC Markets P/E ratio at 2.22 and Plus500's P/E ratio at 9.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CMC Markets P/B ratio is 1.81 while Plus500's P/B ratio is 3.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CMC Markets has seen a 5-year revenue growth of 1.86%, while Plus500's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC Markets's ROE at 86.11% and Plus500's ROE at 39.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £262.50 for CMC Markets and £2616.00 for Plus500. Over the past year, CMC Markets's prices ranged from £94.30 to £349.00, with a yearly change of 270.10%. Plus500's prices fluctuated between £1565.00 and £2684.00, with a yearly change of 71.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.