In our opinion, Markets.comis a brand name used by Safecap Investments Ltd, is currently one of the best brokers around today for trading and investing in Forex and CFDs. Throughout this review we will tell you the reasons why we consider Markets.com to be among the best brokers at this time. Nevertheless, we can already tell you that our opinion is based on these three factors: 1. They do not charge any commissions 2. It is a trustworthy broker 3. The opinions made by its clients towards it are very favorable. It is hardly surprising, therefore, that it is one of the most famous brokers of 2018 (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).
Throughout this analysis we will see the reasons which explain why we consider this broker to be among the best available on the market in 2018. To this end, we will investigate such important aspects for investors as the cost of trading, commissions, available trading platforms as well as how safe investors’ money is.
Tabla de contenidos
No Commissions and Low Spreads
The online brokers which have appeared in the last few years stand out due to their low commissions. Before these online brokers, it was only banks that offered trading services, making investing very costly and something reserved for the rich. However, now there is a new generation of brokers that not only offer low commissions, but do not charge any commission for trading, and Markets.com is one of these.
In general, traditional brokers charge a commission per trade. For example, if you would like to invest in Forex and you choose to go long on the Euro, you would have to pay a 10 euro commission, and another 10 euros when you close your position. It’s not a great deal of money, but when making a large number of trades, it is sure to eat into your profits. For this reason, a broker like Markets.com which, remember, does not charge any commission, is a far better solution for trading with Forex and CFDs, since you will save a lot of money by doing so.
Another consideration is that trading is not free, and brokers need to cover their operating costs as well as to try to make some profit. This cost for traders takes the form of spreads. A spread is the difference in price between what an asset is bought and sold for. That is to say, if a broker’s client wishes to trade CFDs on currency pairs, he or she will see that there is a difference between the price paid to buy and the price at the moment of sale. As an example, as can be seen in the image below, the median price differential at Markets.com for the Euro/Dollar currency pair is 2.2 pips. This means that the price will be, for example, 1.1003 and 1.1001 for buying and selling respectively. What traders need to look for is the lowest price differential, in order not to lose too much of their profit margin. In the case of Markets.com, the spreads are very competitive, as can be seen in the images below, for Forex and CFDs.
As you can see in the table above, the price spreads are very tight, and none of the usual currency pairs has a spread of more than 4 pips.
CFDs on the Stock Market
As far as indexes are concerned, the spreads depend on the country of origin of the stock selection you are investing in. For example, the S&P500, which is an index for the United States, and which is also the index most invested in, is the cheapest of them all in terms of spreads. The spreads are the lowest due to the enormous liquidity available in the market.
Some Comments About Spreads
Let’s start with the spreads on the Forex market: 2 pips for the Euro/Dollar currency pair is very competitive, and among the lowest on the market. You should keep in mind that the spread can vary due to market conditions, but, as a general rule, it is very reasonable. As far as CFD spreads are concerned, we would like to emphasize how low they are when using the Markets WebTrader platform, which is Market.com’s proprietary trading platform. A spread of 0.6 dollars in CFDs on an index like the S&P500 is a hard thing to beat in 2018.
Is Markets.com reliable? Is it a Scam?
In order to determine how safe and reliable a broker is, one should look at the regulatory bodies which oversee it. In general, brokers are overseen by the bodies of their respective countries. In this particular case, we are dealing with a Cypriot broker, belonging to Safecap, which is overseen by CySEC. Up until now it has meticulously complied to regulation – it only allows a leverage of 1:30 by default. Moreover, it has some types of accounts which limit the amount of possible loss for deposited funds. The reliability of Markets.com is augmented by another factor as well, it is also overseen by the FSB. While the reliability of any broker can never be entirely guaranteed, it seems reasonable to say that this particular broker is reliable
Opinions and Comments
In our opinion, we are dealing with one of the best brokers available in English at the moment. It does not charge any commissions, the spreads are among the lowest and it is overseen by some of the most prestigious regulatory bodies in the world.
Apart from that, from reading opinions by other traders and clients, we have found them to be mostly positive. Let’s be honest, there will always be negative opinions, but this is something that happens for everything, especially in the world of investing and trading. Not even the best singer in the world or the best movie in history have been able to please everyone at once, the same thing happens with brokers. Nevertheless, it seems clear that the majority of comments that can be read about Markets.com are favorable. What’s more, if you keep in mind the fact that those people who spend the time required to post a comment are usually those who have had a negative experience, to see that the majority of comments are favorable is a very good sign indeed.
Markets.com offers two types of accounts, depending on the type of client.
For novices who would like to begin to trade without investing any real money, Markets.com offers a demo account to start out with in the world of investing. This is a very useful tool. If you have no experience in trading, you will be able to see how news items are able to influence the price of currencies, stock shares, indexes and all underlying assets. In this way, you will be able to come up with your own trading strategy so that once you start trading with real money, you will be able to do it well. Moreover, if you have never traded CFDs, the demo account will be useful to you for learning how the trading platform works without putting any capital at risk. You can download the demo account by clicking here.
Before making our final commentary in which we will summarize our opinions about Markets.com, we would like to do a short visual recap of some of the most positive, but also of some of the negative considerations which entered into our evaluation.
- Very competitive spreads
- No commissions for buying or selling
- Two available trading platforms, one of which is MetaTrader 4
- High-quality trading tools
- Customer service in English
- It is a broker with a lot of experience
- PayPal is not available as a payment option
Conclusion and Official Website
Keeping in mind that Markets.com does not charge any commissions, that its spreads count among the lowest anywhere in 2018, that the information of the website is available in Spanish, that you are able to trade in all the possible assets, that the regulation to which it is subject is very strict, that the services offered are of the highest quality, and that the opinions and comments made by experienced traders are generally favorable, we would like to give this broker a 5 star rating. We think it is one of the best options around on the market at the moment for those people looking for an online broker.
Finally, if you would like to receive more information or open a real money account, the best thing you can do is to visit the official website and follow the indicated steps. You can do this by clicking on the button below (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money).