Broker Summary

Pros:

  • No PDT rule
  • Available to US residents
  • $500 minimum (Active Account)
  • Access to multiple trading software
  • Direct access routing
  • Hotkeys

Cons:

  • Very high commissions and fees
  • Not regulated by FINRA, SEC, SIPC, or other US authorities
  • Not available to Canadian residents

Overview

Capital Markets Elite Group, or CMEG, is a securities broker-dealer located in the Republic of Trinidad and Tobago. They have been in business since 2013, providing access to securities and FOREX markets through advanced trading platforms, such as DAS and Sterling Trader. 

As an offshore broker located outside of the US, the primary appeal behind CMEG is that it allows US residents to bypass the PDT rule and day trade more than three times in a rolling five-day period with less than $25,000. That is not possible at other brokers at this time, as there are no offshore brokers that accept US residents besides CMEG, and all US-based brokers require customers to adhere to the PDT rule. For this reason, some US-based small account traders use CMEG to facilitate their trading activities. 

CMEG offers pre-market trading hours between 7:30-9:30 AM ET, followed by market trading hours of 9:30 AM-4 PM ET. They do also offer after-hours extended trading between 4-5:30 PM ET. According to their FAQ page, after-hours trading may only go until 5 PM ET on Fridays, depending on which trading platform you are using. 

CMEG does not solicit U.S. Persons. However, US Persons can still open an account with CMEG by visiting their website and acknowledging the pop-up prompt that verifies they haven’t been solicited. CMEG provides more information on US Persons here. Canadian residents are not eligible to open an account at CMEG. All other international residents should check with CMEG for application eligibility. 

CMEG only accepts deposits through international wire transfers, which can be done in USD, EUR, and GBP and can take 3-5 business days to arrive. CMEG asks clients to send a copy of the wire transfer receipt to their support team to confirm the transaction. In order to withdraw funds, CMEG requires a Wire Transfer Request Form to be filled out, which can be found on their FAQ page or through their support team. 

In regards to taxes, CMEG is FATCA (Foreign Account Tax Compliance Act) compliant, which means they report foreign assets held by their US-based clients to the IRS. CMEG does not provide its clients with a 1099-B, as is general practice with US-based brokers. Instead, they offer an account summary statement which will provide the necessary information for tax purposes. For questions related to filing taxes for a CMEG account, it would be best to reach out to a CPA who is familiar with trading taxes. 

Registrations

CMEG states on its website that they are registered with the Trinidad and Tobago Securities and Exchange Commission (TTSEC) and the Cayman Islands Monetary Authority (CIMA). They also state on their website that they are registered as a Foreign Financial Institution (FFI) with the IRS and compliant under FATCA (Foreign Account Tax Compliance Act), which requires foreign financial institutions to report foreign assets held by US-based CMEG clients. 

When considering CMEG as a broker, it is important to remember that CMEG states on its website that they are not registered with FINRA, SEC, SIPC, or any other federal or state authority in the US. As a result, CMEG does not operate under the same rules as other US-based brokerages. On the one hand, this allows CMEG to offer margin day trading accounts to clients with less than $25,000. On the other hand, customers of CMEG have to take into consideration the risk associated with funding an account at a broker unregulated by the US government. 

Account Types

CMEG offers margin trading accounts to their clients with a minimum deposit of $0 for Standard Accounts and $500 for Active Accounts. Active Accounts must maintain a $350 balance to maintain trading permissions and monthly subscriptions. If the account balance falls below that value, the account may be liquidated.

Standard Accounts offer zero commissions and are designed for traders who want to buy and hold for more extended periods of time. While there is no margin for accounts under $2499, they do offer 4x leverage for Standard Accounts that are funded with $2500 or more. 

Active accounts funded with more than $500 are eligible for 6x leverage, while accounts under $500 do not receive any leverage. It’s important to note that leverage is subject to CMEG’s margin policy, which you can find at the bottom of this page here. 

They also offer an enhanced account, which is CMEG’s version of a proprietary trading service where they offer up to 10:1 leverage. However, that is only offered to proprietary trading groups with the proper experience and certifications. Finally, they offer a Forex account for those interested in trading currencies. Currently, that account type is not available to US Persons. 

Pricing

As of January 2023, CMEG charges commissions on a per-fill basis rather than a per-trade basis for Active Accounts, which has resulted in increased commissions for clients compared to their previous structure. In comparison, Standard Accounts are offered with $0/trade commissions. However, Standard Accounts are meant for long-term traders rather than day traders, as they are not allowed to day trade more than 3 times in a five-day rolling period. 

It’s important to consider other fees that are charged on items like trading software, monthly data, routing and ECN, deposits and withdrawals, platform changes, and stock locates. CMEG also assesses interest fees based on the market close value of borrowed funds. The fees depend on the account type, as the Standard Account benefits from things like $0 platform fees. A detailed list of fees for CMEG can be found here. You can also find a breakdown of their data fees on their website.

In terms of alternatives, you can find other methods of day trading with less then $25k here.

Trading Software

CMEG allows access to multiple trading software, including Sterling Trader Pro, DAS, and DAS Web/Mobile, which are all popular trading software for day traders. You can learn more about the different types of trading software that CMEG offers in more detail here.

Sterling Trader Pro is the trading software we use at Warrior Trading for our simulator, which has made it widely used by our members since they can practice on our simulator and then transition to live trading using the same software. You can learn more about Sterling Trader Pro and our thoughts on it here.

DAS Trader Pro is another popular trading software as an alternative to Sterling Trader Pro. You can learn more about them here.

CMEG provides mobile trading through the iDAS mobile app, which is available in Android and iOS stores. However, this feature is only available to users of the DAS Trader Pro software. 

The Warrior Pro course offers access to demo videos and downloadable layouts for both the Sterling and DAS (desktop) software, as our mentors are well-experienced with the software. Members may find those resources helpful in better understanding how to use the software.

CMEG does offer demo trading accounts upon request. Clients can request a demo of the Sterling software, which is available for seven days, and a demo of the DAS software, which is available for 14 days. 

Features and Support

Among other features, CMEG offers a Stock Locate service that can be accessed via the DAS Trader Pro and Sterling Trader Pro software. The Short Locate service provides the option of paying a fee to secure the ability to short a stock that is otherwise hard-to-borrow. For example, if a stock is not able to be shorted, you can place a Short Locate request to the broker. If the broker is able to locate inventory, you will be able to pay a fee if you want to secure the locate, which will then allow you to short the stock. Short locate requests are valid for the same trading day only, and unused short locates expire at the end of the day. 

There are multiple contact options for product, service, and technical support. You can find the options for contacting CMEG here. It’s important to note that placing a phone call to CMEG may result in international calling tolls from your service provider. If your inquiry is non-urgent, you can consider sending an email instead. 

CMEG provides a detailed FAQ page here, which is a great way to obtain answers to any questions you may have about the brokerage and its services. It is encouraged to first look through the FAQ for answers to your questions before reaching out to the support team. 

CMEG does allow clients to suspend their accounts if they don’t plan to trade and wish to save on software and market data fees by reaching out to their support team (inactivity fees still apply).

Conclusion

In conclusion, Capital Markets Elite Group may provide a solution to US residents who want to day trade with less than $25,000. However, that does come at the expense of a pricey commission structure and the absence of US-based regulation, which may pose certain risks and concerns. CMEG states on its website that it does comply with FATCA, the Trinidad and Tobago Securities and Exchange Commission, and the Cayman Islands Monetary Authority. The availability of multiple trading software options, such as Sterling and DAS, coupled with features like stock locate and routing options, add to the versatility of CMEG’s service. Overall, CMEG provides a specialized platform and services that meet the unique needs of US-based small account traders, but individuals should consider the associated risks and costs before choosing this offshore brokerage

Important Notice

Capital Markets Elite Group Limited is not affiliated with Warrior Trading.  We have no authority to make any representation, recommendation, or commitment on their behalf.  We provide information on various brokerage firms based on our own evaluation and not on behalf of those firms.

U.S. Persons–In the case of Capital Markets Elite Group Limited, it is important that U.S. Persons understand that Capital Markets Elite Group Limited is registered as a securities broker-dealer in Trinidad and Tobago but is not registered or licensed as a securities broker-dealer with the U.S. Securities and Exchange Commission or with any other regulatory authority in the U.S.  Therefore, Capital Markets Elite Group Limited is not permitted to solicit business from U.S. Persons.  If you are a U.S. Person and you attempt to do business with Capital Markets Elite Group Limited, you will be required to certify to them that you have not been solicited by them and that you approached them without prior solicitation by them.  If you are a U.S. Person and are not able to make that certification truthfully, you should not attempt to open an account with Capital Markets Elite Group.  If you are able to make that certification truthfully and choose to open an account with Capital Markets Elite Group Limited, you should be aware that you will not receive protections that might be afforded to you if Capital Markets Elite Group Limited were registered as a securities broker-dealer in the U.S.

Canadian Persons–Capital Markets Elite Group Limited does not offer services to Canadian residents or to persons using a Canadian bank account or a credit card issued by a Canadian financial institution.