FP Markets is one of the more popular Forex brokers that offers a wide range of services to traders around the world. It was founded in 2005 in Australia and has since gained a large number of followers, with its offerings appealing to both beginners and experienced traders.
The broker is regulated by the Australian Securities and Investments Commission (ASIC), which provides additional credibility. In the following article, we will take a look at whether it is worth opening an account with FP Markets, what conditions it offers, what fees and commissions are associated with trading, and what instruments and leverage can be used on this platform.
FP Markets offers two main trading platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are considered among the best on the market. Both platforms allow trading both forex and other instruments, such as stocks, commodities, indices and cryptocurrencies. In addition, the broker also provides its own Iress platform, which is mainly aimed at professional traders. FP Markets also offers mobile applications for traders who prefer to trade from mobile devices.
Each account offers access to a wide range of financial instruments, as well as various leverage options, which we will talk more about later in the article. In both cases, account maintenance is possible in euros, dollars and British pounds, and the minimum starting balance is (in both cases) 50 units of currency.
The offer for both types of accounts is the same, as is the minimum transaction size (0.01 lot).
FP Markets provides a wide range of financial instruments - more than 10,000 instruments, which include:
Forex - [Forex Currency CFDs] Over 70 currency pairs, including major pairs (EUR/USD, GBP/USD), and smaller, exotic currency pairs.
Indexes - You will find 19 CFDs on stock indexes from different regions, such as the S&P500, Dow Jones, DAX, and FTSE.
Commodities - You can invest in CFDs on coffee, natural gas, corn and much more
Stocks - More than 650 CFDs on stocks on global exchanges
Cryptocurrencies - CFDs on cryptocurrencies such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin and more.
ETFs - FP Markets offers more than 200 CFDs on ETFs.
The broker also offers the ability to trade using CFDs on stocks, allowing traders to speculate on price movements without owning physical stocks.
With FP Markets, the fees depend on the type of account you choose. It's worth taking a close look at commissions and spreads, as they have a key impact on the profitability of a transaction.
Spreads at FP Markets. FP Markets offers relatively low spreads, especially on the Raw account. For popular currency pairs such as EUR/USD, the spread can be as low as 0.0 pips, although in practice its value depends on market conditions and the platform you use. For a Standard account, it can range from 1.0 pips, for a Raw account - 0.0 pips.
Commission at FP Markets. In the Raw account, the broker charges a commission per trade - for the EUR/USD pair it is $3 per lot (i.e. 100,000 units of currency). On the Standard account, the broker does not charge a commission, but the spread is higher at 1 pip.
Position holding (swap) fee at FP Markets. The broker also applies swap fees for holding positions overnight. The amount of swaps depends on the instrument and current market conditions. In the forex market, swap differences can be as high as a few points, and the amount depends on the currency pair and leverage.
FP Markets also offers leverage, which can help increase potential profits, but also comes with a higher risk. Depending on the type of account and instrument, the available leverage is:
*Up to 30:1 in Forex. Leverage of 30:1 allows you to control large positions with a relatively small initial deposit. However, it is worth remembering that leverage increases both potential profits and losses, so it should be used with caution, especially by novice traders.
*On other instruments, such as commodities, stocks or cryptocurrencies, the available leverage is usually lower, depending on regulations and broker requirements.
FP Markets is a broker regulated by the Australian Securities and Investments Commission (ASIC), which means it complies with Australian financial services laws.
In addition, the broker adheres to high standards to protect its clients' funds, keeping funds in separate accounts and using technical safeguards to protect users' personal and financial information.
Reviews about FP Markets are overwhelmingly positive, especially when it comes to low spreads, wide range of instruments and professionalism of customer service. Users appreciate the ability to use two main platforms - MetaTrader 4 and MetaTrader 5 - and the advanced Iress application. In addition, the broker is well rated for the transparency of trading conditions and the wide range of available instruments.
Some negative reviews may concern the amount of commissions on the Raw account, but this depends on the individual needs and trading style of the trader. On the Standard account, the lack of commission compensates for the higher spread, which can be an attractive option for less experienced traders.
