Table of contents:
- 0.1 Who is Markets.com? A Brief Portrait
- 0.2 Regulation and deposit insurance in Cyprus
- 1 Markets.com Instruments
- 1.1 Trading Conditions at Markets.com
- 1.2 The trading platform
- 1.3 The mobile app
- 1.4 What market model does Markets.com use?
- 1.5 Payments and verification
- 1.6 How authentic is the demo account?
- 1.7 Tools and Training at Markets.com
- 1.8 Customer service in the quality test
- 1.9 Conclusion
- 1.10 What is the minimum deposit?
- 1.11 Is there an inactivity Fee charged?
- 1.12 Is a demo account available?
- 1.13 What trading platforms are offered?
Markets.com user-ratings: $250
Asset varierity - 10/10
Trading platform - 8.5/10
Support - 9/10
Fees - 7/10
Deposit/Withdrawal - 10/10
Facts about the company:
- Type: CFD Broker
- Regulation: FCA (UK), CySEC (Cyprus), FSCA (Africa), ASIC (Australia), FSC (BVI)
- Minimum deposit: $250
- Demo account: Free
- Markets: 8000+ Currencies, ETFs, Commodities, Index, Stocks, Blends, Cryptocurrencies, Bonds
- Speedy executions
- Lower margins
- Low commission
- 24/5 support via live chat
- World-class trading tools
Who is Markets.com? A Brief Portrait
Markets.com is a trademark of Safecap Investments Limited of Cyprus. This company had previously operated several brands in FX and CFD trading. These have since been discontinued or sold.
The broker is said to have 5 million accounts. Last year, the trading turnover on its own platforms amounted to 185 billion USD.
Safecap Investments Limited is a subsidiary of Playtech PLC based in the Isle of Man. The company is listed in the FTSE 250 Index on the London Stock Exchange (LSE). Playtech PLC was founded in 1999. The company produces software for online casinos and other gambling providers – and is also active in the trading sector via its Cypriot subsidiary. The turnover in 2018 will reach almost 1.25 billion EUR. In the same year, a net profit of approximately EUR 130 million was achieved. In 2015 there had been short rumors about a takeover of the CFD broker Plus500 by Playtech. A purchase price of approx. 700 million USD was in the air. However, the deal did not materialize in the end.
Regulation and deposit insurance in Cyprus
Safecap Investments Limited, domiciled in Nicosia, Cyprus, is supervised by the Cyprus Financial Supervisory Authority CySEC. At the authority, the registered domains of the broker can be checked. The company is registered in the Cypriot commercial register.
Safecap Investments Limited owns TradeTech Markets Limited. This company is relevant for regulations in other jurisdictions. TradeTech Markets (Austria) Party Limited is regulated by the Australian Financial Services Regulatory Authority ASIC (license number: 424008). TradeTech Markets (South Africa) Party Limited is regulated by the FSA (license number 46860).
TradeTech Markets (BVI) Limited (the subsidiary based in the British Virgin Islands) is supervised in accordance with local standards. There is also TradeTech Alpha Limited, which has a British FCA licence (licence number 607305). This licence is only relevant for customers resident in the United Kingdom.
Due to the regulation in Cyprus, the essential requirements of the European Securities and Markets Authority ESMA apply. On the one hand, this limits the leverage to 30:1, while on the other hand the European regulatory authority also requires brokers to ensure protection against negative balances in trading with private customers.
Markets.com has been active in CFD trading for many years. We have opened a live account with the broker and placed a number of trades. This test report explains the real live spreads. We also cover the account opening process, deposit options, regulatory status, trading platform, training opportunities, and customer service.
The Underlying Catalog at Markets.com:
At Markets.com there is only one account model. This is based on market-making. There are a variety of tradable markets. In total, the catalog of underlying comprises more than 2,200 instruments. These markets exist:
- approx. 67 FX currency pairs
- 42 Cash indices
- 22 Future Index CFDs
- 6 cryptocurrencies
- 17 Raw materials/precious metals
- Shares from 20 countries
- 59 ETFs
Trading Conditions at Markets.com
Trading at Markets.com is commission-free (as with most market makers). This applies regardless of the underlying instrument traded. There is only a column for commissions when trading CFDs on shares in the price list. However, the commission for all shares is 0.0%. This means that all costs are included in the spreads for all underlying. The spreads are therefore important for assessing the quality of the broker.
Conditions in FX Trading
The figure below shows a screenshot from the Markets.com trading platform. The screenshot shows a sample of spreads in the live account for the major FX currency pairs.
- EUR/USD: 1.90 pips
- GBP/USD: 2.60 pips
- USD/CHF: 2.70 pips
- AUD/USD: 2.90 pips
- EUR/JPY: 3.90 pips
Overall, the spreads are visibly wider than those of the best brokers on the market. As a rule of thumb, trading a standard lot in EUR/USD should not cost more than ten US dollars. This amount should include spreads and commissions. With a spread of 1.9 pips as in our sample, the cost is USD 19. Spreads in other major currency pairs are also wider than those of the best providers in the market.
Is the broker better positioned in indices? The figure below shows the screenshot of a sample.
- DAX: 1.20 points
- Dow Jones: 3.0 points
- EuroStoxx50: 2.0 points
- NASDAQ 100: 2.5 points
- S&P 500: 0.60 points
Here the broker performs better than in FX trading. 1.20 points in the DAX are just in the field of vision of the best providers in the market. Many CFD brokers charge more than Markets.com for CFD trading in the Dow Jones. The spread in the S&P 500 is also competitive.
Conditions for commodities CFDs
The figure below shows the screenshot of our sample of commodity CFD spreads.
- Crude Oil Future: 0.03 USD
- Brent Oil: USD 0.03
- Gold: USD 0.65
- Silver: USD 0.03
The picture of raw materials is heterogeneous. The conditions for trading oil are more favorable than those of many other brokers. This also applies to the trade with silver. The spread in Gold CFD is competitive but is undercut by some competitors in the market. Overall, however, Markets.com’s conditions for trading Commodity CFDs are reasonable.
Terms and conditions for trading in shares CFDs
The figure below shows a very small sample of live spreads for trading CFDs on individual shares. The stock of the aircraft manufacturer Boeing is a good representative example. The spread is USD 0.50 per share.
Other CFD brokers charge commissions. These are typically 0.01% of the transaction volume and are incurred both when opening and closing a position. In the case of Boeing, such a commission round turn would amount to just under USD 0.75. With the spread of USD 0.50, investors can thus get away cheaply.
Conditions for crypto CFDs
Cryptocurrencies are very expensive with some CFD brokers. This is also true for Markets.com with some limitations. The figure below shows a screenshot of a sample from the live account. The spread in Bitcoin is 50 USD. Other CFD brokers offer less than 15 USD. Spreads also appear quite wide for all other cryptocurrencies.
The trading platform
Markets.com clients trade through a web-based trading platform. This platform is equipped with essential trading and analysis functions but does not significantly exceed them. On the positive side, the platform is quite easy to use. In addition, it is possible to switch back and forth between live and demo accounts with a single click.
Charts and indicators
There are charts with period lengths from 1 minute to 1 month. Users can choose between candle charts, line charts, bar charts, and HeikinAshi charts. It is also possible to put two different chart courses into each other. However, this only works with line charts. There is a multicart desktop, with which various chart courses can be viewed in parallel. The charts can be partially individualized in graphic settings.
There are dozens of indicators for analysis, starting with ADX and ending with the Zig-Zag indicator. There are various lines (trend lines, straight lines, regression lines, etc.), retracements, and a practical measuring tool. The latter can be used to measure price distances and time spans. With one click, a screenshot of a chart can be made and, if necessary, shared in social networks.
There are daily updated trader trends, a favorites list, and an economic calendar with filter. There are also various sentiment indicators. Under this umbrella term, fast Markets.com combines analyst recommendations, blogger opinions, and hedge fund activity.
The trading platform offers the most important order types. In addition to unlimited market execution, there is a choice of Stop Buy, Stop Sell, Limit Buy, Limit Sell such as Stop Loss and Take Profit. A minimum distance applies to the placement of stop-loss orders. This is 2.8 points in the DAX.
Deposit protection at Market.com
Client funds are held in segregated client accounts as required by regulation. The broker is linked to the Cyprus Investor Compensation Fund ICF. In the event of insolvency, it reimburses 90% of the loss incurred up to EUR 20,000 per customer.
Markets.com does not guarantee that customer funds will be held in custody at banks outside Cyprus. Therefore, in case of doubt, customers must always assume that the funds are held at Cypriot banks. The level of deposit protection is then not the same as at German and British banks.
The mobile app
In addition to the web-based trading platform, there is also a mobile app. This is available for iOS and Android smartphones. The app can be used to trade all underlying available on the desktop. The app also offers the same functionality as the regular platform in terms of indicators, sentiment analysis, and charts. The synchronization between the web platform and the app takes place in real-time.
The Markets.com App is rated quite positively in the Google Play Store. At the time of our sample, approximately 7,300 ratings had been given there. The average rating was 4.0 out of 5.0 possible stars.
We looked at the particularly negative reviews and then reviewed them in the app. Many users complain about the supply of price data. Since an update in spring/summer 2019, there are obvious problems here. If the app is left for a short time, the updating of the quotes stops. Then the app must first be closed and restarted. This can take up to 30 seconds. Actually we could detect this deficiency as well.
What market model does Markets.com use?
Markets.com consistently acts as a market maker when trading CFDs. There are no other account models with STP or DMA trading. Therefore, all orders are initially opened against the broker as the counterparty.
Please note: With MarketsX there is now another account-model available. However, this was not yet available at the time of our research.
Payments and verification
The account opening holds few surprises. In addition to the KYC questions on income and trading experience, verification is required in particular. A copy of your passport and proof of address are required. For the latter, bank or credit card statements, utility bills, or letters from the municipality are used, for example. The proof of address must not be more than six months old. The broker also requires the personal tax identification number when opening an account.
As part of the extended verification, the Broker can also request a document to prove the telephone number. However, this was not the case when we opened the account.
Submitting the documents is very simple. The verification centre is located in the top right-hand corner of the user interface. There the documents can be uploaded. Alternatively, a Markets.com Mobile App can be used to do this.
Deposit and withdrawal
Markets.com accepts various deposit and withdrawal options. These include Bank Transfer, Credit Card (Visa & MasterCard), Skrill, Neteller, and PayPal. Deposits and withdrawals are free of charge. Due to money laundering prevention laws, withdrawals must be made regularly in favor of the payment method used to make the deposit.
|PMs||Wire transfer||Credit Card||Skrill/Neteller||PayPal||Local bank||Ideal||Sofort|
|Europe||250 USD||250 USD||250 USD||250 USD||250 USD||250 USD||250 USD|
|UK||250 USD||250 USD||N/A||N/A||N/A||N/A||N/A|
|Africa||250 USD||250 USD/2,500 ZAR||250 USD/2,500 ZAR||N/A||250 USD||N/A||N/A|
|Australia||250 USD||250 USD||250 USD||N/A||250 USD||N/A||N/A|
|BVI||250 USD||250 USD||250 USD||N/A||250 USD||N/A||N/A|
How authentic is the demo account?
At Markets.com, customers can switch between a demo account and a live account with one click. This is basically an indication that demo accounts are provided with the live server’s rates. In general, the consistency between the prices on the demo account and the live account is an indication of a serious sales and marketing philosophy.
We have compared the rates on the demo account with those on the live account in a random sample. The figure below shows the result of the sample.
This is what the spreads in the demo account looked like:
- EUR/USD: 1.89 pips (1.90 in live account)
- GBP/USD: 2.30 pips (2.60 in live account)
- DAX: 1.20 points (as in the live account)
- EuroStoxx50: 2.0 points (as in the live account)
- Gold: 0.68 USD (0.65 USD in live account)
- Dow Jones: 3.0 points (as in the live account)
Tools and Training at Markets.com
Markets.com provides several tools to help you get started. These include sentiment analysis and indicators that measure the activities of hedge funds and bloggers. However, the overall range of training is limited. The Knowledge Center, as it is called, only provides some video tutorials.
Customer service in the quality test
Markets.com Customer Service is available around the clock, five days a week, via email and live chat. In Live Chat, we have made several requests during our testing. The response time is short, with English-speaking account managers available throughout.
|Telephone:||+44 2031 500 380|
|Adress:||via contact formula|
Markets.com is a market maker with mediocre conditions. Spreads in the major markets may be tighter. However, the broker scores with quick and easy account opening, many deposit options, and an easy-to-understand trading platform. For beginners, where cost is less important than a clear solution, Markets.com is a great place to start.
If you don’t want to take any risks at first, open a demo account. This is available within 30 seconds and is equipped with realistic prices.
Most asked questions:
What is the minimum deposit?
The minimum deposit for trading with Markets.com is $250 or 250 in any equivalent currency. Due to the moderate minimum deposit, Markets.com is suitable for beginners as well as professionals.
Is there an inactivity Fee charged?
Yes, Markets.com charges an inactivity fee for absence. While other brokers charge them after one month of absence, Market.com charges them only after 3 months of inactivity. From then on, there will be $10 charged each month for inactivity.
Is a demo account available?
Yes, clients of Markets.com can also trade with a demo account. There is also a demo account when traders trade with a live account. It is possible to switch between a life and a demo account within seconds at any time.
What trading platforms are offered?
Traders at markets.com can choose from over five platforms. For in-house trading, traders can choose between Marketsx and Marketsi. Moreover, it is possible to trade with MetaTrader4 and MetaTrader 5 as well as via mobile devices.