FP Markets Review
FP Markets Review
Our FP Markets review investigates a broker that has successfully established itself as one of the leading CFD brokers in the industry. When it comes to Australian founded brokers they tend to go above and beyond to deliver a trading experience that is rich, smooth, and reliable.
There are many reasons to work with FP Markets. They offer a selection of industry-leading platforms, give access to over 10,000 assets (including cryptocurrencies, equities, futures, Forex, indices, metals, and stocks through CFDs), and their spreads are tight, starting at just 0:0 pips for their ECN account.
Beginners can take advantage of a wide selection of educational resources, while intermediate traders are well served with their market reviews and advanced charting options.
Read on to discover everything this industry-leading broker has to offer you.
- Outstanding customer support, which is efficient and helpful
- Access to both ECN trading and the standard market maker model
- 13,000 + assets - FX, Stocks, Indices, Metals, Equities, Commodities, Cryptocurrencies and Futures
- Excellent educational resources for both beginners and intermediates
- Limited MT4/MT5 account types available in a one-size-fits-all approach
FP Markets or First Prudential Markets have built up quite a name for themselves fairly quickly. They have been operational since 2005 and in that time have won over 35 awards.
It is important to note here that in this industry, awards can often be taken with a pinch of salt as they are often based on the broker paying the publisher. However, FP Markets has managed to garner awards from very reputable publishers, including names like Money Magazine and Smart Investor.
FP Markets online broker is operated by three companies, one of which is regulated in Australia, one which is regulated in Cyprus, and the third which is based out of St. Vincent & The Grenadines – this is the unregulated brand. This structure entitles the broker to work in both the Eurozone, across Australia, and in regions that opt to work with unregulated brokers.
FP Markets regulation and licensing
FP Markets has become a well-established broker in the Forex market and has been operating out of its Sydney headquarters for the past 15 years. Although FP Markets is primarily an Australian FX & CFD broker, traders can opt to look at either the ASIC version of the website, the CySEC version or the International version.
Due to regulatory restrictions, FPMarkets may not be able to operate in select markets such as Japan, the United States, and other countries, but with a relatively clean record, the company is one of the most trusted brokers in the market.
FP Markets online forex broker is operated by a firm that is regulated by the Australian Securities and Investments Commission (ASIC), a regulator that is known for taking strict action against any scam brokers. ASIC is highly proactive in their efforts, which ensures that all Australian financial companies adhere to an ethical code of conduct. This applies to both domestic and international clients. Australian investors are protected by various laws that are implemented by the ASIC, along with some of the best auditing practices that ensure complete financial transparency.
Additionally, the Cyprus-based arm of the firm is regulated by CySEC, a well-known regulator for CFD and FX brokers. CySEC regulation is accompanied by an investor compensation scheme which protects investors deposits up to a certain limit should the broker become insolvent.
MT4 and MT5 Account types
Our FP Markets review 2020 experts have seen that the broker offers two different types of trading protocols, the CFD model and the DMA model.
The CFD protocol is primarily a market maker that uses automated dealing desks to match orders internally or by hedging positions against other market players. With CFDs, market makers can manipulate the markets according to demand and supply. Additionally, market makers take the other side of the trade to the broker, which may be considered a conflict of interest.
The DMA protocol, also known as Direct Market Access trading, sends all orders directly to the liquidity provider, which in this case is the ECN or Electronic Communications Network, where the broker or any intermediary does not have the option to manipulate the orders or hedge against traders’ positions. DMA trades are also relatively free of any conflict of interest, where order executions are faster and more accurate.
MAMM/PAMM & VPS
Money managers can access MAMM/PAMM accounts through the MetaTrader platforms. Conditions are generous here. Meanwhile, the free VPS service is also a great added value feature for automated trading strategies, rendering better protection against downtime and latency issues.
A wide range of account types
Since the FP Markets online forex broker offers different financial products, there are a total of five different account types, each suited to a category of trader. For trading products such as Forex, commodities, metals, and indices, traders are offered an option of three different account types, the Standard, an ECN raw account or an Islamic account, with a minimum investment requirement of $100 (both AUD or equivalent base currency).
Both accounts are offered with a maximum FP Markets leverage of 1:500, which seems to be the maximum leverage offered by most Australian Forex brokers. The minimum trading volume starts from 0.01 lot, which allows traders to have better control over their trade management and investing strategies.
The Standard is the one size fits all account for all levels of trader. With this account, traders will be charged spreads rather than commissions.
The RAW account for MT4 and MT5 gives ECN access to traders and this direct connection to the Electronic Network means traders will pay commissions rather than wider spreads. Commissions start at $3 per trade and spreads start at 0 pips.
Islamic accounts are also available. These accounts are designed for traders who cannot pay or receive overnight swaps or interest due to religious reasons. To request an Islamic account with FP Markets, you’ll need to first open a MetaTrader platform account. You can then request for it to be converted into an Islamic account.
IRESS Platform Accounts
ASIC traders will also have access to the proprietary IRESS platform to have access to the stocks and indices market. Here, there are three different account categories, (Standard, Platinum, and Premier) which start with a $1000 initial investment.
The base Professional account that is available for $1000 deposit offers access to more than 10,000 assets at a commission rate of $10 minimum and then 0.1% of the transaction amount. There are also other account and trading specific charges, which are outlined in greater detail in the below section of this review of FP Markets forex broker.
The Platinum and Premier accounts offer reduced fees for trading, but at the expense of an initial deposit capital of $25,000 and $50,000 respectively. FP Markets accounts are designed to suit the requirements of different types of traders, so there’s an account package that suits everyone.
The minimum deposit on the IRESS platform starts at $1000 and jumps up to $25,000 on the Platinum Account or $50,000 on the Premier account.
Traders can have access to a demo account for each of the main platform types. They are given $100,000 virtual funds to trade with. Demo trading is an excellent way to try out the platforms or to test out strategies before committing real capital.
FP Markets trading costs
FP Markets online broker spreads are very competitive, for both Standard and ECN RAW accounts. Nominal spreads start from just 1 pip, without any commission for the regular market maker products. The spread is reduced to 0 for ECN accounts, where the commission starts from $3(international)/$3.5 (ASIC) per 100,000 traded. The commission is on par with the industry standards, especially since the commission is charged in Australian Dollars.
We have reviewed other Australian brokers before this FP Markets broker review that offer ECN accounts through cTrader platforms at just $150. That makes the FP Markets ECN account highly expensive at a $1000 starting deposit. Regardless, all other account features and specifications are fascinatingly competitive, which makes up for the slightly higher investment barrier to the ECN account.
For the IRESS platform, commissions start at $10 min, this then moves to 0.1% of the trading volume for the Standard. Again, this is in line with the competition.
Other fees and charges
- With regards to deposit fees, traders are charged 0% for most payment methods and the FP Markets online forex broker covers withdrawal fees too, except for international bank wire and IRESS credit card deposits.
- Rollovers are incurred for overnight positions at FP Markets relevant currency base rate, plus 3% – 4% for both long and short positions.
- Traders are not charged for use of the MetaTrader 4/5 nor the IRESS Mobile version. However, for IRESS Trader/ViewPoint trader there is a $55 monthly fee.
- It is worth noting that traders can access financing for the IRESS account types, which is charged at 4% for the Standard account, 3.5% for Platinum and 3% for Premier.
FP Markets payment methods
FP Markets accepts multiple payment methods for depositing and withdrawing funds. Payment methods include Bank wire, credit/debit cards, China UnionPay, PayPal, Polipay, Fasapay, Paytrust99, Ngan Luong, Online Pay, Broker to Broker, Neteller, Skrill, and BPAY.
Incidentally, the broker even allows you to transfer your funds to FP Markets from your existing broker. If you are not sure about the reliability of your current broker, consider withdrawing the funds to your e-wallet or a bank account and then deposit your funds into your FP Markets online broker account.
Once you have deposited funds into your trading account, FP Markets moves all the money into a segregated account as instructed in the ASIC and CySEC guidelines. Such funds are kept in top tier banks. Routine audits by independent agencies also help in ensuring that FP Markets do not misuse the funds in any manner.
As for the withdrawal of your funds, FP Market will process your withdrawal request within 24 hours, with the funds reaching your account within a few days.
FP Market trading bonuses
Our FP Markets review experts were happy to see that this broker complies with local regulatory requirements and therefore offers no trading bonuses or promotions. As the saying goes, “there is no such thing as a free lunch” and that is certainly true with brokers. Those who claim to offer welcome bonuses often hide the fact that they come with a whole list of minimum trading requirements, which entirely negate the purpose of the bonus.
In terms of added value, the broker confers a referral bonus under their Refer-A-Friend program and also offers full VPS reimbursement. All Forex trading account holders are eligible for a free VPS, which is an excellent promotion offered by the company. VPS, or Virtual Private Server access, allows traders to connect their accounts and platforms to the markets via a 24 hours private server, ensuring around the clock access with no downtime. VPS is an excellent tool for EA users.
FP Market trading platforms
Review of FP Markets’ trading platforms showed that it offers both the MetaTrader 4/5 and the IRESS interface. Many traders like to use the MT4 and the MT5 terminal, which grant access to FX, commodities, indices, and metals. The MetaTrader is an installable platform that is available for both Windows and macOS users. There is also a WebTrader version for those who prefer not to install software, but rather to trade through a web browser. The MT4 version is the more popular version and is still more widely adopted than the MT5 platform. However, MT5 is the evolved version that offers more functionality. Both versions (but not the WebTrader) come with access to Expert Advisors (EA’s) which is how traders will automate trading through the platform directly.
FP Markets offers an unusual add-on product through MT4, which is the Trader Toolbox. This is a useful collection of 12 online trading tools that comprises of features like the economic calendar, sentiment trader and other traders’ tools.
The IRESS Trader is a browser-based trading interface that works on the HTML5 architecture for the best compatibility with all modern browsers. The IRESS platform is used to access the equities market and offers a highly customizable interface that is intuitive and easy to use. The IRESS interface offers advanced charting tools, real-time data, technical indicators, drawing tools, multiple timeframes, module linking, and complete chart customization. The charting interface also allows the trader to compare the price action of two different instruments, which helps in analyzing the underlying market trends.
FP Markets markets and products
Our FP Markets reviewers found that one huge advantage of trading with this broker is that you have access to over 10,000 financial instruments, including over 60 currency pairs. Recently, the broker has extended this offering to include more exotic currency pairs such as CHFSGB, GBPMXN, and USDTHB.
FP Markets also provides you with 8 spot metal pairs, including gold and silver with EUR, AUD, and USD. You can also trade Palladium and Platinum, cryptocurrencies, indices, equities, and commodities. All of this makes FP Markets the perfect broker for those looking to diversify their portfolio.
Our FP Markets review team is pleased to see that they offer three trading platforms that are compatible with mobile devices. The MT4 and the MT5 terminals have dedicated apps for iOS and Android operating systems, which serve as the default FP Markets mobile trading platform. The IRESS Trader is a browser-based platform that is compatible with both desktop and mobile browsers.
The standalone FP Markets apps in the form of MT4 and MT5 apps are some of the most advanced and feature-rich mobile trading interfaces in the market, which makes trading a breeze. All mobile trading platforms have easy-to-use interfaces and contain all the essential features that are expected from a mobile trading platform.
Education and training
Our FP Markets broker review team knows how important it is nice for a broker to offer its own in-house manufactured educational resources. So many brokers use the same cookie-cutter white-label content which frankly is useless at educating traders.
FP Markets offer customized courses for beginners, intermediates, and experts. The broker offers training courses, e-books, and video tutorials, on top of excellent research material that includes market analysis and webinars. Traders will need to give their email to access most of the resources, but it is well worth viewing.
FP Markets customer support
Our FP Markets forex broker review team has written directly to other customer support staff through live chat in the past and have received links to web pages as replies. This is not helpful and brokers should pay note that this can irritate traders who are looking for simple and immediate answers to their questions. FP Markets is not one of these brokers. They appear almost immediately on the live chat and their answers are helpful and informative.
Furthermore, you can call the FP Markets online forex broker customer representatives over the phone, 24 hours a day. The broker also responds quickly to emails, and in case of a dispute, the resolution process is clearly outlined on their website.
Failure to receive a satisfactory response from the broker also enables clients to contact the Financial Ombudsman Service for arbitration, which should help in reaching a fair and unbiased verdict. Fortunately, FP Markets is a professional company that employs a capable team of experts and customer service representatives, so that every client receives the best in customer service.
FP Markets – Our verdict
Our FP Markets broker review experts are happy to recommend this firm. They far outstrip the competition in almost every way. Their charges are more than fair, their technology is unsurpassed, and their customer support highly efficient. They offer ECN access or market maker access and a wide list of available instruments. All in all this a highly recommended broker.
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