FP Markets Broker Review

FP Markets is an online financial services provider that is bent on ensuring seamless trading of multiple financial instruments across different asset classes. They provide traders with a range of intuitive trading platforms that are available on desktop, web, and mobile versions.

In the current broker review, we will be looking closely into the essential aspects of FP Markets, which you may consider before deciding whether to trade with this broker.

Key Pros and Cons

To start with, here are the key pros and cons of trading with FP Markets.

Company Information

FP Markets is an online trading broker that was launched in 2005, with its headquarters in Australia. The broker provides traders with seamless access to multiple financial assets — forex, equities, indices, commodities, futures, and cryptocurrencies — using various intuitive trading platforms. Their clients benefit from various competitive trading conditions, such as low spreads, fast trade execution, zero restrictions, raw pricing, and more.

The broker has offices in various countries: Australia (Sydney), Cyprus (Limassol), and Saint Vincent and the Grenadines (Kingstown). FP Markets Group is comprised of the following entities with their respective regulated offices:

1. First Prudential Markets PTY Ltd, regulated by the Australia Securities and Investments Commission: office address: Level 5, Exchange House 10 Bridge Street, Sydney NSW 2000 Australia
2. First Prudential Markets Ltd, regulated by the Cyprus Securities and Exchange Commission: office address: Griva Digeni, 109, Aigeo Court, 2nd floor, 3101, Limassol, Cyprus.
3. First Prudential Markets LLC, a registered company in Saint Vincent and the Grenadines: office address: First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines.

With over 40 industry awards bagged over the years for exceptional customer services and execution technologies, FP Markets is undoubtedly one of the top online trading brokers in the industry today.

While FP Markets offer its services to a global clientele, it does not accept applications from residents of certain countries or jurisdictions where such distribution or use would be contrary to local laws or regulations, such as the USA.

Why Trade with FP Markets?

Now, let us provide a quick list of the key features that we like about FP Markets.

Regulation

FP Markets is an online financial service that is regulated in different jurisdictions.

In Australia, its headquarters, the broker is regulated by the Australian Securities and Investments Commission (ASIC), a top-tier industry regulator.

In the EU, the operations of FP Markets comply with the regulatory laws of the Cyprus Securities and Exchange Commission (CySEC).

FP Markets’ services to other regions of the world, including Africa, Asia, and Latin America, are handled by a corporate entity that is registered in St. Vincent & the Grenadines.

A breakdown of the various regulatory regimes is presented below.

As an established brokerage firm regulated by ASIC and CySEC, the FP Markets operates in strict adherence to the rules governing online trading. It strictly adheres to capital requirements to ensure timely client payout while employing strict internal procedures for staff hiring, financial reporting, external audit schedules, and risk management.

FP Markets is committed to ensuring that retail client funds are kept separate from the firm’s capital and held by leading banks. As a result, clients’ funds will not in any situation be used to offset the broker’s operational expenditures. If the broker becomes insolvent, clients’ funds would still be intact.

Overall, we can say that FP Market’s regulation is solid without being overly ambiguous.

KYC Procedure for Account Creation and Depositing

It takes an estimated time of three minutes to open a live trading account with FP Markets. However, you will be required to upload various KYC documents for account verification, which can take a day or more.

To start the account application process, simply go to the broker’s website and scroll to the top-right corner; click on the “Open Live” button, and then follow these steps:

1. Personal contact details: Fill in your name, email address, and telephone number. Alternatively, you can sign up with your Facebook or Google logins.
2. Further Information: Fill in your date of birth and address
3. Choose a password: You are required to choose a strong password to ensure the security of your trading account. A strong should contain various strings: letters, numbers, and symbols.
4. Choose your trading platform: FP Markets offers various advanced trading platforms, such as MT4, MT5, and IRESS.
5. Declaration: This is a suitability test, where you will be asked to provide information about your employment and income and trading knowledge and experience.
6. Check the relevant box: By checking the relevant box, you declare that you have read and agree with all the legal documentation of FP Markets, including Terms and Conditions, Order Execution Policy, Privacy Policy, and Risk Disclosure Notice.
7. Upload other KYC documents for verification: You are required to upload some ID documents, such as a Passport, National ID card, or Driver’s License, as well as proof of residency (utility bill or bank account statement), to complete your account verification process.

After completing the entire account opening process, including uploading the relevant KYC documents, you will need to wait for the broker to approve your account. This review is done within one business day. Once your trading account with FP Markets is approved, you will need to fund it using one of the payment methods provided by the broker. Once your account is funded, you can start trading immediately. The minimum deposit required to start trading at FP Markets is $100.

Account Types

FP Markets offers various trading account options to allow traders to choose the account type that best suits their trading objectives and capital. The available account types include the following:

• Forex (MT4/MT5) Accounts
• IRESS Accounts
• Islamic Account
• Demo Account

Islamic Account

FP Markets offers the Islamic account, a swap-free account that is best suited to Muslim clients as they are compliant with Islamic law. There are no swaps or interest charges on overnight positions. With the Islamic account, the account holder is charged an administration fee on positions, which are deducted from the account’s balance.

The swap-free account option is available on both the Raw and Standard account types on the MT4 and MT5 trading platforms. However, the broker does not make the Islamic account available on the IRESS accounts.

Some of the essential features of the FP Markets Islamic account include the following:

• Zero interest/swap charges on selected pairs
• Access to stable, secure, and intuitive, leading trading platforms with no re-quotes, nor any hidden charges
• Fast execution under 40 milliseconds
• Free and unlimited access to MetaTrader 4 and MetaTrader 5 trading platforms including WebTrader, and Android and iOS platforms
• Compatible with a variety of trading strategies, including Scalping, Swing Trading, and Day trading.

Demo Account

There is a demo account option at FP Markets. The demo account is explicitly designed for practice purposes. Beginner traders can use the demo account to try out the broker’s platform and trading tools before opening a live trading account. Even more experienced traders can use it to test out their trading strategies risk-free before implementing them on the live accounts.

Trading fees and other costs

Every online trading broker charges some trading fees. It is important to take note of these fees to prevent them from eating deep into your profits. So, it is safer to opt for brokerage firms with lower trading fees. As with any other CFD and Forex broker, when trading with FP Markets, you will need to be aware of two types of fees:

• Trading fees – spreads, commissions, and overnight financing rates;
• Non-trading fees – account management fees, deposit and withdrawal fees, non-activity fees.

Below is a breakdown of the trading fees available FP Markets:

Spreads

Spreads are the difference between the bid price and the ask price. The bid price is the price at which you can sell the base currency, and the ask price is the price at which you can buy the base currency.

FP Markets offers tight spreads and fast trade execution. Their liquidity is sourced from top international financial institutions, and as such, they offer forex spreads as low as 0.05 pips on RAW ECN accounts and 1.1 pips on Standard STP accounts.

Let us take a look at the average spreads on both account types:

FP Markets adds a 1.1 pip mark-up to the average spread on the Standard Account to cover trading costs.

Let us now compare the forex spreads on the two forex account types. Let us have a 1 Lot trade on EUR/USD (where 1 pip movement equals $10). Let us assume that the trade is opened and closed at the same price. By using the average spreads, the trading costs for the two accounts will be:

1. Standard Account
   • Spread – 1.15 pips
   • TOTAL COST – 1.15 x $10 = $11.5. per side or $23.00 per round turn
2. Raw Spread Account
   • Spread – 0.05 pips
   • Spread cost – 0.05 x $10 = $0.50 per side
   • Commission – $3.00 per side
   • TOTAL COST – ($0.50)x2 + ($3.00)x2 = $7.00.

So, it is cheaper to trade with the Raw Account than with the Standard Account.

Here’s how FP Markets Standard Account average spreads compare with those offered by other brokerages on the three most actively traded Forex pairs.

FP Markets’ Standard Account seems quite costly compared to its competitors in terms of average spreads.

Commissions

FP Markets charges a commission of $3.0 for 1 Lot, per side and $6 per round turn (open and close of trade) on its Raw Account.

This means:

• for a 1 Standard Lot trade (100,000 units), you will pay a $3.00 commission to open and another $3.00 to close the position;
• for a 1 Mini Lot trade (10,000 units), you will pay a $0.60 commission to open and close the position;
• for a 1 Micro Lot trade (1,000 units), you will pay a $0.06 commission to open and close the position.

A $6.0 commission for a 1 Lot trade is quite fair, as many other leading brokerages charge more than that in commissions. For example, IC Markets charges $7.00. But some of its competitors, such as Fusion Markets, offer cheaper trading commissions at $4.50 per round trip

Financing charges

The swap charges in forex or rollover interest rates are the net interest return that a trader accumulates on a currency position held overnight. This financial charge is incurred when the trader borrows one currency to buy another as part of forex trading.

To calculate this financial charge, you should subtract the interest rate of the base currency from the interest rate of the quote currency. Then, divide that amount by 365 times the base exchange rate. Alternatively, you can use a forex swap rollover calculator to estimate the value of your overnight trading positions. Simply select the instrument you are trading, your account currency

Below are FP Markets’ swap rates on some major currency pairs.

Deposit fees

The broker does not charge any fees for account deposits – for more details see Deposit Methods

Withdrawal fees

FP Markets do not charge for processing withdrawals; however, please note, you may be charged by the payment provider involved in the transfer (intermediary bank, receiving bank, third party payment provider, or your credit card provider). For international withdrawals, FP Markets charge internal fees (10 AUD) only – for more details see Withdrawal Methods

Inactivity fees

FP Markets will not charge an inactivity fee if there has been a period of no trading activity on your account. This is not a common occurrence because many of the large brokerages will charge such a fee. So, FP Markets deserves the top mark on this front.

Overall on Fees

FP Markets offers competitive trading commissions and spreads on the Raw Account, but the spreads are very high for the Standard Account. There are no non-trading costs, which is a huge plus.

We cannot give FP Markets the top mark overall on fees because its spreads are higher than those of other big names in the industry. Its trading commission is neither the cheapest nor the most expensive; it’s just fair, to say the least.

Desktop Trading Platforms

At FP Markets, all trading activities are carried out using the following trading platforms: MetaTrader 4, MetaTrader 5, and IRESS trading platforms.

MetaTrader 4

The broker provides traders with the MT4 trading platform. It is an advanced trading platform that was launched in 2005, which is considered the choicest trading platform among forex and CFD traders. The MT4 trading platform is designed for trading multiple financial assets. Some of the essential features of the MT4 trading platform include the following:

1. Pre-installed Indicators: MT4 is replete with various indicators. The platform provides access to 60+ technical indicators relating to trends, oscillators, and trade volume. Traders can identify trends with the help of indicators like Bollinger Bands and moving averages.
2. Fully Customisable Charts: The platform allows traders to customize charts to complement trading strategies or market volatility. You can customize the layout to suit your trading setup and also set your trading signals to notify you of specific market situations.
3. Profiles and Chart Templates: MetaTrader 4 recognizes that traders have alternate trading strategies for different financial markets. To account for such, it allows traders to create separate profiles that they can easily switch between. This is particularly useful for those who trade a variety of asset classes or employ multiple trading strategies.
4. One-Click Trading: This feature allows traders to effectively capitalize on trading opportunities. Time is a critical factor in financial markets, and the ability to trade directly off charts with a single click is valuable. Placing orders, taking profit, and setting stop-losses can be achieved without any compromise.
5. Automated Trading: Algorithmic trading (automated trading) is one of the major features of the MetaTrader 4 platform. It allows you to develop, test, and apply Expert Advisors (EAs) and trading scripts. FP Markets’ tight raw spreads and zero trade restrictions help provide the ideal environment for automated trading. Traders can also access AutoTrade, a state-of-the-art copy trading system.
6. Access to MetaTrader market and MQL4 community

The broker makes the MT4 trading platform available as a desktop application for Windows and Mac computers, a WebTrader that runs directly on modern web browsers without the need to download or install any software, and a mobile app that is designed for smartphone devices running on Android and iOS.

MetaTrader 5

The MT5 is an enhanced version of the MT4 trading platform. It was launched in 2010 by MetaQuotes. It has all of the essential features of the MT4 trading platform plus extra features and functionalities, including the following:

1. Multi-asset Trading Platform: While the MT4 is explicitly designed for forex trading, MT5 is a multi-asset platform for trading various asset classes, including exchange instruments and futures. You can also Manage Multiple MT5 Accounts Simultaneously.
2. Algorithmic and Automated Trading: This is an area where the MT5 platform excels as it has sophisticated automated trading capabilities. MetaTrader 5 takes algorithmic trading to another level. It doesn’t just allows users to create different trading robots but also use them simultaneously. This is beneficial to traders who wish to run different trading strategies across alternate asset classes to capitalize on all trading opportunities 24 hours a day.
3. Real-time Market News & Analysis: The MT5 platform includes an in-built Economic Calendar which features real-time financial news
4. Risk Management: The MT5 trading platform features a plethora of risk management tools, including an increased number of pending order types. Multiple stop order options combined with an advanced Depth of Market (DOM) feature allow traders to implement various risk management strategies.

IRESS

IRESS is an innovative trading platform that is built with a fluid and intuitive design to support multi-product execution and give users access to level 2 exchange data. The platform displays current prices flowing directly from the underlying exchange and can have your orders placed into the exchange order book at the click of a button.

The platform supports all order types, including the complex order types used for custom order strategies. It has transparent pricing and market depth with access to over 10,000 products. There are customized trade and news alerts that arrive in real-time directly on the platform or via email and SMS. This enables you to stay up to date with the latest market news and pricing. The IRESS trading platform is available as a desktop application for Windows and Mac computers, a WebTrader that runs directly on modern web browsers (Chrome, Safari, Firefox, and Edge), and a mobile app that is compatible with android and iOS devices.

Copy trading with FP Markets

FP Markets Copy Trading allows you to find, follow and copy successful traders automatically. With the FP Markets copy trading feature, there is no need to build your trading strategy or conduct research on forex markets. Copy-trading eliminates the complexities of trading forex and CFDs. You can choose to become a signal provider or a copier. The FP Markets offer the copy trading system through the powerful MetaTrader 4 and MetaTrader 5 platforms.

The copy trading system rates traders based on their profitability over a given period. So, you can easily find and follow the most successful traders. The platform offers multiple copy trading modes, and there is no limit on the number of signal providers you can copy. Interestingly, the FP Markets copy trading allows you to maintain control even when copying the trading strategies of other traders. You can activate and deactivate copy trading with the press of a single button.

Forex VPS

A VPS (Virtual Private Server) is an essential trading tool that allows you to run trading platforms on a virtual machine 24/7. FP Markets has partnered with Liquidity Connect (LiquidityConnect.com) to provide a free customized, low latency solution for qualified traders who meet minimum trading requirements, starting from trading over 10 lots on the Standard Account or 20 lots on the Raw Account each month.

The FP Markets Edition VPS seamlessly connects traders to the Equinix NY4 grid using the latest innovative technology. Interestingly, you can access your VPS from anywhere via Remote Desktop Connection (RDP) or a mobile platform. Thus, it lets you run trading platforms around the clock. This can save you from having to keep your computer switched on all of the time to run an automated system.

Mobile Trading Platforms

All the trading platforms — MT4, MT5, and IRESS — at FP Markets are available in mobile trading platforms, allowing users to access the full functionality of the platforms on their mobile handheld devices.

The mobile trading platform has intuitive interfaces that are easy to navigate. They narrow down the full functionality of the desktop platforms to the small screens of mobile handheld devices. The mobile apps can be downloaded from the Android and iOS app stores and used to place trades and check trading positions even while on the move, provided there is an internet connection.

Trading Instruments

FP Markets provides traders with a good selection of financial instruments across different asset classes, forex, equities, indices, commodities, futures, and cryptocurrencies. Their offer of financial assets is generous compared to other big brokers, such as OANDA and Fusion Markets.

Let us now take a closer look at the product list.

Forex

FP Markets provide a good selection of minor, major and exotic currency pairs. There are over 60 forex pairs in all the major currency pairs, and they are available 24 hours a day, 5 days a week. Leverage goes up to 1:500 (for professional and non-EU retail traders; 1:30 for EU retail traders) and spreads start from 0 pips.

All major currency pairs include the US dollar (USD) as either the base or counter currency. Majors include pairs like the GBP/USD, EUR/USD, and USD/JPY. The broker some of the world’s largest liquidity providers to give clients access to greater liquidity and industry-leading spreads on the Raw Spread Account with ECN execution. In addition, transparent price feeds ensure fast and reliable order execution.

Stock CFDs

FP Markets offers over 10,000 Australian and international stock CFDs alongside CFDs on indices across 4 continents. The broker allows clients to trade stock CFDs on the world’s most famous companies and equity index CFDs across global markets and benefit from price movements in any direction.

The stock CFDs at FP Markets come from a range of global markets, including London, Hong Kong, Paris, Frankfurt, Madrid, Amsterdam, and New York (NYSE & Nasdaq) and cover various sectors, including pharmaceuticals, aviation, tourism, and Big Tech.

Metals

FP Markets allows trading the spot price for metals, including Gold or Silver, against the US Dollar or Australian Dollar as a currency pair on 30:1 leverage. You can start trading metals on FP Markets upon account creation. The broker offers exposure to the available global market prices on trading gold CFDs and silver CFDs.

Commodities

FP Markets is reputed for offering an optimal trading experience in the commodity trading market. They allow traders to choose from various commodity products. When you choose to trade commodity CFDs with FP Markets, you get access to commodity prices worldwide with high execution speeds, low slippage, deep liquidity, and tight spreads.

At FP Markets, you can trade CFDs on various global commodities, including crude oil, natural gas, heating oil, gasoline, wheat, rice, corn, soybean, and coffee. You have access to leverage of up to 1:30 if you are a retail trader resident of the EU and 1:500 if you are a professional trader or a non-EU resident.

Indices

FP Markets provides exposure to the major global stock indices through index Contracts for Difference (CFDs), such as NASDAQ 100, S&P 500, DOW 30, FTSE 100, DAX 30, and more. You can also trade CFD indices futures from across the world at margins starting at just 1%. Trade AUS200 cash indices at AU$1 per point.

Cryptocurrency CFDs

At FP Markets, you can access the cryptocurrency market and trade the most popular cryptocurrencies. FP Markets offers cryptocurrency CFDs in major crypto assets like Bitcoin, XRP (Ripple), Bitcoin Cash, Litecoin and Ethereum, for positions against the US Dollar and Australian Dollar.

Futures Trading

FP Markets allows traders to trade CFDs on various futures contracts. These contracts are derivative financial instruments that allow the contractual parties to buy or sell an asset at a predetermined future date and price. Some of the futures assets you can trade with FP Markets include commodities, currencies, and indices.

Trade Execution

FP Markets operates the STP/ECN execution model, which offers access to the interbank Forex markets. Since STP involves no paperwork and little human intervention, errors are mostly eliminated, dramatically lowering operational costs and risk.

As a broker offering ECN Pricing, FP Markets streams price feeds directly from their liquidity providers. The broker tries to satisfy traders’ demand for deep liquidity, the highest levels of price transparency, and ultra-fast execution with minimal slippage. By connecting to several liquidity providers, brokers like FP Markets offers ultra-low latency execution and minimal slippage. ECN Pricing allows trading orders to be matched and executed with better prices. It works extremely well for forex traders using trading strategies like scalping via Expert Advisors (EAs), as this further accelerates execution speed.

For exchange-traded products, such as stocks, the broker offers DMA CFD pricing and execution exclusively through its IRESS trading platform. The broker offers live market prices, full market depth, and direct access to the exchange order book and ensures that 100% of client orders can be hedged in the underlying market. In addition, clients have access to leverage, short selling, and competitive commissions.

Deposits

FP Markets allows traders to deposit funds into their trading accounts using any of the following payment methods: credit card, debit card, payment wallets including Neteller, Skrill, PayPal, online banking, and bank wire transfer.

The time taken to process transactions may vary depending on the payment method in use:

Withdrawal Methods

FP Markets requires all clients to make withdrawal requests from inside the Secure Client Area.

FP Markets will not charge any additional fees on fund withdrawals (except for 10AUD charged for international wire transfers), which we consider a solid advantage.

Withdrawals made via Debit or Credit Cards may take between 3 and 5 business days to clear, while international bank wire transfers may take longer, depending on your jurisdiction and your receiving bank – up to 14 days. And, withdrawals via some online payment gateways, including PayPal, Skrill, or Neteller, will usually clear within 1 business day.

Customer Support Contacts

FP Markets provides traders with a competent client support team who are knowledgeable and prompt in response. The support team is available 24/7 and can be reached via any of the following contact channels:

1. Live Chat – This is the most convenient and fastest way to contact a representative from the brokerage. It can be accessed via the Live Chat function on the broker’s website, and it offers real-time responses.
2. Telephone contact – The broker’s support team can be contacted over the phone only during local business hours, depending on the office location:
   • Limassol – +357 25 056 926
   • Fax: +357 25 589
3. Email contact – The broker provides traders with several email contacts for various inquiries:
   • Account Opening: onboardingdesk@fpmarkets.eu
   • Customer Support: supportdesk@fpmarkets.eu
   • Funding & Withdrawals related: backofficedesk@fpmarkets.eu
   • Compliance: compliancedesk@fpmarkets.eu
   • Complaints: complaints@fpmarkets.eu
   • Trading Activity related: riskdesk@fpmarkets.eu
4. FAQs – There is a comprehensive FAQ section on the broker’s website. The FAQ section answers some of the clients’ most common questions.

Research and Educational Materials

The broker is aware that educational resources help traders to make informed trading decisions. As a result, they make available a good selection of research and learning resources on their website. The educational and research tools available at FP markets include the following:

1. AutoChartist: FP Markets permits traders to easily download the Autochartist MT4/MT5 Plugin to their trading platform. The AutoChartist is an advanced technical analysis tool that enables users to understand trading opportunities in real-time. In addition, it provides real-time trade setups for beginner and experienced traders alike.

   Some of the key Autochartist features include trading signals that are delivered via email, mobile applications with push notifications within the client area, and the MT4/MT5 platform. The tool helps traders to save time by continuously scanning the market for potential trading opportunities. It has quality visual indicators that help amateur traders to interpret chart patterns

2. Trading Glossary: This displays various trading terminologies along with their detailed explanations.
3. Traders Hub: The Traders Hub is replete with various educational content. It features various technical and fundamental analyses from the broker’s team of industry experts.
4. Company News: This keeps traders up to date with the latest happenings in the financial markets.
5. Video tutorials: There is a good selection of comprehensive video tutorials that are focused on all aspects of operating the MetaTrader 4, MetaTrader 5, and IRESS trading platforms.

Security and Money Guarantees

It is important to ensure you trade only with a well-regulated brokerage firm. You should also consider the security and the money guarantee provided by your online trading broker.

FP Markets is authorized and regulated by the Australian Securities and Investment Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC). This strict regulation means that they must comply with strict rules and regulations, which helps to give clients peace of mind that they are using a trusted and reputable trading broker who will operate with the utmost integrity and transparency.

Client funds are held in segregated accounts the broker maintains with top-tier banks, separate from the company’s funds to ensure that they cannot be used for any other purpose. The broker offers negative balance protection.

Conclusion

Putting it all together, a careful review of FP Markets by our expert review team revealed that the broker is a good option for all levels of traders. It is also suitable for traders who enjoy copying the trades of the more seasoned traders. The broker is regulated by the ASIC and CySEC and also claims to be duly registered in Saint Vincent and the Grenadines, but without stating its regulation status in that country. Some of the essential features of the broker include the following:

1. Deep interbank liquidity and competitive raw pricing
2. Exceptional ECN order execution with no dealing desk intervention and no requotes
3. No deposit fees and multiple account funding options;
4. MetaTrader and IRESS
5. A good range of useful trading tools
6. Several learning resources
7. Responsive 24/7 customer support
8. Multiple account types

Emmanuel Ifeanyi