CMC Markets launches flexible stocks and shares Isa
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CMC Invest users can now open flexible shares and Isa shares on the platform with a new Plus subscription for just £10 a month
- CMC Markets launched a do-it-yourself investment app in September
- The Plus plan, which costs £10 a month, offers flexible shares and Isa shares
- New customers receive a £50 welcome bonus and three months free
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The investment app market has been on the rise for some time, thanks in large part to the success of Freetrade and a growing demand for “democratizing” investments.
With platforms vying to become best-in-class, CMC Markets now wants a piece of the action.
In September, the company, which mainly offers spread betting and CFDs, was launched CMC Invest to offer clients stock trading in the UK and US.
Previously, a general investment account (GIA) was the only option to invest via the app, now investors can open an Isa.
CMC Markets launched its investment platform in September as it appears to be benefiting from a growing pool of early-stage investors
The free core product still offers a GIA and trading in over 1,100 US stocks, 100 UK stocks, and over 300 ETFs and mutual funds.
The Plus plan, which costs £10 a month, allows customers to open flexible shares and Isa shares, meaning they can withdraw money from their account and put the money back in within the same tax year without affecting their their Isa benefit.
New customers get a £50 bonus and three months free on the Plus plan, one of the low-cost platforms’ most generous welcome offers.
Albert Soleiman, Head of CMC Invest UK said: ‘We want our clients to feel empowered to make choices that suit their own investment journey.
“A flexible share of Isa is not typically offered on other investment platforms – we are fortunate that our technology can provide this to clients, giving them more flexibility to invest how and when they want.”
The Plus plan also offers a US dollar wallet for those with a GIA, in addition to the standard GBP wallet that comes with all CMC Invest accounts.
This allows investors to convert cash into USD and hold it until it is necessary to purchase US stocks, which the platform says will save clients money on FX costs.
CMC Invest currently charges a 0.5 percent FX fee when converting from GBP to USD.
Investors who already have a GIA and/or shares of Isa can transfer their portfolio free of charge, but the existing provider may charge an exit fee.
The platform says it will soon introduce a Premium plan with a Sipp and other features, though it’s unclear at this stage how much it will cost customers.
How does CMC Invest compare to other platforms?
The market for low-cost investment platforms has become increasingly crowded in recent months.
AJ Bell announced the launch of his own investment app Dodl this year as it competes against Freetrade and Trading 212.
Like CMC Invest, it’s free to open a Dodl account, but it charges 0.15 percent of the value of investments on each account per year. It is paid monthly and is a minimum of £1 per month.
This year Free trade* over 1 million subscribers thanks to the generous referral program and cheap plans.
The Basic plan offers a GIA, commission-free trades, and US fractional shares for free, but only 1,500 shares are offered.
The Standard plan costs £4.99 per month and customers can open a GIA and share Isa, although this is a standard Isa and not the flexible one offered by CMC.
Freetrade also offers a Sipp for Plus customers, which costs £9.99 per month.
Interactive Investor has also recently lowered its stock and fund transaction fees to stay competitive.
In September, the standard online trading fees for transactions in the UK and US were reduced from £7.99 to £5.99 for ii’s standard Investor Plan* as well as the Pension Builder Sipp plan.