FG Markets Review
FG Markets is an STP broker which offers multiple account types. However there is no difference in the trading conditions and no deposit requirements are mentioned. The overall feeling is the company’s website is not polished yet.
The Company. Security of Funds
Company Country Regulation
FiveCircles Limited Vanuatu VFSC
FG Markets is a trademark owned and operated by FiveCircles Limited, a Vanuatu-based company. They are regulated by the local VFSC, which is best known for its loose regulatory standards. We advice proceeding with caution, when dealing with off-shore brokers.
Vanuatu is the raining champion of easily attainable licensing. The minimum capital holdings requirement is the mind-blowing $2,000. The UK’s Financial Conduct Authority (FCA), by comparison, demands €730,000. This is done to assure only stable firms, who can withstand capital shocks apply. Additionally, once registered with the FCA, a company must follow multiple rules. Two are most important, from a forex trader’s perspective – account segregation and participation in the compensation scheme.
A broker having segregated accounts means they can not access their clients funds freely and spend them for company purposes. In effect this prevents the most brutal form of scam – someone claiming to be a broker, taking your money and later on, not allowing you to withdraw anything (as the company was not a broker in the first place). On the other hand the Financial Services Compensation Scheme (FSCS) guarantees traders’ capital, against their broker becoming insolvent. It basically functions similarly to an insurance company – all participating companies have to periodically make payments to the fund, which then acts as collateral. If you trade with an FCA-regulated broker, your account will be covered up to £50,000.
Minimum Initial Deposit
FG Markets has set the minimum deposit requirement at $100. This is a fairly standard level, which lots of brokers, like HYCM for instance, demand. On the other hand others go lower and even use their low entry levels as a marketing tool. For instance, you can open a cent-account with FXTM, for as low as $5.
That being said the minimum deposit is not an essential parameter, you must look for, unless you are an inexperienced trader. If you want to see how you will handle real money trading, after months of rocking demo accounts, by all means start with a low deposit.
Average spreads & Commissions
Spreads at FG Markets start from 3 pips. We are not certain if they are fixed or floating, but they are high either way. Most brokers offer something in the 1.0-1.5 pips range nowadays. Even if the spread shouldn’t be your main concern with a broker (that should be its regulation, in our opinion), they do add up overtime. You can find a comparison of the spreads provided by some of the world’s leading forex brokers, in real time, as they change, at our dedicated page.
Leverage at FG Markets is capped at 1:500, although at that point the phrase “capped” doesn’t feel appropriate. Similar ratios are fairly popular nowadays, with some brokers providing even more. XM, for instance, even uses its leverage to attract clients – they offer 1:888. There is no way you are forgetting this now.
The thing which most new traders do not get, when it comes to leverage is the fact it can cause massive losses in a short period of time. Over-leveraging, alongside over-trading (trading too frequently, without a reason) are the two main contributing factors for the looses, usually experienced by new traders.
FG Markets facilitates its service via MetaTrader4(MT4), the world’s most popular currency trading platform. It is a solid choice, which we cant say much against. The charting experience you get with MT4 is supreme, execution times (although dependent by your broker and internet connection) are very low and last but not lest, it is fairly light on the hardware.
MT4’s key defining feature is the MQL marketplace, a place where developers offer their custom-made technical indicators and automated trading robots (known as Expert Advisors). The coolest feature is that the store is broker independent – if you decide to start trading with a different one, you can easily transfer your collection with you.
Methods of Payment
Payments to FG Markets can be made via Bank Transfer or Credit/Debit Card. Keep in mind international bank transfers can take up to several business days. This is why some people prefer online payment systems, like Neteller.
FG Markets Review Conclusion
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