Is FP Markets Regulated?

Yes, FP Markets is regulated. It is licensed by the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). These are reputable tier-1 and tier-2 regulators, ensuring client fund protection and transparent trading practices.

This article will discuss FP Markets’ regulation, compare with other brokers like AvaTrade and Exness, and explain what it means for your trading safety.

What Regulatory Bodies Oversee FP Markets Operations?

FP Markets operates under several entities, and it’s because each one is regulated by a different authority to provide services to traders in different regions:

• FP Markets Pty Ltd is regulated by and under the Australian Securities and Investments Commission, by virtue of license number 286354.
• FP Markets LLC is registered and operates in St. Vincent and the Grenadines, with a license under registration number 126 LLC 2019. But not regulated by any financial authority.
• First Prudential Markets Ltd has a license from the Cyprus Securities and Exchange Commission (CySEC) and operates under the number 371/18.

These regulations not only allow FP Markets to operate in multiple locations but also respect clients by following legal requirements that are location-specific.

You can also compare with Tickmill regulation.

Is FP Markets Regulated in the US, Canada, UK, Australia, Kenya, and South Africa?

• United States: No, FP Markets is not regulated in the US and therefore declined their services to US clients.
• Canada: FP Markets is not regulated in Canada; Canadian residents cannot open accounts with any of its regulated entities.
• UK: Although FP Markets is not regulated by the FCA of the United Kingdom, clients from Europe can trade with the CySEC regulated entity which is also a protector of traders’ rights through MiFID II.
• Australia: Yes, FP Markets is ASCI-regulated, one of the strictest regulators in the world.
• Kenya & South Africa: FP Markets has no local authorization by CMA (Kenya) or FSCA (South Africa), but those from these countries can use the entity internationally for their registration.

For comparison, see Exness legal in India.

What Does It Mean to Be Regulated?

Being regulated means the broker has been authorized, and is being monitored by a government’s financial authority to ensure trading is fair, capital requirements are maintained and business is transparent.

Regulatory bodies require companies to fully comply and implement clients’ safety, including but not limited to capital protection, thus reducing the whole of fraud or bad practice.

About FP Markets:

• ASIC FP Markets Pty Ltd meets some of the world’s toughest standards. Check out FP Markets on ASIC Connect.
• CySEC FP Markets is MiFID II compliant, an EU financial protection regulation.
• The St. Vincent and the Grenadines entity FP Markets LLC is unregulated, (as stated on FP Markets’ FP Markets’ regulation page) and provides wider international access but less protection than ASIC or CySEC.

The Difference between Regulated and Unregulated Brokers: A Simple Comparison

The difference between a regulated and unregulated broker can be the difference between your trading experience and protection.

By trading with regulated brokers like FP Markets (ASIC and CySEC entities), you get:

• Segregated client funds
• Dispute resolution services
• Transparency and oversight
• Fair execution policies

Unregulated brokers may not give you transparency, refuse to resolve disputes and execute your orders unfairly. This is because they are not accountable, don’t separate funds, and don’t have to go through regulation checks. The downside is more risk of loss or unethical practices.

So while FP Markets have an unregulated offshore entity, traders who want total protection should go for a license under ASIC or CySEC depending on their region to open trading accounts.

Pro tip: Always confirm FP Markets’ entity-specific leverage rules,offshore accounts offer higher leverage but come with weaker regulatory protection and increased risk during volatile market conditions.

What Are the Safety Measures for Traders If They Go with a Regulated Broker Such as FP Markets?

These are the rights of traders who are clients of the FP Markets’ regulatory bodies (ASIC or CySEC):

Segregated Client Funds

FP Markets is required to hold investors’ money in segregated trust accounts with major banks. So your funds are kept away from the company’s account, and can’t be used for business purposes or in the event of insolvency.

Negative Balance Protection

By CySEC regulation, FP Markets provides negative balance protection; so you will be limited to the amount you have deposited.

Dispute Resolution and Compensation

As a member of the CySEC, FP Markets, through the Investor Compensation Fund (ICF), can compensate its clients for up to €20,000 in case the company goes bankrupt provided they are legitimate clients. For ASIC clients, the handling of disputes falls under the Australian Financial Complaints Authority (AFCA).

Is FP Markets a Trustworthy Trading Platform?

FP Markets is a safe and trustworthy broker if you are a trader under ASIC or CySEC-regulated ones. These regulators are very strict in their capital requirements, audits frequency and operational transparency conditions.

Here are the reasons why FP Markets is a good option:

• Founded in 2005, the company has had no major regulatory issues.
• The company provides solid platform support; Hence, MetaTrader 4, MetaTrader 5, IRESS are on secure infrastructures.
• Regulators and entities are listed on the regulation page, to show that they are transparent and accountable.

Note: On the other hand if you decide to apply through FP Markets LLC in St. Vincent and the Grenadines, please be aware that this entity is not regulated. Although it has more leverage and more access to international clients, it will not have the same level of regulation as the other entities.

Can FP Markets work in my country?

FP Markets accepts clients through its entities from almost all the countries, however not all countries can open an account with them. According to the broker’s terms FP Markets doesn’t accept citizens of the United States, Japan, New Zealand and other certain countries due to local regulations.

Also note the following:

• You will register under ASIC if you are from Australia.
• You will register under the CySEC regulated entity if you are from the EU or EEA.
• Clients not from the above regions can sign up with FP Markets LLC in St. Vincent and the Grenadines but this entity is not licensed by a major financial authority.

Check your eligibility based on your country of residence via the broker's account registration page; select your country from the dropdown and see if it is listed which means you are eligible.

How Are FP Markets Better Than Other Brokers?

Dual regulation with ASIC and CySEC gives FP Markets an advantage over many offshore-only brokers. It offers global access, platform flexibility (MT4, MT5, IRESS), and strong credibility. You can compare with TradersWay or LiteFinance.

If you were looking for Australian regulated forex brokers with global access and multi platform support (MT4, MT5, IRESS), then FP Markets is a good option.

What Happens If a Regulated Broker Like FP Markets Goes Bankrupt?

Should FP Markets go bankrupt (very unlikely):

• For CySEC clients, the Investor Compensation Fund (ICF) can pay up to €20,000.
• For ASIC clients, there is no compensation scheme nor protection of losses. However the client's money is kept separate, and can only be accessed via external dispute resolution through AFCA.
• Clients under FP Markets LLC (SVGFSA) have no regulatory safety net as it’s not regulated.

Conclusion: Is FP Markets a Regulated and Trustworthy Broker?

Yes, FP Markets is regulated by ASIC (Australia) and CySEC (Europe). These regulations ensure trader protection, financial transparency, and operational integrity. Although the offshore entity is unregulated, clients can choose a licensed body depending on their region.

For a safe trading experience, see FP Markets minimum deposit.

Ready to try a safe trading experience? Learn more or open a regulated account directly from the FP Markets website today.