Markets Review Introduction

One of the major disadvantages of modern-day Forex brokers is that they limit the number of assets and financial instruments by offering only the most popular Forex and CFD products. Very rarely do companies provide access to larger categories of underlying instruments, and even if they do, traders will always be worried about the reliability of the broker. Forex trading continues to be a major market for scam operators, despite the significant amount of regulations and popularity of the Forex markets among global investors.

Markets.com, on the contrary, is a brilliant Forex broker that offers access to the global financial markets through its regulated brokerage platform. Markets.com is also properly regulated and operates according to the best industry practices for a secure trading environment. Regardless, it is imperative for traders to receive the best materials and accurate information about a company before investing in their products and services, which is why our Markets.com broker review can act as a great resource for your trading needs.

 

Markets.com Regulation

Markets.com is committed to treating its customers fairly and has created an operational framework that gives priority to clients’ interests. Markets.com has spent over a decade in the financial markets and has been a leading Forex service provider dedicated to the safety of investors, ever since the company was founded in 2006. Markets.com is a trading brand name that is owned and operated by SafeCap Investments, a company which is in turn, a subsidiary of Playtech PLC. Playtech PLC is a gaming software development company based in the UK and is responsible for developing one of the most widely used gaming software in the UK market. Playtech PLC is an FTSE-250 listed publicly traded company of the London Stock Exchange that has an operating income of more than €200 million.

 

Safecap Investments is primarily responsible for all the FX and CFD products offered at Markets.com, as the company operates as a market maker brokerage from two distinct jurisdictions. Safecap Investments LTD has its headquarters in the EU by offering all of its financial products and services from its official address in Nicosia, Cyprus, while a branch establishment is also located in South Africa. Markets.com is regulated by the Financial Services Board (FSB of South Africa) and the Cyprus Securities and Exchanges Commission (CySEC), which indicates that Safecap is authorised to operate as an EU firm under the European Markets in Financial Instruments Derivatives (MiFID). Safecap can also use its CySEC license to provide its services to all members of the European Union through the European Economic Area (EEA) agreement, thereby enabling a greater degree of freedom for Safecap operations.

 

Safecap Investments’ European operations are strictly scrutinised by the leading regulators of the EU, and the CySEC follows all existing laws developed by the EU to ensure that investors are not subjected to any financial scams or malpractices. The CySEC and the EU as a whole have played an integral role in safeguarding the integrity of the European financial markets, which have created a great environment for traders to concentrate on their investment activities, rather than worrying about the safety of their investments. Markets regulation licenses under the CySEC has several features that protect traders’ funds through account segregation and Investor Compensation Funds (ICF), which can provide up to €20,000 for qualified investors. CySEC has also instructed its regulated member firms to hold at least €1 million in operating capital, which may be increased according to an increase in clients’ investments, but the parent company has a significant operating capital to meet its clients’ debt obligations without any issues whatsoever.

Markets.com traders can use the company’s excellent complaint procedure that is guaranteed to elicit a response according to the guidelines imposed by the CySEC and the FSB. Safecap Investments will offer a detailed answer to all queries within 48 hours, and the company offers a professional response to official complaints within two months. It is definitely interesting to learn that Markets.com operates with a certain amount of responsibility towards its traders, rather than following any scam practices in pursuit of extravagant profits.

 

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Tradable Assets & Markets.com Leverage

It is beneficial from a trader’s viewpoint to know that their Forex broker supports a wide variety of financial instruments from across the world, in order to diversify their investments portfolio, if needed. The problem with most modern Forex brokers is that they limit their assets to a few major currency pairs and commodities. Of course, it is true that a majority of traders simply do not require access to these assets, as most traders stick to the tried and tested assets from the FX or commodities market. However, under rare circumstances, traders may require access to a more diverse range of financial products, and during those times, traders may feel limited by their broker’s product portfolio.

 

Markets.com has gone ahead and offered some of the largest collections of tradable instruments from the global financial markets. Here is a short description of all the financial instruments available for trading at Safecap Investments.

 

Shares: Markets.com offers more than 2000 different stocks from 12 major financial markets with a maximum Markets.com leverage of 1:20. Even though the products are offered as Contracts For Differences (CFDs), the broker also offers dividends and other stock benefits, similar to what investors would enjoy from actual possession of shares of stocks. Traders are given the opportunity to buy and short stocks without any limitations.

Forex: Markets.com grants 24 hours access to more than 50 currency pairs, making it one of the largest collections of Forex assets offered by any Forex broker. The broker also offers a maximum Markets leverage of 1:300, which is slightly lower than the leverages provided by other brokers. Although it may seem to be a great option to minimise the risks in the market, traders may seek higher leverage to hedge against market volatility. For reference, other leading brokers may offer an average of 1:500 leverage for FX pairs, while it is also common for brokers to provide leverage as high as 1:1000 and 1:3000 for certain instruments.

Indices: The global indices market is an excellent opportunity to invest in the markets according to the performance of an economy and its underlying stocks. With over 25 major indices to choose from, traders can invest in the indices market with a high leverage of up to 1:150. Markets.com offers all the major indices from the US, the EU, and the Asia-Pacific.

ETF: Exchange Traded Funds are similar to stock and indices, which may contain a single or group of stocks and assets in a basket that can be traded directly on the markets. ETFs are popular for investors who wish to invest in a collection of stocks, bonds, indices, or other underlying instruments, and are a great way for increasing the performance of the fund without losing money on individual instruments.

Crypto: Crypto currencies are decentralised currencies that are not pegged to the central bank of any country, and act as an independent commodity that can be freely exchanged across users through strictly anonymous and secure channels. Markets.com enables its traders to trade cryptocurrencies, even during the weekends, which is a great opportunity for traders to maintain an active trading schedule, even when most of the other global markets are closed during the weekends.

 

Markets.com Minimum Deposit, Spreads, & Account Features

Markets.com used to provide different trading accounts for traders according to their initial deposits, but the broker has recently switched to a single account category to streamline the account signup process. Incidentally, we do prefer brokers to offer only a single account category to prevent confusion for traders at the time of signing up, but at times, traders may require additional features, regardless of the premium over a base account. The Markets.com minimum deposit requirement is $100, but the broker allows its traders to open an account in other currencies, including AUD, BGN, CAD, CHF, CZK, DKK, EUR, GBP, HRK, NOK, PLN, RON, RUB, and SEK. The minimum deposit may vary according to the base currency, but traders can open an account for a currency equivalent of $100. Payment options include credit/debit cards, Skrill, PayPal, Neteller, and bank wire transfer.

The minimum deposit requirements are not as small as other Forex accounts, where traders may be able to sign up for as low as $5. It is, however, recommended for traders to start trading with at least $100, as the broker offers a comparatively lower leverage than other companies. The Markets.com spreads are slightly more expensive than direct market access accounts, as Safecap Investments offers its products through the market maker protocols. The nominal Safecap spreads for major currency pairs may be quoted at 2 pips, but the spreads may increase according to market conditions.

 

All instruments are offered as CFD products, where brokers are the counterparties to traders’ positions. Of course, market maker brokers may choose to match clients’ orders internally to pass on the volumes through each other, but during times of low liquidity, the broker may choose to accept the opposite end of a trader’s position.

 

The market maker protocols at Markets.com involve a considerable amount of conflict of interest, and the broker has a dedicated conflict of interest policy to inform its clients about the potential issues that may arise out of trading with Markets.com. Safecap Investments is a regulated broker and is expected to be transparent about its policies to its clients. Therefore, make sure to read through the broker’s terms and conditions and its conflict of interest policies before choosing to trade with Markets.com.

 

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Markets.com Trading Platform

Markets.com introduced its brokerage services at a time when the Forex trading industry was still developing into a massive retail-trader oriented market for online investors. Therefore, Markets.com had to develop a proprietary trading platform to cater to the traders and to support a large number of tradable assets provided by the company. Of course, Playtech PLC is known for its ability to create custom gaming platforms, which has helped Safecap to use its software development knowledge and programming prowess to develop a dedicated web browser-based trading platform. The browser trading interface is one of the most advanced trading platforms on the market and continues to be developed at a rapid rate to incorporate new technologies and trading features that are launched in the market from time to time.

Markets.com has also recently started offering the MT4 trading terminal for its users, which is the most advanced and user-friendly trading platform for the Forex market. Forex traders from all over the world find it easy and convenient to trade the Forex markets on the MetaTrader4 terminal, but unfortunately, MT4 does not support the broker’s other CFD products such as shares, commodities, indices, and ETFs. Despite the popularity of the MT4 terminal, traders will be required to access the broker’s proprietary trading interface to be able to trade the entire list of assets accessible at the company.

 

Markets.com Mobile Apps

The MetaTrader4 terminal is available for mobile trading through the dedicated apps that are designed for iOS and Android operating systems. All Markets.com users can access their trading accounts through the MT4 apps for FX trading, but for other underlying instruments, the broker has required its traders to access the web trader version of its proprietary trading platform. The web trader version is flexible to be used on any device, and is excellent for trading all markets, without any drop in performance or trading functionality. Markets.com apps are compatible with both smartphones and tablets, which ensures that traders can enjoy a superior trading environment on both desktop and mobile devices.

 

Markets.com Bonus

Markets.com offers a free $25 no-deposit trading bonus, which provides an incredible opportunity for traders to test the markets without any risk to their trading capital. The $25 free account is a trade only account, where the profits earned from the bonus can only be withdrawn after making an initial deposit. However, the best thing about the no-deposit bonus is that traders have full freedom to either continue or quit trading, depending on the reliability of the broker’s trading platforms. Unlike other types of bonuses, traders don’t have to deposit any money to earn trading credits.

Regardless of the free no-deposit trading account, Markets.com does not provide any other type of bonus for deposits. The CySEC regulation and other laws prohibit financial companies from offering a free bonus to its clients, as it increases the potential for conflicts between brokers and traders. Therefore, the bonus is restricted to the $25 no-deposit bonus, and traders should not expect any other promotional benefits for their investments.

 

Markets.com Demo Accounts

You can sign up for an unlimited demo account at Markets.com for testing out the different trading platforms and instruments offered by the company. A demo account is also a great tool for amateur traders to learn the markets and practice different trading strategies. Aside from the demo account, we are impressed by the availability of a $25 no-deposit bonus account, which can offer real-time trading conditions without actually risking a single dollar in the markets. Traders can use both the demo account and the $25 free account side-by-side to make a comparison of the markets and come up with an accurate representation of the performance of the broker’s products and trading platforms. Markets.com demo trading is one of the main reasons why a Markets.com account comes highly recommended from existing clients.

 

Markets.com Customer Service

Markets.com takes its customers’ complaints quite seriously, as the company’s Treating Customers Fairly (TCF) policy takes customer interaction to the next level. Safecap Investments has installed a professional live chat feature, a dedicated phone service, email, and a web contact form that responds to clients’ queries instantly. The broker has also mentioned a period of 48 hours to ensure that all customers’ concerns and queries are responded to professionally and thoroughly. Existing traders have reported an excellent customer service channel that responds to all of their concerns in a friendly manner. There is even the availability of a dedicated complaints forum, which serves to offer a response to more grievous and serious complaints within two months, after proper evaluation of all the aspects of a trader’s claims.

 

The broker’s European base and an investor-friendly attitude from the European regulatory agencies could have also contributed to the above-par customer service experience. If all avenues of getting a positive response from the broker fail, traders are free to contact CySEC or the Financial Ombudsman for arbitration, and can even approach the court for illegal or fraudulent activities performed by the broker.

 

Markets.com Trading Resources

Markets.com provides access to a wide variety of trading instruments, and it is only natural for the broker to offer a vast amount of resources and trading tools to aid traders in their search for the best materials available in the market. Traders get access to an economic calendar, economic events analysis, market consensus reports, trader trends, market news, and detailed trading analysis. The broker also provides excellent trader education in the form of webinars and covers all the major events that contribute to the movement of the markets.

 

Markets.com Verdict

Pros

  • Regulated by the CySEC and the FSB.
  • Low minimum deposit of $100.
  • $25 free no deposit bonus for risk-free trading.
  • Excellent customer service.
  • Access to the global financial markets and a large number of financial instruments.
  • Excellent trading software, along with access to mobile apps for trading.
  • High leverage for stocks and indices trading.

Cons

  • Comparatively lower leverage for FX and Commodities.
  • No bonus on deposits.

 

FAQ

Is Markets.com Regulated?

Markets.com is a regulated Forex broker, with regulatory licenses from the CySEC (Cyprus) and the FSB (South Africa).

 

Does Markets.com Offer A Demo Account?

Yes, Markets.com offers a free demo account for all users.

 

What Is The Minimum Deposit For An Account?

Traders will be required to deposit a minimum of $100 for a trading account.

 

What Are The Deposit Options?

Markets.com accepts deposits through credit/debit card, bank wire, and online payment systems such as Skrill, PayPal, and Neteller.

 

Summary

Markets.com has a feature-rich brokerage that grants access to global financial markets covering Forex, Stock, Commodities, Indices, ETFs, and Bonds through different CFD products. Markets.com is a regulated company and provides trusted financial services for traders from all over the world, except for traders from the US, Canada, and some other parts of the financial market.

 

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