FP Markets review 2022

The Sydney-based broker FP Markets provides trading services primarily for professional traders. In total there are over 10,000 tradable markets, with a focus not only on CFDs but also on foreign exchange. Anyone wishing to trade the financial i

Since new restrictions due to European trading regulations have forced many speculators to seek new horizons, the popularity of FP Markets has grown steadily.

Known as one of the best alternatives to regulated brokers in Europe, this Australian company has made a name for itself and we couldn’t help but review it. In this guide, we will look at various aspects of the FP Markets broker one by one, so as not to overlook the individual differences between traders and explain them comprehensively.

At the end, however, we will draw a conclusion to get an overall picture. Follow us to find a broker that might be right for you if. Discover the advantages of FP Markets.

FP-Märkte in Kürze:

Wie wir bereits erwähnt haben, ist FP Markets ein australischer Broker, der in Australien reguliert wird und daher die wertvolle ASIC-Lizenz besitzt. Darüber hinaus verfügt der Broker FP Markets auch über eine europäische CySEC-Lizenz.

Für FP Markets also eine Doppellizenz (außereuropäisch (Australien) und europäisch): Das ist immer ein gutes Zeichen, denn die australische Gesetzgebung ist eher lax und lässt Brokern die Möglichkeit, ihren Kunden einen sehr flexiblen Service anzubieten.

Gleichzeitig sind die Handelsbehörden stets aktiv, um diejenigen aufzuspüren und zu bestrafen, die versuchen, die Händler zu betrügen, so dass Freiheit und Sicherheit in diesem Fall Hand in Hand gehen.

FP Markets has focused on CFDs, amassing a truly remarkable amount of tradable assets (over 11,000+ underlying assets) and managing to drastically lower the spreads on its products.

The wide range of assets offered with average spreads and low commissions make FP Markets one of the best brokers recommended by our team for online trading. This is exactly why it is so popular and we decided to give it a try.

Tools offered by FP Markets

To return to the previous paragraph: FP Markets is a CFD broker. CFDs (Contracts For Difference) are derivative instruments on which the entire online trading system is based, so you probably already know what they are.

If not, the explanation is very simple: when you buy an asset (e.g. Amazon shares) from a broker, you are not buying the share itself, but the CFDs on that share. Each CFD has exactly the value of the underlying asset at a certain point in time and moves with it when the market changes.

Trading CFDs with high leverage (1:500) is very similar to trading the underlying directly, as you have already noticed. So what is different? The differences are small, but significant:

You can trade with leverage to multiply the amount of money you can invest in your portfolio;
You will be able to invest both upwards and downwards;
You will enjoy much lower commissions as the paperwork required to create, buy and sell a CFD is extremely simplified.

Let’s take a detailed look at the underlying assets offered by FP Markets.

Already on the broker’s homepage we can see that FP Markets boasts of having more than 11,000 tradable underlying assets on its platform, a record for the brokers we are used to: As far as services like eToro, Plus500 or Markets.com have already gone in their selection of assets, we have never found a brand as good as FP Markets’.

This is also a plus compared to the competition of many non-ESMA brokers like Finmax, which are much less comprehensive than the regulated ones.

Basically, you can always divide the broker’s offering into different categories, but this time it’s worth going into each one to understand how extensive the range of assets is that can be invested in:

Indices: If we are usually used to brokers offering the possibility to trade the (current) spot price of the main stock market indices, this time we have to go much further.

FP Markets offers the possibility to choose between spot prices and futures with different maturities, from short to long term.

Commodities: Here too, the range of CFDs has been deepened by offering futures of different types and with different expiry dates.

You can also trade commodities that you are probably not used to: We were surprised to find values like oats, hogs and cattle feed.

Equities: Equities are always the highlight of a broker aimed at experienced and professional traders.

Although we are at the beginning of the review, it is now clear that FP Markets is not really a service for beginners; therefore, the broker has introduced many assets from North American, Asian and emerging markets. Among them are really interesting CFDs that we could observe and knew absolutely nothing about before opening an account with this broker.

Cryptocurrencies: After becoming the most discussed assets of recent times, virtual currencies cannot be left out. Bitcoin and Altcoins also find their way onto this platform, much to the delight of traders who like to speculate with the decentralised economy.

Leverage FP Markets

We cannot hide behind a halo: Leverage is the main reason why thousands of traders have abandoned their previous brokers in favour of less restrictive services since the ESMA regulations came into force.

For this reason, leverage is even more important with FP Markets.

As always with this broker, the leverage effects vary depending on the asset you want to trade.

In this section we will look at the maximum leverage levels that can be selected. However, remember from the outset that you have the option to manually select the desired multiplier once you are logged into the platform.

• Shares: up to 1:500
• Forex: up to 1:500
• Indices: up to 1:100
• Commodities (precious metals): up to 1:500
• Commodities (fuels): up to 1:100
• Cryptocurrencies: up to 1:10

Even in terms of the questions before ESMA, we can say that the leverage levels offered by FP Markets are incredibly high. Only in the case of cryptocurrencies could they perhaps have done a little more, but given the volatility of these assets, the decision to limit leverage is understandable.

In any case, it is only fair to remind those who wish to do so that they have a choice whether or not to open a leveraged CFD account.

In the latter case, you do not even have the option of investing with leverage, but especially for corporate clients (not private individuals), such management can be useful. On the other hand, if you trade as a freelancer, you will probably prefer the leveraged account.

FP Markets Spreads und Kommissionen

Bis jetzt haben wir nur Gutes über FP Markets gesagt, also stellt sich die Frage: Was kostet es mich, auf einer solchen Plattform zu handeln?

Es muss gesagt werden, dass wir uns mittlerweile, insbesondere bei regulierten Brokern, an Dienstleistungen gewöhnt haben, die keine Provisionen beinhalten und lediglich die Anerkennung eines Spreads erfordern.

Bei FP Markets fallen Gebühren für die Eröffnung und Schließung von Positionen an, aber die Spreads sind extrem niedrig (manchmal bis zu 0,0 Pips bei den am meisten gehandelten Währungspaaren auf dem Devisenmarkt).

Wir werden uns nun genauer ansehen, wie dieser Mechanismus funktioniert, aber in der Zwischenzeit halten wir es für sinnvoll, eine Prämisse aufzustellen, die zu einem besseren Verständnis beiträgt. FP Markets ist ein Broker, der sich an diejenigen richtet, die es mit dem Handel “ernst” meinen. Wenn Sie also ein Konto mit einem Wert von 1.000 € oder weniger eröffnen möchten, werden Sie die Provisionen als lästig empfinden.

Man kann sagen, dass der Spread, der einen Prozentsatz des angelegten Geldes darstellt, bei großen Konten stärker ins Gewicht fällt; wenn Sie beispielsweise 10.000 Euro mit einem Spread von 1 % anlegen, zahlen Sie am Ende 100 Euro an Provisionen.

Bei einem 100-Euro-Konto würden Sie dagegen nur 1 Euro bezahlen. Im Gegensatz dazu sind die Festprovisionen bei Großkonten geringer und bei Kleinkonten höher, was wiederum der gleichen Argumentation folgt, aber in umgekehrter Richtung. Deshalb sagen wir, dass FP Markets mit seinen festen Provisionen ein besonders günstiger Broker für kleine und mittlere Anleger ist.

Spreads FP markets

At this point we can focus on spreads. Just a reminder for those who have just entered the world of online trading: It is the difference between the price at which the broker allows you to buy a certain asset and the price at which he allows you to sell it. The principle is the same as with money changers, who apply a spread as a margin on their transactions by always exchanging the money at a slightly different price than the market price.

Some examples of minimum and average spreads applied to standard/raw FP Markets accounts:

• Forex: from 1.1 for EUR/USD minimum and 1.19 average to 8.9 for less liquid pairs. For all major currencies, i.e. the most traded, the spread is always between 1 and 2 pips;
• Indices: e.g. for the US30, the minimum spread is 0.41 and the average is 3.56;
• Cryptocurrencies: For Bitcoin we have a minimum spread of 2.02 and an average spread of 7.66 for standard and raw accounts;
• Precious metals: For gold/usd, for example, we have a minimum spread of 0.16 and an average spread of 0.29;
• Commodities: For Brent, we have an average spread of 0.005 for both standard and raw accounts.

Account management

Account management is always a tricky business. All traders should make sure before opening an account on a platform that they are dealing with a broker where there are no problems with withdrawals and where they can deposit with the funds at their disposal.

Deposit

FP Markets allows deposits using a variety of instruments, including the most commonly used, PayPal and PostePay.

Traders can use a variety of payment methods, including credit card, Paypal, Postepay, bank transfer, Skrill and Neteller. But that’s not all: you can also use other methods to deposit at FP Markets, such as Bpay, Fasapay, Ngan Luong, Online Pay and Broker to Broker.

Only the first deposit is commission-free. However, this seems to us to be a frivolous decision that should be abolished in principle: European traders have not been used to paying commissions on deposits for years. This money would be collected by the broker from the spread anyway, so it does not seem sensible to us to impose an immediate tax on deposited funds.

FP Markets Withdrawals

Withdrawing from FP Markets is really easy and if you use MASTERCARD, VISA at ZERO COMMISSION and wait ONLY 1 business day, you will get the credit.

On the other hand, if you transfer from Europe, you pay 10 Euro Australian Dollars in commissions and the deadline is always only 1 working day. We consider the commission to be absolutely reasonable for the service offered and therefore NOT ABSOLUTELY HIGH.

However, we always advise using the FP Markets trading account with VISA or MASTERCARD.

FP Markets is therefore also a reliable broker from the point of view of withdrawals.

Free FP Markets demo account

The broker offers the possibility to test the service via a demo account, which is identical to the real account in every respect.

Especially to get a feel for the logic of applying commissions and spreads, and to try out FP Markets’ much-vaunted order management, it’s not a bad idea to test the demo account before you sign up.

FP Markets Account Types (Standard and Raw)

Like almost all unregulated brokers within the European Union, now known as “No-ESMA brokers”, FP Markets offers the option to open different account types. As there are significant differences between these options, it was only right to dedicate some space to explain them.

The following options are available:

• Individual account
• Joint account
• Corporate
• Trustee
• Corporate Trustee

Depending on whether you work as a freelancer, as a company, alone or with someone, you will certainly be interested in one of the first three options. So far there is nothing new, but the real difference is between standard and raw accounts.

• Standard accounts have a minimum deposit of $100 or its equivalent and trade forex by paying only a spread.
• Raw accounts have a minimum deposit of only $100 or the equivalent in other currencies and offer access to very low spreads (from 0.0 pips), but pay commissions. These amount to 3.0 Australian dollars per 100,000 Australian dollars traded or the equivalent in another currency.

Order management

Order management is a crucial aspect of a broker, and the way FP Markets handles client orders is the main reason we consider it one of the best brokers on the market (and not just among no-ESMA services).

Unlike almost all other brokers on the market, this broker never earns on its clients’ losses, apart from the usual spreads and commissions, which are independent of the outcome of the trade.

In technical jargon, one would say that FP Markets is an STP broker (Straight-Through-Processing), but at the same time it is also an ECN broker. This means that when a client buys or sells CFDs via the platform, the broker does not create the derivatives itself, but obtains them directly from the market.

It goes without saying that if the broker were to bank its users’ investments, it would be highly encouraged to let them lose the money invested, as otherwise it would be the loser itself; an STP broker, on the other hand, earns exclusively from trading commissions.

FP Markets is not only not interested in generating losses for its clients, but we could say that the service is even encouraged to make sure that its traders make the most of it.

On the other hand, if users continue to make profits while trading, they will continue to generate commissions in the form of spreads rather than giving up online trading.

STP brokers are always a recommended choice, no matter how rare they are: 10 and praise for FP Markets’ order management decisions.

FP Markets trading platforms

When we talk about platforms, we usually describe the platform offered by the broker because we have been used to it over the past few years. Fortunately, however, FP Markets manages to surprise us once again.

Customers of this service can take advantage of Metatrader 4 and Metatrader 5, the most popular platforms of all and certainly the most popular among brokers.

The fact that FP Markets is based on Metatrader makes it an even more remarkable choice. There is no need for an introduction or explanation; it is enough to look at the process of using these two solutions and explain the main differences.

To be able to trade, one must first install the Metatrader software, which is available free of charge on the official website (possibly also of the broker).

There is also the option to trade directly from the browser, but the dedicated software is always the recommended option for the best browsing experience and the fastest response to orders. Of course, with two software programmes of this calibre, it is impossible not to offer a mobile version, so in both cases they can be downloaded for both Android and iOS.

Once opened, you are prompted to enter the login details provided directly by FP Markets, after which they leave room for the actual trading.

The main differences between MT4 and MT5, which are very similar, can be summarised in a few words. Metatrader 5 is said to be the further development of Metatrader 4 and offers some more technical analysis tools and a better graphical display.

Due to its faster loading speed and responsiveness to inputs, but not least because of the familiarisation factor, Metatrader 4 is still the most popular option.

IRESS Viewpoint trading platform

In addition to the well-known Metatrader 4 and 5, FP Markets provides its clients with an innovative trading platform called “IRESS”.

Equipped with numerous advanced features, this platform allows traders to trade with advanced tools and state-of-the-art support.

Once logged into the platform, you can choose between “IRESS Trader” and “IRESS ViewPoint” – with the latter, you have a wealth of data at your fingertips to show you trading opportunities as they arise.

Education

Like any self-respecting broker, FP Markets has a section dedicated to user education. This usually makes us smile, as brokers have an interest in training their members poorly due to the conflict of interest in order execution.

However, as an STP broker, FP Markets has every reason to offer a quality training course to its clients.

Through the dedicated section on the broker’s website, you can access various resources that first teach the most important basics of online trading (what is leverage, CFDs, etc.).

At a later stage, you can then focus on more advanced topics, up to a level of knowledge that can be described as “intermediate”.

On the whole, the educational aspect always seems to us to be the least interesting part of a broker’s overall offering, because tutorials on online trading are available through every channel and do not necessarily have to come directly from the platform on which one is trading.

In any case, we can say that FP Markets does not disappoint in this respect either.

Advantages of FP Markets: Why should I use it?

There are many advantages why FP Markets is one of the most used no-esma brokers for traders around the world today. We tested this broker for a full 60 days and explored all of its key benefits, of which we were amazed at how many there are. For technical reasons, we only summarise the most important ones here and refer you to explore them in more detail on the broker’s official website.

• Minimum spreads, starting at 0.0 pips (especially for Euro/Dollar);
• IRESS trading platform for DMA trading;
• METATRADER 4 and 5 trading platform;
• Trading Central, free trading signals;
• Free VPN;
• Training with free videos and ebooks;
• Automated trading facilities;
• Algo robot, Forex robot and EA script integrated on the platform;
• Over 11,000 underlying assets to trade online;
• No fees and commissions;
• Licensed broker with 16 years experience.

Opinions and final thoughts on FP Markets.

FP Markets remains one of the most interesting brokers for online trading both in Europe and outside ESMA. The service is designed to offer the most a trader can ask for, but comes with a cost: from trading commissions to deposit fees, FP Markets certainly has its costs.

But compared to its cheaper rivals, it also has to maintain a different structure: from finding CFDs on the market with an STP process to Metatrader licence fees.

In short, FP Markets takes things seriously. However, if you feel you need a less demanding service, you will find many others on our website that do not require compliance with the current ESMA regulations.