M4Markets Review 2023

Trust

M4Markets Regulations

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

Here is what we found concerning the broker’s two entities: 

• Trinota Markets (Global) Limited is authorised and regulated by the Financial Services Authority (FSA) of Seychelles. FSA ranks as a Tier-3 regulator on our system. 
• Harindale Ltd (formerly named ICC Intercertus Capital Ltd and trading as Axiance) is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC). CySEC ranks as a Tier-1 regulator on our system. 

We have summarised the essential aspects of M4Markets in terms of regulation and safety in the table below:   

Why is it Important to Know Where Your Broker is Regulated?

We rank regulators on a three-tier system because of differences in their safety requirements and policies, subject to discrepancies in national legislation. In other words, a broker licensed by an offshore regulator may not necessarily be obliged to comply with the strictest industry regulations.

We have listed the most important safety features traders need to look out for in a safe broker:

• Segregation of client funds. Keeping client funds in separate bank accounts from the ones the broker uses for its own capital is essential for reducing the risk of accounting errors and corporate misconduct. Both subsidiaries of M4Markets comply with this requirement. 
• Negative balance protection. Negative balance protection is a policy that effectively removes the risk of an account’s losses exceeding its balance. Both entities comply with this requirement as well.
• Compensation scheme. A compensation scheme protects the trader against the broker’s credit risk and other liabilities, should the company, for instance, become insolvent. Clients of Harindale Ltd can be compensated by up to EUR 20,000 in case the entity becomes insolvent.
• Maximum leverage. More stringent regulators tend to cap the maximum leverage allowed in order to limit a trader’s market exposure. The FSA does not mandate such a cap from Trinota Markets (Global) Limited, which is why retail traders can set their maximum leverage at 1:1000. Accordingly, retail traders with Harindale Ltd. can use a maximum leverage of 1:30.

Is M4Markets Safe to Trade With?

Trinota Markets (Global) Limited has negative balance protection and relatively high stop-out levels on most account types – 40%. This combination reduces the underlying trading risk faced by clients of the broker, especially during losing streaks. Accordingly, the segregation of client funds reduces the danger of accounting errors.

The only perceivable threat, minor as it may be, stems from the absence of a compensation scheme, exposing traders to the company’s credit risk. Another point worth making is that the maximum leverage allowed exceeds the industry average. But this is something that can be managed by traders themselves by simply selecting lower leverage. Overall, Trinota Markets (Global) Limited is safe, even though it is licenced by an offshore regulator.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

Since its foundation in 2019, M4Markets has been garnering a reputation among retail traders and professional clients as a stable and transparent partner. It employs over 50 people and has a very clear corporate structure. Visitors of m4markets.com can read about the people running the company from the Group Management section of the website.

Traders interested in signing up with the broker can also learn everything they need to know about its trading fees from the Spreads and Commissions section of the website. The same kind of transparency applies to M4Markets’ regulation information and legal docs. We found its Client Agreement very informative and detailed. All of this underscores the company’s reliability and stability.

In summary, our findings indicate that M4Markets can be regarded as having a good level of trust and stability due to the following factors:

• It has negative balance protection segregated client funds.
• Important information on the website is made clear and easily accessible.
• The broker as a whole is very transparent.

Fees

M4Markets’ Standard account type offers commission-free trading, with equities being an exception and spreads starting from 1.1 pips. In contrast, the Raw Spread and Premium account types have spreads starting from 0.0 pips and fixed commissions. As a whole, the competitiveness of M4Markets’ trading costs depends mostly on the type of instrument being traded and the underlying account type.

Regarding its non-trading costs, the broker charges inactive accounts with an average maintenance fee compared to the broader industry. It is also worth pointing out that the broker does not charge anything for deposits or withdrawals.

M4Markets Trading Fees

M4Markets’ Spreads

We tested M4Markets’ spreads during the most actively traded times – during the London open at 8 AM GMT and just after the U.S. open at 2.45 PM GMT. The test was conducted on the 23rd of September 2022.

Our review of M4Markets’ Raw Spread account type revealed that the broker charges very low spreads on currency pairs and low-to-medium spreads on commodities. With regard to instruments from more complex asset classes, we found M4Markets’ spreads on CFD shares quite high, whereas the spreads on indices are low-to-medium compared to the broader industry.

M4Markets’ Swap Rates

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.

M4Markets’ swap rates on FX Majors are low-to-medium compared to the broader industry. The broker also offers swap-free trading – Islamic Accounts – available on Standard, Raw Spread, and Premium account types.

M4Markets’ Commissions

The Raw Spread account type has a fixed commission of $3.5 per side (or $7 round turn) for currency pairs and metals. This commission is per traded lot (100,000 units), which is higher than the industry average. In other words, traders have to pay $3.5 to open a position (1 lot) and then another $3.5 to close it. M4Markets’ fixed commission for Forex and metals on Premium accounts is $2.5 per side.

There is also a commission of 0.05% per side (0.10% per round turn) for CFD shares. This commission is the same on all account types.

M4Markets’ Non-Trading Fees

The broker charges a $10 inactivity fee for accounts on which no trades have been placed for a period of 12 months. The fee is charged monthly until activity resumes or the account balance drops to zero.

There are no additional non-trading fees as the broker does not charge deposits or withdrawals.

Are M4Markets’ Fees Competitive?

The competitiveness of M4Markets’ fees varies on instruments from one asset class to another. The broker’s fees on energy commodities and indices on Raw Spread and Premium account types are indeed very competitive because instruments from the two asset classes have very low spreads and no commissions.

As a whole, M4Markets’ fees exceed the industry average, meaning that traders can gain maximum advantage only when trading instruments from certain asset classes.

Platforms and Tools

MT5 builds on its predecessor’s legacy by expanding its assortment of tools, such as indicators and timeframes. M4Markets should be commended for listing the essential differences between the two platforms in detail, which is quite rare in the industry. M4Markats stands out with its efforts to inform traders about the usability of its services.

MT5 also has a mobile app version allowing traders constant access to markets even on the go.

Users of MT5 can take advantage of features such as one-click trading, automated trading in the form of Expert Advisors (EA), and trading signals provided by other traders. Clients of M4Markets can also take advantage of the broker’s social trading feature – M4Markets Copy Trader.     

M4Markets’ Desktop MT5 Platform

General Ease of Use

The platform is easy enough to navigate, with all important features being no more than several clicks away. Its design has a very familiar layout:

• a menu with all essential options and settings can be found at the top of the platform;
• account information can be accessed from the banner at the bottom;
• charts are situated in the middle of the window;
• a watch list of selected instruments and other important features are positioned on the left-hand side of the platform.

The general ease of use of MT5 is further enhanced by the inclusion of some handy features, such as a strategy tester and a built-in economic calendar.

Charts

MT5’s charts are fluid and flexible and can be populated with multiple indicators and other secondary tools. The efficacy of a platform’s chart is evaluated based on its capacity to illustrate price action behavior as clearly and concisely as possible.

We have summarized the most important tools and features of MT5 below:

• Trading indicators. The platform consists of 38 trading indicators, which can be separated into several categories – trend-based, volume-based, oscillators, and others. These are used to gauge market sentiment and estimate probable future price action behavior.
• Drawing tools. There are also 21 different drawing tools, such as lines, channels, and Fibonacci retracement levels. These are used to contextualize the emergence of certain patterns – rebounds and breakouts – and estimate the probability of where the underlying price action might go next.
• MT5 has an impressive 21 different timeframes, affording traders a multifaceted overview of price action behavior from different angles. This wide range of timeframes means that the platform can be used by position, intraday, and day traders.
• Chart types. There are 3 chart types currently available on MT5. Price action can be represented as a line, using bars and candlesticks.

Orders

Here is a list of the order types currently available on M4Markets’ MT5 platform:

• 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 actually 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-loss 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.

M4Markets’ Mobile App

The primary function of MT5’s mobile app is to afford quick and easy access to a trader’s account on the go. This is vitally important when urgent corrections need to be made, for instance, when a margin call is issued on a losing trade. Where the app falls short of the desktop version, however, is with regard to its flexibility. Except for tablets, apps are usually run on smaller-screened smartphones, which do not accommodate the execution of probing technical analyses.

General Ease of Use

Arguably, the app’s biggest advantage is its design’s simplicity. Traders can navigate between the different sections of the app fairly quickly. This simplicity makes order execution and termination very easy, which is imperative in such a fast-paced environment.

Charts

Here is a breakdown of the features available on MT5’s mobile app:

• Trading indicators. Unlike the desktop version, the mobile app has 30 trading indicators. These indicators fall into several categories, the most popular of which are trend-based, volume-based, and oscillators. They are used to gauge market sentiment.
• Drawing tools. There are 21 drawing tools, the same as the desktop version, including trend lines, channels, and Fibonacci retracement levels. However, it is more difficult to use those on small-screen devices.
• The app consists of only 9 timeframes compared to the 21 available on MT5’s desktop version. This diminishes the usability of the former.
• Chart types. There are 3 chart types, similar to the desktop version. Price action can be represented as a line, using bars and candlesticks.

Orders

Finally, here is a list of the order types available on the app:

• Market orders. The most popular order type in the industry, market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling.
• 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-loss 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.

Tradable Instruments

M4Markets’ assortment of instruments affords access to some of the most widely traded markets. These include highly volatile assets such as cryptocurrencies, shares, certain commodities, indices, and more conventional instruments like currency pairs. This means that conservative and aggressive traders alike can make use of M4Markets’ array of tradable instruments.

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. 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 M4Markets?

Here is a breakdown by category of the over 120 instruments available on a Raw Spread account with M4Markets:

• 48 Currency Pairs
  • Majors and Minors
• 9 Commodities
  • Metals and Energy
• 56 CFD Stocks
  • S. and EU
• 13 Indices
  • S., EU, and Asia
• 5 Cryptocurrencies
  • Majors

By category and compared to the broader industry, the broker offers an average amount of currency pairs and commodities, a low amount of cryptocurrencies and stocks, and a high number of indices. Given that M4Markets charges low-to-medium spreads and no commissions for trading indices on a Raw Spread account, the high number of instruments from this asset class available is another advantage to retail traders.

Customer Support

The website contains a dedicated FAQ section intended to answer most general questions. Clients of the company with more specific queries can send an email, call or request a call back from M4Markets’ support team or contact them via the live chat. The response time is very low, but the quality of the service is generally high.

M4Markets’ Customer Support Test

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

We conducted our test on the 26th of September via the live chat available at the bottom-right corner of the main page. An agent connected almost instantaneously and responded to our general query regarding M4Markets’ commissions. Initially, he sent us a link to the ‘Spreads and Commissions’ section of the website, but then we inquired further about instruments from specific asset classes.

The agent was thorough enough to make sure that he did not provide us with false information, and it took him a short while to double-check his answer, which is quite important. Overall, we found M4Markets’ support team reliable and helpful.

Deposit and Withdrawal

M4Markets Deposit Methods

M4Markets Withdrawal Methods

The company’s clients can choose from multiple payment options – credit and debit cards, wire transfers, e-wallets, and others. Almost all deposits are processed instantaneously, while almost all withdrawals take up to one business day to complete. The broker does not charge a servicing fee for either, though third-party fees may apply.

Account Types and Terms

M4Markets’ three account types – Standard, Raw Spread, and Premium – are designed to cater to the needs of both conservative and aggressive traders. It is also worth pointing out that account creation is a fast and straightforward process.

Why is Choosing the Right Account Type Important?

Ideally, the account should correspond to a trader’s goals, means, and needs on the market. Some account types are designed to cater to the needs of more aggressive traders who like to take bigger risks looking to score bigger profits. In contrast, more cautious traders need an account type to reflect their more pragmatic approach to trading.

What Account Types Does M4Markets Offer?

*Round turn commission

The Standard account is the most affordable of the three, with its $5 minimum deposit requirement. It offers commission-free trading, except for CFD shares which are liable for a 0.10% round turn commission and spreads starting from 1.1 pips. What is worth pointing out is that the max. leverage allowed is relatively high, whereas the stop-out level is low. This makes the account type less suitable for inexperienced traders who cannot truly appreciate the risk of high market exposure. It is, however, appropriate for high-risk takers looking to take advantage of the higher leverage.

The Raw Spread and Premium account types, which have varied commissions and raw spreads starting from 0.0 pips, are intended for a wider range of traders, including professionals. However, the minimum barrier to entry is $500 on a Raw Spread account. These account types offer excellent conditions on instruments from some asset classes like indices.

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-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

M4Markets Account Opening Process

We have summarised the process of opening a live trading account with M4Markets in these few steps:

• Step 1. Click the ‘Open Account’ button on the top-right corner of the main page and fill in your personal details.
• Step 2. Confirm your email address by copying the PIN that will be sent to your email and pasting it onto the confirmation form on the website.
• Step 3. Verify your account by providing proof of your id, address, and economic profile details.
• Step 4. Configure the settings of your live account by selecting a platform (MT4 or MT5 ) and account type (Standard, Raw Spread, or Premium).

Why is a Demo Account Important?

Demo accounts serve a twofold purpose. Potential clients of the broker can use its practice account to test its services and conditions before they move to open live accounts for themselves. Additionally, traders can use demo accounts to tweak the parameters of their strategies and upgrade them accordingly to the ever-changing market sentiment in a safe environment.

M4Markets Supported Countries

M4Markets does not offer its services to residents of certain jurisdictions such as the USA, Canada, Cuba, Sudan, Syria, and North Korea.

Research

The research materials and supporting tools are very practical and effective in achieving their goals – to provide a focused examination of key market developments and to underscore their essential causes. However, M4Markets’ research content lacks scope and diversity, as no attention is paid to market outliers that do not have a direct impact on current trading opportunities.

Research Tools

Here is a categorization of M4Markets’ research materials and secondary content:

• Economic calendar. A pretty common feature across the industry, the economic calendar informs traders of upcoming economic releases and other potential trading events. Newbies and experienced traders use economic calendars to prepare for such upcoming events by discerning which instruments are likely to be impacted and to what degree.
• Forex calculators. These calculators help traders determine the optimal size of their positions under changing market conditions. There are currency, margin, pip, swaps, and profit & loss calculators.
• Financial news. M4Markets’ research team breaks down the most important financial news daily. Each breakdown is presented in video format, and it contains a brief analysis of the underlying market movers and a technical outlook of several tradable instruments supported by charts and graphs.  

Education

The broker’s two educational books – “Introduction to Forex” and “Introduction to Fibonacci” – differ in their breadth and structure. The former serves the purpose of an exhaustive glossary, whereas the latter represents a systematic examination of concepts connected to the Fibonacci theory of trading. Traders of different experience levels can use the latter to develop their edges in this aspect.

The broker also has several educational videos on its Youtube channel, but only in Vietnamese and Spanish. There is also one webinar on how to use the Fibonacci retracement levels available on the website. As a whole, M4Markets’ educational materials, similar to its research content, are informative enough, but their scope is limited.

The Bottom Line

M4Marekts is a derivatives broker offering OTC trading solutions to retail and professional traders. Having been founded 3years ago, it is trying to build a reputation for itself as a trustworthy partner. The broker offers a combination of commission-free trading with low spreads on some of the most popular instruments on the market.

M4Markets has several account types that complement each other very well, affording traders the freedom to choose the optimal conditions for themselves. Users can trade with more than 120 instruments from different asset classes and take advantage of M4Markets’ excellent customer support. Available to them are also two of the most renowned platforms in the world – MetaTrader 4 and MetaTrader 5.

In terms of drawbacks, one of M4Markets’ entities is authorized by a weak offshore regulator (FSA), which does not guarantee compliance with the strictest industry regulations. Additionally, its fees are generally not the most competitive in the industry. We also found M4Markets’ research and educational materials, though very informative in their own right, lacking in scope. Despite this, the broker, with its multiple perks, is equally suitable for inexperienced and experienced traders.

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