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FP Markets

FP Markets Review
Trader's rating 4
Editor's rating 4.8

Trading Accounts

 

Account type Minimum deposit  Minimum trade size  Maximum leverage Typical Spreads
Standard  $100  0.01  1:500 1.45 pips 
ECN Raw $100  0.01  1:500  0.45 pips + AUD $3.5 / lot (per side)

 

FP MARKETS offers its clients a choice of two live account types: Standard commission-free one, and RAw account which provides tighter spreads, but also involving a commission.


Micro lots are available for trade on both account types and, of course, the broker also provides free Demo accounts, which are always appreciated by inexperienced traders.


The Company. Security of Funds


FP MARKETS (FPM) is a CFD and forex provider specializing in Direct Market Access (DMA) trading, that has over 10 years of experience.


The company behind the FP MARKETS brand is First Prudential Markets Pty Ltd., which holds an Australian Financial Services License and is regulated by the Australian Securities and Investment Commission (ASIC). 

 

ASIC requires licensed companies to meet certain requirements and to comply with various rules. Clients’ money is to be kept in segregated trust accounts. As for the minimum capital requirement, forex brokers must hold at least $ 1 million in order to prove their good financial standing. In comparison, UK’s FCA requires forex brokers to possess at least 730 000 EUR and Cyprus’ CySEC – 1 000 000 EUR.


Unlike many EU-based brokers, however, Australian ones are not covered by any compensation scheme. FCA-regulated brokerages, for example, fall under Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person per company.


Despite the regulation and the requirements set to Australian brokers, one should be aware of the risks of trading Margin FX and CFDs. Returns and gains are not guaranteed. ASIC, the Australian Government nor any other person guarantees any funds in your account.


Trading Conditions


Minimum Initial Deposit
Traders are required to deposit $100 in order to open an account with FP MARKETS, which is an average initial amount.


Average Spreads & Commissions

FP MARKETS offers variable spreads, the typical ones on its commission-free account amounting to 1.45, and the ones on the ECN Raw accounts averaging to 0.45 pips on EUR/USD. Considering that commission of $3 per standard lot per side applies on the Raw account, trading costs of such account holders amount to a little over 1 pip, which is a competitive pricing.


For further information, you may look up real-time spreads of 15 leading brokers here.


Maximum Leverage
Clients of FP MARKETS use leverage ratios up to 1:500 and such maximum leverage level is considered high. Some jurisdictions cap leverage to levels significantly lower than this (i.e. 1:50 in the US), because higher leverage involves higher risk of heavy losses in excess of initial investments.


Trading Platforms


FP MARKETS offers its customers several trading platforms: MetaTrader 4 (MT4), MetaTrader 5, and its in-house IRESSTrader, specialized in CFDs trading.


MT4 is the most widely used forex platform, available to FPM’s clients as PC, Mac, iPhone/iPad and Android versions. MT4 provides all the tools and resources a trader needs: a number of technical indicators, advanced charting package, extensive back-testing environment and a wide range of Expert Advisers (EAs). By using EAs traders may sit back, while the software does all the work, as Expert Advisers allow full automatization of trades.


If you are running EAs, it is vital that your platform is Internet connected 24 hours a day. The best solution in this case is VPS and FP Markets has partnered with TradersColo and BeeksFX VPS, to provide a customized low latency solution for their clients. The VPS seamlessly connects traders to the Equinix NY4 grid using cutting edge technology and providing excellent execution.


What is more, there are Multi Account Manager MAM/PAMM options on MT4. MetaFX has developed a stand-alone console to assist Multi Account manages in trading. The MAM/PAMM offered are customizable and user friendly.

 

As MT4 will soon be phased out, the broker launched trading in the latest version of MetaQuotes software - MetaTrader 5. It has most of the great features of MT4 (such as the great charting, and EAs), as well as some new ones. Most importantly, the MT5 offer traders the opportunity to trade an extended number of instruments from a variety of asset classes. 


As regards FP Markets’ proprietary platform IRESSTrader, it provides its clients with access to DMA CFDs with industry leading execution, a wide ranges of order types, stop-loss, live news feeds, international data, complete market depth and charting facilities.


IRESSTrader is a web based platform you can access from any PC or even a mobile device.


Methods of Payment


FP MARKETS offers its clients a variety of deposit/withdrawal methods: via credit/debit card, bank wire, BPAY, AstroPay, Neteller, Skrill, China UnionPay.


Depending on the depositing method, clients may use the following currencies: AUD, USD, SGD, CHF, GBP, CAD, HKD, JPY, EUR, and NZD.


Conclusion


FP MARKETS is a reliable Australian STP broker, offering competitive conditions for trading in variety of assets, including Bitcoin (with leverage 1:10). These can be traded on three trading platforms with NDD execution (no conflict of interest). To sum things up, here are the advantages and drawbacks with regards to FP MARKETS:

 

Pros  Cons
Low cost of trading, NDD execution No significant doisadvantages
ASIC-regulated  
Many platforms available (MT4, MT5, as well as a proprietary one)  
High leverage levels  

 

Headquarters: FP Markets Pty, Ltd Level 5, Exchange House, 10 Bridge Street, Sydney NSW 2000

Country: Australia

Regulated by: ASIC

CoinSpot

CoinSpot Review
Trader's rating 1
Editor's rating 3.8

Trading Accounts

Account type Daily Limit Leverage Bitcoin Fee Altcoin fee
Standard $2,000/$10,000 None 2%  3% 

 

CoinSpot is one of the leading Australian cryptocurrency "gateway" companies i.e. a service which allows the purchase of crypto with fiat money. They put a lot of emphasis on domestic clients.

 

The company, security of funds

Company

Country Regulation
Casey Block Services Pty Ltd  Australia N/A

 

CoinSpot was founded in Melbourne in 2013. At the time of writing of this review they are not registered with a relevant Australian body, simply because the legislative process in the country is still in progress. You can read a brief summary of the current situation, as well as find reviews on the other major players in the space in the link below. 

 

>>Australian cryptocurrency exchanges<<

 

That being said, CoinSpot is a member of ADCA - the Australian Digital Commerce Association. This may not be a regulatory body, but it shows a long term commitment to the adoption of blockchain technology and it is viewed as a major player by its peers.

 

The company offers traders multiple wallet support, which is not the case with one of their direct counterparts CointTree. On top of that there is a mobile app which allows you to send crypto-payments on the go.

 

There aren't any reports of a massive hack, like the one experienced at Bitfinex, for CoinSpot. This is no guarantee of future security, but is still a nice sign.

 

The user reviews for CoinSpot are very mixed. Some people enjoy their service, while others are dissatisfied with the verification process, the speed of bank transfers (when selling coins) and the fees. Their service is definitely not cheaper than trading coins on some of the other exchanges, but at least they are very transparent when it comes to fees.

 

Trading conditions

 

Trading instruments (cryptocurrencies)

Over 30 coins are provided by CoinSpot. This is a very wide array, especially for a company which specializes in accepting fiat currencies. As a comparison, Coinbase offers only Bitcoin, Ethereum and Litecoin. 

 

Maximum daily volume

The initial maximum daily purchase volume at CoinSpot is $2,000. This can be increased to $10,000 a week after you have hit the first cap. While the company does not exclusively mention it, these levels are probably in Australian dollars.

 

Leverage

Leveraged trading is not supported at CoinSpot, which is quite understandable, given their targeted customers. This is simply a place from which one buys cryptocurrencies with Australian dollars. 

 

>>Forex brokers providing Bitcoin trading<<

 

It is worth mentioning, that if you are only looking to speculatively trade Bitcoin, instead of use it four transfers, another type of service may be better for you. We are talking about forever brokers, who offer cryptocurrency trading, like the industry leaders at IG. We must mention there are a few specifics to this kind of service and you should read our guide.

 

 

Fees

The fee structure at CoinSpot Is very clear, which is not the case with all companies who offer direct purchases of coins with fiat currencies. For instance the similar Dutch company Bitonic provides little information about its markups, which many users dislike.

 

CoinSpot charges between 2% (for Bitcoin) and 3% (for altcoins), when trading against the AUD and 1% for crypto to crypto trading. While the direct trading commission may be considered reasonable, 1% is high for digital asset trading. Other exchanges typically charge 0.20-0.25% for this activity.

 

>>List of all cryptocurrency exchanges we have reviewed<<

 

Additionally, the company charges fees on some AUD deposits. This varies by payment method and we will cover the details below.

 

 

Trading platform

 

CoinSpot does not provide what one would typically call a trading platform. The service has a convenient dashboard, which allows you to monitor your different wallets. It looks like this:

 

 

When buying a cryptocurrency one is greeted by a simple order-entry form, which gives you an estimate of the AUD you would have to pay for the given amount of coins. Here is a preview:

 

 

If you want to convert one coin for another, you would have to go through the sell menu. This felt very counter-intuitive, but then again you can find much better exchanges to do this (check the fees section for more information).

 

Additionally, a very simple form of charting is provided, as seen here:

 

 

The overall summary of this “platform” is that it does the job. Experienced traders will not enjoy this, but newbies will enjoy the simplicity.

 

Methods of payment

 

When depositing fiat currencies to CoinSpot, one can choose between POLi Payments, Bpay and a “cash” option, which features going to a newsagent and using Blueshyft. The fees for making a deposit are as follows:

 

POLi payments – free. 

BPAY payments – 2% fee. 

Cash payments – 3% fee. 

 

If you were to sell coins at CoinSpot, you would be funded via Bank Transfer. The company will not charge you anything for that, but the bank may. The actual cost and speed of the transfer will depend on the bank you use.

 

Conclusion

 

CoinSpot is an Australian cryptocurrency exchange, which allows trading against the AUD. They are a well known company, which is respected in the local Bitcoin community. The entire service is very beginner-friendly, but this comes at a cost. While the fees for fiat to crypto trading are acceptable, trading one coin for another comes at much higher rate than with other exchanges. This feels like a solid Australian entry level company, but active traders will prefer dealing with another exchange. Here is a summary: 

 

Pros   Cons
No major hacks yet Slow bank withdrawal times
Multiple payment methods (for AU clients) High crypto to crypto fees
A lot of altcoins supported Focused on Australia (only a con if you are non-AU)
Easy to use interface  

 

Forex
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