CMC Markets vs SelfWealth

CMC Markets and SelfWealth are two popular online stock trading platforms that cater to different types of investors. CMC Markets offers a wide range of trading options, advanced charting tools, and research resources, making it ideal for active traders and those looking for a more hands-on approach to investing. On the other hand, SelfWealth focuses on simplicity and low-cost trading, making it a popular choice for beginners and long-term investors. Both platforms have their strengths and weaknesses, so it's important to carefully consider your investment goals and trading style before choosing between them.

CMC Markets or SelfWealth?

When comparing CMC Markets and SelfWealth, 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 SelfWealth.

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 2.6%, while SelfWealth has a dividend yield of -%. 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, SelfWealth reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 2.74 and SelfWealth's P/E ratio at 8.23. 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 2.23 while SelfWealth's P/B ratio is 2.04.

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 1.82%, while SelfWealth's is 12.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC Markets's ROE at 86.11% and SelfWealth's ROE at 26.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £306.50 for CMC Markets and A$0.12 for SelfWealth. Over the past year, CMC Markets's prices ranged from £86.90 to £344.00, with a yearly change of 295.86%. SelfWealth's prices fluctuated between A$0.10 and A$0.18, with a yearly change of 76.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.