There is no doubt that cryptocurrencies, lead by bitcoin foremost, are taking the financial industries by the storm. Online trading platforms are racing in adding the digital assets in their portfolios as to attract a larger customer base. Thus, it was to no one’s surprise that Markets.com created cryptocurrency instruments as well.
This review investigates the Market’s ability to propose attractive trade tools and ROI for traders bent on making a profit from coins. We review platform’s fees, availability of deposit options, trade tools, functions, and features, as well as security and regulation. At the end of the article, we construct the pros and cons section. The information can then be benchmarked against other, similar online trade companies, in our case, IQ Option, eToro, and AvaTrade.
General Information about Platform
Markets started a business in 2010 as GFC Markets, merging with TradeFX and creating a platform that has the current look. It went through major organizational reconstruction in 2016 in order to come closer to regulatory requirements set by CySEC and ESMA.
The owner, Safecap Investments Limited, also succeeded in partnering up with legendary Arsenal FC, creating a powerful image of the company it the eyes of its customer. Today, through licensing documents, the firm operates in Europe and South Africa, while other countries are not legally supported. The similar situation can be found in IQ Option, a trading platform that is also registered in Cyprus.
Much like its counterparts, IQ Option, eToro and AvaTrade, the Markets platform is heavily present in social media as well. It has created its own pages on Facebook, Instagram, and YouTube as to reach its customers more closely.
Registration and Verification
Registering an account at Markets.com is not a rocket science, as you go through the same process as with other platforms. You provide your mail and password, both of which you need to verify. Once you have done that, you have an account with which you can start funding and trading assets at Markets.com.
In next step, as you have gone through various trade tips, you are expected to provide information about yourself. You need to fill out forms regarding your personal details, financial information, trading experience and financial knowledge.
What we did find funky is the little test you take while registering an account at Markets.com. You are asked genuine questions about the financial trade instruments and based on your answers, you will get a recommendation. In case your results are not up to the standards, you would get a warning message like the one below.
Although you can register and trade at Markets.com, you might be advised to educate yourself further before you start transactions.
Deposit Methods and Fees
Funding your balance at Markets is possible through credit or debit cards, PayPal, Neteller, Wire Transfers and Skrill. The options that would land you fiat money instantly are e-payment systems (PayPal, Skrill, and Neteller) and credit/debit cards. Wire transfers are the ones that might take some time to be credited to your balance. It usually takes two to five business days for funds to end up in your Markets account.
Both deposits and withdrawals do not cost a thing at Markets.com, meaning that no matter what option you choose, what you plan to put inside your account, is the amount you will ultimately get. This is in line with other exchanges, as all of them offer to fund without additional costs.
You should always keep in mind that deposit providers, such as PayPal or your bank, might charge you their own costs. What is neat with Markets.com is that deposits above $2.500 would lead towards platform covering those costs for you.
Withdrawals also have minimum values for each option you may choose. The credit card withdrawals have a minimum of $10, wire transfers $100 and Neteller/Skrill $5.
Exchange Rate and Fees
Concerning fees, the company makes a profit from its services through the spread and daily swap charges. These charges stand at 1.5% on the FX pairs while CFDs would cost you 3% in total. The exchange rate (so-called price spreads) between cryptocurrencies and fiat money accounts for up to 1.5% difference between buying and selling value of the coins.
Much like other platforms, Markets.com employs fair trading evaluation, in which the exchange rate is narrow enough to be attractive to customers. It should be said that slight differences do remain on daily basis, as bitcoin and other cryptos vary greatly in value in very short time.
Markets.com Trading Instruments
Markets.com currently offers several instruments for you to trade with on daily basis. These instruments are:
- crypto and fiat currencies
Commodities, energy, and metals concern physical materials, such as Cocoa, Coffee, gold, silver, crude oil, natural gas and many more. The values are based on the world trends and on major registered financial platforms, such as NASDAQ.
Shares market constitute companies from USA, UK, France, Australia, Russia and other countries. NASDAQ and other stock markets set the average price, while the Markets.com trends influence the overall movement of the share price.
Indices, ETFs, and bonds have similar properties as other assets mentioned above, with different assets available for trade. It is important to note that in all cases, traders do not purchase or sell real assets. They do not own them for that particular time but rather bet on their rising and falling value.
Since this article is mainly concerned with cryptocurrency trading, the prime target of analysis is digital assets such as bitcoin. Markets.com offers 11 cryptocurrencies, bitcoin, Ethereum, Litecoin and DASH included, as shown in the snapshot below.
Much like other assets, you trade with the currencies without actually owning them. You bet on their value expressed in predetermined fiat currency. Bitcoins, for example, are tradable with USD while DASH with EUR.
Thus, there are 11 trading pairs, matching cryptocurrencies existent in the platform. Other companies offer a similar number of coins. IQ Option, for example, offers 10 coins and that many trade pairs, while eToro offers seven of them.
Working hours for the crypto market are not limited since you can put orders 24 hours a day, seven days a week. As with other instruments, there are no fees delegated specifically to digital coins, meaning that the only fee you will pay is the exchange spreads between buying and selling price.
The leverage level is set equally for all coins, standing at 1:3, as shown in the picture below this paragraph. It means that you can choose to increase the volume of trade three times of your order value, without the balance limiting the trade. It brings a lot bigger profit margin if the bid is successful. Do take into account that you can also lose a lot more if the analysis you made turn out to be inaccurate.
Markets.com offer three major platforms for its marketplaces, them being phone environments, desktop platform, and web browsing market. The phone platforms cover both iOS and Android users and the apps are downloadable for free from Google Play and Apple store.
Although the desktop version of the platform is available in terms of Meta Trader 4, you have to ask for one. You do not have it readily available, as it is the case with SimpleFX and InstaForex. It is worthy to mention that its availability is not mentioned in the “Available platforms” section. You will see the Meta Trader 4 and only once you have started practicing at web platform.
In the case of interface, both web trading and phone platforms are similar in many aspects. The functions are not numerous while the trading indicators can be used with the most benefit at web platform.
In the web, you can put multiple charts on the same page, combining the values of bitcoins, Ethereum, and litecoin for example. This would help you gain knowledge and understanding of the overall market trends. Many coins depend on the bitcoin’s changing value, thus the feature is very welcome.
You can also change chart’s colors, bar types, use many indicators to assist you while trading coins, as shown in the snapshot below.
Thus we deem interface to be adequate even if it is below the BitMex’s level for example, where everything can be moved around in web platform.
While trading coins at Markets.com, you should definitely be aware of the functions helping you make a profit in the marketplace. The base tools are “Buy” and “Sell” functions you use, as shown below this text. Their usage depends on whether the price of coins is rising or falling, thus you bet on these trends and invest money accordingly.
The support functions are:
- stop loss (puts a limit on the price value where the loss is acceptable to you. If the limit is reached, the order would be executed, leaving you with minimum losses).
- take profit (puts a limit on the value at which you expect a maximum potential profit. It allows the order to float towards the desired price and if reached, the order would be executed, landing you additional funds to your account).
- advanced (uses your own customized price of the coin instead of the immediate market value. It would release the order once the value enquires has been satisfied as per your directions).
Trading tools are a cool feature just installed by the Markets.com as another mean of support when trading currencies around. There are several distinctive trading tools that you can use currently: events & trade, trading central and daily analyst recommendations.
Events allow you to check out the latest market events that have an impact on the marketplace trends. The section provides you with time and places the certain event will take place, allowing you time to think about if you wish to attend these events yourself. The list is quite large, as shown in the picture below.
Trading Central holds a number of indicators apart from the regularly offered at “Buy” and “Sell” functions. It provides “on-the-go” research, where immediate forecasts analysis would take place. Normal indicators take into account past and current situation while trading central looks into the future.
Daily analyst recommendations put the best traders of the market to prove advice to the beginners and fellow traders as well. These people would put their own optimal orders that you can take by clicking on the functions “Buy” or “Sell”, as shown below.
The offer already specifies what function to be sued, at what leverage and on what asset. The only thing that you should do is to think whether you should trust this judgment or not.
Apart from the three main tools, you also have at your disposal information about what is a trend at the moments, most popular currency trades, order charts, historical values and top risers in terms of popularity and value.
Markets.com News and Analysis
Operating in the market filled fluctuations and events, it is only natural that platform like Markets.com would implement the event calendar. This is especially useful when you are a beginner that wishes to participate more actively in the market. The event calendar is shown below.
Although a nice feature to have, at this current stage, there are no crypto-related events. The calendar is oriented more towards macroeconomic trends, with cryptos not being in focus at the moment.
Another feature when it comes to market analysis is IPO news, where Markets.com offers its own take on popular IPOs. The last news they had that concerns the IPO was the Snapchat IPO, analyzing in depth the public offering with videos. The idea is great with the only issue that the Snapchat IPO was long gone by, in March 2017. Without regular posts, this service is of little value.
Lastly, the company offers NFP (Non-Farm Payroll) report for US traders, regarding the general state of volatility in financial markets. This is quite useful, as it provides the direction in which the US industries go, affecting the value of assets traded in the Markets.com.
Markets.com offers two types of educations for its clients, live webinars and events videos. The webinar is a cool feature offered by the platform, as many others, with exception of eToro, have the feature ready for the customer base. You have the ability to attend online these webinars for free. You would listen to the experts offering their advice and knowledge on particular trading aspect.
The live webinars concerning cryptos are those that you should definitely not miss out. These lessons are available for all clients and they would teach you all you need to know about bitcoins and overall crypto trading.
The event video’s purpose is to gather up the most important events happening in the market and deliver their meaning to the traders. The delivery itself is what makes this tool invaluable, as you get insight information about the potential consequences of the particular event. It takes into account both economic and political movements and decisions, as they both have a great impact on financial markets.
As mentioned before, Markets.com is owned and managed by Safecap Investments Limited, an investment company that is based in Cyprus. The company follows Cyprus Securities and Exchange Commission (CySEC) and has a license with a number 092/08.
Furthermore, the company also registered its operations in South Africa, gaining Financial Services Board’s (FSB) license, number 43906. Thus, the company implemented a number of policies, from trading to privacy related.
Here, Markets.com has an issue to solve as it does not provide any sort of personal protection functions. The two-factor authentication (2FA), which is provided by all other competitors, is not part of the deal at Markets.com. This can be a serious problem for traders that wish to trade with large amounts of funds. Your balance is practically available for skilled hackers at any time.
The only function you have is the password change option.
Support is what Markets.com thrives at the most, as it offers a wide range of tools for traders to use when navigating through the platform. There is an extensive FAQ, educational seminars, videos taking you around the website and more.
In addition to these tools, you also have the ability either to post a ticket to the customer department (open on business days only) or to chat live with a representative. Having both features is something that other platforms do not have, as IQ Option, eToro, and SimpleFX.
Pros and Cons
- the low transaction, deposit and withdrawal fees
- good supply of trading tools
- extensive education and events coverage
- enhanced support department with functions and various communication channels
- verification required for deposit prior to the trade
- IPO page needs more posts and projects
- security functions are nonexistent
- Meta Trader 4 not presented properly
What separates Markets.com from other platforms are not advanced trading functions but support tools. Educations, seminars, trading tools, events coverage and excellent support platform are a sum up of the company.
The cryptocurrency trade itself does not differ much from other competitors, like SimpleFX, InstaForex, eToro, and AvaTrade. It has a similar number of coins and trading pair with pretty much the same trade functions and leverages.
On the more negative note, the security at Markets.com is nonexistent. Thus, we would definitely recommend funding your account with minimum amounts. You can use the marketplace as a learning experience but do make sure to keep your balances safe.