Getting a well rounded overview of a particular broker is very crucial before making a selection. This FP Markets review seeks to provide a well rounded overview of this broker, particularly highlighting its pros and cons. At the end of this article, you should become acquainted with the areas of strengths and weaknesses of the broker.
 FP Markets Review: Overview of the Broker
FP Markets is a well-established online forex and CFD broker that has been in operation since 2005. The broker is based in Sydney, Australia and has earned a good reputation in the financial market. It offers access to a wide range of financial instruments, competitive trading conditions, and a variety of trading platforms.
FP Markets is regulated by the Australian Securities and Investments Commission (ASIC), which provides traders with a sense of security and confidence. The broker has also expanded its global reach, securing regulation from the Cyprus Securities and Exchange Commission (CySEC), making it a regulated entity within the European Union. This dual regulation allows FP Markets to serve clients in over 100 countries.
FP Markets Review: Pros
1. Regulated and Trustworthy Broker
FP Markets is one of the most trusted brokers in the industry due to its dual regulation by ASIC and CySEC. The Australian regulator, ASIC, is known for its stringent oversight, ensuring that brokers comply with high standards of transparency, client fund protection, and operational integrity. CySEC regulation, on the other hand, ensures that FP Markets adheres to the European Union’s MiFID II directive, which enforces stringent rules on financial services. The fact that FP Markets holds regulation from two reputable bodies gives traders strong confidence, as it offers strong regulatory protection. The broker also operates on the principle of client’s funds segregation.
2. Wide Range of Tradable Instruments
FP Markets provides traders with access to over 10,000 financial instruments. This includes:
- Forex: Over 60 currency pairs, including major and minor pairs. The tight spreads offered on major pairs like EUR/USD make FP Markets particularly appealing to forex traders.
- Commodities: FP Markets offers trading on a variety of commodities, such as gold, silver, oil, and other energy products. Commodities are popular among traders looking to diversify their portfolios.
- Indices: Traders can access global indices like the S&P 500, NASDAQ, FTSE 100, and DAX 30. Trading indices offers the opportunity to speculate on the broader market performance of certain countries.
- Shares: FP Markets offers Contracts for Difference (CFDs) on over 10,000 global stocks, including shares from major exchanges like the NYSE, NASDAQ, LSE, and ASX. Traders can speculate on the price movements of individual companies without owning the underlying shares.
- Cryptocurrencies: FP Markets offers cryptocurrency trading on popular digital assets such as Bitcoin, Ethereum, Litecoin, and Ripple. Cryptocurrency CFDs allow traders to take advantage of price volatility without needing to own the underlying asset.
3. Competitive Spreads and Low Trading Costs
FP Markets is known for its tight spreads, particularly on its Raw ECN account, where spreads on major currency pairs like EUR/USD can start as low as 0.0 pips. The broker also offers a Standard Account, where spreads are slightly higher but no commission is charged on trades. This dual pricing model gives traders the flexibility to choose between a commission-based structure with tight spreads or a commission-free structure with slightly wider spreads. This makes the broker a cost-effective option for both retail and institutional traders.
4. Trading Platforms
The following are the trading platforms supported by FP Markets:
- MetaTrader 4 (MT4): MT4 is the most popular trading platform globally, known for its advanced charting tools, customizable indicators, and automated trading capabilities through Expert Advisors (EAs). MT4 is suitable for traders of all experience levels, from beginners to seasoned professionals.
- MetaTrader 5 (MT5): An upgrade from MT4, MT5 offers more advanced trading tools, additional timeframes, and support for a wider range of asset classes. It is ideal for traders who need more sophisticated tools and want to trade a broader selection of markets.
- Iress: Iress is a premium trading platform designed for professional traders, offering direct market access (DMA) to shares and CFDs. It provides advanced charting, real-time pricing, and market depth information, making it ideal for active stock traders and institutional clients.
5. Fast Execution Speeds
FP Markets is known for its fast trade execution speeds, particularly on its Raw ECN accounts. The broker utilizes a network of liquidity providers to ensure that trades are executed quickly, with minimal slippage. This is particularly important for scalpers and day traders who rely on fast execution to capture small price movements. By offering fast trade execution and minimal slippage, FP Markets ensures that traders can take advantage of market opportunities as they arise.
FP Markets Review: Cons
1. Inactivity Fees
FP Markets charges an inactivity fee on accounts that remain dormant for a certain period of time. The fee is applied after three months of inactivity and continues to be charged on a monthly basis until the account is reactivated or closed. This inactivity fee can be an unfavorable cost for traders who do not trade frequently or who take extended breaks from trading.
2. No Proprietary Trading Platform
Although FP Markets offers industry-leading platforms like MetaTrader 4, MetaTrader 5, and Iress, it does not offer a proprietary trading platform. Some brokers provide their own custom-built platforms that offer unique features and a more personalized trading experience. Traders who prefer the innovation and customization that often comes with proprietary platforms may feel that FP Markets is lacking in this area.
3. Commission on Iress Accounts
While the Iress platform is a powerful tool for stock and CFD traders, it comes with higher costs compared to MetaTrader accounts. Iress accounts are subject to commissions, platform fees, and data fees, which can be a disadvantage for traders who want to minimize their trading costs. These costs may deter traders who are not willing to pay for a premium platform. Also, the Iress accounts require a higher minimum deposit than its MetaTrader accounts. This can be a barrier for some traders, particularly beginners or those with smaller trading capital, who may not be able to meet the higher funding requirements.
Frequently Asked QuestionsÂ
Does FPMarkets allow scalping?
- Yes, it allows.
What is the minimum deposit in FPMarkets?
- The minimum deposit it charges is $100.
Does FPMarkets have negative balance protection?
- Yes, it does.