|Forex, Metals & Commodities, Indices, Shares/Equities|
An Overview Of Trading Forex and CFD With FPMarkets
Having a dependable customer service attitude is the strongest forte of every Forex and CFD broker that wishes to become a leader in its segment. We are rather surprised at the number of new companies rising from different locations throughout the world, but not all companies have what it takes to provide a reliable financial service that meets global standards. Then there is a whole lot of existing brokers that have been quietly working at developing their strengths and minimising their weaknesses to cater to a worldwide clientele, and a majority of these companies are indeed some of the most trusted Forex brokers in the world.
FPMarkets is another established Forex broker that may not be as popular as some of the more renowned companies, but the company does have unique services and a great product portfolio that is suited for both day traders and long-term investors. FPMarkets is a recipient of numerous awards and recognitions, which makes it more trusted than some of the scam operators in the market. Is FPMarkets really free from any controversies? Let us find out in this FPMarkets Review.
FP Markets Regulation & Policies
FP Markets has more than a decade’s experience in the Forex market and has been operating out of its Sydney office for the past 12 years. FP Markets is primarily an Australian FX & CFD firm that has also expanded its branches to Shanghai and Beijing, which allows it to cover the entire Asia-Pacific regions. Due to regulatory restrictions, FPMarkets may not be able to operate in select markets such as Japan, US, and other countries, but with a relatively clean record, the company is one of the most trusted brokers in the market.
FP Markets is regulated by the Australian Securities and Investments Commission (ASIC), a regulator that is known for taking strict action against any scam brokers through some of the best regulatory guidelines issued in the global financial markets. ASIC is highly proactive in its efforts, which ensures that all Australian financial companies adhere to an ethical code of conduct, both for 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.
FPMarkets also has a keen interest in catering to Chinese traders, which is evident from its two branches in China. China is undoubtedly one of the most promising upcoming markets in retail Forex trading, and FPMarkets has indeed found success in the region. FPMarkets is on an expansion drive to cater its services to the global community of traders, and we do believe that its expertise and reputation can help the broker to find success at the international level.
FPMarkets Tradable Instruments & Markets
A large number of Australian Forex brokers usually offer access to multiple asset classes to provide an opportunity to traders for creating a diverse investment/trading portfolio. In this regard, FPMarkets is one of the best brokers in the market, where traders can access more than a staggering 10,000 financial instruments across various asset classes. FP Markets advertises itself prominently as a Forex and CFD broker, which means that a good amount of its tradable assets are offered as Contracts For Differences (CFDs). FP Markets also offers an opportunity to buy/sell shares and trade non-leverage CFDs, which ensure direct market access trading to hold the underlying stock without using any leverage. These shares also provide dividends, which makes FP Markets all the more attractive for long-term investors.
In case you are looking for information on the financial instruments offered by FP Markets, we have compiled the following list for your reference:
Forex: AUDCAD, EURAUD, EURSGD, GBPSEK, USDCNH, AUDCHF, EURCHF, EURTRY, GBPSGD, USDCZK, AUDJPY, EURCZK, EURUSD, GBPUSD, USDHUF, AUDNZD, EURGBP, EURZAR, NZDCAD, USDJPY, AUDSGD, EURHUF, GBPAUD, NZDCHF, USDNOK, AUDUSD, EURJPY, GBPCAD, NZDJPY, USDPLN, CADCHF, EURNOK, GBPCHF, NZDSGD, USDSEK, CADJPY, EURNZD, GBPJPY, NZDUSD, USDSGD, CHFJPY, EURPLN, GBPNZD, USDCAD, USDTRY, EURAUD, EURSEK, GBPPLN, USDCHF, USDZAR
Metals & Commodities: Gold vs US Dollar, Gold vs Australian Dollar, Silver vs US Dollar, Silver vs Australian Dollar, West Texas Intermediate Crude Oil, WHEAT (CBT), CORN, SOYBEAN OIL, OAT, SOYBEAN, SOYBEAN MEAL, CATTLE FEEDER, LEAN HOGS, LIVE CATTLE, WTI CRUDE, GASOLINE RBOB, NATURAL GAS, NY Harb ULSD (heating oil), PALLADIUM, PLATINUM, WTI, Gold, Silver
Indices: Australia 200 index Cash, China A50 Index, UK100 Index Cash, Euro 50 Index Cash, Japan 225 Index Cash, German 30 Index Cash, US 500 Index Cash, US Dow Jones Index Cash, US Nasdaq Index Cash, Hong Kong Index Cash, CAC 40 Cash Index
Shares/Equities (number of shares per country/market): Australia – 2165, U.K – 1674, U.S.A NASDAQ – 2066, U.S.A NYSE – 1885, Hong Kong – 2149, Singapore – 781
Cryptocurrency: Bitcoin vs US Dollar
FP Markets has indeed done an excellent job of offering more than 10,000 products from the global markets, but it could have added a few more equities to the mix, such as stocks from Europe, China, and other parts of Asia, Africa, and the Middle East. Nevertheless, an FP Markets account should offer elaborate access to the global financial markets and exchanges as required by a majority of traders.
FPMarkets Trading Conditions
FPMarkets offer two different types of trading protocols, the CFD model and the DMA model. The CFD protocol, also known as trading Contracts For Differences, is primarily a market maker that uses automated dealing desks to match orders internally or by hedging positions against other market players. CFDs have a slight conflict of interest, as market makers can manipulate the markets according to the demand and supply. The DMA protocol, also known as Direct Market Access trading, sends all orders directly to the liquidity provider, 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.
Since FP Markets offers different financial products, there are a total of five different account types, each suited to a particular category of trader. For trading products such as Forex, commodities, metals, and indices, traders are offered an option of two different account types, the Standard and ECN raw accounts, with a minimum investment requirement of $200 and $1000 (both AUD), respectively. 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.
FPMarkets spreads are very competitive, for both Standard and ECN Raw accounts, with the nominal spreads starting 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 $3.5 (AUD) per 100,000 traded. The commission is at par with the industry standards, especially since the commission is charged in Australian Dollars.
If you are looking to access the stocks and indices market, there are three different account categories that 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 brokerage rate of $10 minimum and 0.1% of the transaction amount as the fees. There are also other account and trading specific charges, which are outlined in detail in the accounts comparison page on their website. 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, and we believe there is an account package that suits everyone. Of course, the Standard Forex account at $200 minimum deposit is not as cheap as some of the other Standard accounts in the market. We have also reviewed Australian brokers that offer ECN accounts through cTrader platforms at just $150, which makes the FPMarkets ECN account highly expensive at $1000. Regardless, all other account features and specifications are fascinatingly competitive, which makes up for the slightly higher investment barrier.
Australia does not have any strict rules as far as promotional bonuses are concerned, unlike its EU counterparts, which helps traders in receiving a substantial bonus for their deposits. Not all ASIC regulated brokers offer a bonus, but FPMarkets provides up to 10% of the deposit amount as trading credits for its MT4 account holders. At times, the broker may increase its bonus offering to 20%, but it may be for a very limited period of time. The 10% bonus is only offered upon request and is available for deposits between $200 and $50,000.
Other rewards include a referral bonus under their Refer-A-Friend program and 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. Before opting for a bonus program, always check with the broker for their terms and conditions, which can help you to stay within the broker’s guidelines while trading or while making a withdrawal.
FP Markets platform options are divided between the MetaTrader and the IRESS interface. Regular Forex traders can access their accounts through the MT4 and the MT5 terminal, which grants access to FX, commodities, indices, and metals. The MetaTrader is an installable platform that is available for both Windows and MacOS users, which covers the entire desktop trading market. The MT4 version is the more popular version and is more widely used than the MT5 platform, but the MT5 also offers a few advantages over the MT4.
The IRESSTrader is a browser-based trading interface that works on the HTML5 architecture for the best in compatibility with all modern browsers. The IRESS platform is used to access the equities market and offers a highly customisable 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 customisation. The charting interface also allows the trader to compare the price action of two different instruments, which helps in analysing the underlying market trends.
The MetaTrader4 terminal and the MetaTrader5 platform allows the use of ExpertAdvisors (EA) without any restriction. The free VPS service also a great added advantage for automated trading strategies, rendering better protection against downtime and latency issues. The FPMarkets trading platforms offer great tools and features to trade the markets, and we are really impressed with the broker making an effort to offer three distinct platforms for trading.
FPMarkets Mobile Apps
FPMarkets has covered the mobile trading market by adopting 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 FPMarkets mobile trading platform, while the IRESSTrader is a browser-based platform that is compatible with both desktop and mobile browsers. The standalone FPMarkets 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. Apparently, the shorter screen real estate may be a hindrance for professional traders, but the mobile trading apps can be used in conjunction with the desktop platforms for 24 hours market access.
FP Markets Funding Methods
FP Markets is a full-fledged broker that accepts multiple payment options for depositing and withdrawing funds. Payment methods include Bank wire, credit/debit cards, China UnionPay, AstroPay, Neteller, Skrill, and BPAY. Incidentally, the broker even allows you to transfer your funds to FPMarkets from your existing broker, but we are not sure how your current broker will react to you switching accounts. In the best case scenario, the transfer of funds between brokers should go smoothly, but if you are not really sure about the reliability of your current broker, we would advise you to withdraw the funds to your e-wallet or a bank account and then deposit your funds into your FP Markets account. If you are worried about the fees, get in touch with FP Markets to know about their options for reimbursing you in any way.
Once you deposit funds into your trading account, FP Markets moves all the money into a segregated account as instructed in the ASIC guidelines. Such funds are kept in the best banks in Australia and in accounts with no link to the broker’s own account. Routine audits by independent agencies also help in ensuring that FP Markets does 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 Markets Customer Service
You can call the FPMarkets customer representatives through their phone, or talk to them via the live chat feature that is available 24 hours a day. The broker also responds quickly to emails, and in case of a dispute, the dispute resolution process is clearly outlined on their website. Failure to receive a good 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, FPMarkets 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. The broker also promises to resolve most matters within 21 days, which is quite an acceptable duration for quite serious concerns.
FPMarkets Trading Education & Resources
FPMarkets hosts a detailed education and research section that offers customised 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. FP Markets does not provide any free trading signals, but that should be a deterrent for traders to use all the available resources to create an underlying picture of the market.
- Regulated by the ASIC.
- Offers access to more than 10,000 different financial instruments.
- Very competitive spreads and standard commission.
- Availability of MT4 and MT5 trading platforms.
- Offers a dedicated platform for stock trading.
- Traders can receive a 10% bonus on their deposit.
- Excellent customer service.
- Requires a slightly higher deposit than other competing brokers.
- Not regulated by any EU or US agencies.
Can I Open A FPMarkets Demo Account?
Yes, FP Markets offers a free $100,000 demo account.
Which Platform Should I Choose?
The MT4 and the MT5 platforms are your best options for trading Forex, commodities, indices, and metals, while the IRESSTrader is perfect for stock/equity trading.
Does FPMarkets Support Mobile Trading?
Yes, FP Markets offers access to the respective mobile apps for MT4 and MT5 terminals. IRESSTrader is a browser app that can be accessed on both desktop and mobile.