FP Markets Review, Rating and Comparison

Saying that FP Markets is one of the best Australian brokers wouldn’t be an exaggeration. They have been operating for over 15 years now, providing clients with high quality trading services, for which they have gained industry recognition and numerous awards.

 

In this thorough review of FP Markets, we will discuss in detail all parts of the broker’s offer: trading accounts, and platforms; minimum deposit required, maximum leverage provided, spreads and commission fees, as well as other trading costs; assets available for trade on the different platforms; deposit and withdrawal methods, as well as the fees relating to them. We will also explain all the regulatory aspects of forex trading and what are the benefits of dealing with a broker licensed in Australia and Europe like FP Markets. Read all the details below.

 

Trading Accounts & Assets

 









Account type Minimum deposit  Maximum leverage Typical Spreads Platforms
Standard  $100  1:500 from 1.0 pips MT4/MT5
ECN Raw $100  1:500  from 0.0 pips + AUD $3.5 / lot (per side) MT4/MT5
Standard (Iress) $1000 1:20 Base Rate +4.0% Iress
Platinum $25 000 1:20 Base Rate +3.5% Iress
Premier $50 000 1:20 Base Rate +3.0% Iress

 

The account types at FP MARKETS are basically in two categories, based on the trading platforms available: MetaQuotes’ MT4 and MT5 or the broker’s proprietary software Iress.

 

Account types

Clients of FP Markets who prefer trading on MetaQuotes’ well-established platforms have a choice of two account types: Standard commission-free one, and Raw account which provides tighter spreads, but also involves a commission. Both account types offer generous leverage of up to 1:500, and are accessible with an initial deposit of just AUD 100. A major difference between these two accounts is that the Raw one offers ECN pricing.

 

And those who would rather trade in stocks with more sophisticated research tools on the Iress platform, have a choice of three account types – Standard, Platinum, and Premier. The use of this platform is generally costlier – the initial investment required is significantly higher, and besides, some extra fees apply. For example, those who wish to use Iress Trader/ViewPoint, will be charged $55 per month. The latter fee will be waived if traders generate $150 in commission per month.

 

And traders who cannot pay or receive swaps or rollover interest on overnight positions due to religious reasons, can register an Islamic account with FP Markets. They won’t pay swaps or rollover, but some admin fees apply, whose amount varies, depending on the instrument traded (from $1 to $33). That said, the broker doesn’t charge admin fees for the first five nights of trading.

 

Furthermore, the broker also provides MAM/PAMM services. For those of you who aren’t acquainted with this type of services, these modules allow fund managers to manage multiple accounts from a single account without having to create an investment fund. In other words, those who don’t have the skills or the time to trade themselves, can use the services of established traders that provide managed account services against a certain fee.

 

And FP Markets promises investors using its MAM/PAMM solutions customizable trading conditions, automatic calculations and real-time performance and commissions reports.

 

Account opening

Otherwise, opening an account with the broker is relatively easy and straight-forward – you need to register, verify your account by providing proof of identity (a valid passport, driving license or national ID card) and a proof of residence (a utility bill or bank statement showing your full name and address, and that is dated within the last six months). These documents are required because of the Know your Client’ (KYC) procedures that the broker must adhere to, in accordance with international Anti Money Laundering (AML) regulations.

 

Then, all you need to do is deposit some money, meeting the broker’s minimum requirements (discussed below), and start trading. If you are new to to trading and feel insecure, or just wish to test the broker’s services for free first, you can always open a demo account first.

 

Tradeable assets

Now, let’s turn our attention to FP Markets’ product portfolio –  the broker provides access to over 13 000 trading instruments. These include more than 65 currency pairs, CFDs on commodities, indices, stocks, precious metals and even cryptocurrencies like Bitcoin, Bitcoin Cash, Litecoin, Ripple and Ethereum. And on the Iress platform clients of FP Markets can trade in thousands of share CFDs across 9 international exchanges.

 

And speaking of execution, we should also mention that FP Markets is a No Dealing Desk broker (NDD), which means that there shouldn’t be any conflict of interest between the company and its clients (as is the case with Dealing Desk brokers). Also, the execution speed of NDD brokers is generally considered higher, and FP Markets boasts on average order execution time of 40 milliseconds between the trade being received, processed and confirmed as executed. 


The Company. Security of Funds

 

FP MARKETS (FPM) is a trusted global CFD and forex provider that was established since 2005. Over the years, they have won more than 35 industry awards, such as ‘Best Trade Execution’, ‘Best Customer Service’ and ‘Best Value for Money’. Furthermore, the renowned ‘Investment Trends CFD Report’ has awarded FP Markets with the ‘Most Satisfied Traders’ in the industry for 5 years running.

 

FP Markets is owned and operated by First Prudential Markets Pty Ltd. – a company based in Sydney, that is licensed by the Australian Securities and Investment Commission (ASIC), one of the most well-established financial authorities worldwide. The broker also has a European subsidiary, First Prudential Markets Ltd., which is regulated by CySEC, but more on that later.

 

ASIC requires financial services providers under its gaze to meet certain minimum capital requirements (AUD 1 000 000) to meet client payout obligations, adhere to strict rules, and employ sound internal procedures for client account segregation, risk management, financial reporting, staff hiring, and external audit schedules.

 

And FP Markets says its client funds are held in segregated accounts with a AAA rated Australian bank, and are handles according to the Australian Client Money Rules under the Corporations Act. To ensure compliance with all the regulatory requirements and operational processes, the broker has in place an external independent auditor (BDO Australia). 

 

But let`s go back to the regulatory regime in Australia. Local forex brokers aren’t restricted un terms of the leverage they can provide to retail traders, which is generally considered a great advantage. So, unlike EU and US brokerages, financial services providers licensed in Australia are free to offer leverage ratios as high as 1:500, and most of them, including FP Markets, are indeed generous with leverage.

 

Yet, Australian forex regulation also has some downsides to it – for example, the lack of compensation mechanism. By comparison, brokers operating in the EU and the UK are covered by compensation funds or schemes, which protects consumers up to EUR 20 000 or GBP 85 000 per person, respectively, in case a licensed entity goes bankrupt.

 

Another disadvantage of the regulartory framework in Australia is the fact that brokerages aren’t required to provide negative balance protection – an automated adjustment of the account balance to zero in case it becomes negative. Nonetheless, FP Markets’ aim is to assist clients in resuming their trading in any situation, so this shouldn’t be a big deal.

 

Apart from Australia, FP markets also operates in Europe, and is duly licensed by the Cyprus Securities and Exchange Commission (CySEC). Here are the main benefits of CySEC regulation available to the EU clients of the broke.

 

Brokers licensed in Cyprus (which are actually referred to as Cyprus Investment Firms (CIFs) have to meet a number of requirements regarding company capital, staff competence and activities that have to be carried out by forex brokers in the country, which guarantee that business is done in a fair and transparent manner, and that traders’ funds and interests are well-protected.

 

Apart from the minimum capital requirement of €730,000, which should be met on an ongoing basis, license holders are expected to report all transactions to the commission, to keep all clients’ funds in segregated accounts, as well as to meet all standards introduced on a EU level. The latter include the provision of negative balance protection, prohibition of trading incentives such as bonuses, leverage cap of up to 1:30, reporting the number of clients with losing trades, and participation in a compensation mechanism.

 

In Cyprus, compensations to clients of licensed brokers are paid up by the Investor Compensation Fund (ICF). The latter is the compensation fund of last resort for customers of authorized financial services firms, which may cover up to a maximum of €20,000 per person.


Trading Conditions

Minimum Initial Deposit 

Traders are required to deposit $100 in order to open a MT4/MT5 account with FP MARKETS, which is average in the forex industry. And those who would rather use the broker’s Iress platform should invest at least $1000.


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.


Maximum Leverage

FP MARKETS offers leverage ratios of up to 1:500, which are high enough to suit any trading strategy. Yet, this doesn’t mean that these levels are appropriate for all types of trades, and especially inexperienced ones.  

 

The thing is, using higher leverage means greater exposure to risk, and you may lose all funds in your account in a matter of minutes, if the market moves against you. That is why the leverage available to retail clients is restricted in many jurisdictions, including in the US, the European Union, Japan, Canada, Turkey, and more. There were also similar plans proposed by the authorities in Australia, but they haven’t been put into laws by the time of writing this.

 

If you still find it hard to understand the nature of leverage (or trading on margin), here is an example:  If a broker offers 1:500 leverage, this means that for every $1 of their capital, you receive $500 to trade with. So, if you deposit $1 000 for example, you will be able to trade volumes at a value of $500 000, and multiply your profits by 500. 

 

 

Needless to say, European clients of FP markets will only be able to use leverage of up to 1:30, as they will supposedly contract the broker’s Cypriot subsidiary. That said, many brokers try to circumvent the leverage restrictions in Europe by either classifying clients as professionals, or transferring them to their overseas entity.

 

Trading Platforms

 

FP MARKETS offers its customers several trading platforms: MetaTrader 4 (MT4), MetaTrader 5, and its in-house Iress, specialized in CFDs trading.

 

The MT4, including extra tools

The MT4 is the most widely used forex platform, esigned to facilitate a smooth and efficient trading experience. With FP Marketsit is available to FPM’s clients in all forms and shapes – desktop downloadable versions, web versions for various browsers, and mobile apps.

 

The reason for MT4’s extraordinary popularity is perhaps its reliability, ease of use and rich functionality. This trading software basically 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.

 

Another notable feature of the MT4 is that the platform allows customization. So, those who are handy with code can create their own EAs and indictors. And those who don’t have the time and the skills to configure, can select ready-made Expert Advisors and market indicators from the huge library for free.

 

Those trading on the MT4 will also be glad to know that FP markets has some extra Trader Toolbox for this platform – a suite of twelve online trading tools which will enhance your trading. More specifically, these include applications such as Trader Toolbox Connect, which provides news feed and economic calendars, and Correlation Trader which makes correlation between markets and highlights the areas of low or high correlation.

 

Other key tools from MT4 Trader Toolbox include Alarm Manager, Stealth Orders, Excel RTD, Session Map, Sentiment Trader, Tick Chart, and more.

 

The MT5, VPS services

As MT4 will soon be phased out, the broker launched trading in the latest version of MetaQuotes software – MetaTrader 5 (MT5). It has most of the great features of MT4, 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, including exchange-traded stocks. The MT5 can also be accessed via your browser, whichever it is, and can be downloaded and installed on your PC or mobile, regardless of the OS.

 

In recent years, MetaQuotes has made many significant upgrades to the MT5, such as adding a hedging option, tool for analyzing exchange markets, news management improvement, market data subscriptions, new chart settings and even negative prices.

 

If you are into automated trading and running EAs all the time, 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 using the MT4/MT5. The VPS seamlessly connects traders to the Equinix NY4 grid using cutting edge technology and providing excellent execution.

 

And the good news is that you can even use VPS with FP Markets free of charge – either if you meet certain trading volume (over 10 lots on a standard trading account, or 20 lots on our Raw account), or if you make a minimum deposit of 1000 USD or equivalent.

 

Iress platforms

FP Markets’ proprietary platform Iress is web-based and basically intended for trading in equities. It provides industry leading execution, a wide ranges of order types, stop-loss, live news feeds, international data, real-time price quotes, complete market depth and charting facilities.

 

Speaking of charting, we have to point out that Iress platform is equipped with 59 technical analysis indicators, more than 50 drawing tools, multiple timeframes, historical market data, and more. Also, you can customize and save chart templates.

 

Iress is a web-based platform built on HTML5. The entire Iress Suite comprises Iress ViewPoint, web-based Iress Trader, Iress Investor, and Iress Mobile.

 

When you log in to the Iress platform from the navigation menu, you can choose between Iress Trader or Iress ViewPoint. There is actually automatic data sync between the two. The Iress ViewPoint is said to provide advanced trading tools and better compatibility with a number of internet browsers.

 

As its name suggests, Iress Investor is intended for investors, who don’t wish to trade themselves. It’s designed as multi-product portfolio management alerts, and features alerts, advanced charting, market data across multiple product types and exchanges, and a full range of order options.

 

The Iress investor platform is available for free, only if you wish live price streaming, you have to pay $22 per month. The Viewpoint version on the other hand has a monthly fee of $55 (+$22 for the live streaming). However, high volume traders who generate more than $150 in commission in any calendar month, don’t have to pay these monthly fees.

 

And as regards the financial instruments available on Iress, these include over 13 000 stocks on global exchanges, futures CFDs, indices, commodities, metals, cryptocurrencies, and forex.

 

Extra services and tools

Furthermore, clients of FP Markets can automate their trades with MyFXbook’s AutoTrade – a state-of-the-art automated social trade copying service, which provides users with the opportunity to copy a wide selection of systems directly into their MT4 trading account.

 

Besides, clients of FP Markets may also use the powerful Autochartist technical analysis tool, which scans the market to provide detailed breakdowns across a wide range of forex and CFD instruments. The FP Markets Autochartist is customizable, so you can better control the trading activity, and can be used with the MT4 platform through a specially designed plug in.

 


Methods of Payment

 

FP MARKETS offers its clients a variety of deposit / withdrawal methods: via credit/debit card, bank wire, BPAY, Neteller, Skrill, China UnionPay, PayPal, POLi Pay, Paytrust88, Ngan Luong, Directa24, Klarna, Broker to Broker, and FasaPay .


Depending on the depositing method, clients may use the following currencies: AUD, USD, SGD, CHF, GBP, CAD, HKD, JPY, EUR, and NZD. Also, note that deposits are either instant, or processed within one business day.

 

Most of the deposit methods are free of charge, but not all. Anyway, there’s detailed information on payment fees, so check it out on the broker’s website.

 

And the good news is that withdrawals at FP Markets are processed within one business day, once all required documents are received by the broker.

 

As you may have noticed, there are no fees for payments made via POLi and BPay for both deposits and withdrawals with FP Markets. The reason for this is that these payment methods are exclusively used in Asutralia, and BPay is actually owned by four Australian banks – Australia and New Zealand Banking Group, Commonwealth Bank, National Australia Bank and Westpac. POLi’s parent company on the other hand is a fully owned subsidiary of Australia Post.

 

Skrill and Neteller, on the other hand, are used worldwide but are very popular in Europe. They provide a fast and secure alternative to payments with credit and debit cards. And besides, Skrill has recently adopted anti scam policy and only partners with regulated brokers.

 

Education and Customer support

 

The broker also provides rich education materials on its website, which always leaves a good impression. They have a trading glossary, a number of video tutorials and e-books on online trading, and also maintain a trading information resource called Traders Hub which could be useful to both newbies and regular traders. The Traders Hub was launched in 2020 and delivers the latest trading and analysis data. There, you may find daily technical and fundamental analysis, weekly trading analysis, as well as company news.

 

And if you have any questions, you can can get in touch with FP Markets‘ customer support via phone, chat, and e-mail. They usually provide quick and relevant answers to traders’ questions and the number of supported languages is quite amazing: Arabic, Chinese, English, French, German, Greek, Japanese, Indonesian, Italian, Malaysian, Portuguese, Russian, Spanish, Thai, Korean and Vietnamese.

 

Furthermore, FP Markets uses TruRating – an innovative feedback solution that prompts clients to answer (anonymously) certain questions regarding the broker’s services. Thus, based on feedback from clients, the broker strives to improve its offerings.

 



Conclusion

 

FP MARKETS is a reliable brokerage operating in Australia and Europe, which is licensed by two of the most well-established financial regulators – the Australian Securities and Investment Commission (ASIC) and the Securities and Exchange Commission (CySEC). They have over 15 years of experience on the financial markets, and have won a number of industry awards, so they have earned themselves a solid reputation.

 

Furthermore, FP Markets offers competitive conditions for trading in a wide range of assets, and most notably a huge selection of stocks on its proprietary Iress platform. Other than that, the broker also supports the industry leading MetaTrader4 and MetaTrader5, and a bunch of account types to choose from.

 

The broker’s intention has always been to deliver the ultimate trading experience for traders by providing the best trading conditions, technology, pricing, product range, in combination with the reliability sound financial regulation brings along.

 

To sum things up, here are the advantages and drawbacks with regards to FP MARKETS:

 











Pros 

Cons

Sound regulation, many years of experience, awards

Fees on deposits with certain payment methods 

Low cost of trading

High min. deposit and monthly fee for Iress accounts

Several trading platforms and multiple account types available 

 

High leverage levels (Australian clients)

 

NDD trading environment, fast execution speed

 

Wide range of financial instruments available

 

Various payment methods supported

 

 

Tamara Martin
No necesito responderle a un jefe. Nunca más. No trabajo en un cubículo ni tampoco espero en los atascos de tráfico Vivo la vida exactamente como quiero. Pasaré 4 horas caminando un martes al azar si me apetece. O me quedaré despierto toda la noche escribiendo publicaciones de blog. O viajaré a Bali por capricho. Rompí los grilletes de la dependencia del sueldo.

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