Our Security
As a client of FP Markets, all your client moneys are held in a trust account with a top-tier bank. We are 100% hedged, run no proprietary positions, are Australian owned and have 4 times the capital required by our regulator, ASIC.
Security, Client Money and Hedging
In selecting the security of a CFD provider it is important that the firm is adequately capitalized relative to liabilities. FP Markets maintains a policy of maintaining four times the regulatory capital requirement.
We do use client money to hedge positions, which means you have counterparty risk of both FP Markets and the Hedge Counterparty defaulting, however it is important to note that we do this to ensure that we are always 100% hedged so that no market risk is faced. Unlike most CFD providers we do not run any market risk or proprietary positions.
When considering security, it is also important to consider the profitability of your CFD provider. Some of the large and well known CFD providers have faced large losses over the years, unlike FP Markets, who has demonstrated a 5 year profitable track record in a variety of market conditions.
FP Markets is well capitalized, has no debt, runs no market risk, does not run any proprietary positions and has sophisticated risk management systems which have been tested during extreme market conditions.
As a result of being a Participant of ASX 24 (previously known as the Sydney Futures Exchange), FP Markets is required to submit accounts showing both our balance sheet and profitability on a monthly basis.
If you open a CFD account, the CFD provider will be holding your funds. Therefore there are a number of questions that you may wish to ask to gain comfort in relation to the security of the provider.
Questions to ask your CFD Provider
- Are you regulated by ASIC?
- Are you 100% hedged and ensure that no proprietary positions are taken?
- Are you a member of an exchange which requires monthly submission of financial accounts?
- Do you have a 5 year profitable track record?
- Do you have at least 4 times the required capital required by ASIC?
About FP Markets
FP Markets Pty Ltd is majority owned by First Prudential Investment Group Pty Ltd, which is an Australian owned company which also owns FP Markets Ltd based in the United Kingdom. FP Markets has been trading in Australia since 2005 and rapidly became a dominant player in the direct market access (DMA) service. The company strongly believes that such a transparent model is the fairest and provides best value for retail clients. FP Markets is well resourced, has thousands of clients and offers both the comfort of being an Australian business with no on or off-shore proprietary positions, yet still provides the benefits of well resourced global infrastructure so that clients can take advantage of worldwide opportunities.
FP Markets has become one the most awarded CFD providers in the industry over the years. The group is focused on providing both a secure trading environment and offering the most competitive and fairest trading model via a zero market risk, 100% hedged DMA model.
For further information about security of funds please call us on 1300 376 233.