FP Markets is one of the most established players in the global forex and CFDs trading market, consistently receiving awards for its excellent customer service.
The broker’s main bases of operation are Australia and the EU, but the brand is also expanding its presence into many emerging markets. The focus of this review is the services that FP Markets offers to clients in Kenya.
FP MARKETS KENYA REGULATION AND SAFETY OF FUNDS
Behind the FP Markets brand is a group of companies – First Prudential Markets Pty Ltd, licensed and regulated by the Australian Securities and Investment Commission (ASIC), First Prudential Markets Ltd, which is responsible for operations in Europe and is regulated by the Cyprus Securities and Exchange Commission (CySEC), and First Prudential Markets LLC, under whose umbrella are the broker’s other international operations.
First Prudential Markets LLC is a registered company of St. Vincent & the Grenadines (SVG). Generally registration in this offshore zone would constitute a red flag because the Financial Services Authority (FSA) of St. Vincent and the Grenadines does not regulate the activities of forex and CFD brokers. The institution has even repeatedly issued warnings on this issue, with the latest such warning dated 23 June 2021.
But even legitimate brokerage firms often register offshore companies for their operations in fast-growing markets in Asia and Africa. The reason for this is that certain regulatory restrictions, for example on bonuses and leverage levels, would not allow brokers to compete effectively in these markets.
But because brokers such as FP Markets hold on to the reputation of their brands, they offer their offshore clients many of the same guarantees and protections that they are obliged to offer in regulated markets.
FP Markets Kenya clients receive the same level of transparency as broker’s clients in the EU or Australia, as well as protection from a negative balance and guaranteed segregation of client money from the company’s operating funds.
Clients of FP Markets in the EU do receive one additional protection – according to the requirements of the The European Securities and Markets Authority (ESMA), the broker’s Cyprus company participates in a guarantee fund that covers up to 20,000 EUR of the trader’s investment if the broker is unable to meet its obligations.
All companies in the FP Markets group can also rely on the same liquidity providers, which include global banking institutions such as Barclays, BNP Paribas, Citibank, Commerzbank, Credit Suisse and Goldman Sachs.
FP MARKETS KENYA TRADING SOFTWARE
FP Markets Kenya customers have a choice between the two most widely used trading platforms in the industry – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). The software is available in versions for Windows and Mac operating systems, Android and iOS mobile devices, and a browser-based version. Here’s what the P Markets MT4 platform looks like:
These platforms have established themselves as the industry standard for a reason. In addition to extensive customization options and features such as one-click trading, they allow the use of Expert Advisor bots for automated trading, as well as designing and implementing custom scripts for backtesting trade strategies.
Only recently has the newer MT5 managed to overtake MT4 in the number of active users, but MT4 remains the leader in trading volume. MT5 does have some perks, not available with MT4 such as the Market Depth option, which features the volume of bids and offers for a financial security at different prices, as well as a built-in economic calendar. MT5 also has more technical indicators, graphic objects and time frames available.
FP Markets offers a Virtual Private Server rental service so that auto trading scripts are not dependent on your personal hardware and internet connection.
The broker also offers a social trading option. This is an increasingly popular service that allows you to copy the trades of some of the broker’s recommended traders. You can choose whose trades to copy based on their investment return data. This allows novice traders to benefit from the experience and insight of experienced investors.
FP MARKETS KENYA TRADING CONDITIONS
FP Markets Kenya offers trading in a wide range of assets – over 60 currency pairs, 19 global indices, commodities and more than 10 000 stocks on global exchanges.
In a Standard account, the broker earns on the spread. According to the website, the spread is floating from 1 pip. Using a demo account, spread levels of 1.2-1.3 pips can be seen in the trading platform. This is completely consistent with typical industry levels.
With a Raw account the spread is close to 0 pips, but FP Markets charges a fixed fee – 3 USD per side per lot. This means that in a calm market environment, the trader will pay the broker 6 USD per lot traded. In comparison, a trader with a Standard account will have to pay a spread of 10-13 USD for the same volume. So if you are trading in assets that are not too volatile, the Raw account is more favorable.
FP Markets allows the customer to request the creation of an Islamic account. In order to be in line with the requirements of Islam against interest, in this type of account the swap payments for overnight positions are replaced by an administration fee dependent on the currency pair traded.
The minimum deposit for all account types is 100 AUD or equivalent in USD, EUR, GBP, CAD or SGD. This makes FP Markets Kenya one of the brokers offering a very low minimum deposit.
For more experienced traders, FP Markets Kenya offers three additional accounts using the Iress trading platform. It allows trading with even more financial instruments than MT4 and MT5. The Iress platform also provides a huge amount of analysis tools – 59 technical indicators, over 50 drawing tools, real-time price quotes, the ability to compare instruments across multiple timeframes and to save custom chart templates.
However, Iress accounts are associated with additional monthly fee of 55 USD. The forex trading with Iress accounts have the same conditions as with an MT4/МТ5 accounts – the commission is either included in the spread or amounts to 3 USD per side.
The most significant difference between the trading conditions offered by FP Markets in Kenya and regulated markets can be seen in leverage. Clients of FP Markets’ offshore company can trade with leverage up to 1:500.
High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The EU regulators limit leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. The same rules currently apply to Australia.
The presence of negative balance protection mitigates somewhat the risks associated with high leverage in the case of FP Markets Kenya. But you still need to approach leveraged trading carefully.
FP Markets Kenya’s serious approach is also evident from the fact that the broker does not offer bonuses and reward programs to attract clients, although offshore registration allows it to circumvent restrictions on such practices in regulated markets.
Many educational materials as well as a handy forex calculator can also be found on the FP Forex Kenya website.
FP MARKETS KENYA DEPOSIT/WITHDRAW METHODS AND FEES
FP Markets Kenya offers clients a very wide range of payment methods. Deposits and withdrawals can be made via credit and debit cards, global bank transfer and local bank transfers for regions such as India, e-wallets such as Neteller, Skrill , FasaPay, PayTrust, SticPay, Volt, DragonPay, PerfectMoney and Paylivre, cryptocurrencies, and even Broker to Broker.
There are no deposit fees, and FP Markets even covers International fees for bank wire transfers up to 50 USD for deposits greater than 10,000 USD.
There are also no withdrawal fees if a credit or debit card is used. For e-wallets, withdrawal fees range between 0.5% and 2%, and for cryptocurrency transactions blockchain fees are applicable.
FP Markets Kenya combines the advantages of working with an established brand with those of high leveraged trading. The broker offers clients favorable terms and a very wide choice of payment methods, trading software and tradable assets without compromising on transparency and best practices.