Minimum Deposit: $200
Maximum Leverage: 1:500
My Score: 6.2
FP Markets is an Australian forex and CFD broker who has over 14 years experience in this industry. Within 14 years, they have reached a crucial point by offering its customers a variety of products and services.
FP Markets provides convenient access to forex markets such as the commodities, indices, futures. With their many awards, they seem to prove how good they are in their work.
My favorite feature of this broker is its website. It is one of the most informative forex brokers’ websites. Compared to the brokers I have reviewed so far, I can say that it is beneficial and informative. It’s easy to find the information you’re looking for. It gives confidence in this aspect.
Also, many details have not been skipped. For example; detailed information on deposit and withdrawal methods like transaction process or fees is available on the website.
The FPMarkets website receives over 100,000 visitors a month. Compared to ASIC-licenced Pepperstone or IC Markets, I can say that the number of visitors is low but still a good number. The website can also be accessed in 11 different languages which including German, Italian and Spanish.
Also, visitors come from many different countries. Therefore, they have achieved to reach competitive power in the international arena.
Now let’s go to the main issues. The broker’s website is quite good and informative. But to make a broker preference, these are not enough. One of the most critical issues: FP Markets scam or a reliable broker? The trading conditions they offer are also important for investors. What are the account types and features such as spreads, minimum deposit or leverage offered by FPMarkets? What are the deposit and withdrawal methods? In this FP Markets review, you will find detailed answers to all these questions. Do not open an account before reading this review.
Let’s dive right in and see FP Markets what offers to you.
FP Markets Regulations and Licences
FP Markets is a regulated broker. The broker is regulated by ASIC(Australian Investments & Securities Commission). FP Markets is owned and operated by First Prudential Markets Pty Ltd. which is an Australian based company also. AFS License No. 286354
The regulator, ASIC, is one of the reputable watchdogs so you can trust this regulator. Because ASIC requires some conditions to licensed companies. One of these criteria is minimum net capital. Forex brokers must hold 1,000,000 AUD on the bank to prove their reliability and financial power. If firms do not meet the requirements, they are subject to various sanctions.
Many EU-based brokers are covered by the compensation scheme. The FCA protects clients’ funds up to 50,000 EUR in some conditions like the bankruptcy of the broker. There is no such advantage for ASIC-licensed brokers. However, due to the minimum net capital requirement, these brokers have certain financial strength.
In my opinion, regulation is one of the most important criteria for a forex trader. If you have problems with a broker, the only thing that can protect you is the regulator. Because regulators have heavy sanction rights on brokers. Brokers have to comply with these sanctions because they don’t want their licenses canceled. Therefore, the best place you can apply when you experience a problem is the regulators. That’s why I never recommend trading with unlicensed brokers.
FP Markets Account types, Leverage and Spreads
There are two account types offered by FPMarkets. One of these accounts is Standard and the other one is ECN RAW. Standard account type is commission-free but ECN account provides tighter spreads with commission. You can browse both types of accounts in the following table.
|Account Types||Mininmum ,Deposit||Maximum Leverage||Spreads|
|Standard||$200||500:1||Starting from 0.7 pips / Average 1.45 pips on EURUSD|
|ECN Raw||$1000||500:1||Starting from 0.0 pips + $7 commission per lot/ round turn|
Micro lots are available in both accounts and FP Markets provides Demo accounts for inexperienced traders. But unfortunately, the nano lot is not available. So there is no nano account type for those who want to learn in the real account without taking risks. If you want to use nano account types, check out the XM and FXTM reviews.
The minimum deposit limit in the standard account type is 200 AUD or equivalent. I can say that this limit is quite high compared to another brokers. Spreads are starting from 0.7 pips on EURUSD in the standard account. The average spread is 1.45 pips which under the average of the industry. Normally, many brokers offer higher spreads from 1.6 pips to 2 pips. Maximum leverage in this account type is 500:1.
When we look another account type, we will see 1000 AUD minimum deposit. ECN RAW has same minimum trade size with the standard account. And max leverage is 500:1 too. However, the spreads are different. Spreads are starting from 0.0 pips in ECN RAW account. There is a commission and it costs $3.5 per lot. Spread costs is $7 as round turn.
Even though there were two types of accounts, I would expect to offer more account types by this broker. Don’t think this as a disadvantage but in my opinion, FP Markets has the capacity to offer this. If you are a broker that compete for attract in the international area, you should offer more.
FP Markets offers various products for trading. Forex, CFD, Share and cryptocurrency trading is available. You can use only bitcoin among cryptos. About 50 pairs of forex pairs available.
Leverage ratios vary depending on the products. The maximum leverage ratios according to the products are as follows:
- FX – 500:1
- Precious metals – 500:1
- Indices – 100:1
- Oil – 50:1
- Bitcoin – 10:1
The leverage ratio for Bitcoin is 10:1. I must say this is reasonable. Because bitcoin has high volatility. The high leverage ratio for such high volatility can be very risky. Therefore, many brokers offer leverage between 1: 1 and 20: 1 for cryptos. Note that some brokers offer higher leverage but also increase the risk.
One of the advantageous products offered by FP Markets is the VPS service. VPS is especially important for professional investors and scalpers. If you use forex robots that are called expert advisors, your computer should remain on for 24 hours. So you can use VPS services that will enable it to do so. VPS is offered by the broker with The FP Markets Edition VPS Service.
Various trading platforms are offered by brokers: MT4 which is the most widely used among forex traders, MT5 and IRESS. IRESSTrader platform is an in-house platform, specially developed for CFD trading. This is a web-based platform and you can access via pc or mobile phone.
Withdrawal and Funding Methods in FP Markets
The broker offers a wide range of funding and withdrawal methods. You can fund/withdrawal your FP Markets trading account with major credit/debit cards. If you want take advantage in terms of fees, you can use Australian credit card. There is a fee of 1.6% via Australian credit card but if you choose using other international credit and debit cards, the fee is 3.18%. First time deposits using a credit card are not charged any fees. This is a nice feature.
You can also use Bank Wire but this method may be slow due to swift process. Besides of this, traders can use e-wallet systems such as Online Pay, Poli, BPAY, FasaPay, Neteller, Skrill, and China UnionPay to fund your account. Clients may use the following currencies up to methods: AUD, USD, SGD, CHF, GBP, CAD, HKD, JPY, EUR, and NZD.
Unfortunately, I couldn’t see BTC among the funding methods. I sent a message to online service for this and they answered me quickly. FP Markets has a live chat and it works fast. Therefore, I can give a positive point to customer service.
FP Markets is a reliable broker which offers low cost of trading, low spreads, high leverage levels, and three trading platforms. The broker is regulated by ASIC and has been operating for more than ten years. I think there should be more account types but you may find this enough.