CFI Markets vs FP Markets

CFI Markets or FP Markets?

Offers VIP accounts or ECN execution?

If you’re a trader looking for a broker that offers VIP accounts, CFI Markets may be the better option. However, if you want a broker with ECN execution, FP Markets may be more appropriate.

Which broker is more reliable?

You can determine a broker’s reliability & trustworthiness by looking at eight factors:

• Who are they regulated by?
• How long have they been around for?
• Do they hold your money in a separate bank account?
• Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?
• Have they been fined or penalised in the last five years?
• The popularity of their service/website
• Are they publicly listed?
• Where are they located?

Based on these eight factors, we consider CFI Markets and FP Markets to be equally reliable. We’ve broken down why below:

Who are they regulated by?

CFI Markets is regulated by Financial Conduct Autority, CySEC, BaFIN, while FP Markets is regulated by ASIC.

XTB are also regulated by the Financial Conduct Authority.

How long have they been around for?

If a broker has been around for a long period of time, they’re likely to be more reliable (in comparison, most scam brokers only exist for several years before they disappear).

This also suggests that a broker has good risk management processes that have prevented them being caught out by major financial events, as was the case with Alpari UK going bust when they were there was a policy reversal of capping the Swiss Franc against the Euro.

CFI Markets has been around for 9 years, while FP Markets have been around for 16 years. Our third alternative broker, XTB, have been around for 19 years.

Do they hold your money in a separate bank account?

You wouldn’t want your broker paying their staff out of the same bank account account that you’re depositing your trading funds into, would you?

Fortunately, all regulated brokers must use segregated bank accounts to hold client money. This is one of the reasons why we only feature regulated brokers here on BrokerNotes.

All three brokers above will hold your money in a separate bank account.

Do they use reputable “tier-1” banks like Barclays, Goldman Sachs or HSBC?

Most tier-1 banks like Barclays and HSBC have been around for over 100 years and manage trillions of dollars of assets, proving that they have stood the test of time.

CFI Markets uses tier one banks as their banking partner.FP Markets does not use tier one banks as their banking partner.

Have they been fined or penalised in the last five years?

If a broker has been penalised by a regulator in the past five years, it may mean that they were caught doing something they shouldn’t be doing - which may be of concern to you as an end client.

We’re not aware of any penalties or fines imposed by regulators on CFI Markets or FP Markets in the past five years.

How popular is their service/website?

While not always the case, the number of traders a broker has can be a good metric for understanding how reputable a brokers is.

FP Markets is more popular with over 10,000 traders.

Are they publicly listed?

Companies that are publicly listed on a stock exchange tend to be considered more reputable as they will be required to disclose their financials, and aspects of their operations, to the public.

Both CFI Markets and FP Markets are privately owned companies.

Where are they located?

Most reputable brokers tend to be headquartered in a major capital city or a financial hub such as Cyprus.

CFI Markets are based in Gregori Afxentiou 10 ave, Livadiotis Court 5, P.O.Box 6023, Larnaca, Cyprus, while FP Markets are based in Sydney, Australia .

Do they offer the features you need?

Assuming the brokers you’re choosing between are reputable, the next point to consider is whether they offer all of the features you require to trade.

This can be broken down into three categories:

• Services & instruments
• Platforms & account types
• Trading features, risk management tools & funding methods

Services and Instruments

If you’re looking to trade currency pairs, both CFI Markets and FP Markets offer forex trading. FP Markets have a slightly larger variety of currency pairs with 60 pairs, compared to 27 offered by CFI Markets. Also, if you’re looking to trade cryptocurrencies,

Both CFI Markets and FP Markets allow you to trade commodities like gold, silver and crude oil.

Platforms & Account Types

If you trade forex, there’s a good chance you might want a broker that offers the popular MT4 trading platform. If that’s the case, both CFI Markets and FP Markets offer this.

In addition to the platform, you’ll also want to ensure that the broker you choose offers the account type best suited to your needs. CFI Markets, for example, offer a mini account, standard account and VIP account.

Trading features, risk management tools & funding methods

If you have a certain trading style (e.g. scalping, hedging, or using EAs), you’ll want to double check that the broker you choose allows this, as not all of them do.

CFI Markets does allow scalping and hedging. While FP Markets also allows scalping and hedging. You can trade with EAs (expert advisors) on both CFI Markets and FP Markets.

In terms of risk management tools, neither CFI Markets or FP Markets offers negative balance protection. Negative balance protection prevents you owing your broker more than you’ve deposited.

CFI Markets also offer stop losses and limit orders to help you automate aspects of your trading strategy.

CFI Markets accept Paypal while FP Markets accept Neteller.

Are they affordable for what you need?

Comparing the fee structures of different brokers can be a minefield at times. The important thing to consider is what the spreads & fees are on the specific instruments and account type that you will be using.

For trading EUR/USD, CFI Markets charges points, while FP Markets charges 0.70 points. Therefore, CFI Markets is the more affordable for this instrument. If you want to compare their spreads across more instruments, You can jump back up to our comparison of their currency pair & indice spreads above.

Another consideration is whether or not your broker charges inactivity, deposit/withdrawal fees, or commissions on trades. If you’re a frequent trader, inactivity fees are unlikely to be an issue.

The Verdict: CFI Markets or FP Markets?

There’s no such thing as a perfect broker, but some are going to be a better fit for you than others.

Objectively, FP Markets is more reliable based on our criteria above. CFI Markets has a wider range of instruments to trade. FP Markets offer lower spreads on popular forex instruments like EUR/USD and are used by more traders.

Both brokers offer demo accounts, allowing you to test their platforms to see which is suitable for you. You can test drive their demos using the links below:

• Try CFI Markets’s demo account (75% of retail investor accounts lose money when trading CFDs with this provider.)
• Try FP Markets’s demo account (Losses can exceed deposits)
• Try XTB’s demo account (77% of retail investor accounts lose money when trading CFDs with this provider.)

Finally, if you’re really not sure you can always use our free tool (takes 15 seconds) that will help you find a suitable broker based on your precise requirements here.