Capital Index Review 2024

Quick Links

• Our Review Method

• What is FP Markets?

• FP Markets Pros and Cons

• Awards

• Is FP Markets safe or a scam?

• Leverage

• Account Types

• How to Open a Demo Account

• Trading Instruments

• Fees

• Spreads

• Deposits and Withdrawals

• Trading Platforms

• Customer Support

• Education

• Conclusion

Our Review Method ▲ At Broker Insight, our review methodology for evaluating brokers is comprehensive and multi-faceted, ensuring a well-rounded analysis. We start by examining the broker's regulatory compliance and background, assessing the security and reliability of their operations. This is followed by a thorough evaluation of the range and diversity of trading instruments and markets offered, as well as the variety and suitability of account types available for different trader profiles. We delve into the trading platforms and tools provided, focusing on user experience, functionality, and technological robustness. Fees, spreads, and overall cost structure are scrutinized for transparency and competitiveness. A key component of our review involves testing the effectiveness and responsiveness of customer support. Additionally, we consider the ease and efficiency of the deposit and withdrawal processes. Finally, we incorporate real user feedback and the broker’s community reputation into our assessment to present a holistic and unbiased review that serves as a valuable resource for traders seeking reliable and insightful broker evaluations.

What is FP Markets? ▲

FP Markets stands as a prominent and expansive Forex Broker, delivering a professional trading experience since its inception in 2005. Over the years, FP Markets has catered to more than 12,000 clients globally, establishing itself as a leader in the industry. One of the broker's significant strengths is its utilization of ECN electronic bridges, coupled with powerful trading technology and a commitment to innovation. Located in Sydney, Australia, FP Markets is a testament to a secure trading environment, underscored by stringent regulatory compliance with the Australian Securities and Investments Commission (ASIC) and the recent expansion into the European market via Cyprus, making it eligible for trading within the EEA zone. Furthermore, FP Markets has extended its regulatory footprint to South Africa, authorized by the Financial Sector Conduct Authority, enhancing its global reach and reliability.

FP Markets Pros and Cons ▲

FP Markets is celebrated for its well-regulated trading environment, appealing to both novice and seasoned traders. The broker's advantages include competitive pricing, a diverse trading portfolio across various platforms, and an ECN trading environment complemented by exceptional educational resources. The broker's commitment to growth has transitioned it from an Australia-centric entity to a globally recognized brand. However, it's important to note certain drawbacks, such as higher spreads for stock CFDs and withdrawal commissions under certain conditions. Additionally, trading conditions may vary across FP Markets' entities, warranting a closer examination by traders.

Pros

• Competitive pricing and low fees

• Wide range of trading platforms and instruments

• Exceptional educational resources

Cons

• Higher spreads for stock CFDs

• Withdrawal commissions in some cases

• Variable trading conditions across entities

Awards ▲

FP Markets' dedication to excellence has been consistently acknowledged through numerous awards by esteemed publications and organizations. The broker's commitment to delivering outstanding service and trading conditions has earned it a reputable status, underscored by accolades such as Best Global Forex Value Broker, Best Forex Broker Australia, and Outstanding Value CFD Provider, among others. The Ultimate Fintech Awards APAC 2023 recognized FP Markets for Best Trade Execution and Most Transparent Broker, further solidifying its esteemed position in the industry. The Global Forex Awards 2023 also honored FP Markets with awards for Best Value Broker – Global, Best Broker – Europe, and Best Partners Programme – Asia, reflecting its unwavering dedication to client satisfaction and market leadership.

Is FP Markets safe or a scam? ▲

FP Markets is undoubtedly a safe choice for traders, with a solid foundation in Australia and adherence to the stringent regulations of the ASIC. The broker's expansion into Cyprus, regulated by CySEC, and its compliance with the MiFID European directive, further reinforce its reliability and commitment to secure trading practices. With a Trust Score of 8.5 out of 10, FP Markets demonstrates high-quality, regulated service across the regions it operates. However, traders should remain aware of the international trading opportunities provided via the offshore entity, underscoring the importance of understanding the regulatory environment and protections applicable to their trading account. Regulatory measures ensure client funds are segregated and protected, with top-tier banks managing these funds and adherence to international laws and requirements, offering a layer of security and fairness in trading.

Leverage ▲

Leverage levels at FP Markets vary significantly depending on the regulatory jurisdiction under which an account is registered. As an Australian broker, FP Markets adheres to the stringent guidelines set by ASIC, which has led to a reduction in leverage to more conservative levels compared to the past when leverage of up to 1:500 was available. In the EU, due to ESMA regulations, leverage is capped at a maximum of 1:30 for European traders. However, for traders in South Africa and other regions, FP Markets offers the possibility to trade with leverage up to 1:500 on more than 70 forex pairs, starting from spreads as low as 0 pips.

Account Types ▲

FP Markets provides a choice between two main account types that employ either STP or ECN execution models, accessible through the MT4 or MT5 trading platforms. Additionally, it offers three types of IRESS accounts for traders who prefer this specific platform. MAM and PAMM accounts are available, along with options for copy trading across all account types. It's noteworthy that FP Markets also caters to traders requiring Islamic forex accounts. Although there's a diverse range of accounts, potential differences in the pricing model across account types suggest that traders should carefully choose the one that best fits their trading needs and strategies.

Pros

• Offers a variety of account types catering to different trader needs

• Provides options for MAM, PAMM, and Islamic accounts

Cons

• Potential differences in pricing models between account types

How to Open a Demo Account ▲

The process to open an account with FP Markets is straightforward and fully digital, allowing for quick access to a Demo account. Transitioning to a Live Account can be done swiftly, usually within 1-2 days after application confirmation, ensuring a smooth start to the trading experience. Prospective traders will need to:

• Provide personal details including name, email, and country of residence

• Upload necessary documents for verification, such as ID and proof of address

• Select their preferred account type and trading platform

• Complete a questionnaire on financial experience

Following confirmation, traders can make their first deposit and commence trading.

Trading Instruments ▲

FP Markets offers an extensive selection of over 10,000 trading products, including Forex, Indices, Commodities, Metals, Bitcoin, and Equity CFDs. The broker boasts competitive spreads and provides access to more than 70 forex pairs. Recent additions to its currency offerings include the Mexican Peso (MXN), Brazilian Real (BRL), and South African Rand (ZAR) against the US Dollar, expanding the total number of available currency pairs. Trading conditions vary by instrument, with flexible leverage options and specific margin requirements available for review on the FP Markets platform. The instrument range at FP Markets receives a score of 4.0 out of 5, reflecting its broad coverage of markets, though primarily focusing on Forex and CFDs.

Pros

• Wide range of trading instruments across various asset classes

• Competitive spreads and flexible leverage options

Cons

• Main focus on Forex and CFDs, which might be limiting for traders interested in other markets

Fees ▲

FP Markets structures its fees based on the account type, with IRESS accounts incurring charges based on a commission plus a percentage of the trade volume. The broker's fee model is designed to accommodate different trading styles and volumes. Notably, FP Markets does not charge withdrawal fees, and other trading-related fees are considered competitive within the industry. The broker's overall fees are rated at 4.0 out of 5, indicating a cost-effective pricing structure when compared to over 1000 other brokers. Traders should also account for rollover or swap rates as part of their cost analysis, though FP Markets offers a Swap-Free account option for Muslim traders, adhering to strict religious principles.

Pros

• No fees for withdrawals

• Competitive trading fees and cost structure

Cons

• Variable fee structure based on account type may require careful consideration

Spreads ▲

FP Markets offers competitive spreads that vary by account type. The Standard account features an average EUR/USD floating spread of 0.7, while the ECN account boasts an impressively low 0.1 for the same currency pair. However, it's important to note that the ECN account incurs a commission for each order, which is set at $3 for Forex instruments and $3.5 for Metals, with commodities and cryptocurrencies trading commission-free. In comparison to other brokers, FP Markets' spreads are lower than the industry's average of 1.2 pips for EUR/USD, although it should be noted that fees for stock trading are slightly above average.

Deposits and Withdrawals ▲

FP Markets supports a variety of payment methods for account funding, including both fee-incurring and free options. With ten base currencies available for trading accounts, users can select the most suitable option for fund transfers, facilitating easier and more cost-effective money management. Payment methods are rated highly, with an overall score of 4.5 out of 5. Especially commendable is the broker's policy of covering international transfer fees up to $50 for deposits exceeding $10,000. Additionally, FP Markets offers a variety of withdrawal methods, with fees varying depending on the chosen method. Withdrawal requests are typically processed within 1-2 business days.

Trading Platforms ▲

FP Markets provides a wide selection of trading platforms, including MT4, MT5, cTrader, and IRESS, along with MAM and PAMM accounts for money managers. This wide range of platforms, each with its own set of powerful tools and features, has earned the broker an excellent rating of 5.0 out of 5. The inclusion of cTrader is particularly noteworthy, offering advanced charting, order types, level II pricing, and superior execution capabilities.

Customer Support ▲

FP Markets prides itself on its customer-focused approach, offering support through various methods including live chat, phone, and email. The broker's customer service is available 24/7 and supports multiple languages, ensuring accessibility for a global audience. With service centers in Asia, Europe, and Australia, FP Markets ensures timely and effective support, earning an excellent rating of 4.5 out of 5 in our assessment.

Education ▲

FP Markets emphasizes the importance of education in trading success, offering a wealth of learning materials, analysis, and guides. The broker's Trading Series, Traders Hub, and a variety of trading videos, info, webinars, events, and podcasts provide valuable resources for traders of all levels. Additionally, FP Markets offers extensive research tools and analysis, making it an excellent choice for beginners. The educational offerings and resources available have earned FP Markets a rating of 4.5 out of 5.

Conclusion ▲

In conclusion, FP Markets stands out as a highly awarded CFD and FX trading provider, offering a quality trading environment with direct market access, a wide range of instruments, competitive pricing, and a selection of trading platforms suitable for various trading styles. Whether for beginner or professional traders, those interested in ECN trading, currency and CFD trading, or those who prefer platforms like MT4, MT5, cTrader, or IRESS, FP Markets caters to a diverse audience. The broker's support for copy trading, MAM and PAMM trading, and EAs, along with its commitment to offering a variety of trading strategies, makes it a reliable choice for long-term cooperation. Based on our findings and expert opinion, FP Markets is highly recommended for traders at all levels of experience.