FP Markets launches social trading ahead of CFD leverage restrictions

Rick Steves

Although the CFD restrictions on leverage are coming into effect by the end of March, FP Markets will still offer leverage up to 500:1 on its Pro Account. 

Australia unveiling new law to decimate smaller FX firms

ASIC-regulated broker FP Markets has announced the launch of its social trading service as community trading becomes part of the new paradigm.

FP Markets Social Trading offers control whether the user is looking to trade as a Copier or offering trading strategies as a Provider,

“Copy trading removes some of the complexities of trading forex and CFDs and allows customers a more accessible entry point to trading the global financial markets by following successful traders, or Providers. These Providers are ranked by FP Markets based on their profitability over a given period of time and potential copiers have the ability to view their full trading history and past performance”, said the announcement.

FP Markets‘ trading offering includes more than 60 currency pairs, over 50 of the world’s biggest Stocks including Facebook, Google, Apple, and Amazon, as well as commodities, indices, and cryptocurrencies.

Craig Allison, Head of Europe, Middle-East and Africa, commented: “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.

“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”.

With social trading, users have no need to develop their own trading plan as they can just follow the performance of successful traders in real-time and mirror the behavior of professional traders with a proven track record.

While having no need to make any trading decisions, users still maintain control over their accounts. The service allows multiple copy trading options and risk management strategies, with automated trading.

The Australian regulated global CFD and Forex provider has more than 16 years of industry experience and has been awarded ‘The Highest Overall Client Satisfaction Award,’ five years running from Investment Trends, a renowned industry research firm.

Although the CFD restrictions on leverage are coming into effect by the end of March, FP Markets will still offer leverage up to 500:1 on its Pro Account.

In a 2018 interview with FinanceFeeds, FP Markets Managing Director Matthew Murphie commented on the leverage restrictions being placed in Europe at the time.

“In relation to recent changes in EU regulation, I agree with any tightening of regulations that genuinely provides better protection for clients. However, it is clear that many people ultimately just want to trade. I think it is important that clients understand the risks of trading, and in particular the risks of using leverage, however, provided clients are in a position to make an informed decision, I believe in the freedom of individuals and therefore I don’t see that forcing clients to use lower leverage if it is against a client’s will as a reasonable approach.

“This approach is forcing clients to go offshore to seek higher leverage and trade with unregulated brokers in many cases, which arguably poses greater risks to clients. In my opinion, clients should be able to be protected by their local regulators while maintaining their desired trading conditions. Furthermore, it has been shown that in some situations, lower leverage together with regulations forcing firms to liquidate their clients under EU regulations is resulting in further client losses.

“In relation to simply asking for more money in reaction to the leverage restriction, this is not viable in all situations as many clients would prefer to trade off-shore, or with an ASIC-regulated broker than to provide additional margin.

“In summary, I am in favor of any regulation that better protects clients however I remain skeptical that measures, such as leverage restrictions, are resulting in the intended outcomes.

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