FP Markets Review 2024

Trust

FP Markets Regulations

Here are the regulatory details of the six entities of FP Markets:

• First Prudential Markets Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC). CySEC ranks as a Tier-1 regulator on our system.
• First Prudential Markets PTY Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC). ASIC ranks as a Tier-1 regulator on our system.
• FP Markets (Pty) Ltd is authorized and regulated by the Financial Sector Conduct Authority in South Africa (FSCA). The FSCA ranks as a Tier-2 regulator on our system. Please keep in mind that at the time of our review, this entity was not accepting any new clients, so we could not review its features.
• First Prudential Markets Limited is licensed and regulated by the Financial Sector Conduct Authority (FSA) in Seychelles. The FSA ranks as a Tier-3 regulator on our system.
• FP Markets Ltd is licensed and regulated by the Financial Services Commission (FSC) in Mauritius. We rank the FSC as a Tier-3 regulator.
• FP Markets LLC is a registered company of St. Vincent & the Grenadines. FP Markets is not regulated.

Why is it important to know where your broker subsidiary (entity) is regulated?

To serve clients worldwide, brokers must have multiple regional entities. The level of client protection guaranteed by regional regulators varies widely. Here are some of the key features to check on at your broker`s regional entity:

• Segregation of client funds. Segregating client funds from the operating capital of a broker prevents misuse, ensuring that traders’ funds can not be used for operational expenses or speculative investments. At FP Markets, all client funds are held in segregated accounts away from the company’s funds.
• Negative balance protection. This guarantees that clients cannot lose more than their account balance, even if the market unexpectedly makes a massive move or gaps. All FP Markets entities provide negative balance protection.
• Compensation scheme. A compensation scheme protects client funds in the unlikely event that the broker becomes insolvent. Clients of the CySEC-regulated entity, First Prudential Markets Ltd, are protected by up to EUR 20,000 under the Investor Compensation Fund (ICF). There is no compensation fund for Australian clients in the event of insolvency.
• Maximum leverage. Limiting leverage controls the level of risk traders can take on. The higher the leverage, the higher the potential profits and losses. At the Australian entity of FP Markets, the maximum leverage for retail clients is 1:30.

The table below covers the client protections at each entity:

Regulatory requirements are subject to change. I gathered the data listed above in February 2024.

Is FP Markets Safe to Trade With?

FP Markets operates entities licensed by top-tier regulators that offer relatively high account security and others that are regulated offshore or unregulated. The range of protection varies by entity.

For example, clients with the CySEC-regulated EU entity benefit from a high level of regulatory scrutiny and a compensation scheme in the event of broker insolvency. Meanwhile, offshore entities of FP Markets have a reduced level of account protection.

The safety level varies depending on the entity with which you open an account. Engaging with an unregulated offshore entity involves risks, whereas holding an account with a CySEC or ASIC-regulated entity is considered relatively safe.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we evaluate the broker’s longevity in the industry, the company’s size, and its transparency.

FP Markets traces its origins to 2005, marking it as an experienced forex broker with a solid operating history. According to the broker’s LinkedIn page, the company has 51-200 employees, reflecting a mid-size brokerage firm.

In my research, FP Markets showed high transparency in its regulatory status, listing its regulators in the footer of the website page.

The website breaks down spreads clearly on the Forex Spreads page. Traders can find the Terms and Conditions on the Legal Documents page.

To summarize, my findings indicate that FP Markets can be regarded as having a solid level of trust and stability due to the following qualities:

• Regulated by multiple top-tier regulators
• Almost 20 years of operating history
• All entities segregate funds
• All entities offer negative balance protection
• High level of transparency

Fees

FP Markets Trading Fees

FP Markets’ Spreads

I tested the spreads at FP Markets across various markets using the MetaTrader Platform during the London open and after the open of the New York forex session. At these times, the market is typically highly liquid with the tightest spreads.

My tests showed that spreads are competitive across the board and especially tight in indices and commodities. I recorded the data on 5 February 2024.

FP Markets Swap Fees

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of maintaining a sell position overnight) for one full-sized contract.

A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). I recorded the data on 5 February 2024.

My live tests showed that swap fees at FP Markets are average for the industry.

FP Markets Non-Trading Fees

FP Markets does not charge any inactive or account maintenance fees. There are also no fees for deposits and withdrawals, including via bank wire.

Are FP Markets Fees Competitive?

I rate the fees at FP Markets as highly competitive for the following reasons:

• Tight spreads
• No inactivity fee
• No deposit or withdrawal fees

Platforms and Tools

FP Markets Platforms Walkthrough

Desktop/Web Platform

General Ease of Use

In my tests, I used the MetaTrader 4 platform. It has advanced functionality like automated trading but is a bit dated in its look and feel. In light of this, I feel the platform is better suited to experienced traders than beginners.

MT4 can be accessed via desktop, web, and Android/iOS mobile devices. It can be used in 39 different languages, from Arabic to Vietnamese.

Key Features

The following are among the most important features the platform offers:

• Alerts. This feature updates traders when an instrument reaches a specific price level.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation enabling them to operate faster. This is especially useful for day traders.
• Trading from the Chart. MT4 allows users the convenience of trading directly from the chart.

MetaTrader is also popular due to its automated trading features. MT4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

Charts

Charting features are robust. MetaTrader 4 offers:

• 30 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 23 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 9 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

Orders

MetaTrader also delivers when it comes to the range of available order types. The platform offers the following order types:

• Market Order. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. This order type allows traders to secure profits when they are in a winning trade while not having to exit the position.

WebTrader

The MetaTrader Web Platform (Web Trader) is a slightly stripped-down version of the desktop platform. It allows users to trade directly from any browser and operating system, without any additional software.

Popular features include:

• One-click trading.
• Trading from the chart.
• Watchlists with real-time quotes.
• Trade history.
• Advanced charting with 30 indicators for technical analysis.
• Copy trading and automated trading.

My Key Takeaways After Testing FP Markets on MetaTrader 4

MetaTrader 4 is one of the most feature-rich and popular trading platforms. It does not have a sleek interface and requires some time and effort to learn, but that is typical of advanced platforms.

MT4 Mobile App

General Ease of Use

FP Markets offers the MetaTrader 4 app for mobile trading, which is available for Android and iOS. Traders can place orders, view watchlists and charts, check on their history of trades, and stay on top of news headlines. The app is fairly simplistic and easy to navigate, although I think the look and feel have room for improvement.

Charts

Charting within the MT4 app is robust and includes:

• 3 chart types (Bars, Japanese Candlesticks, and Broken Line)
• 9 timeframes (from one minute to one month)
• 50+ popular technical indicators and analytical objects

Orders

Traders have the flexibility of using all major order types via the MT4 app, including market orders, limit orders, and stop-loss orders. Open positions can be modified by changing stop loss and take profit order levels.

My Key Takeaways After Testing FP Markets on the MetaTrader 4 App

The MT4 mobile app allows traders to perform all basic functions on the go, but usability and design are not as smooth as competing apps from leading brokers.

cTrader and TradingView

The global and EU entities of FP Markets offer cTrader and TradingView along with MT4/MT5.

TradingView is recognized for its industry-leading charts and social features, while cTrader is an advanced platform offering automated trading within a well-designed interface.

Note: cTrader and TradingView are not available at the South African and Australian entities of FP Markets.

Tradable Instruments

What are CFDs?

A Contract for Difference (CFD) is an agreement specifying that the buyer must pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. Like futures and other derivative financial instruments, CFDs allow traders to speculate on price movements without owning the underlying asset.

In the tables below, you can see a selection highlighting the variety of instruments available at FP Markets:

My Key Takeaways After Exploring FP Markets Tradable Instruments

FP Markets offers an above-average range of tradable instruments. Keep in mind though that the bulk of the 10,000+ instruments are CFDs on shares.

My tests showed that the range of instruments is particularly strong in indices, shares, and commodities, while forex and cryptocurrencies are closer to the industry average.

Customer Support

Support is a key component of a broker’s offering – whether you are a new trader looking for guidance on how to use the platform or an experienced trader who needs help fast to exit their positions in the event of a technical glitch.

FP Markets Customer Support Test

In my tests live chat support usually responded within seconds, and emails were typically responded to the same day. Via phone, the level of support was less consistent and sometimes I had to wait for minutes before reaching an operator.

My inquiries ranged from basic questions relating to account features to more complex themes like order execution. I noted that the support staff was usually well-informed and polite. Support is available in 18 languages.

Deposits & Withdrawals

FP Markets Account Funding Methods

The range of deposit methods and speed of processing is better than average for the industry.

FP Markets Withdrawal Methods

Likewise, for withdrawals, the range of methods, speed of processing, and absence of fees are better than the industry average. FP Markets earned a perfect score in this category.

Account Types and Terms

What Account Types Does FP Markets Offer?

Forex Account Types

Iress Account Types

FP Markets Account Opening Process

To open a CFD account with the Australian entity of FP Markets, prospective clients must complete an application covering the following parts:

• Contact and Personal Details: Name, email address, country of residence, date of birth, phone number, physical address, nationality, passport or driver’s license number.
• Employment Details: Employment status and occupation.
• Account Details: Trading platform, account type, and base currency.
• Level of Trading Experience: Volume of trading of forex and other markets in the past 3 years.
• Test of Market Knowledge: A series of questions relating to CFD trading.

Professional Accounts

Professional accounts at the Australian entity of FP Markets offer the following benefits:

• Maximum leverage of 1:500
• Personal account manager
• VIP program including rebates

To be eligible traders must meet one of the two criteria options for either wealth OR experience:

Wealth Test

Experienced Trader Test

What is leverage in CFD Trading?

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

The ASIC maximum leverage for retail clients is 1:30. This means that with an account of $1,000, you can control up to $30,000 worth of positions in the market. Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders must remember that it can amplify both their profits and their losses.

Available leverage differs according to the asset class, with the most leverage available for CFDs on forex and the least for CFDs on crypto.

Maximum Leverage by Asset Class

Demo Account

FP Markets offers demo accounts for MetaTrader 4 and MetaTrader 5. Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking real money. The demo account features live quotes and simulates live market conditions in assets such as forex and CFDs on commodities, indices, and stocks. Once users have gotten up to speed on a demo account, they can easily switch to a live version.

Islamic Accounts

The Australian entity of FP Markets does not currently offer a swap-free Islamic account.

FP Markets Supported Countries

FP Markets takes clients from most countries in the world, with the exceptions of Afghanistan, Cuba, Iraq, the Islamic Republic of Iran, Liberia, Libya, Myanmar, Palestine, the Russian Federation, Somalia, the Syrian Arab Republic, Sudan, Yemen, and the United States.

Research

FP Markets’ in-house analysts provide high-quality coverage of major market events like central bank meetings and major economic releases.

I liked that the analysis covers a wide range of markets including cryptocurrencies. Traders Hub also features reports on technical themes, citing chart patterns and key support and resistance levels.

FP Markets offers award-winning content from Trading Central, which combines automated investment analytics and analyst research. Key features of Trading Central include:

• Analyst Views: This section covers trading ideas, technical updates, support/resistance levels, and ideas across forex, stocks, commodities, and indices.
• Featured Ideas: This lists opportunities and provides direction for your trades.
• Technical Insights: After choosing your preferred technical indicators, candle patterns, or oscillators, Trading Central scans the markets to find opportunities that match your criteria.

FP Markets also provides free trading signals from third-party provider Autochartist. Autochartist automatically identifies chart patterns and key price levels, using this information to predict the most likely direction of the trend.

My Takeaways from Exploring FP Markets Research Content

FP Markets provides a good combination of insightful fundamental and technical coverage from in-house analysts along with practical trading ideas from third-party Autochartist and Trading Central.

Education

The courses within the FP Markets academy cover key concepts and terminology like margin, swaps, and spreads. Traders can learn about the various order types available. An introduction to charts and various technical indicators like MACD is also provided.

I estimate the lessons as easy to digest and well-presented. Within the FP Markets Academy, the content is mostly catering to beginners.

The MetaTrader platforms are not the most intuitive, so the MT4/MT5 tutorials are a great addition to the FP Markets education section. This video series covers everything from the basics like how to download the platform to more advanced topics like VPS Installation.

The Bottom Line

20-year CFD industry veteran FP Markets has carved out a niche for itself providing the resources and trading conditions demanded by experienced traders.

The Aussie broker delivers low spreads, fast order execution, advanced platforms, and minimal fees – without skimping on customer support and research materials. I judged FP Markets as an above-average broker, providing a well-rounded service, as it excelled in almost every category of our review.

FP Markets could improve by providing a user-friendly proprietary platform to cater to newbies and casual traders. Offering third-party account insurance for clients at offshore entities would also be a positive addition.

FAQ