FXPM Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this FXPM Review.
FXPM (Forex Professional Markets) offers multiple account types to its clients, with varying trading conditions. Islamic (swap-free) accounts are also available. The company also offers CFDs on indices, stocks and commodities.
The Company. Security of Funds
Company Country Regulation
CF Marketing group Ltd. Marshal Islands None
FXPM is a trademark of CF Marketing group Ltd., which is registered on the Marshal Islands. The company does not fall under any financial regulation. That being the case, we would not recommend trading with them. All the more so, considering that the Australian Securities and Investment Commission (ASIC) has added this broker to its warning list of companies illegally targeting Australian investors.
As you may know financial regulators are government agencies, dedicated to imposing rules on the industry. Their stringency varies from country to country, but most provide some level of client protection. For instance, one of the most reputable regulators, the UK’s FCA requires clients’ funds to be kept in the so called “segregated accounts”. This means the broker can’t access them freely. Another benefit from trading with an FCA regulated company is the Financial Services Compensation Scheme (FSCS), which guarantees client accounts in case the broker goes bankrupt. Each account is covered up to GBP 50,000.
If you decide to trade with an unregulated company, you will not get these benefits and basically rely on their word for the security of your funds.
Minimum Initial Deposit
FX Proffesional Markets has set the minimum deposit requirement for their basic account type at $250. Other brokers require much less, with IG having no minimum level at all. However, this should not be an important criteria, when comparing brokers, as serious trading should be done with sufficient capital.
Average spreads & Commissions
Spreads at FX Proffesional Markets vary by account type, starting from 3.0 pips on EUR/USD for the beginner account. This is no where near current offerings by other brokers, as the average spread on this pair is in the 1.0-1.5 range. You can check a real-time comparison of variable spreads here.
The maximum leverage at FXPM is 1:100 for the beginner account and 1:500 for the ones, requiring a more substantial deposit. This is unusual, as most brokerages who offer different leverage rates for different account types, go for lower rates with more capital. This is done in order to protect the bigger clients.
That being said 1:100 is enough for a reasonable strategy. If you want to trade with more, you may be confusing trading with gambling.
FXPM offers its services via the popular MetaTrader 4 (MT4) platform. It has became an industry staple at this point, with many brokers choosing to use it instead of developing their own in-hous solutions. It has great charting capabilities, tons of custom technical indicators available, as well as automated systems (called Expert Advisors).
On the other hand, the platform does not have multiple-monitor support. This feature often times frustrates veteran day traders.
Methods of Payment
FXPM only accepts payments via Bank Trasnfer and Credit/Debit cards. This may be viewed as a negative by fans of e-wallets, such as Neteller or Skrill.
FXPM Review Conclusion
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