Is Markets.com 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 Markets.com try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Markets.com 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 Markets.com
Established in 2009, Markets.com has grown to become one of the most trustworthy Forex&CFD brokers. Markets.com is fully regulated by the FCA (507880), ASIC (424008), FSCA (46860), CySEC (092/08), and the BVI FSC (SIBA/L/14/1067). The company accepts customers globally and offers every customer unmatched smooth trading services. With Markets.com, one can trade with more than 2,200 trading tools, and use multiple technical and analytical tools on an innovative Investment platform.
| 💰 Account currency: | EUR, USD, GBP, SEK, DKK, ZAR, NOK, PLN, AUD, AED, CZK |
|---|---|
| 🚀 Minimum deposit: | $100 |
| ⚖️ Leverage: | Up to 1:300 |
| 💱 Spread: | From 0.6 pips |
| 🔧 Instruments: | Currencies, cryptocurrencies, stocks, ETFs, indices, bonds, commodities, precious metals, blends |
| 💹 Margin Call / Stop Out: | 50% |
Pros and cons of Markets.com
👍 Advantages of trading with Markets.com:
•licensed and monitored by four reputable regulators;
•a wide range of Forex and CFD trading instruments;
•no restrictions on the use of trading strategies.
👎 Disadvantages of Markets.com:
•minimum deposit of $100;
•availability of swaps for moving a position to the next day;
•complex site navigation.
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 Markets.com Regulated? Broker’s license
Security (Protection for Investors)
Information
Markets.com is regulated by CySEC (Cyprus Securities and Exchange Commission) license 092/08, FCA (Financial Conduct Authority) license 607305, ASIC (Australian Securities and Investments Commission) license 424008 and BVI FSC (Financial Services Commission) license SIBA/L/14/1067.
In order not to lose its licenses, the broker must work within the established rules of its regulators. Thus, regulators require Markets.com to provide financial statements to confirm its compliance with the established norms of the capital structure and to segregate its clients’ accounts into a separate account.
👍 Advantages
- Availability of segregated accounts as required by its regulators
- Negative balance protection
- Availability of insurance fund up to 20,000 euros per claim
👎 Disadvantages
- Most regulators do not consider claims of insignificant amounts by private traders
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 Markets.com, which you can see below.
Traders Union specialists have carefully analyzed the trading conditions of Markets.com to identify the presence of trading and non-trading fees. The broker does not charge clients a commission for the replenishment of the deposit or the withdrawal of funds; however, payment systems (banks, etc.) do charge fees. The commission for depositing and withdrawing money is from 0.5% to 3%, depending on the chosen electronic payment system or bank.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $6 | No |
Brokers that are similar to Markets.com
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 Markets.com conditions with its closest competitors.
Comparison of Markets.com with other Brokers
| Markets.com | RoboForex | Pocket Option | Exness | FxGlory | Libertex | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5, Mobile, Markets.com |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading, MT5 |
Libertex, MT5, MT4 |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$1 |
$100 |
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 |
8.00%% |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 2 points |
From 0.1 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 |
Instant Execution, Market Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Markets.com is a licensed active and passive trading broker that is more suitable for experienced traders with capital stock.
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.
FxGlory is a universal broker for active trading that is likely to be interesting for European traders.
Libertex is a reputable broker. It would be worthwhile to look at the platform as a technical solution. It will appeal to those who can not imagine their life without gadgets and are eager to keep up with the time.
Conclusions
Markets.com is a quite reliable broker for trading. Markets.com 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.