Author: Eduardo Montero
In this article we will detail and explain each of the fees and commissions that you will have to pay if you access the services of FP Markets.
This way you won’t have to spend hours researching and gathering information, to get to know every detail, as that is exactly our goal, that you know this information, in a complete way, all in one place.
But as usual, before we get into the commissions, let’s get to know a bit more about the broker under review.
Main features of FP Markets
FP Markets is an established and consolidated broker in the world of financial markets as it has been operating for more than 17 years. Its headquarters are located in Australia, where it was founded in 2005.
FP Markets is authorised and regulated by the Australian Securities and Investments Commission (ASIC) and in Europe by the Cyprus Securities and Exchange Commission (CySEC).
Although it is considered a Forex broker for all the advantages it provides to its traders for this type of markets, FP Markets’ giant ecosystem encompasses other financial instruments such as Stocks, Indices, Commodities, and others.
FP Markets offers its clients the powerful and renowned MetaTrader 4 and MetgaTrader 5 platforms in all their variants, either in their PC versions for Mac or Windows, or in their mobile versions for Android or iOs, as well as including its own platform for the latter devices, Iress.
It also includes excellent analysis tools such as Traders Toolbox and Autochartist, which support both novice and experienced traders.
Last but not least, FP Market offers the possibility of autotrading through the Myfxbook platform as part of its social trading services.
For more information you have in this article a comprehensive compilation of reviews and features of FP Markets in much more detail.
Overview of FP Markets’ main fees commissions
Each broker has a system of fees as part of the charges for certain services it makes available to its clients. Below is a summary of the main fees charged by FP Markets, which we will cover later in our article.
The main fees and commissions that you will find in FP Markets are:
- The spreads we are charged when trading currency pairs, CFDs, and cryptocurrencies.
- The fixed commissions on Raw accounts for MetaTrader 4 and 5.
- Commissions charged on Iress accounts.
- Overnight commissions (Swaps) that are charged (positively or negatively) for holding open trades one or more days overnight.
- Commissions applied for exchange rate, deposit, withdrawal and other types of operations.
FP Markets Fees (spreads)
The spread is a type of commission charged by brokers when we open a trade in certain financial assets such as currencies, CFDs and cryptocurrencies. This commission is represented as the difference between the buy price and the sell price provided by the broker.
You may be wondering why the bid price is different from the ask price?
And the answer is quite simple, the difference in these two prices is created to cover the commission charged by the broker for allowing us to interact with the financial markets, in this case, to open our trade, this added to the interbank prices they receive from their liquidity providers.
At FP Markets the spreads vary according to the liquidity and volatility of the market, meaning that they can change with respect to the state of the market and the liquidity providers.
In the case of Raw accounts, spreads can be as low as 0 pips, as these trading accounts have access to a larger number of top tier liquidity providers.
This translates into institutional level liquidity, no price manipulation and no requotes. In the case of Standard accounts the spreads are slightly higher as these accounts do not charge commissions for trading volume, instead the spread is charged to compensate for the fact that it is a 0 commission account.
Below we can see the spreads that FP Markets applies to the main assets.
Fixed commissions on Raw accounts for MetaTrader 4 and 5.
Raw accounts at FP Market charge a fixed commission when trading currencies or metals. This commission compensates for the low spreads that these types of instruments offer in these accounts, which can be as low as 0 pip as mentioned above. This fixed round-trip commission is charged when we reach one lot in volume traded.
On the FP Markets website we can see that this commission is around 3 US dollars, which translates into a commission of 6 USD for a full transaction when trading one lot.
In the case of CFDs on stocks, a different commission is charged and only applies to the MT5 platform. It should be noted that this commission is taken into account for both Standard and Raw accounts.
Commissions applied to Iress accounts
Iress accounts have a number of particular aspects that differentiate them from Standard and Raw accounts. For this reason we will analyse their main fees separately.
Despite the aforementioned differences, it should be noted that the fees charged for spread are similar to the other accounts. However, a different fee model applies to these accounts due to their DMA execution model. Commissions are applied to each trade we execute and the fees are set at a certain percentage of the total amount of the trade.
The DMA is an execution model where the client is given access to a genuine channel of quotes from the underlying exchange on which they trade via the order book of that exchange or a liquidity provider.
Not only do clients receive real-time prices, full depth of market and direct access to that exchange’s order book (via the IRESS DMA platform), but 100% of client orders on DMA products are hedged in the underlying market.
The DMA model not only allows orders to flow into the underlying market, but also provides access to leverage, short selling and competitive commissions.
- For Iress (Standard) accounts a minimum commission of $10 AUD is applied, and thereafter this rate is adjusted by 0.1% for each open position.
- In the case of Iress (Platinum) accounts, this fee is slightly lower as the conditions for creating this account require a higher initial capital, in this case the fee per trade will be a minimum of $9 AUD, and thereafter 0.1%.
- Iress (Premier) account fees will be the lowest of these three account types. This commission is set at 0.08% of our trade size and will be the standard charge that will always apply.
Other fees that apply to Iress accounts are related to the use of the IressTrader or Iress ViewPoint platforms. This fee will be 55 USD per month which will be included in the general service fees.
Although this seems like an unreasonably high fee, FP Market offers the possibility to avoid this fee if we trade more than 14 times per month with a standard ticket rate of 10 Australian dollars or generate more than 150 dollars in commissions during this same period.
Another fee associated with these platforms is the Australian Securities Exchange (ASX) data streaming fee. This fee is also applied monthly and will be $20 plus GST. For this type of commission, FP Market offers the possibility to get a discount if we trade more than 4 times per month or generate $50 in commission by trading CFDs on AXS or DMA index.
Overnight commissions (Swaps) applied at FP Markets
Swap commissions or swap fees are generated when we keep a trade open from one day to the next, several days, including weekends. At FP Markets this commission starts to be charged from 00:00 platform time (17:00 New York time).
To see the swap rates for each of the FP Markets assets you can see the broker’s website (https://www.fpmarkets.com/) or access the information manually from each of the trading platforms, either MetaTrader or Iress, always bearing in mind that these rates are indicative rates and are subject to change depending on market volatility.
Swap rates are calculated in points and can be positive or negative, depending on the difference in the interest rates of the two currencies.
A very important fact to note is that at FP Markets swap rates are tripled on Wednesday evenings in order to include these fees for the weekend.
To view the latest rates on FP Markets MT4 and MT5 accounts please click here:
- Go to the “Market Watch” section.
- Right click and select “Symbols”.
- Choose the forex pair you want to trade.
- Click on “Properties” for the pair, (in MT5, select “Specification”).
You will see all the information about the pair, such as swap rate, stop level, initial margin and others.
We can also use the swap/rollover calculator, provided by FP Markets, to estimate the value of an overnight trading position easily.
To access this useful tool we must go to the broker’s official website and in the section (Resource or Platforms) choose the option (Forex Calculator).
Once we have located the calculator, we only have to indicate the instrument we trade, the currency of our account and the volume of the operation, with this information the tool will do the rest, offering you the values you need.
Examples of FP Markets swaps:
Other types of commissions charged by FP Markets:
Exchange rate commissions
This commission is applied whenever we make a trade where the base currency of the pair (forex) is different from the base currency of our account. For example if the base currency of our account is USD and we decide to trade the EUR/JPY pair, in this case we would have to make the current exchange rate from USD to JPY to cover the trade as we do not have Yen in our account.
We may also be affected by these commissions if we wish to withdraw our profits in a different currency to the one we have in our account, as the broker will have to make the current exchange rate to bring our base currency to the desired currency.
FP Market does not charge these fees, so we can rest assured if we wish to trade currency pairs that do not include our base currency or make currency exchanges when withdrawing our profits.
FP Markets does not charge deposit fees, in fact, it takes care of international fees up to $50 when we deposit more than $10,000 via bank transfers.
FP Markets does not charge internal fees for deposits or withdrawals, with the exception of withdrawals via international bank transfers, in which case an internal fee of AUD 10 will apply.
However, payments to and from international banking institutions may be subject to fees from entities independent of FP Markets.
FP Markets is not responsible for any such fees. These charges will be borne by each client.
As we could not find this information on their official website, we decided to contact their live support service and they confirmed that FP Markets does not charge any inactivity fees on the account, so you can forget about it for a while without costing you any money, however, you should know that if you have no funds in the account after leaving it inactive for more than a month, it will be archived.
Is FP Markets an expensive or cheap broker?
To determine whether FP Markets is a cheap or expensive broker we have decided to compare it with similar brokers that are considered either expensive or cheap, and in this way know which broker is closer to the broker we are analysing.
|Average Spread on EUR/USD||0.0001||0.00013||0|
|Average Spread on S&P500||0.75||0.6||0.4|
|Average spread on Gold||0.45||0.31||0.19|
|Average spread on Bitcoin||0.75% (300)||20||31|
|Average commission on Cocoa||6.5||2.48||0.46|
As you may have noticed FP Markets is below eToro in almost every aspect, so it can be considered cheaper than eToro, whereas if we look at Pepperstone’s values, our broker in question is above eToro in almost every aspect, so it can be considered more expensive than Pepperstone.
This gives us to understand that FP Markets is not one of the most expensive but not one of the cheapest, even so there can be significant differences depending on the financial instrument you are interested in trading.
A good way to see firsthand what are the operating fees of FP Markets and calculate how they impact on your operations is to open a free demo account in which you will have a virtual balance to test in an environment very similar to a real account but without risking your capital
And this is the end of our analysis of the fees and commissions of the FP Markets broker. Now you know in more detail what costs you will have to face if you decide to trade with this financial intermediary.
You can take a look at the commissions of other brokers we have reviewed here: IQ Option Commissions, eToro Commissions or Pepperstone Commissions.
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Thank you very much for your attention.
This post is also available in Spanish: fp markets comisiones