FP Markets Core Strengths
Weaknesses Of FP Markets
Below shows each of the above points in greater details for the complete FP Markets review.
FP Markets Strengths
Strength 1 – Range Of Markets (CFD + Forex Trading)
Our FP Markets review found the company was more than a forex broker providing access to 10,000+ trading instruments. The financial instruments and markets it offers are listed below.
1) Shares CFD
FP Markets allow trading of Shares CFD (also called equities) via the MT4/MT5 and IRESS trading platforms. If you are trading on MT4 or MT5 you can choose from 20 stocks. These shares will use ECN style pricing. There is no commission as fees as incorporated in the spread.
IRESS trader, unlike MetaTrader, offers a thousands of different stocks for trade using Direct Market Access (DMA) execution. Commission costs are 0.08% per side.
2) Forex Trading
There are 50+ currency pairings to trade including the most popular forex trading options including AUDUSD, EURUSD and GBPUSD. Commodities, Indices and even cryptocurrency including Bitcoin, Bitcoin Cash, Litecoin, Rippled (XRP), Ethereum can be traded through FP Markets.
3) International Futures CFDs
Traders using FP Markets can access the most popular overseas exchanges. This includes the CBT, CME, CFE, Eurex and NYM. When trading these and other CFDs there are three account types available. The best value is the Premier but there are deposit requirements as shown below.
4) Index CFDs
Our FP Markets review found that the index options available were one of the best of the ASIC regulated forex brokers. Markets that can be traded include the Dow Jones, FTSE 100, NASAQ and even the Sydney Futures Exchange. Traders can use Index CFDs to open positions on the whole market rather than just targeting individual stocks.
Overall, unlike most other forex brokers that solely focus on currency trading, the wide range of financial service and markets offered this the category leader in the FP Markets review.
Strength 2 – Range of platform options -MT4, MT5, WebTrader and IRESS.
There are four forex trading platforms available by First Prudential Markets:
1) MetaTrader Trading Platforms MT4, MT5 and WebTrader
MT4 is currently the world’s most popular forex trading platform. It offers the following features:
- 3 customisable charts across 9 different time frames and 24 analytical objects
- Direct trading from charts
- One-click trading for fast execution
- Profiles that store your charting preferences and parameters and ability to easily switch between these profiles.
- 33 trading indicators and access to over 50 pre-loaded indicators and charts
- 4 pending order types
MT5 is many respects is an upgrade on MT4. It offers the following features:
- Trading of multiple assets from a single platform
- Depth of market for market liquidity transparency
- 21 timeframes, 68 analytical tools and unlimited charts
- 38 trading indicators
- Multi-threaded backtesting
- Integrated economic calendar
- Partial filling of orders
- 6 pending order types
This MetaTrader trading platform allows you to access MT4 and MT5 via web-browsers. It is designed to be rich in features without compromise on performance. It offers all the essential features you need for successful trading.
MetaTrader is available via desktop (Windows, Mac), Web-browser (WebTrader) and Mobile trading via MetaTrader mobile app (Android, iOS).
MetaTrader 4 /5 FP Markets Enhancement
Forex traders who open an FP Markets account and deposit over $1,000 in Australian Dollars will receive Traders Edge. This is 12 additional tools to MT4/MT5 to enhance the forex trading experience.
Trader Edge Connect
This MT4/MT5 feature combines economic calendars and news fees within the forex trading platform. Traders can also open websites within the MT4 terminal.
Traders Edge Alarm Manager
Traders using this feature can receive alerts when events occur in the market or within the account. It can then also make automated actions and send updated via SMS, e-mail or even Twitter.
Traders Edge Correlation Trader
This feature allows traders to find a correlation between currency pairings over an adjustable time-frame. Recent price activity can also be traced to make informed trades.
Traders Edge Correlation Matrix
This metric helps traders identify symbols with a weak or strong correlation. This can help calibrate trades based on those with a high or low correlation rankings.
Traders Edge Excel RTD
For those who love Excel, the RTD can use live market data without macros, programming or XLL add-ins. Using VBA code trade commands can then be made and pushed into the market.
Traders Edge Market Manager
There are four features market manager offers including “watch list” with open positions for different symbols, headline account information, open ticket lists and recent symbol price activity.
Traders Edge Stealth Orders
Stealth orders allow traders to hide their pending orders (both entry and exit levels). The feature buys or sells at the market price when the price target is reached.
Traders Edge Tick Chart
From when the app is opened, tick charts compile market data. This allows fast position exit and entry on a first in first out basis. Historical data can’t be accessed using the tick chart.
Traders Edge Session Map
This map MT4 platform feature shows each ‘session’ throughout the day in your local time. For example, it will show when the New York Session commenced when trading activity is higher.
Traders Edge Trade Terminal
This feature displays the open positions and pending orders, current metrics and applies automated rules for position analysis and scaling positions with expert advisors (EAs).
Traders Edge Mini Terminal
This is an addition to the trading terminal mentioned above allowing traders to focus on specific market and charts in a minimised window on a desktop or tablet device.
Traders Edge Sentiment Trader
This feature displays short and long current and historic information on traders sentiment. This is the percentage of traders having open, sell or buy positions.
2) IRESS Trading Platform
Upgraded in 2017, IRESS is designed to be an easy to use forex trading platform built on HTML5. Like MetaTrader, there is a web-based option, desktop version and apps for android and apple devices.
- Allows share trading as well as forex, EFTs, and CFD trading
- Over 55 technical indicators exist to find opportunities and pick trades
- Over 50 drawing tools to mark charts to spot technical analysis trends
- Over 10,000 instruments to identify volatility across currencies to ETF’s
Transparent pricing & market depth
Insert orders across exchange order books and view prices that flow from the underlying exchange. Make TP/SL or custom order strategies for expert users looking to make complicated order types.
Custom trade alerts and news
News alerts and trades can be set to arrive through SMS, email or through the trading platform. Get real-time news through the trading platform including the ASX, Newswire and Dow Jones. All you need to do is provide your mobile phone number or email address.
View global CFDs information and make trades from currency, commodities, futures and equities. View charts that can be set daily or intraday with a wide range of analytical and indicator tools.
FP Markets Trading Platform Conclusion
Most forex traders select the MT4 platform but those also looking to for an ‘all-in-one’ platform that includes stocks will select the IRESS trading platform. The availability to choose from the most popular forex trading platform or a versatile platform like IRESS is why our FP Markets review found the broker was the best in this category.
Strength 3 – FP Markets Is One Of The Most Awarded Brokers
Investment trends if the ‘gold standard’ awards firm where forex traders vote on the best forex broker across a number of categories. FP Markets reviews have led to multiple awards including ‘Best Global Forex Value Broker, ‘Most Satisfied Traders’ and ‘Best Customer Service’.
FP Markets has a range of online training for beginner, intermediate and expert forex traders. Every Monday webinars are available with expert analysis and expert analysis to help traders understand the hot spots across the markets to trade.
Both technical analyses combined with some fundamental analysis is discussed during these sessions.
Our FP Markets review found their trade execution was up there with the best forex brokers based on their data centres and fibre optics. The trade servers are located in New York (NY4) and London (LD5) close to where the liquidity providers are. Fibre optics connect Australian forex traders reducing latency speeds across borders.
Their customer support is multi-lingual, offered 24 hours a day across all weekdays. The customer service team are also experienced and well trading to understand forex trading in current market conditions. FP Markets offers live chat options via their homepage.
There are a number of phone numbers to contact FP Markets on. Within Australia, there is a 1300 376 233 telephone number of (02) 8252 6800 for those looking to avoid 1300 numbers. The extension for Australia is +61 for international customers.
FP Market reviews from current and past customers are well warranted based on their customer service, execution speeds and training provided. If you’re looking for the best forex broker when it comes to reputation and satisfaction, FP Markets is a logical choice.
Weakness 1 – FP Markets Requires A High Minimum Deposit
There are three CFD account with First Prudential Markets and two forex accounts. The minimum deposit for both standard and RAW accounts is AUD$100. When it comes to IRESS account the minimum is $1,000 but to get the lowest possible fees the minimum deposit is $50,000.
These minimum deposits (minimum opening balances) are higher than most other forex brokers and indicates that FP Markets focuses on medium to high volume traders. Those looking just to casually try currency trading with a few dollars may wish to consider a different forex broker offering lower minimum balance options.
If you are looking for low deposit accounts then consider FP Markets MetaTrader accounts.
Weakness 2 – Funding Fees
Our FP Markets review found that some deposit methods incurred funding fees. Most other forex brokers waive such fees so it’s important to understand which methods incur fees and what these charges are.
Credit card fees are only applied if you are using the IRESS platform. A 1.6% charge is made for those funding their account through either an Australian debit or credit card. If you have an overseas debit or credit card on the other hand, this increases to 3.18%. The exception to these funding fees is for the first deposit to fund an account for which the charges are waived. It should be noted that American Express (AMEX) cards are not accepted.
Neteller & Skrill
Neteller and Skrill have no charges and funding are instant. Neteller offers a choice of funding currencies including AUD, CHF, CAD, GBP, EUR, PLN, JPY, SGD, USD. Skrill is only available in USD.
bPay & Direct Transfer
A 0% deposit (no charge) is offered for these payment methods. The issue though is payment takes 1 business day to clear which can delay forex trading. bPay only accepts Australian Dollars while direct transfer can be done in a range of currencies.
If you wish to avoid fees and delays when making deposits POLi is an excellent option. POLi offers instant transfer fee-free deposits through an online payment system that connects bank accounts to Australian clients.
Withdraws can be made via the deposit methods and must go back to the same account. Credit cards and domestic wire transaction have no fees while international wire transfers will incur a cost of $25 AUD.
Weakness 3 – FP Markets Risk Management Features Are Limited
FP Markets offer leverage which is critical when CFD trading or currency trading. This can accelerate making profits or accelerate losing your money.. This also increases the risk of trading which is why risk management features should be considered. Below are the two main features that some forex brokers offer and insights into what FP Markets offer.
Negative Balance Protection
When the trades move in the wrong direction losses can be significant leading to a negative account. Fx broker balance protection policy will either guarantee or aim to exit the broker before their balance goes into negative policy.
If you are using MT4 or MT5 then FP markets will automatically exit your position when the 50% stop out level is triggered. In addition to this, margin calls will commence at 100%. This means you will be notified by email to take the action that suits your needs. Traders using IRESS will be notified by phone and email.
Margin call and Stop outs do not guarantee that a negative balance can’t occur, as high volatility can still result in significant slippage. If your risk-averse, you may want to consider this. So clients are ultimately responsibility for the management of their money and any negative balances.
FP Markets offers stop-loss orders. This means you can pre-set the maximum profit or loss that can be made on a trade. This is a great risk management feature but losses (or profits) may exceed this level due to slippage which is when the order couldn’t be filled at a set level. Like for negative balance protection, this is due to extreme volatility which can happen during market events such as interest rate announcements. The only way to avoid losing your money through slippage is by choosing a broker with guaranteed stop-loss orders which also leads to higher fees. As an ECN pricing style forex broker (which means no dealer interaction) FP Markets can’t offer this feature.
Final FP Markets Review Thoughts
FP Markets an ideal forex broker for those looking to trade not just currency but a wide range of markets. They offer strong trading platform options and strong customer support to assist with trades. The forex broker is not recommended for those new to trading or those with a low-risk appetite who may require risk management features.
FP Markets offer two branded of trading platforms. These are the MetaTrader 4, 5 and WebTrader editions and IRESS. Once you have chosen a platform, find the account using the platform that suits your needs.
Compare Forex Brokers recommends you open either the RAW forex trading account or platinum CFD account as they incur the lowest trading costs. Just note there are high minimum deposits required. Overall, their low spreads, strong customer service and platform offerings make FP Markets ideal for intermediate or expert forex traders.
Other Findings Of The FP Markets Review
1) They Offer The Best Forex Broker Leverage Levels
FP Markets Australia leverage is 500:1 when trading currency. This means you can effectively borrow 500 times your deposit on forex amplifying any potential profit or loss from small market movements. There is also 500:1 on precious metals CFD trading while other financial products have lower leverage. This includes 100:1 for Indices and 100:1 for oil. Bitcoin CFD trading which historically is the most turbulent is 5:1.
500:1 is the same high leverage as the best forex brokers but this increases the risks of trading. For example, a small 0.2% change in a currency pairing at 500:1 will lead to a trader doubling their profit (before fees) or losing the whole amount. Additional slippage could leave to a negative result so it’s recommended to gain experience and understand the risks involved with leverage.
2) They Offer Direct Markets Access (DMA)
FP Markets RAW account offers Direct Market Access (DMA). This means their traders with this account make trades directly with liquidity providers through their forex trading platform. By making trades without interference from a forex broker there is increase price transparency, faster trade executions and dramatically lower spreads. A consistent commission instead is charged as the transparent brokerage fees.
It should be noted that an ECN pricing style forex broker means that foreign exchange liquidity providers are combined to a forex price feed for institutional and retail clients. The auction allows the best offer and bid available on aggregate for each forex pairing. Overall the ECN pricing style forex broker network focuses on combining sufficient volume to fill orders at the quoted offer with reduced slippage.
3) They Are An ASIC & CySEC Regulated broker
FP markets have been an Australian Securities and Investment Commission (ASIC) regulated broker sin 2005. Being an Australian regulated broker requires deposits are held in a segregated account from the Australian forex broker. This means in the unlikely event that the fx broker had liquidity issues, the client’s funds would remain protected and returned to the trader. Our FP Markets review noted they have an additional policy to maintain twice the required capital required of a CFD broker. The forex broker’s AFS Licence Number is 286354.
As of March 2019, FP Markets acquired a CySEC (Cyprus Securities & Exchange Commission) license (number 371/18) to allow them to target and onboard European customers. A number of other brokers have done the same in recent months.
4) Demo Account
An FP Markets demo account is available across both their MT4 and IRESS trading platform. A demo account allows individuals to test the waters with forex trading. Strategies can also be tested with $50,000 in virtual funds. A First Prudential Markets Pty Ltd demo account may have some slight differences to a real account such as a lack of slippage. These should be understood prior to moving to a live forex trading account.