FP Markets review
First Prudential Markets (FP Markets) is an Australian brokerage firm founded in 2005. The firm is authorized and regulated by the Australian Securities and Investments Commission (ASIC). They operate with the Australian Financial Services License (AFSL) number 286354. ASIC is reputed for imposing stringent rules on brokers and ASIC protection comes with a high level of assurance to the traders working with the broker. FP Markets are also regulated by the Cyprus Securities and Exchange Commission (CySEC). The Head Office is located in Sydney, Australia. The brand has won multiple industry awards in areas like; customer service, trader education, and trade execution. FP Markets asserts that investor deposits are safely kept in the Commonwealth Bank, which is one of the big 4 banks in Australia. This ensures the segregation of traders’ funds from the operational funds of FP Markets. Furthermore, their website is available in 12 languages; English, Arabic, Indonesian, Italian, Spanish, Vietnamese, Russian, German, Portuguese, Thai, French, Malay.
Markets and Products
FP Markets caters for both retail and professional clients. The firm facilitates a number of different ways that clients can trade on the market. This includes direct market access (DMA) which provides clients with direct access to the orderbooks of exchanges, CFDs, forex, and futures contracts. DMA allows traders to directly place their orders into the orderbook of exchanges and monitor their order in real-time. The firm mainly specializes in providing CFDs. Traders can speculate in products including shares, indices, futures, forex, commodities, precious metals, and cryptocurrencies. Across these markets, FP Markets has over 10,000 products available to be traded.
Trading Platforms and Features
FP Markets have three platforms available for clients. The platforms are MT4, MT5, and IRESS. MT4 is a highly popular trading platform among traders. It is available to be downloaded for desktop, mobile, and there is also a web-based version available. The platform features technical analysis tools for traders and an intuitive to use interface. There is also the option for those with knowledge of programming to build trading algorithms within the platform. MT4 can function as an electronic network communication (ECN) depending on the account that users set up with FP Markets. This allows users to directly access the interbank forex market providing users with the most attractive prices. This also means that the broker does not pass on the order to market makers or dealers who may wish to profit from processing the order. This allows the user to avail of more attractive spreads but the brokerage will typically charge higher fees making this model more suitable for the larger trader. MT5 is a similar product to MT4. Both also have access to huge trading communities that exist on the platform.
IRESS is the other platform provided by FP Markets. The IRESS platform is a trading software that provides DMA for users. The platform is also supported for the web, desktop, and mobile. The desktop version of IRESS comes at a cost of $55 per month but the web-based and mobile version have no charge. Similarly to MT4, users of IRESS can use advanced technical analysis tools and make complex orders. The platform also links up with real-time news developments.
There are also a number of options available to clients of FP Markets separate from the trading platforms. These include multi-account manager (MAM) accounts, percent allocation money management (PAMM) accounts, and the ability to set up a virtual private server (VPS). MAM and PAMM accounts are managed account whereby the investment decision-making in the account is delegated to a third-party such as a money manager. These type of accounts are also offered by other brokers such as eToro. Setting up a VPS enables the traders on the platform to run automated algorithmic strategies and also to delegate to a money manager. The VPS option furthermore lowers latency and reduces the risk of a shutdown.
FP Markets also have a “traders toolbox” which consists of applications that traders can use on their platform to improve their trading experience. Examples of some of the applications available in the traders include an alarm that can notify of certain events, a trading calendar, and correlation tools.
Account Structure
What are the fees?
| Market | Spread | Commission |
|---|---|---|
| Equity CFDs | NA | 0.08% to 0.3% on each side of trade based on region. Minimum commission applies based on region. |
| International Futures CFD | NA/td> | $15, varies based on region. |
| Forex (STP) | From 1 pip | Zero |
| Forex (ECN) | From 0 pips | $3.50 per 100,000 lots |
| Futures | NA | $1.5 per lot+, a minimum fee of $10 per futures contract trade* |
Anything else I should know?
FP Markets also has educational resources available via their website, this includes research on current market conditions as well as educational tools that traders can use to learn about trading or improve their strategies. There are a number of eBooks available which anyone can access for free by providing their email address. The eBooks introduce different topics for traders such as technical analysis, fundamental analysis, and various strategies which can be applied. FP Markets have also won several awards related to their performance in areas such as education and customer service. They have a rating of four stars out of five stars on TrustPilot based on 96 reviews.
For further information on the:-
Education
You can access FP Markets’ numerous archived webinars available on the platform and a variety of instructional videos on YouTube. In addition, the broker launched various podcast episodes about the technical and fundamental aspects of trading to support new traders.
FP Markets also offers free educational ebooks and a complete glossary of trading terms for traders. To access the broker’s ebook collection, you just have to provide your email address.
If you prefer to trade with the help of an advisor, FP Markets is a good choice as it offers automatic copy trading. Meanwhile, for investors who prefer to manage their assets, FP Markets offers Multi-Account Manager (MAM) or Percentage Allocation Management Module (PAMM) accounts.
The broker’s MAM account is designed to help improve the efficiency of managing multiple trading accounts. It’s hosted on the server of its popular trading platform, MetaTrader. This feature allows managers to make transactions on hundreds of accounts in just a few seconds.
A PAMM account is a mechanism that allows both traders and managers to participate in the distribution of profits and losses. In this account type, the manager is responsible for the trading operations of the fund.
Safety
When choosing a broker, the company’s regulatory status and administrative body are essential factors to consider. The company, registered in Australia, is regulated and monitored by the country’s market commissions. FP Markets is also fully compliant with the regulations of the ASIC (Australian Securities and Investments Commission, ensuring that its traders are protected from various scams and fraudulent activities.
Additionally, FP Markets is licensed in Cyprus, and the CySEC (Cyprus Securities and Exchange Commission) monitors the broker’s operations. CySEC also imposes fines and suspensions should the company engage in illegal activities.
FP Markets is regarded as an average-risk broker based on the trading platforms that it offers. It also has a trust score of 81 out of 99.
Due to the regulations implemented by ASIC and CySEC, there is no price manipulation in FP Markets, which means you can trade with institutional-grade liquidity at ease.
FP Markets also uses a segregated bank account to keep traders’ funds to provide added security. If the company is to declare bankruptcy, those funds will be safe since they aren’t a part of the company’s assets. The broker also works with Tier 1 banks to keep its traders’ funds. Those banks are considered the most secure and safest financial institution due to their strong core capital reserves.
FAQ
Does FP Markets offer a demo account?
Yes, the broker encourages new clients to test its demo environment. You can do so by visiting FP Markets’ website and registering via this link: https://portal.fpmarkets.com/demo/register.
What can I trade at FP Markets?
With over 10,000 products, you can trade various types of financial instruments such as shares, forex, indices, commodities and cryptocurrencies at FP Markets.
What is DMA pricing?
Direct market access (DMA) pricing is a type of execution that allows clients to receive a real-time price feed from the market. It can be done through various sources, such as an exchange order book or a liquidity provider.
Does FP Markets offer a joint trading account?
You and your partner can open a joint trading account with FP Markets. To do so, go to the broker’s registration page and click on the “Joint” link.
What is a self-managed super fund account?
Unlike other super funds, a self-managed super fund is not managed by a professional fund manager. Instead, its trustees are the beneficiaries and are usually the ones who take control of the investments.
Pros
- Range of CFDs, options and more than 10,000 trading instruments. Regulated by Australia’s ASIC
- Propriety IRESS trader built to be used with the MT4 platform, offering clients the ability to use their platform for both CFDs and share trading. There is a charge to use this platform, but a rebate is available for frequent traders
- FP Markets offers Bitcoin trading
- No inactivity fee
Cons
- Depending on the account, initial funding fee can be much higher than other brokers
- Charge funding fees to deposit money into an account. Depending on what kind of method is used, fees can be as high as 4%.
Fixed spreads
Variable spreads
Stop losses
Limit orders
One-click trading
Trailing stops
Expert advisors (EAs)
Virtual private server
Direct market access
STP broker
ECN broker
Market maker
Price alerts
Signal trading
Watchlists
Charting tools
iOS App
Android App
Windows App
Major Stock markets (US UK Germany)
Indices
Penny stocks
Forex
Majors
ETF
CFDs
Bitcoin
Commodities
ETFs
IPO
Options
Futures
Bonds
Hong Kong stocks
Japanese stocks
Listed on Stock Exchange
Scalping
Hedging
Demo account
Islamic account
Micro account
Standard account
VIP account
Zero spread account
Managed account
Credit cards
Bank transfer
PayPal
Neteller
Skrill
Electronic wallets