Capital Markets Elite Group Review

Regulations 

Capital Markets Elite Group (CMEG) is located in Trinidad and Tobago, which means that it is not subject to American regulation from FINRA or the SEC. While this creates both advantages and hazards, it is important to note that CMEG is not a member of SIPC. 

Services 

CMEG offers an investment advisory service called Managed Portfolios, which provides customers with access to a financial advisor and four portfolio types: core, conservative, moderate, and aggressive. ETFs are the primary investment option in all four cases, whilemutual funds are available for the core selection. Currently, self-directed traders do not have access to mutual or exchange-traded funds, but CMEG may launch these securities for self-directed trading in the future. As of now, only stocks can be traded. CMEG plans to offer options trading in the first quarter of 2020, and other investment vehicles such as futures, forex, contracts for difference, and bonds are als planned for the future. 

Margin 

CMEG's margin accounts can be used for day trading and shorting stocks, and direct-access routing is available on some platforms. The broker's rules for short-term trades are appealing to day traders because there is no pattern day trading (PDT) rule in place. This is possible because the company operates under different regulations outside the United States. To day trade with CMEG, clients need only $500, which is much lower than the $25,000 required by the U.S. SEC. Leverage is available for accounts valued between $500 and $2,499 as follows:  100% maintenance requirement for long stocks priced less than $2.  50% maintenance requirement for stocks between $2 and $4  25% maintenance for stocks above $4. For accounts above $2,500 USD, the overnight margin is 2:1 with a daily margin as high as 6:1. Long positions held overnight are subject to an interest rate that varies from 4.5% to 7.5%, depending on position value. 

Account Types 

Capital Markets Elite Group offers two types of accounts for self-directed traders: standard and active. The standard account is the basic option and is less expensive. The active account comes with better software choices, faster order execution, no Pattern Day Trading (PDT) rules, and ultra-low latency. CMEG also promises to provide better customer service to active account holders. 

Accounts for U.S. Residents 

Please note that CMEG does not actively solicit U.S. persons to open accounts. However, if you are a U.S. resident, it is still possible to open an account with the broker. Simply visit the CMEG website at www.cmelitegroup.com and confirm that you have not been solicited. 

Standard Account vs Active Trader Account

Although the no-commission base is tempting for the standard account, it lacks the key features included in the active account.

If you choose to directly route an order, fees, and rebates will be generated from various market venues, and these can vary by the market maker. Currently, orders that add liquidity sent to ARCA NYSE will cost $0.002 per share, while orders that take liquidity will receive a rebate of $0.003 per share. 

Costs for stock locations are $25 per occurrence, and additional per-share fees may apply for some stocks. If a short position is held overnight, a fee equivalent to 0.5% of the stock's market value will be incurred. 

Platform Fees 

Traders who sign up for an active account have the choice of using either Sterling Trader Pro or Direct Access Software (DAS) for a monthly fee of $99 and $90 respectively. Both software platforms offer rebates for generating high levels of monthly commissions. The platform for the standard account is free of charge. 

The standard account comes with free software called Traders Elite Terminal (TET). This is the same desktop platform used by Interactive Brokers. However, active CMEG account holders are not able to use TET.

Standard Account Platform 

For the Standard Account, CMEG offers its customers a range of platforms to place orders and perform other functions. The standard account includes the Traders Elite Terminal (TET which is the same desktop platform used by Interactive Brokers. However, active accounts CMEG are not eligible to use it. 

Some of the features available on MEG's version of the platform include Level I streaming data, charting with tools, headline news articles, and watch lists. The software also has option chains and several advanced options tools. There are nearly 100 technical indicators along with convenient right-click trading and various drawing tools. However, the program offers only two graph styles: candlesticks and OHLC bars. 


Active Account Platforms:

Sterling Trader Pro 

Sterling Trader Pro is a versatile trading platform available both as a desktop application and a mobile app. The desktop version boasts an array of robust features, including Level II quotes, hotkeys, a stock locate tool, several order types, and direct-access routing. 

However, one downside we found with the software is that by default it uses several small windows instead of a single window, which can be connected. 

When it comes to charting, the platform offers high-level performance, providing close to 100 technical indicators and various drawing tools. Although there are only two graph styles available, candlesticks and OHLC bars, it's possible to expand a graph the full width of the monitor. Unfortunately, right-click trading is missing, and there is no trade button in the drop-down menu that appears with a click of the mouse. For advanced traders, the Level II window is a valuable tool that groups the same prices in one color-coded column, making it easy to read. The Level II box also houses the software's order ticket, which features a blue buy button and a dedicated short button for shorting. There are several order types available, including extended hours, IOC (immediate or cancel and FOK (fill or kill). Although not part of the default layout, an options order entry window is available in the platform's menu, located in the lower-left corner. The options trading tool offers color-code Level II data across multiple venues, and a drop-down menu can be used to specify open or closed positions.

DAS 

DAS, like Sterling Trader Pro, offers many features that are helpful for both day and swing traders. A market view window displays the day’s bid and ask numbers, as well as high and low figures. Additionally, it includes time and sales data and a news window, which has auseful feature that can read the news article aloud. 

The order ticket on DAS includes color-coded Level II quotes for any entered ticker symbol. There isn't a sell button if you don't have a current position. Instead, there's a red short button. There are also some duration choices, like day+ and a few minute varieties, that aren't available on Sterling. 

Charting on DAS allows for right-clicking, where chart colors can be easily adjusted, and drawing tools can be used. Charts can be saved or expanded to full-screen view. Unfortunately, there are less than 50 technical studies available. 

Summary 

Capital Markets Elite Group provides an opportunity for global traders to day trade without the constraints of the PDT rule, but fees and software charges can be high for occasional traders. It's worth noting that day trading is only possible with an active account. However, the regulation of the broker in Trinidad and Tobago raises some concerns, particularly as the broker is not licensed with the U.S. Securities and Exchange Commission or any other regulatory authority in the U.S. 

Customer service from CMEG is English speaking, but we found it to be unremarkable during our tests. The broker has promised to launch options trading soon, although the delay in its introduction is somewhat curious given the length of time the company has been in business. Presently, ETFs cannot be traded on the platform. 

CMEG is recommended for day trading stocks, but we advise caution for anything else. 


Important Notice 

Capital Markets Elite Group Limited is not affiliated with Conquest Trader, and we cannot make any representation, recommendation, or commitment on their behalf. Our recommendations of brokerage firms are based on our own evaluations, not on behalf of those firms. 

U.S. ResidentsIt's important to note that Capital Markets Elite Group Limited is registered a a securities broker-dealer in Trinidad and Tobago but not with the U.S. Securities and Exchange Commission or any other regulatory authority in the U.S. As such, U.S. Persons are not allowed to solicit business from Capital Markets Elite Group Limited, and if you're a U.S. Person, you'll need to certify that you have not been solicited by them before attempting to do business with them. However, if you cannot make that certification truthfully, it's recommended not to open an account with Capital Markets Elite Group Limited as you won' receive any protections that may be afforded to you if the company were registered as a securities broker-dealer in the U.S.Canadian PersonsCapital Markets Elite Group Limited does not offer services to Canadian residents or those using a Canadian bank account or credit card issued by a Canadian financial institution