FP Markets Review 2022: Is FP Markets a Scam or a Reputable Broker?
FP Markets promises an exceptional experience that its competitors can’t match. This is in line with the broker’s vision—to give retail traders access to global products and allow them to trade different instruments seamlessly using a single account.
Does the broker live up to this self-proclamation, or is it all a scam? This FP Markets review discusses its business practices, assesses its licenses and track record with regulators, and highlights a few comments from traders that have used the platform.
Have you lost money to a broker that made great promises but turned against you after registering? Reach out for a free consultation session and get expert advice on how you can recover your money from the cons.
FP Markets Review: An Overview and Licensing
FP Markets was founded in 2018 but belongs to a group of companies that has existed since 2005. The broker offers over 100 tradable assets on its platforms, including global forex currencies, indices, commodities, and cryptocurrencies.
The FP Markets business group has licenses in different territories and uses a different domain in each of them:
In Europe, the group operates under the www.fpmarkets.eu domain and is licensed by Cypriot regulator—Cyprus Securities and Exchanges Commission (CySEC) with license number 371/18.
First Prudential Markets Ltd is registered as the parent company in this region and operates the broker’s domain.
First Prudential Markets PTY Ltd owns and operates the conglomerate’s www.fpmarkets.com. It is registered and licensed by the Australian Securities and Investments Commission (ASIC) to offer financial services under license number 286354.
3. Global (St. Vincent & the Grenadines)
For this category, the domain used is www.fpmarkets.com/int, which is registered and operated by First Prudential Markets LLC. It is registered and licensed as a limited liability company in St. Vincent & the Grenadines under license number 126 LLC 2019. Under this domain, the broker is regulated by the Financial Services Authority of St. Vincent and the Grenadines.
FP Markets traders who are not from Australia or Europe use this domain. St. Vincent and the Grenadines does not have a strong regulatory agency or laws to protect traders from exploitation by brokers. If you are trading with FP Markets from outside Europe or Australia, note this as a red flag and take extra caution not to be scammed.
In case of an incident of financial misconduct by the broker, you will face more hurdles while trying to recover your money. However, with the guidance of experienced recovery experts, you can still reclaim your money and maybe damages.
Types of FP Markets Accounts
There are two main types of accounts offered by FP Markets: Raw Account and Standard Account.
The Raw Account charges a commission at approximately USD 3.0 per side and the spreads go as low as 0.0 pips. In the Standard Account, the spreads only go as low as 1.0 pips, but you will not be charged a commission.
Scalpers and day-traders often prefer the Raw Account because they don’t hold their trades for a long time. Traders who hold their trades for a long time may prefer the Standard account because of the low commissions charged.
The minimum initial deposit for both Raw and Standard accounts is USD 50 or an equivalent value depending on your base currency. The leverage is also set at 1:30 for both accounts.
FP Markets has recently introduced an FP Markets Pro account that allows you to get much higher leverage. Whereas the leverage in the normal retail accounts is capped at 1:30, in the Pro account the leverage can go as high as 1:500.
Some countries, such as the UK, have capped the acceptable leverage at 1:30. The leverages of 1:500, 1:200, etc., that are offered on the Pro account, may be unacceptable in such territories.
You can open a demo account for each type of account discussed. You can use the demo to learn how to go about trading or try out various strategies before trying them on the live account. However, demo accounts are available for thirty days only.
The broker does not charge any fees on inactive accounts.
The most popular trading platforms, MetaTrader 4 and MetaTrader 5 are available for FP Markets traders. You can download either platform on your smartphone or computer and trade almost immediately.
You can also go for the Webtrader option, which allows you to trade on your browser without downloading any more apps.
The broker has recently introduced a proprietary FP Markets Trading App that is available for both iOS and Android users. You can trade currency pairs, indices, crypto, and commodities on the app.
Deposit and Withdrawal Processes
At USD 50, FP Markets has one of the lowest minimum deposit requirements in the market. There is also a wide array of avenues you can use to deposit, including VISA cards, credit cards, bank wire transfers, PayPal, Neteller, Skrill, and Giro Pay. Other regional money transfer services such as OnlinePay China are also available.
FP Markets does not charge any withdrawal fees, but your bank or service provider may charge you some transaction fees.
Is FP Markets a Scam?
The setup used by FP markets to use different domains but with similar names is quite confusing. And not many traders will take note of this when registering.
Traders in Australia and the European Economic Area are secured by ASIC and CySEC respectively from the consequences of this confusion. The traders from other geographical areas? Not so much because they will be registered under the domain regulated by the Financial Services Authority of St. Vincent and the Grenadines which is not a top-level regulator.
One trader found himself in such a predicament
He made this complaint in Forex Peace Army
Therefore, although FP Markets has licenses from some of the world’s best regulators, its approach of playing around with domains with different regulators is outrightly deceitful. It subjects traders to terms and conditions that are different from what they saw on the main www.fpmarkets.eu. There are no two ways about it, this is a scam. If you are not from Europe or Australia, stay away from FP Markets.
And if you have already been deceived by FP Markets or other scammers and lost your money, you are not out of moves. Contact Trader Protection today and book a free consultation session. You will be guided on how to approach the matter legally and can get your money back.