Is FP Markets Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with FP Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether FP Markets is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker FP Markets
The FP Markets trademark is managed by FP Markets LLC registered in 2019 in St.Vincent and the Grenadines under number 126 LLC 2019. It is part of FP Markets Group with its head office in Sydney which was opened in 2005. Today, the brokerage holding firm operates using ECN (Electronic Communication Network) and DMA (Direct Market Access) technologies. It is regulated by ASIC, MISA, FSCA | South Africa, FSA | Seychelles, and FSC | Mauritius. FP Markets offers over 10,000 CFDs, MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, Iress, and leverage up to 1:500. The broker doesn’t provide its services to residents of the U.S. and the countries that are on sanction lists.
| 💰 Account currency: | USD, EUR, AUD, GBP, PLN, SGD, HKD, CAD, CHF, and JPY |
|---|---|
| 🚀 Minimum deposit: | AUD 100 or equivalent |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: |
Standard — from 1 pips Raw — from 0 pips |
| 🔧 Instruments: | Currency pairs and CFDs on metals, indices, commodities, stocks, ETFs, bonds, and cryptocurrencies |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of FP Markets
👍 Advantages of trading with FP Markets:
•Trading accounts in 10 currencies;
•Licenses from 5 jurisdictions;
•Negative balance protection for retail traders;
•Account types with different approaches to trading fee calculation;
•Copy trading, hedging, scalping, and expert advisors are allowed;
•Trading platforms customized for CFD and Forex trading;
•Wide choice of payment systems for making deposits and withdrawals.
👎 Disadvantages of FP Markets:
•Cent accounts are not available;
•If the broker fails to fulfill its obligations, compensation for losses is available only to traders from the EU;
•Spreads on the Standard account are not the tightest on the market.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is FP Markets Regulated? Broker’s license
Security (Protection for Investors)
FP Markets is a global company with many entities that are licensed by:
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ASIC (Australian Securities and Investments Commission) under number AFS № 286354;
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MISA (Mwali International Services Authority) under number T2023412;
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FSCA (Financial Sector Conduct Authority | South Africa) under number FSP 50926;
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FSA (Financial Services Authority | Seychelles) under number SD130;
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FSC (Financial Services Commission | Mauritius) under number GB21026264.
Additionally, the broker is registered by FSA (Financial Services Authority | St.Vincent and the Grenadines) under number 126 LLC 2019.
The availability of numerous licenses, including ASIC and FSCA, provides a proper security level. Supervisory authorities control the broker’s financial performance and require that it comply with conditions of client funds protection.
👍 Advantages
- The broker provides its services in strict compliance with the agreement
- Traders can file complaints with regulators
- Client funds and the company’s capital are segregated
👎 Disadvantages
- The €20,000 compensation is available only to EU traders
- Leverage is reduced to 1:30 for retail traders from the EU and Australia
- No professional liability insurance
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by FP Markets, which you can see below.
FP Markets’ fees vary subject to the account type and the market. Fees on the Standard account are spreads. On the Raw account, spreads start at 0 pips, and there is a $3 fee per lot for trading Forex and metals. Fees for trading CFDs on U.S. stocks and ETFs are 2 cents per stock (min $2), and for stocks of other markets, they are 0.05%-0.2% per direction (min $2/EUR 2/GBP 2/AUD 5). The broker doesn’t charge deposit and withdrawal fees. Also, it compensates fees up to $50 if deposits of more than $10,000 are made by international bank transfer. Withdrawal fees withheld by payment systems or blockchains are not compensated by the broker. There is no inactivity fee.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | $10 | Fees of payment systems and banks |
| Raw | $0 | Fees of payment systems and banks |
Brokers that are similar to FP Markets
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of FP Markets conditions with its closest competitors.
Comparison of FP Markets with other Brokers
| FP Markets | RoboForex | Pocket Option | Exness | TeleTrade | 4XC | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, WebTrader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT5, MT4, WebTrader |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$1 |
$50 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.8 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$50 |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
FP Markets provides its services worldwide and adjusts its trading conditions subject to the requirements of supervisory authorities.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
TeleTrade is a broker for traders who value the variety of trading instruments and trade using their PC or a mobile app. The company is a good broker both for beginners and experienced traders.
The broker is suitable for traders with a basic trading experience, who are prepared to start trading on a real account right away.
Conclusions
FP Markets is a quite reliable broker for trading. FP Markets operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.