Topic Markets Review
Topic Markets, which is also known as TMFX is a forex broker, which offers two account types, plus an Islamic version. Trading conditions are not clearly specified on the website, which makes distinguishing the benefits of the better type hard. On the other hand, at least the deposit requirement gap is not that big.
The Company. Security of Funds
Company Country Regulation
TMI Hodlidng limited Ltd. Vanuatu VFSC
Topic Markets is registered In Vanuatu, under the name TMI Holding Limited. The company is regulated by the Vanuatu Financial Services Commission (VFSC). On the other hand they also claim to be a trade name, operated by a CySEC-regulated firm – GS Sharestocks Ltd. A quick reffernce with CySEC revealed this company operates two other domains.
This is an interesting situation, given the fact the aforementioned regulatory bodies have very different policies. For now, we have to treat Topic Markets as an off-shore broker. The CySEC registration may be in progress, or GS Sharestocks may be acquiring TMI Holding.
These two financial watchdogs are basically the exact opposite of one another. While VFSC is notoriously famous for its loose standards and the $2,000 capital requirement, CySEC participates in the EU’s MiFID framework. If you want to register a broker in Cyprus, you will need €730,000, instead of the $2,000 in Vanuatu. Furthermore, clients funds must be kept separate from the company’s via the segregated accounts mechanism, which prevents basic scams. On top of that all CySEC regulated brokers participate in a compensation scheme – a structure similar to an insurance policy, where small regular payments are made, in order tho guarantee client’s investments against broker insolvency. The coverage in Cyprus is €20,000 per account.
Minimum Initial Deposit
Topic Markets has set a minimum initial deposit requirement of $100. This is about average nowadays. In the pursuit of new clients some brokers have gone even lower. For instance FXTM only demands $5 for a cent account.
This shouldn’t really be an issue for an experienced trader. Having a properly funded account is just as important for long-term success, as having the mental fortitude to withstand several loosing trades in a row.
Average spreads & Commissions
Trading costs at Topic Markets are included in the floating spread. While no definitive conditions are mentioned on the website, our tests indicated the EUR/USD spread constantly being under 1 pip, starting form 0.7 in the most liquid market hours. This is fairly competitive, given current offerings by other brokers.
That being said, we must note there was an overall feeling of slight lag with the quotes. Precise execution may be hard to accomplish.
The maximum leverage at Topic Markets is 1:400 and only available for the Classic account type. Bigger clients will be limited to 1:200. in general, we like this policy, as it allows for better risk management.
Both of these levels are extremely high and can be devastating for your account. You may have a different feeling about that, given the fact some brokers offer even higher ratios, like XM who provide 1:888.
Topic Markets offers the ever so popular MetaTrader 4 (MT4) trading platform. This is a solid choice, as the platform is the world’s leader, when it comes to forex. It offers amazing charting potential, so much so, that traders using other platforms often keep a demo account, with an MT4 broker just for analytical purposes. This is reiterated by the plethora of custom made technical indicators, which can be found, tested and bought at the MQL marketplace. By the way automated trading systems, which are called Expert Advisors are also available there.
Other than the great desktop version MT4 also has a neat mobile app, which is available for both Android and iOS. It is packed with a lot of features. In fact, at times we feel it may even be too clustered for small screens. One of the most useful things for veteran traders is the ability to access multiple accounts (registered with different MT4 brokers) via a single app installation.
Methods of Payment
Payment methods at Topic Markets are few, but cover a lot of bases. They are Bank Transfer Credit Card, Skrill and Neteller. The e-wallets available are very popular, so lots of clients may enjoy using them.
Topic Markets is a forex and CFD broker. The regulatory situation with the company is rather awkward. They are regulated in Vanuatu, but they also claim to be operated by another firm, which is overseen by CySEC. The true answer to this dilemma either makes or breaks this broker. On the other hand trading conditions are impressive, with very tight spreads. We have some doubt in regards to potential slippage, as the platform was behaving rather slowly at times.
Topic Markets Review Conclusion
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