Markets.com Review 2023

Trust

Markets.com Regulations

Markets.com operates under 5 entities:

• Finalto (BVI) Ltd is regulated by the BVI Financial Services Commission (FSC). We rate BVI FSC as a Tier 3 regulator.
• Finalto (Australia) Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC). We rate ASIC as a Tier 1 regulator.
• Finalto Financial Services Ltd. is regulated by the Financial Conduct Authority (FCA). We rate FCA as a Tier 1 regulator.
• Finalto (South Africa) Pty Limited is regulated by the Financial Sector Conduct Authority (FSCA). We rate FSCA as a Tier 2 regulator.
• Safecap Investments Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC). We rate CySEC as a Tier 1 regulator.

Why is It Important to Know Where Your Broker Subsidiary Is Regulated?

Each regulator has its requirements for brokers, which may differ substantially. Such requirements include leverage levels and specific protections offered to investors, such as negative balance protection, segregated accounts, and investor compensation funds. Traders must understand the differences between regulations to evaluate whether the broker suits their needs.

Markets.com operates under five entities, so clients will find a suitable entity for them. The global entity, Finalto (BVI) Ltd, is registered in the British Virgin Islands and regulated by FSC, a Tier 3 regulator.

The broker has three entities that are authorized by Tier 1 regulators: Finalto (Australia) Pty Ltd (ASIC), Finalto Financial Services Ltd. (FCA), and Safecap Investments Limited (CySEC). Finalto (South Africa) Pty Limited is regulated by FSCA, a Tier 2 regulator.

All entities hold clients’ funds in segregated accounts to ensure that the clients’ money is not used for the broker’s own business purposes. Using segregated accounts increases the safety of clients’ funds in case the broker faces financial problems.

Markets.com also provides negative balance protection in all entities, which means that clients cannot lose more money than they have in their accounts.

There are additional protections available for clients of Finalto Financial Services Ltd and Safecap Investments Limited. Clients of the FCA-regulated entity benefit from the protection of the investor compensation fund, which covers losses of up to GBP 85,000 in case the broker has financial problems. Clients of the CySEC-regulated entity benefit from the protection of the investor compensation fund, which covers losses of up to EUR 20,000.

I have summarized key aspects of the broker’s entities in terms of regulation and safety in the table below:

Is Markets.com Safe to Trade With?

Markets.com has entities that are regulated by Tier-1, Tier-2, and Tier-3 regulators. In my view, the presence of Tier 1-regulated entities is always beneficial for clients, even if they open their accounts with other entities. The broker must invest heavily in its procedures to get a Tier 1 regulation, and the presence of such a regulation shows that the broker took the extra steps to ensure safety and transparency. All entities provide negative balance protection and hold their funds separately from the firm’s funds. The segregation of the client’s funds ensures that the broker cannot use them for its own needs. Moreover, with negative balance protection, clients cannot lose more money than they have in their accounts.

Stability and Transparency

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

Markets.com, established in 2009, is not publicly traded and does not have a bank parent, which is common for a broker. They provide easy access to all essential documents via the Regulation and Legal Pack section of the broker’s website, including Terms & Conditions, Risk Disclosure Statement, Privacy Policy Statement, Conflicts of Interest Policy, and Clients Complaints Handling Policy.

The fee structure details can be found on the Account Types page. Traders can learn more about the differences between various entities in the Our Group section of the company’s website.

In summary, my research indicates that Markets.com can be regarded as having a high level of trust and stability due to the following factors:

• Regulated by Tier 1, Tier 2, and Tier 3 regulators.
• All entities provide negative balance protection and segregated accounts.
• More than 14 years in business.
• Easy access to important information on the company’s website.

Fees

Markets.com Trading Fees

For this review, I tested the Markets.com Basic Account, where the broker levies spreads and swap/rollover fees, but does not charge any commissions. Spreads are variable and depend on the liquidity condition for each instrument at a certain point in time.

Markets.com Spreads

I tested the spread on the Markets.com Basic Account during the London open at 8 a.m. UK time and shortly after the US open at 2.45 p.m. UK time. These are the most actively traded hours.

Markets.com features competitive spreads for EUR/USD and Gold. I’d note that EUR/USD spreads are indeed attractive for a standard spread-based account as many brokers would have spreads above the 1.0 level at such accounts. The spreads for DAX and Dow Jones are moderate, while the spreads for GBP/JPY, WTI Oil, Apple, Tesla, and Bitcoin are relatively high.

Swap Fees

My findings indicated that the swap fees for EUR/USD were high, in contrast to the notably low swap fees for GBP/JPY.

Are Markets.com Trading Fees Competitive?

While the broker provides attractive spreads for EUR/USD and Gold, the spreads for other instruments I tested were either moderate or high, compared to the industry average. Generally, I found Markets.com’s fees to be above the industry benchmark, which we established through our extensive comparative research.

Non-Trading Fees

Markets.com applies an inactivity fee of $10 per month if the account is inactive for one year.

Platforms and Tools

Markets.com Desktop and Web Platforms

In this review, I tested the MetaTrader 5 platform, analyzing charts, indicators, drawing tools, orders, and the general ease of use of the platform.

General Ease of Use

MT5 is an advanced trading platform that could be tailored to traders’ needs. The interface is rather intuitive, although some traders may want to search for tutorials to take a deep dive into MT5’s capabilities. In general, advanced traders would have no problems with MT5, while beginners may need to spend some time learning the fundamental features of the platform.

For beginner traders, it’s beneficial to familiarize themselves with various chart options, indicators, drawing tools, and order types. You may need to learn how to create your watchlists and manage your trading positions. Despite the initial time and effort required, traders who invest in this learning ultimately gain a powerful tool that helps achieve better trading results.

While the general look of the MetaTrader 5 platform may seem a bit outdated, I find the platform fairly intuitive and easy to learn. Markets.com provides that standard MT5 offering, so those who have previously used the platform with other brokers will be ready to trade in a couple of minutes.

Charts

MT5 offers 97 indicators and 21 timeframes, which is more than enough to customize your charts and adjust them to your needs.

Trend indicators, oscillators, volumes, Bill Williams indicators, and custom indicators help to design the chart you need.

Available timeframes range from 1 minute to 1 month, providing the trader with opportunities to observe short-term developments, as well assignificant multi-month trends.

MT5 also supports:

• lines
• channels
• Gann tools
• Fibonacci tools
• Elliott tools
• shapes

These tools are commonly used for decision-making in trading, so their inclusion is a must for any reputable trading platform.

Each chart could be displayed as a bar, a candlestick, and a line. Candlesticks are generally the most popular among traders as they suggest plenty of various patterns that are used for making trading decisions. That said, other chart types also have their advocates.

MT5 charts are accessible even to novice traders, nevertheless they also offer enough options for experts.

Orders

MT5 offers all main order types including:

• Market order. This order allows you to buy or sell the instrument at the current market price. It is used when the trader needs to establish a position in the fastest possible way. The main downside of the market order is the necessity to pay a spread, which is a difference between the bid price and the ask price.
• Limit orders. This order is used to buy or sell the instrument at a pre-set price or better. Limit orders are suitable when the trader wants to get a specific entry point and is unwilling to pay the current market prices.
• Stop-loss orders. These orders are used to get you out of the position when the price is moving in the wrong way. The order is triggered when the price reaches a specified point.
• Stop limit orders. This is a stop-loss order which puts a limit order instead of a market order when triggered. This is a potentially risky way to close a position, and it should be used only by experienced traders.
• Trailing stop orders. This order allows you to set a stop order that will move if your open position trends favorably. It is used to protect your profits in case the market direction changes.

Different expiration types are available for all pending orders, including GTC (good-till-cancel), Today, Specified, and Specified Day.

Markets.com Mobile App

In this review, I have tested the Markets.com MetaTrader 5 Mobile App for Android.

General Ease of Use

The MT5 mobile app for Android is quite user-friendly. It provides charts, quotes, account balance info, an economic calendar, news, and other tools to help traders make informed trading decisions. As usual, traders have access to the standard MT5 mobile app. If you worked with the MT5 app before, you’ll spend little time before you will be ready to trade.

Charts

MT5 mobile app offers:

• 30 technical indicators
• 24 drawing tools
• 9 timeframes
• 3 chart types

This selection of options is sufficient for mobile-based trading. Typically, the mobile app is used when the trader does not have access to the desktop platform but needs to monitor the market and open positions. While the app is helpful in certain circumstances, it is not as efficient as the desktop platform, which remains the primary solution for traders who require fast and active trading capabilities.

Orders

The MT5 mobile app allows you to place market orders, limit orders, and stop orders. However, trailing stops are not available on mobile trading terminals.

Markets.com Proprietary Platform

In addition to MetaTrader 4 and MetaTrader 5, Markets.com offers a proprietary trading platform that is designed with beginners’ needs in mind. The platform has a user-friendly interface featuring clean charts, prepopulated watchlists, key statistics, and related instruments.

The platform allows trading from a chart, which is convenient. With 90 indicators available, traders will find enough options for technical analysis. In general, the platform is rather simplistic but does not have a steep learning curve, which is important for beginner traders.

In my view, Markets.com provides a balanced platform offering that features the widely used MT4 and MT5, as well as the beginner-friendly proprietary trading platform. MetaTrader 5, extensively tested in this review, is feature-rich with a suite of chart options, indicators, drawing tools, and a variety of order types, offering a high level of customization and functionality for both beginner and advanced traders. Meanwhile, the in-house platform of Markets.com, tailored for beginner traders, provides a user-friendly interface with a manageable learning curve, promoting trading convenience and simplicity.

Tradable Instruments

Markets.com provides access to 59 forex pairs, 16 commodities, 22 indices, and indices futures, 6 cryptocurrencies, 259 stocks, and 2 bonds.

The number of available commodities and indices is high, forex pairs and stocks are moderate, while the availability of cryptocurrencies is low.

What are CFDs?

CFDs (Contracts for Differences) are financial instruments that allow traders to bet on price movements of securities without owning the underlying assets. The key advantage of CFDs is the access to significant leverage, which is typically not available when trading other instruments. Consequently, CFDs are very popular in short-term trading.

What Can You Trade with Markets.com?

• 56 forex pairs. The list includes popular names like EUR/USD and GBP/USD, as well as more exotic options like GBP/RON (British pound vs Romanian Leu) and EUR/TRY (Euro vs Turkish Lira).
• 22 commodities. Gold, Silver, WTI Oil, Natural Gas, among other popular commodities, are available for trading.
• 30 indices and indices futures. Traders can bet on the direction of popular indices like Dow Jones, DAC, CAC 40, and other major global indices.
• 25 cryptocurrencies. The list includes Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Litecoin, Dash, and Ripple.
• 293 stocks. Popular names from the U.S., UK, Germany, France, Netherlands, Spain, Czech Republic, Poland, Italy, Sweden, and Hong Kong are available for trading.
• 4 bonds. Traders have access to U.S. 10-year note and Germany 10-year bond futures.

Markets.com offers a diverse range of tradable instruments including forex pairs, commodities, indices, stocks, cryptocurrencies, and bonds. Traders have access to a higher number of commodities and indices. The stock and forex offerings are average for the industry, while the cryptocurrency offering covers only the basic assets.

Customer Support

During my tests, I posed various questions to the support team. For example, I used the online chat to ask questions about the maximum leverage, inactivity fees, and account type details. The responses were quick (I waited for about a minute before getting the first answer) and professional, and it was clear that support agents’ answers were based on their own knowledge rather than a script. This proficiency is crucial for traders since knowledgeable support agents can provide assistance in unusual situations that occasionally arise during trading.

The broker offers customer support in English, French, Spanish, Italian, Arabic, German, and Bulgarian.

Deposit and Withdrawal

Markets.com Deposits

Markets.com provides standard deposit options, including credit cards, bank transfers, and popular e-wallets, such as Neteller and Skrill. In this review, I focus on the BVI entity, which is available for global clients. Other entities offer additional payment methods. If you are a client of another entity, please take a look at this page to check your options. Traders should note that the broker offers a deposit bonus of up to 20%.

Markets.com Withdrawals

Markets.com does not impose withdrawal fees. However, traders should be aware that third parties may apply such fees, so it’s advisable to verify this before choosing any withdrawal method.

Account Types and Terms

Markets.com clients can open CFD, MT4-CFD, and MT5-CFD accounts. The in-house platform provides access to blends (unique indices such as Metaverse Blend and Buffet Blend). All accounts are spread-based, meaning traders pay the spread with no commissions involved.

Why is Choosing the Right Account Type Important?

Choosing an account that aligns with your trading needs is crucial. Typically, the trader should consider factors such as base currency options, contract size, commission, fees, the number of pending orders/positions, and the minimum deposit size.

What Account Types does Markets.com Offer?

Markets.com offers three types of accounts: CFD, MT4-CFD, and MT5-CFD. Depending on the size of the deposit, additional features may be available such as margin call SMS, higher bonus levels, Reuters analyst research (pdf stocks), and other perks.

What is CFD leverage?

CFD Leverage allows traders to avoid paying the full value of the position. Instead, they pay a deposit, which is called margin, while borrowing the remaining funds.

In the case of Markets.com, clients of the BVI-regulated entity have access to leverage of up to 1:300. This is a high level of leverage, so traders should be careful and use the appropriate risk management techniques when using the available leverage to its fullest extent. However, clients who work with the entity regulated by CySEC can benefit from much lower leverage of up to 1:30.

Markets.com Account Opening Process

To perform my tests, I opened an account with Markets.com. The account opening process was fast and did not take much time — I quickly went through the questions and got access to the client portal.

To open an account with Markets.com:

• Step 1: Go to the broker’s website and click “Sign Up”.
• Step 2: Provide your personal information, including your name, date of birth, phone, and residence address.
• Step 3: Answer questions on your employment status, profession, annual income, savings, amount you plan to invest, purpose of trading, and source of the funds.
• Step 4: Read and agree to the terms and policies.
• Step 5: Complete identity verification by uploading documents.

What is a demo account?

A demo account is an account that allows you to test the broker’s services and your trading skills without risking your money.

Please note that your trading experience will differ when using a demo account compared to a real-money account due to psychological factors, as traders find themselves under pressure when real money is at stake.

It’s a good idea to use such an account for practicing and learning the trading platform, but do not spend too much time on the demo.

Research

Markets.com provides news and analysis on its website, but the core of the research support can be found in its in-house trading platform. Traders have access to financial commentary, which is a news feed from several providers, such as financial bloggers, insiders, and traders. Sentiment tools have gained popularity in recent years as additional decision-making aids for traders.

In my opinion, the research tools are especially beneficial when trading stocks as Markets.com also provides key stats and financials, as well as Thomson Reuters analytical reports for some stocks (available for clients whose deposits exceed $2,500).

Traders can also take a look at related instruments when working with the in-house platform, which could be a useful tool for beginner traders making their first steps in the markets.

In general, while the research offering is intriguing, it is primarily limited to the proprietary trading platform.

Education

Markets.com has an Education Center, which provides access to a collection of articles, covering the basics of trading. One disadvantage is that these articles do not form a structured trading course. Nevertheless, beginner traders can still gain considerable knowledge from these resources.

The webinars, which are available in several languages, cover various topics. In my opinion, the highlight of the offering is the podcast named “Traders’ Clinic”, where two traders, Charlie Burton and Ali Crooks, share insights on trading strategies, trading psychology, and other important aspects of a trader’s life.

The Bottom Line

Overall, Markets.com offers a comprehensive service, which includes robust educational and research tools, swift and professional customer support team, and a user-friendly in-house trading platform. In addition to this platform, Markets.com also offers the highly popular MetaTrader 4 and MetaTrader 5 platforms.

The broker operates under five entities: Finalto (BVI) Ltd (FSC, a Tier 3 regulator), Finalto (Australia) Pty Ltd (ASIC, a Tier 1 regulator), Finalto Financial Services Ltd (FCA, a Tier 1 regulator), Finalto (South Africa) Pty Limited (FSCA, a Tier 2 regulator), and Safecap Investments Limited (CySEC, a Tier 1 regulator). This extensive regulatory oversight ensures that the broker can serve a diverse range of traders worldwide and provide a good level of safety to the clients.

Markets.com provides access to forex pairs, commodities, indices, futures, stocks, ETFs, cryptocurrencies, and bonds. Markets.com’s offering would be especially interesting to traders working with commodities and indices, as the broker provides a high number of these instruments. When it comes to the broker’s fees, the cumulative charges are higher than the industry average. However, traders can discover good deals when they examine each tradable instrument individually. Traders have access to multiple deposit and withdrawal options, which differ a bit depending on the entity. The broker does not charge deposit or withdrawal fees, which is fairly standard nowadays.

FAQ