FP Markets Review
FP MARKETS offers its clients a choice of two live account types: Standard commission-free one, and RAw account which provides tighter spreads, but also involving a commission.
Micro lots are available for trade on both account types and, of course, the broker also provides free Demo accounts, which are always appreciated by inexperienced traders.
The Company. Security of Funds
FP MARKETS (FPM) is a CFD and forex provider specializing in Direct Market Access (DMA) trading, that has over 10 years of experience.
The company behind the FP MARKETS brand is First Prudential Markets Pty Ltd., which holds an Australian Financial Services License and is regulated by the Australian Securities and Investment Commission (ASIC).
ASIC requires licensed companies to meet certain requirements and to comply with various rules. Clients’ money is to be kept in segregated trust accounts. As for the minimum capital requirement, forex brokers must hold at least $ 1 million in order to prove their good financial standing. In comparison, UK’s FCA requires forex brokers to possess at least 730 000 EUR and Cyprus’ CySEC – 1 000 000 EUR.
Unlike many EU-based brokers, however, Australian ones are not covered by any compensation scheme. FCA-regulated brokerages, for example, fall under Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person per company.
Despite the regulation and the requirements set to Australian brokers, one should be aware of the risks of trading Margin FX and CFDs. Returns and gains are not guaranteed. ASIC, the Australian Government nor any other person guarantees any funds in your account.
Minimum Initial Deposit
Traders are required to deposit $200 in order to open an account with FP MARKETS, which is an average initial amount.
Average Spreads & Commissions
FP MARKETS offers variable spreads, the typical ones on its commission-free account amounting to 1.45, and the ones on the ECN Raw accounts averaging to 0.45 pips on EUR/USD. Considering that commission of $3 per standard lot per side applies on the Raw account, trading costs of such account holders amount to a little over 1 pip, which is a competitive pricing.
For further information, you may look up real-time spreads of 15 leading brokers here.
Clients of FP MARKETS use leverage ratios up to 1:500 and such maximum leverage level is considered high. Some jurisdictions cap leverage to levels significantly lower than this (i.e. 1:50 in the US), because higher leverage involves higher risk of heavy losses in excess of initial investments.
FP MARKETS offers its customers several trading platforms: MetaTrader 4 (MT4), MetaTrader 5, and its in-house IRESSTrader, specialized in CFDs trading.
MT4 is the most widely used forex platform, available to FPM’s clients as PC, Mac, iPhone/iPad and Android versions. MT4 provides all the tools and resources a trader needs: a number of technical indicators, advanced charting package, extensive back-testing environment and a wide range of Expert Advisers (EAs). By using EAs traders may sit back, while the software does all the work, as Expert Advisers allow full automatization of trades.
If you are running EAs, it is vital that your platform is Internet connected 24 hours a day. The best solution in this case is VPS and FP Markets has partnered with TradersColo and BeeksFX VPS, to provide a customized low latency solution for their clients. The VPS seamlessly connects traders to the Equinix NY4 grid using cutting edge technology and providing excellent execution.
What is more, there are Multi Account Manager MAM/PAMM options on MT4. MetaFX has developed a stand-alone console to assist Multi Account manages in trading. The MAM/PAMM offered are customizable and user friendly.
As MT4 will soon be phased out, the broker launched trading in the latest version of MetaQuotes software – MetaTrader 5. It has most of the great features of MT4 (such as the great charting, and EAs), as well as some new ones. Most importantly, the MT5 offer traders the opportunity to trade an extended number of instruments from a variety of asset classes.
As regards FP Markets’ proprietary platform IRESSTrader, it provides its clients with access to DMA CFDs with industry leading execution, a wide ranges of order types, stop-loss, live news feeds, international data, complete market depth and charting facilities.
IRESSTrader is a web based platform you can access from any PC or even a mobile device.
Methods of Payment
FP MARKETS offers its clients a variety of deposit/withdrawal methods: via credit/debit card, bank wire, BPAY, AstroPay, Neteller, Skrill, China UnionPay.
Depending on the depositing method, clients may use the following currencies: AUD, USD, SGD, CHF, GBP, CAD, HKD, JPY, EUR, and NZD.
FP MARKETS is a reliable Australian STP broker, offering competitive conditions for trading in variety of assets, including Bitcoin (with leverage 1:10). These can be traded on three trading platforms with NDD execution (no conflict of interest).
FP Markets Review Conclusion
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