Markets.com Review

Company Background & Regulation

Founded in 2008, Markets.com has established itself as a prominent player in the online trading industry. The company is headquartered in Limassol, Cyprus, and is part of Finalto Limited, a subsidiary of Playtech PLC, which is listed on the London Stock Exchange. This association with a publicly traded entity provides an added layer of transparency and accountability, strengthening its standing in the market.

Markets.com operates under the regulatory umbrella of several prominent financial authorities, ensuring a secure trading environment for its clients. The broker is primarily regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence number 092/08. Additionally, it holds a licence from the Australian Securities and Investments Commission (ASIC) under AFSL number 424008. In the United Kingdom, Markets.com is regulated by the Financial Conduct Authority (FCA) with reference number 607305. These regulatory bodies are renowned for their stringent compliance requirements, which include regular audits and capital adequacy standards, providing traders with an assurance of the broker's reliability.

Client fund protection is a key aspect of Markets.com's operational ethos. The broker segregates client funds from its operational accounts, ensuring that these funds are not accessible for any business-related purposes. This segregation is a standard practice mandated by regulatory authorities, aimed at protecting client interests even in the unlikely event of the broker's insolvency.

Moreover, Markets.com is a member of compensation schemes that offer an additional layer of security to investors. In Cyprus, client accounts are covered by the Investor Compensation Fund (ICF), which provides compensation up to €20,000 per client if the broker fails to meet its financial obligations. In the UK, client funds are protected under the Financial Services Compensation Scheme (FSCS), which offers coverage up to £85,000 per client. These schemes enhance the broker's commitment to safeguarding client assets.

Trading Fees & Spreads

Markets.com offers a competitive fee structure, although its spreads are generally wider compared to those offered by ECN brokers. The broker provides access to a diverse range of markets, including forex, CFDs, stocks, indices, commodities, and cryptocurrencies, with spreads starting from as low as 0.6 pips for major currency pairs such as EUR/USD. For commodities, the spread can vary, with popular options like gold having a spread of approximately 0.4 points.

Unlike some brokers that charge a commission on trades, Markets.com primarily earns through the spread, which is the difference between the bid and ask price. This commission-free structure may appeal to traders who prefer to avoid the complexities of calculating additional costs on each trade. However, traders should be aware that the spread may widen during periods of market volatility or outside of regular trading hours.

Overnight swap rates, or rollover fees, are applicable to positions held overnight. These rates are determined by the interest rate differential between the two currencies involved in a forex trade, and they can either be a cost or a benefit, depending on the direction of the trade and the prevailing rates. Markets.com provides detailed information on swap rates within their trading platform, allowing traders to make informed decisions.

For those concerned with transactional costs, Markets.com imposes no fees on deposits, making it easier for traders to fund their accounts. Withdrawals are also free of charge, provided they meet the broker's minimum withdrawal amount of $10. However, an inactivity fee of $10 per month is charged after 90 days of account dormancy. This fee structure is relatively standard in the industry, but traders should compare it with other brokers to ensure it aligns with their trading habits. Compared to some competitors, Markets.com's inactivity fee is moderate, though its minimum deposit requirement of $100 is higher than some brokers that offer lower entry thresholds.

Trading Platforms & Tools

Proprietary Web Platform

Markets.com offers a proprietary web-based trading platform designed to cater to both novice and experienced traders. The platform is user-friendly, with an intuitive interface that allows traders to easily navigate through various features. It provides access to over 2,000 trading instruments, including forex, CFDs, stocks, indices, commodities, and cryptocurrencies. The platform is equipped with advanced charting tools, enabling traders to perform technical analysis with ease. Users can customise charts with various indicators and drawing tools to better analyse market trends. Order types include market, limit, stop, and trailing stop, providing flexibility in trade execution. Alerts can be set up to notify traders of price movements or other market conditions, ensuring they remain informed at all times.

Desktop Platforms: MT4 and MT5

Markets.com supports both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) desktop platforms, catering to traders who prefer a more traditional trading environment. MT4 is renowned for its robust performance and is particularly popular among forex traders. It offers advanced charting capabilities, multiple order types, and supports automated trading through Expert Advisors (EAs). MT5, the successor to MT4, provides additional features such as more timeframes, an economic calendar, and a wider range of indicators. Both platforms support algorithmic trading, allowing traders to develop and implement their trading strategies. Additionally, they offer third-party integration options, enabling traders to customise their trading experience further.

Mobile Trading Platform

The mobile trading platform offered by Markets.com is available for both Android and iOS devices, ensuring traders can manage their accounts and execute trades on the go. The mobile app is designed to mirror the functionality of the web platform, providing access to the same array of instruments and trading tools. It features real-time quotes, advanced charting capabilities, and the ability to place multiple order types. Push notifications and alerts can be customised to keep traders updated on market developments. The app's interface is optimised for mobile devices, ensuring a smooth and efficient trading experience.

Charting Capabilities and Third-Party Integrations

Markets.com places significant emphasis on providing comprehensive charting tools across all its platforms. The proprietary web platform, as well as the MT4 and MT5 platforms, offer a wide range of technical indicators and drawing tools that traders can use to perform in-depth market analysis. These charting tools are essential for identifying trends and making informed trading decisions. Furthermore, the platforms support third-party integrations, allowing traders to incorporate additional tools and services into their trading workflows. This flexibility is particularly beneficial for traders who rely on specialised tools or who wish to enhance their trading strategies with third-party software.

Account Types & Minimum Deposit

Account Tiers and Features

Markets.com offers a straightforward account structure with a standard account type that caters to most traders. The account provides access to all available trading instruments, educational resources, and customer support. Spreads start from 0.6 pips, and traders can utilise leverage up to 1:300, depending on their jurisdiction and the instruments they choose to trade. The platform also offers a demo account, which is an invaluable tool for beginners looking to practice trading without financial risk. It allows users to familiarise themselves with the platform and test strategies under real market conditions.

Islamic Account

In addition to the standard account, Markets.com offers an Islamic account option, catering to clients who require Sharia-compliant trading services. The Islamic account eliminates swap fees on overnight positions, aligning with Islamic finance principles. This feature ensures that traders of the Islamic faith can participate in the financial markets without compromising their religious beliefs. The Islamic account maintains the same features and benefits as the standard account, including access to all trading instruments and educational resources.

Minimum Deposit and Supported Deposit Methods

The minimum deposit required to open an account with Markets.com is $100. This amount is relatively higher compared to some other brokers, which may offer lower entry points. However, the extensive range of trading instruments and the robust platforms provided may justify the minimum deposit requirement for many traders. Markets.com supports a variety of deposit methods to cater to its diverse clientele. Clients can fund their accounts via bank transfer, credit/debit cards, and several popular e-wallets. The availability of multiple deposit options ensures that traders can choose a method that is convenient and secure for them.

Markets & Instruments

Markets.com offers a diverse range of markets and instruments, catering to a wide spectrum of trading preferences. The broker provides access to over 2,000 instruments, making it a comprehensive platform for traders seeking variety. This extensive selection includes popular asset classes such as forex, CFDs, stocks, indices, commodities, and cryptocurrencies. The availability of such a broad range of instruments allows traders to diversify their portfolios and potentially mitigate risks by investing across multiple asset classes.

In the forex market, Markets.com offers more than 60 currency pairs, covering major, minor, and exotic currencies. This extensive choice enables traders to engage in various trading strategies, from scalping to position trading. For those interested in stocks, Markets.com provides access to over 1,900 global stocks, allowing traders to invest in equities from major exchanges around the world, including the NYSE, NASDAQ, and LSE. Additionally, the platform offers a selection of over 25 indices, providing traders with the opportunity to speculate on the performance of major stock markets globally.

Notably, Markets.com also offers trading in commodities and cryptocurrencies, appealing to traders interested in alternative investments. The platform features over 15 commodities, including precious metals like gold and silver, energy products such as oil, and agricultural commodities. The cryptocurrency selection includes popular digital currencies like Bitcoin, Ethereum, and Litecoin, catering to those interested in the volatile yet potentially lucrative cryptocurrency market. The combination of traditional and modern asset classes makes Markets.com a versatile platform for both novice and experienced traders.

Safety & Security

Markets.com prioritises the safety and security of its clients' funds and personal information, implementing robust measures to ensure a secure trading environment. The broker adheres to a strict fund segregation policy, whereby clients' funds are kept separate from the company's operating funds. This practice is crucial for protecting traders' capital in the unlikely event of the broker's insolvency. Furthermore, Markets.com offers negative balance protection, ensuring that traders cannot lose more than their account balance, which is an essential feature, particularly for those using leverage.

In terms of regulatory compliance, Markets.com is governed by multiple reputable authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and the Financial Conduct Authority (FCA) in the UK. This multi-regulatory oversight enhances the broker's credibility and assures clients of its commitment to maintaining high standards of transparency and fairness. Additionally, Markets.com employs advanced cybersecurity measures, such as SSL encryption and two-factor authentication, to safeguard clients' personal and financial information from unauthorised access and cyber threats.

Who Is Markets.com Best For?

Markets.com is well-suited for a variety of trader profiles, particularly those who value a diverse range of instruments and strong regulatory oversight. It is an excellent choice for traders who prioritise safety and are looking for a broker with a solid reputation and adherence to strict regulatory standards. The extensive selection of over 2,000 instruments also makes Markets.com attractive to traders who wish to explore multiple markets and diversify their investment portfolios.

The broker's proprietary web platform, alongside the well-known MetaTrader 4 and MetaTrader 5, offers flexibility and caters to traders with different platform preferences. This flexibility is beneficial for both beginners and experienced traders, as the platforms provide user-friendly interfaces and advanced analytical tools. Furthermore, Markets.com's educational resources are advantageous for novice traders seeking to enhance their trading skills and knowledge before diving into the markets.

However, Markets.com may not be the ideal choice for traders who are particularly cost-sensitive or those who require ultra-tight spreads for high-frequency trading strategies. The broker's spreads, starting from 0.6 pips, may not be as competitive as those offered by ECN brokers. Additionally, the minimum deposit requirement of $100 and the inactivity fee might deter traders with limited capital or those who trade infrequently.

• Ideal for traders seeking a wide range of instruments and markets.
• Suitable for those who prioritise regulatory compliance and safety.
• Beneficial for beginners due to educational resources and user-friendly platforms.
• Good choice for traders who prefer using MetaTrader or proprietary platforms.
• Less ideal for high-frequency traders seeking the tightest spreads available.
• Not recommended for traders who prefer brokers with no inactivity fees or lower minimum deposits.