FP Markets

FP Markets Leverage About to Fall: Announces Social Trading

FP Markets has introduced its Social Trading platform, which allows copy trading while staying in control.

Copy trading simplifies forex and CFD trading as users are able to enter the global financial markets more smoothly as they follow successful traders or Providers, which are ranked based on their profitability.

The platform allows potential copiers to view Providers’ full trading history and past performance. The trading offering features 60+ Currency Pairs, more than 50 of the world’s biggest Stocks including Facebook, Google, Apple, and Amazon, all the major commodities, the most heavily traded Indices, and Cryptocurrencies.

“FP Markets Social Trading allows traders to find, follow and copy successful traders automatically. Since its beta launch at the beginning of March, we have experienced huge demand for FP Markets Social Trading with a huge uptake in registrations and increased activity and engagement ratios, especially on social media”, said Craig Allison, Head of Europe, Middle-East, and Africa.

“We are excited about the emergence of a new class of traders, and their growing interest in Forex Trading and Contracts For Difference (CFDs), who prefer to analyze the performance of experienced traders and replicate their trading behavior. Adding this functionality to our market-leading pricing and trading conditions, makes FP Markets the go-to broker for both professionals and those who are at the start of their trading journey”.

Narayan Joshi, Chief Product Officer at FP Markets, added: “There is an increasing trend amongst users towards social trading platforms like this which offer social trading on Forex and CFDs and combine shares, indices, commodities, cryptocurrencies and community. FP Markets Social Trading delivers a high-end solution for serious traders and is also available on all Android and iOS devices for those clients who want to trade on-the-go”

How does Social Trading work?:

No need to develop your own trading plan
Follow performance of successful traders in real-time
Mirror trading behaviour of professional traders with a proven track record
No need to make any trading decisions
Maintain control: Functionality allows multiple copy trading options and risk management strategies
Completely automated trading

First Prudential Markets aka FP Markets is an Australia-based investment company that provides over-the-counter and exchange-traded derivative products.

Clients of the ASIC-regulated global CFD and Forex broker have access to trading through the two MetaQuotes’ platforms, MT5 and MT4, as well as the IRESS software.

Founded in 2005, FP Markets has over 12,000 clients worldwide that benefit from leverage up to 500:1, dark pool liquidity, no dealing desk, and 10 funding currencies.

Leverage up to 500:1 will only be available for Pro Accounts from April 2021 onwards. FP Markets, like all other CFD trading providers, will have to comply to ASIC’s new rules that restrict leverage on CFD products.

Regarding leverage – which is what attracts many FX and CFD traders – ASIC is following the steps of the European regulator, ESMA, and has decided to restrict CFD leverage offered to retail clients to a maximum ratio of:
30:1 for CFDs referencing an exchange rate for a major currency pair
20:1 for CFDs referencing an exchange rate for a minor currency pair, gold or a major stock market index
10:1 for CFDs referencing a commodity (other than gold) or a minor stock market index
2:1 for CFDs referencing crypto-assets
5:1 for CFDs referencing shares or other assets

As brokers in Australia work to rearrange their business operations, we can take European operations as an example, and expect a drop in average daily volumes by one-third.

With this in mind, retail brokers in Australia must prepare for a similar change in volumes and revenue as well as to make efforts to comply with the other rules besides leverage.

The significant drop in available leverage being offered to clients following the implementation of the restrictions brought up the topic of “going offshore” and quite a few AU registered online brokerages have already made the decision to onboard non-AU customers to island jurisdictions in order to maintain the same trading parameters for customers who want leveraged trading products.