History
1989–2000: Early years
CMC Markets was founded in 1989 by Peter Cruddas, then 35 years old, as a Foreign Exchange market maker under the name Currency Management Corporation. The name was later abbreviated to CMC and officially rebranded as CMC Markets in 2005. [2] [3] According to The Financial Times, Cruddas started the company with just £10,000 in initial capital. [4]
In 1992, the company obtained regulatory authorization in the UK from the AFBD, which was later renamed the Financial Services Authority (FSA). [5]
In 1996, CMC Markets launched a real-time FX trading platform, claiming to have conducted the first-ever online FX trade. The company positioned itself as a pioneer in internet-based trading with its proprietary MarketMaker software. [6] [7] [8] [9]
Between 1996 and 2000, the company's subsidiary, Information Internet Limited, licensed the MarketMaker software to several banks. However, in 2000, Cruddas consolidated ownership of the subsidiary and integrated it into CMC Markets as its internal IT division, ensuring exclusive use of its technology. [10]
In 2000, CMC Markets introduced contracts for difference (CFDs) and, by 2001, launched online spread betting on financial markets. These additions significantly changed the company's business model, establishing derivative products as its primary focus. [11] [12] [7] In the same year, Peter Cruddas announced his retirement. [13]
2000–2007: Global expansion
In 2002, CMC Markets began its global expansion, opening offices in multiple countries and growing its spread betting operations in the UK alongside its international CFD business. The first overseas office was opened in Sydney, Australia, led by Goran Drapac and David Trew. [14] [15] The first North American office was opened in 2003 in New York, headed by Josh Levy. [16] This was followed in 2005 by the acquisition of the Canadian broker Shorcan Index, which was integrated as the company's Toronto office under the leadership of Simon Grayson. [17] [18]
From 2001 to 2005, CMC Markets also operated under the brand name deal4free.com to promote its zero-commission trading services, primarily targeting UK-based spread betting clients. However, commissions were later reinstated, and the brand was retired as part of a company-wide rebranding in September 2005. [19]
In 2006, CMC Markets planned to go public through an initial public offering (IPO), but the effort was abandoned at the last minute, with the company citing unfavorable market conditions. [20] [21]
In 2007, the company purchased Digital Look, a financial media and technology company that operated the financial information site Digitallook.com and provided data to third parties. The acquisition was integrated into CMC's London operations, although Digital Look continued offering services to external clients. [22] That same year, CMC acquired the Australian stockbroker Andrew West. The acquisition was merged into its Australian operations under the new name CMC Markets StockBroking, which continued to provide physical share broking services in Australia. [23]
Later in 2007, Goldman Sachs acquired a 10% stake in CMC Markets for £140 million, valuing the company at £1.4 billion. [24]
2008–2013: Сrisis after the Great Recession
During the Great Recession of 2008–2009, CMC Markets experienced a significant decline in profits. In response, Peter Cruddas changed his management team and closed seven offices and reduced the company headcount from a high of 1,100 employees. [25]
In 2010, the company introduced its Next Generation trading platform to the UK market. This new software offered enhancements over the previous MarketMaker platform, including the ability to quote market prices to additional decimal points and execute trades without re-quotes. [26]
By 2011, CMC Markets had reduced its operations to 17 offices across four continents and a workforce of over 700 employees. [7] That same year, the company sold its Digital Look business unit to the Spanish-based Web Financial Group. [27]
In 2012, CMC Markets reported a 21% drop in revenue and a pre-tax loss of £19.4 million. Following this financial downturn, Peter Cruddas dismissed then-CEO Doug Richards and reassumed the role of chief executive. As part of ongoing cost-cutting measures, the company further reduced its workforce by one-third. [4] [28]
2014–2020: IPO and market challenges
After returning to profitability in 2014, speculation began about a potential IPO for CMC Markets. [29] [30]
In July 2015, CMC Markets started to offer binary options, including a proprietary product branded as Countdown, designed for short-term trading. [31]
On 5 February 2016, CMC Markets was listed on the main market of the London Stock Exchange at an initial price of 240p per share, valuing the company at £691 million. [32] This was significantly below the £1 billion valuation that Peter Cruddas had reportedly anticipated when considering an IPO back in 2014. [30] By this time, CMC had over 44,000 active clients and had processed more than 34 million trades. [33] Later that year, on 25 April, the company launched a range of binary trading products tailored for mobile, tablet, and desktop platforms. [34]
Shortly after its stock market debut, CMC Markets saw its valuation drop by half as a result of new regulatory measures introduced by the Financial Conduct Authority (FCA) targeting the spread betting market. Amid this downturn, the company reportedly considered relocating its headquarters and over 300 jobs to Germany, where it was already the largest provider of CFD products. Peter Cruddas was rumoured to have engaged in discussions with BaFin, Germany's financial regulator, regarding this potential move. [35] [36]
On 2 June 2016, CMC Markets was included in the FTSE 250 Index. [37] On 15 November 2016, CMC Markets was awarded "Best CFD Broker" at the Finance Magnates London Summit. [38]
In February 2017, the Norwegian Central Bank, Norges Bank, acquired a 3% stake in the company. [39]
Financial difficulties became evident in 2018, when CMC Markets reported a 76% drop in annual profits. [40] In April 2019, CFO and COO Grant Foley announced his departure amid continued struggles, as the company's shares hit a record low following further profit warnings. [41]
In 2019, CMC Markets opened an office in the UAE and announced plans to strengthen its presence in the Middle East. [42]
2021–present
In 2022, CMC Markets became the official sponsor of the St Kilda Football Club for a three-season partnership. [43] In September, the company launched CMC Invest, an investment app offering share dealing in UK and US stocks, ETFs, and investment trusts. [44] Earlier that year, CMC obtained an in-principle license to operate in Singapore. [42]
In 2023, the company integrated Skale's tools such as a customizable back office, CRM, a multi-layered IB portal, and a traders' area, into its trading platform. [45] A partnership with TrueLayer introduced a closed-loop payments product for secure and swift transactions. [46] [47] On 9 June 2023, CMC acquired a 33% stake in StrikeX, a UK-based blockchain technology firm. [48] This partnership facilitated the development of TradeStrike, a centralized exchange for tokenized assets. [49]
However, these initiatives coincided with a challenging financial period. In 2023, CMC Markets' annual report revealed a 43% drop in net profits, a 20% decline in operating revenue, and a 9% reduction in active traders. [50] [51] The fiscal year's first half ended with a pre-tax loss of £2 million. [52] In August, its shares dropped nearly 20%. To mitigate the downturn, CMC initiated a cost-cutting program, resulting in over 220 layoffs globally (approximately 18% of the workforce). [51] In November, the Australian Securities and Investments Commission (ASIC) ordered CMC, along with six other traders, to compensate retail clients for breaches of financial services laws, including offering CFDs with leverage exceeding regulatory limits. [53]
In 2024, CMC Markets reported modest improvements: average revenue per client rose to £4,685, but total segregated client money declined by £31.8 million, reflecting continued financial pressures. [51] [54] These improvements were partially attributed to the cost-cutting measures implemented the previous year. [55] [56]
In March 2025, CMC opened a new office in Bermuda after securing a license from the Bermuda Monetary Authority. [57] In April, it integrated the TradingView charting platform, allowing clients to execute trades directly via TradingView. [58] In May 2025, CMC Markets acquired a controlling 51% stake in StrikeX (up from its previous 33% holding), giving it a majority interest in the blockchain firm. [59]
In June 2025, CMC Markets' shares fell nearly 18% after the company reported adjusted pre-tax profit of £84.5 million for the year ended 31 March 2025, below a company-compiled analyst consensus of £90.6 million. The company said the miss reflected higher-than-expected costs, including a one-time £4.3 million charge related to customer remediation in Australia following an industry-wide regulatory review into margin netting. CMC also said deputy CEO David Fineberg would move into a newly created role as global head of strategic partnerships, and named senior independent director Paul Wainscott as its new non-executive chairman. [60]
Controversy and lawsuits
Cash-for-Access scandal
In 2012, a major scandal nicknamed the 'UK Cash-for-Access scandal' caused a serious blow to CMC Markets. The Telegraph reported that the company's founder Peter Cruddas, who at that point served as a co-treasurer of the Conservative party, had offered private dinners with the prime minister David Cameron and the chancellor George Osborne in exchange for donations. Undercover reporters of The Sunday Times recorded Cruddas saying that for a donation of £250,000 he would arrange an invitation to dinners at Cameron's private apartment in Downing Street, allowing the donor to lobby their interests directly with the prime minister. [62] The scandal prompted Cruddas to resign from his party position. [63] [4]
The fallout was severe for CMC Markets: approximately one-third of its staff departed, revenue plummeted by 21%, and pre-tax losses reached £2.8 million. [28] [64] Although Cruddas later won a libel case against The Sunday Times, [65] in 2015 an appeal court reduced the damages, ruling that the publication's core claims about "cash for access" were substantially supported by evidence. [66] [67]
In December 2020, Peter Cruddas was given a peerage, a controversial move by Boris Johnson who ignored the Lords Appointments Commission's recommendation not to ennoble Cruddas in light of the 2012 cash-for-access episode. [68]
Australia class action
CMC Markets Asia Pacific Pty Ltd is the defendant in a representative proceeding (Edin Zulic & Anor v CMC Markets Asia Pacific Pty Ltd, NSD410/2022) in the Federal Court of Australia. The class action (filed by Johnson Winter Slattery and funded by Harbour Fund V, L.P.) concerns alleged conduct relating to the marketing and sale of highly leveraged CFDs and binary options to retail investors during the period 7 November 2011 to 30 April 2021. [69] [70] [71] In 2023, the proceeding included disputes over the scope and timing of discovery. [72] In May 2025, Lawyerly reported that the applicants had obtained access to customer-screening data said to indicate that approximately 2,500 clients who failed screening tests for high-risk products were nevertheless permitted to trade. [73]
CMC Spreadbet Plc vs Robert Tchenguiz
In July 2022, CMC Spreadbet Plc initiated legal proceedings against businessman Robert Tchenguiz, seeking repayment of a £1.31 million debt related to spread betting. In response, Tchenguiz filed a counterclaim, accusing CMC of breaching its contract by prematurely closing his positions. However, the dispute was resolved in court in CMC's favor, with a July 2022 ruling ordering Tchenguiz to pay the debt. [74] [75]
2024 lawsuit by Juan Vargas
In 2024, former senior employee Juan Vargas filed a lawsuit against CMC Markets, alleging that the company's new bonus scheme deprived him of nearly $1 million in bonuses over a 2.5-year period. Vargas further claimed that Matthew Lewis, head of CMC Asia Pacific, threatened him with physical harm when confronted about the bonus changes. The lawsuit brought significant media attention to alleged issues within the company's corporate culture, though no resolution has yet been reported. [71]
£317.61 million (2025) [1] 
£89.561 million (2025) [1] 