Is FP Markets a reliable forex broker?
A forex trading strategy cannot excel without having a reliable forex broker to execute the trades. Following extensive testing of several leading forex brokers and careful consideration, we chose FP Markets. This blog post outlines the most important reasons that led us to choose FP Markets to support our forex managed account service and trade our proprietary Patience is Key trading strategy.
Introduction to FP Markets
FP Markets, also known as First Prudential Markets, is a global leader in providing forex and CFD trading on various platforms. The company launched in Australia in 2005 and has grown to become a global leader in online trading services. FP Markets has earned over 40 awards and has a 5-star rating on Trustpilot.
Regulations are sets of rules that brokers must follow. Regulators are the organisations that set and enforce the rules. FP Markets has been regulated in Australia and authorised by the Australian Securities and Investment Commission since 2005. In 2019, the company gained authorisation in Cyprus & the EU from the Cyprus Securities and Exchange Commission. The company is also registered in St. Vincent and the Grenadines. FP Markets’ global structure enables them to offer services to clients in a wide range of countries and subsequently allows us to do the same.
Safety of funds
It’s very important for us to keep your money and our money safe. FP Markets supports some of the most secure payment methods, such as Visa, Mastercard, PayPal, Skrill, Neteller, etc. The company safeguards customer funds with reliable banks, such as the Commonwealth Bank of Australia.
Besides offering MetaTrader 4, as many forex brokers do, FP Markets provides specialised technology to operate a forex managed account solution. FP Markets provides a Multi-Account Manager (MAM) platform, which allows us to manage and trade on behalf of multiple trading accounts. Additionally, FP Markets supports powerful Virtual Private Server solutions to run our Patience is Key trading strategy with minimal latency, helping to give us, and ultimately you, an edge.
FP Markets MAM solution also provides an application to view real-time insights and analytics of your trading account’s performance.
Every commission we pay to a broker reduces your profit and our profit. FP Markets has the most competitive commissions, spreads and swaps for the currency pairs we trade in our strategy. What’s more, FP markets offer free deposits and low fee withdrawals for a wide range of payment methods. Wherever in the world, you’re based, there will be a convenient method for you to fund your managed forex account.
We’re trading on behalf of dozens of clients, and we replicate the same trades for every account. The aggregate volume of all our clients’ orders is substantial. Larger orders are likely to experience more slippage. To prevent or reduce slippage, we need deep liquidity. To ensure our trading strategy performs optimally for all our clients, we need a broker with fast order execution and deep liquidity. FP Markets has proven they can support our collective demand on all currency pairs traded by our strategy.
How to sign up with FP Markets
To register with FP Markets and start using our managed account service, you need to use this special link: www.fpmarkets.com/Signup/AidandSox
What is a forex multi account manager?
A forex multi account manager, also known as MAM, is a specialised tool that brokers integrate with their trading platforms for professional traders, commonly referred to as money managers or account managers, to trade on behalf of multiple accounts from one interface. Therefore, a money manager doesn’t need to login and open trades in multiple trading accounts or install their trading robot in multiple trading platform instances.
Forex money managers trade from a primary account, commonly referred to as the master account, and trades are replicated in the follower accounts, commonly known as sub-accounts. Essentially, a forex multi account manager lets one trader manage multiple accounts.
Aid & Sox use a MAM solution provided by FP Markets to trade from one MT4 terminal hosted on a virtual private server (VPS) that runs our proprietary Patience is Key automated trading strategy and replicates the trades in our clients’ accounts.
How MAM software works
The most popular MAM software on the market is called MetaFX, developed by a company called KeySoft. MetaFX is used by many of the world’s leading forex brokers, including Swissquote, FxPro, IC Markets and FP Markets.
The software is designed specifically for managing multiple MetaTrader 4 accounts from a master account. Brokers install the MetaFX MAM plugin on their MetaTrader 4 server and provide master account access to qualified money managers and experienced traders.
The MetaFX MAM solution executes manual or automated trading strategies across multiple sub-accounts. The software also supports ad-hoc manual trades, allowing the account manager to open and close trades for specific accounts on demand without impacting the other accounts.
The master account combines the balance of all the sub-accounts and splits trades proportionality according to various allocations rules. Meaning, it automatically calculates order sizes based on various attributes, such as account balance, equity or other rules.
Key features of MAM software
Besides the core of replicating trades from the master account to the sub-accounts, MAM software has several other important features:
The MAM software will accurately calculate the success fee our clients pay for every successful trade.
It must operate with minimal latency to ensure that transactions are executed as quickly as possible to limit slippage, leading to a difference in entry prices between the master account and subaccounts.
Provide detailed and accurate reports for clients to analyse their trading histories.
Have flexible rules for the money manager to configure the best possible conditions for their strategy to excel.
How to open a MAM sub-account
To open a MAM sub-account to have your funds managed by Aid & Sox is incredibly simple. All you need to do is register with FP Markets using this special link:
. Once you register with FP Markets using that link, your trading account will be created and assigned to Aid & Sox for management.
Copy-trading vs forex managed account (MAM)
Copy-trading is popular among forex novice forex traders, as are managed account services. Both solutions let inexperienced traders tap into the forex market by letting someone more experienced make the trading decisions on their behalf.
Some large international brokers such as eToro have based their entire business model around the copy trading concept. Many other brokers also provide copy trading solutions by providing access to third-party communities or building proprietary platforms for their clients.
To understand the similarities and differences between copy-trading and managed forex accounts, this article introduces the two concepts and highlights and compares the pros and cons.
What is copy-trading
Copy-trading simply involves copying the trades of someone else who has demonstrated a successful track record. Copy-trading is considered a type of social trading. There are several specialist trading applications where experienced traders can create profiles and broadcast their trading strategy for less-experienced traders to subscribe and copy in their trading account. The strategy provider does not have a relationship with the follower and typically charges a subscription, volume, or performance fees. Copy traders can easily start and stop following strategies, copy multiple strategies simultaneously and choose how much of their funds they wish to allocate to any given strategy.
What is a forex managed account?
A forex managed account is a service provided by a specialist money manager who recruits clients and establishes long-term relationships with common goals. Investors have agreements with their money manager and a forex broker. Your money manager has a limited power of attorney to execute trades using the funds in your trading account. The broker provides a specialised trading platform to ensure the money manager can trade effectively while ensuring complete transparency is maintained at all times.
Comparison of copy-trading and forex managed account
There are many overlaps in the fundamental principles of copy-trading and forex managed accounts, but there are some important distinctions too.
Copy-trading still requires traders to perform some risk management functions, whereas a money manager fully controls a managed account.
It can be harder to find forex account managers like Aid & Sox by searching through Google results whereas some platforms list hundreds of copy trading strategies in one place.
Both copy-trading and managed forex accounts allow you to start and stop at any time.
Copy-trading does offer more flexibility as you can copy multiple strategies in one account and open and close trades yourself. However, this can interfere with performance. Managed accounts do not allow traders to interfere with trading operations.
Copy-trading and managed forex account services let you see your trading account performance in real-time.
Copy-trading is vulnerable to latency and execution price discrepancies, whereas managed forex accounts benefit from all trading being managed by a single person and system.
How to choose between copy-trading and managed accounts
If you’re thinking about how you can start profiting from opportunities in the forex market, you don’t necessarily need to choose between a managed account service or copy-trading. Hedging is an important principle in investing, so don’t put all your eggs in one basket. Depending on how much you have available to invest, it might be reasonable to try both copy-trading and allocating funds to a managed account service.
A managed forex account with Aid & Sox is one-hundred per cent passive, whereas copy-trading requires some management. Contact us to learn more or register here if you want to get started with a managed account service.
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Aid & Sox BV
3526 KV Utrecht