FP Markets Journal
|Journal status: |
FP Markets |
- Full listing profile: FP Markets broker profile
Is FP Markets safe?
- Investor protection: Cyprus Investor Compensation Fund (ICF)
- Regulation: ASIC Australia, CySEC Cyprus
- Publicly traded: no
- Segregated account: yes
- Guaranteed Stop Loss: no
- Negative Balance Protection: no
Is FP Markets trusted?
- Information transparency: high
- Customer service: prompt, helpful
- FP Markets website: highly detailed, updated
- FP Markets popularity (by visitor count): low visits
How FP Markets works
As a broker offering ECN Pricing, FP Markets streams price feeds directly from our liquidity providers. ECN Pricing at FP Markets refers to the way in which pricing is derived and ensures that competitive prices are offered. This is distinct from order execution which may result in an off-setting order to be placed with a liquidity provider, the trade to be off-set with another client order/market participant or the client trade to be held internally by FP Markets. Regardless of FP Markets hedging strategy the goal of our ECN pricing model is to ensure quality execution at tight pricing. No dealing desk, no requotes. Ever. We are still committed to providing DMA pricing via our Iress trading platform where a centralised exchange is present. For the forex market where this is not possible, we provide ECN pricing which we believe offers the best results for clients.
What is your execution model?
We offer ECN pricing on our MT4 and MT5 accounts. This means pricing is streamed directly from our LPs with zero interference from our side.
Are you an ECN Broker?
Yes, we offer ECN pricing. This means pricing is streamed directly from our top-tier liquidity providers (LPs).
Do you have a dealing desk?
Yes, we have a trade desk who are responsible to monitor our risk and exposure etc. Since we offer ECN pricing, there is no dealing desk intervention or re quotes with any of your trades.
Hedge Counterparty on the same, or substantially similar, terms as the CFD (includingif one or more CFDs from you and other clients which in aggregate correspond with the Hedge Contract). Hedge Counterparty means a Market Participant with whom FP 89 Markets enters into a Hedge Contract to hedge (all or part of) FP Markets’ exposure to a CFD.
we will execute your Orders (or will instruct third parties to execute your Orders) on your behalf or with you as principal, in accordance with your instructions.
2.3.We may refuse to accept an Order and we may place a limit on any Order or place other conditions on the receipt of instructions or Orders, in our absolute discretion and without giving any reason or any prior notice.
2.8. We, our related bodies corporate and our other associates may enter into Transactions with you as principal, whether in respect of Financial Products able to be traded on a Financial Market or in respect of over-the-counter Transactions such as Derivatives or Foreign Exchange related Transactions. If permitted by law and the Rules, we or an associate may take the opposite position in a Transaction with you (in addition to the Transaction with you). Your Orders may match opposite Orders of another person who is our client, and this may entitle us to receive fees or commission from both sides of the Transaction. 8 Similarly, if we deal as principal, then your Orders may match opposite Orders entered on our behalf as principal and you authorise us to charge you commission or a Transaction Fee in respect of the Transaction in those circumstances.
2.9.You are aware of and acknowledge the right of FP Markets, its related bodies corporate and their respective directors and employees, either on their own account or on behalf of other clients or persons, to deal in any Transaction or take the opposite position to you in Transactions, if permitted (or, if not expressly permitted, then if not prohibited) to do so by the Corporations Act and the Rules.
If the CFD’s Underlying Financial Products are not Exchange-traded, then FP Markets hedges those CFDs by accessing institutional markets available to FP Markets. The hedging might not be 100% and the pricing of the CFDs reflects the market pricing available to FP Markets. Since there is no Exchange for those Underlying Financial Product (such as FX, metals, bullion or other commodities), all price quotes by FP Markets for those CFDs are based on market (not any Exchange) prices offered to FP Markets. This is known as an “Electronic Communication Network” (or “ECN”) and gives“ECN-pricing”. FP Markets uses a number of counterparties to hedge the market risk FP Markets has when offering derivative products to retail clients and wholesale clients. FP Markets’ Operations Department staff reconcile FP Markets’ counterparty book against underlying client trades every day on an instrument level and in accordance with the hedging policy. Both the quantity and the marked to market value are reconciled.
It is recognised that in issuing CFDs FP Markets has an unavoidable conflict of its interests as principal when issuing the CFDs and the interests a client may have. This unavoidable conflict of interests is inherent in any OTC derivative and trading business.
Disclosure of interests to a customer The following conflicts of interest have been identified and disclosed in FP Markets’ Financial Services Guide(FSG), Product Disclosure Statement(PDSs) for its financial products.
•FP Markets may deal as principal in the security recommended and may engage in transactions inconsistent with advice/recommendation provided;
•FP Markets may be the issuer of a financial product or linked to the product recommended;
•FP Markets may not fully hedge some of its OTC contracts and does not disclose the extent of hedging, the exact pricing made available to FP Markets for its hedges, the identity of the Hedge Counterparty or their margin requirements for FP Markets;