CPT Markets Review 2024

Trust

CPT Markets Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the three entities operating under the CPT Markets trade name:

• Capital Markets PTY Ltd is licensed and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa under license number 45954. We rate the FSCA as a Tier-2 regulator.
• CPT Markets UK Limited is licensed and regulated by the Financial Conduct Authority (FCA) in the UK under license number 6707165. We rate the FCA as a Tier-1 regulator.
• CPT Markets Limited is licensed and regulated by the Financial Services Commission (FSC) of Belize under license number IFSC000314/470. We rate the FSC as a Tier-3 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All CPT Markets entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. All broker entities ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. The FCA-regulated entity of CPT Markets guarantees compensation of up to GBP 85,000 under FSCS.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with CPT Markets is 1:1000.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and the transparency of information provided.

I assessed the broker’s execution standards and performance by going over its legal documents and risk notices. I did not discover any major transparency issues, and everything seemed to be in order. The language used in the client agreement is easy to understand and not unnecessarily vague.

I also appreciated that the broker has a strict client categorization policy during account creation. That way, inexperienced and experienced traders can be separated from each other and offered the most suitable conditions depending on their goals, needs, means, and knowledge.

My only minor issue with CPT Markets is that there is little information (on the website) pertaining to the ECN account’s commission rate. Traders have to refer to customer support in order to ask about it.

Is CPT Markets Safe to Trade With?

CPT Markets complies with critical industry safety standards, including segregated client funds and negative balance protection. My evaluation of their margin call and stop-out policies confirms that the broker provides effective protection against market volatility.

In conclusion, CPT Markets demonstrates a high level of trustworthiness and stability for the following reasons:

• Possession of a Tier-1 license
• Compliance with key safety requirements
• Transparent documentation
• Effective client categorization policy
• Stringent margin call and stop-out policies.

Fees

CPT Markets Trading Fees

CPT Markets Spreads

I tested CPT Markets’ spreads on 26 February 2024 during the London and New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, CPT Markets charges low spreads on share CFDs, low-to-average spreads on commodities, average spreads on indices, average-to-high spreads on currency pairs, and high spreads on cryptocurrencies.

According to my findings, CPT Markets’ pricing mechanism on its Classic account is best suited for stock traders.

CPT Markets Commissions

CPT Markets’ Classic account carries no commission. However, its ECN account incurs a $5 round-turn commission per traded lot (100,000 units), with $2.5 charged for opening a full-sized trade and an additional $2.5 for closing it. I determined that this $5 commission rate falls marginally below the industry average.

CPT Markets Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My tests indicate that the broker charges average-to-high swaps. This combination aligns with the needs of intraday traders; however, it is not optimal for longer-term trading strategies like day trading and position trading.

CPT Markets Non-Trading Fees

CPT Markets does not charge a handling fee for deposits or withdrawals, though third-party processing fees may apply (depending on the chosen payment method). Additionally, the broker does not charge dormant accounts with an inactivity fee.

Are CPT Markets’ Fees Competitive?

CPT Markets’ trading fees significantly differ across asset classes. Although it provides affordable rates for stock traders on its Classic account, the spreads for other assets I evaluated were relatively high. I found CPT Markets’ fee structure to be more favorable for intraday trading.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of CPT Markets’ three account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

According to my findings, CPT Markets’ ECN account features the most affordable pricing, meeting the industry average when it comes to ECN accounts. Meanwhile, the pricing mechanism of the Classic account amounts to trading fees that exceed the industry average (for STP accounts) by several dollars.

Platforms and Tools

In this review, I tested the MetaTrader 4 platform, which has many essential features, such as one-click trading, an alarm setting option, and a depth of markets tool. These allow traders to exploit different opportunities and gain the best possible market entries and exits.

While MT4 has a pretty decent range of analytical tools, its rugged layout makes it quite difficult to use. The platform has a rather outdated feel to it, especially when compared to newer and sleeker software. Carrying out sophisticated technical analysis is hampered by its inflexible charts.

On the other hand, MT4 does accommodate fast and easy order execution, and it is also suitable for algorithmic trading via its Expert Advisors (EAs) feature. Additionally, trading on the go is made possible with the mobile app version of MetaTrader.

CPT Markets’ Desktop MetaTrader 4 Platform

General Ease of Use

MT4’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the chart screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The problem with MetaTrader 4, in my opinion, is that applying 2 or more indicators to the chart obscures price action rather than contextualizing it. This is due to the ruggedness of the software design.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT4 makes it difficult to discern price action behavior.
• 9 timeframes. MT4 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 4 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 4 Platform

One of the best things about MT4 is its simplified order execution. However, its rugged design is not ideal for carrying out probing technical analysis.

As a chart artist, I have always preferred trading platforms with fluid charts that allow me to scale price action up and down easily. But MT4 is not such a platform. I found its charting capabilities quite rigid and ineffective.

CPT Markets’ MT4 Mobile App

CPT Markets’ MT4 mobile app affords traders quick and easy access to the market on the go. It is very useful for making snap adjustments to any open trades. You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT4’s Mobile App Version

MT4’s app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor your positions’ development and make changes if needed.

Tradable Instruments

Compared to the industry average, CPT Markets offers a low amount of share CFDs and cryptocurrencies and an average amount of forex pairs, commodities, and indices.

The offering is mainly geared towards speculative trading (scalping, contrarian trading, etc). Notably, the share CFDs offering is comprised entirely of US stocks. There are no European or Asian share CFDs on offer.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With CPT Markets?

My Key Takeaways After Exploring CPT Markets’ Instruments Offering

CPT Markets offers a reasonable number of instruments, which I found to be enough for executing most trading strategies.

However, the broker does not provide enough lower-risk securities like ETFs and bonds, which are necessary to hedge trading risk. Moreover, CPT Markets’ share CFDs offering lacks diversity, as it is comprised entirely of US stocks.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 28 February at around 1:14 p.m. CET via live chat. The agent connected to the chat almost instantaneously, and I asked him a series of straightforward questions, for example, the broker’s commission policy.

The agent needed several minutes before he got back to me with an answer to the question pertaining to the broker’s commission rate. He also seemed to struggle to differentiate between single-turn and round-turn commission rates.

The agent was eventually able to find the correct answers to my questions. He was polite and sufficiently engaged in the conversation.

Deposit and Withdrawal

CPT Markets Deposit Methods

CPT Markets Withdrawals

Account Types and Terms

CPT Markets Account Opening Process

• Step 1. Click ‘Register’ at the top-right corner of the main page.
• Step 2. Fill in your personal details, including your name, email address, and phone number.
• Step 3. Choose a password.
• Step 4. Verify your email by entering the 6-digit code sent to you.
• Step 5. Upload proof of ID and proof of address.

CPT Markets Account Types

CPT Markets’ Classic account is the most favorable of the bunch, given its $0 minimum deposit requirement. In my evaluation, the ECN account features the most favorable prices.

The combination of a 50% margin call and a 30% stop-out ensures basic protection against adverse volatility. However, if traders are not careful enough and do not apply tight risk management, they risk losing a significant portion of their balance before these safety measures are activated.

Demo Account

CPT Markets offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account need to contact CPT Markets’ customer support and request the service from there.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage by Asset Class

In the table below, I have listed the maximum retail leverage available with CPT Markets for instruments from different asset classes:

Please keep in mind that CPT Markets’ maximum retail leverage across all markets is quite elevated, which is only suitable for the most experienced speculative traders.

Beginners are advised to avoid using such high leverage and should instead opt for more manageable levels.

CPT Markets Restricted Countries

CPT Markets does not provide financial services to clients from Iran and the United States.

Research

I have broken down the available research content by type below:

• Economic calendar. The calendar is an essential tool in a trader’s arsenal, informing him or her of upcoming market events and releases that have the potential to stir price action. Upticks in the trading volume are important because they often create viable trading opportunities.
• Trading Central. Trading Central is one of the most renowned providers of market insights, an intuitive market sentiment gauge, and actionable trading ideas in the entire trading industry. TC’s materials are usually very heavily reliant on technical analysis and not so much on fundamental analysis. Only fully verified clients of CPT Markets can access TC content.
• Video daily analyses. Published on the broker’s website and also on its YouTube channel, the video analyses inform traders of recent market developments. The content is easy to grasp, even for newbies.

My Key Takeaways After Exploring CPT Markets’ Research Content

I rated CPT Markets’ in-house research content as easy to digest. The video breakdowns reflect the main aspects of recent market developments, though they do not delve much deeper than that.

The greatest value can be derived from Trading Central content. Verified clients of CPT Markets can use the service as a source of trading inspiration, as well as to understand the underlying market sentiment.

Education

I have listed the types of educational content available with CPT Markets below:

• Educational videos. The more than 30 educational videos are available from the broker’s website and also from its YouTube channel.
• Articles. Several written articles also cover basic trading topics but do not delve deep into complex material.

The Bottom Line

Established in 2010 and headquartered in South Africa, CPT Markets offers over 140 tradable instruments from popular markets, including forex, commodities, shares, and more.

The broker features the standard suites of MT4 and MT5, along with the seamless cTrader platform, which supports fast order execution and automated trading. While CPT Markets presents above-average trading fees, its ECN account type is an exception.

The broker distinguishes itself with diverse account types and high maximum leverage, catering specifically to the needs of highly speculative traders.

However, CPT Markets falls short in its educational and research materials, which I found to lack depth and diversity.

FAQ