Something you have to consider, no matter which broker you choose to deal with, is spreads.
These are also a factor if you are trading on Markets.com.
Here we will introduce you to the Markets.com spread and give you the full lowdown on how it is applied on each account type and asset available with the broker.
This should assist you in making the best possible decisions for your trading future.
You can also see our Markets.com review for a full in depth look at the broker.View Contents
Table of contents
Type of Spreads with Markets.com
As with every top forex broker, the spreads available at Markets.com can have a different impact on your trading depending upon the account type you have chosen, assets you are trading, and how you are regulated. Here we will take a closer look at each area:
Variable and Fixed Spread
Only a variable spread is offered through Markets.com at this time. There are currently no fiex spread offerings in place.
Spread on instruments
Markets.com presents a wide range of instruments for trading through the Metatrader trading platforms of both MT4 and MT5. Through both platforms, commodities, indices, and stocks can be traded. Additionally through the MT5 platform, cryptocurrency and bonds trading are made available. Through the webtrader platform, you can also access trading in ETFs and blends.
This range of trading instruments is well regulated through four bodies around the world. CySEC, FSCA, ASIC, and FCA in the UK are all catered for through Markets.com
Spread on accounts
The Markets.com spread that you can avail of may also differ depending upon the account type you choose to open. Here is a closer look at each available Markets.com account type:
The Markets.com retail account is in essence the standard account type offered by the broker. This is likely the most common account type which you will start out with if you begin trading with the broker.
The account has a specialized feature for French traders which means it allows for a guaranteed stop loss for these traders in particular.
The Markets.com MarketsX account is the premium account type that is offered by the broker. This account type is available with a generally lower spread, and if you fund the account with more than 250GBP or equivalent.
The Markets.com professional account type is available to traders who are regulated under CySEC and who also fulfil at least two of the following three requirements:
- A portfolio value of at least 500,000 Euro
- A minimum of four months experience in CFDs trading
- Experience within the financial sector
If you do manage to meet these criteria, you can benefit from a lower spread and protection against certain new ESMA regulations in regards to your funding and trading experience.
A large part of modern day trading is providing access to Islamic accounts. This is something you can also rely on with Markets.com and with no spreads difference to worry about.
The only things which are different when trading through an Islamic account are hat cryptocurrency and exotic pairs trading are not catered for. When it comes to holding your positions, the maximum holding time due to the rollover-free nature of the account is 45 days.
Markets.com spread review on various assets
The Markets.com spread is different depending on which assets you are trading. Taking a closer look, we will see exactly how this may impact your trading decisions:
When forex trading at Markets.com you will have a selection of major, minor, and exotic foreign currency pairs available to choose from.
These pairs can all be traded through any of the MT4, MT5, or Webtrader platforms. The Markets.com website only displays the minimum spread applying to each market, though this will vary.
You can choose from a range of 10 global indices with Markets.com. Again, these can be traded through any of the brokers available trading platforms and the website provides only minimum spread values.
While spreads on many major indices are available, the Japanese Nikkei 225 is not at the time of writing. The spread though does remain the same throughout the multiple regulatory jurisdictions.
The MarketsX account available under FCA regulation does offer a lower spread on the US30 index.
Index futures trading is also available with Markets.com. This includes futures again on global major indexes which can be traded through any available platform. There are more than 15 markets available.
Again, the Markets.com website provides only the minimum spread available in each market. This is subject to change.
With more than 20 soft and hard commodities markets available to choose from, we can confidently say there is extensive choice in this area. As usual, trading is available through MT4, MT5, and Webtrader and the spread remains the same among all the jurisdictions.
Commodities trading with Markets.com is carried out in US Dollar.
Markets.com offers extensive trading in metals as CFDs through all of their available trading platforms. Again the spread is uniform across every jurisdiction. There are a total of 5 metals markets available for you to choose from.
The two Markets.com energies can be traded through MT4, MT5, and Webtrader. Here for crude oil and natural gas, the minimum spreads are provided by the website, although these can fluctuate depending on the market situation.
The energies markets are traded in US Dollar with the same spread under each regulatory body.
Crypto trading has become a major part of any offering from a top forex broker. At Markets.com too you can trade in 6 major cryptocurrencies with USD. This trading is available through the MT5 and Webtrader platforms and the spread is the same throughout each regulatory body.
Bonds trading with Markets.com is available with 4 markets open for trading. As wiith Markets.com crypto trading, these are available through MT5 and Webtrader platforms. Bonds can be traded in your own base currency depending on region, and the spread also stays in line within each regulatory area.
Markets.com share trading has never been so easy. There are dozens of shares in top companies from around the world for you to choose from. These can all be traded through Webtrader and you can benefit from the same competitive spread regardless of your location.
The currency you can trade with depends on the country of origin for the share you are trading. European shares should be traded in Euro, US shares in US Dollar, and so on.
Trading in ETFs is also available at Markets.com. You can choose between more than 15 ETFs which are traded in US Dollar through the broker. Again here, the website provides its minimum spread which can change based on the market. Trading is available through Webtrader only for ETFs
One area which Markets.com offers which not too many other major forex brokers do, is trading in blends. This is trading on entire industry fields and situations such as are outlined below as CFDs. These can be traded through Webtrader and the spread as well as the available markets will vary slightly depending upon your regulatory area.
The currency used to trade depends on they type of blend you are trading, and as a note, PNC currency in these markets refers to Penny Sterling.
Trading in IPOs is not yet available through Markets.com but it is an area which the broker is looking to add to their portfolio of markets soon.
Markets.com Spread comparison with other major brokers
The first thing which becomes clear about Markets.com is the fact that they offer a very wide range of markets and assets for trading. This is of benefit if you are looking for increased choice.
The broker also offers its Markets.com spread bonus which can be up to 5% on the weekly spread under both FSCA and ASIC regulations. This is a welcome bonus on occasion as despite the vast array of markets, the spreads tend to be comparatively high.
One way to negate this higher spread is to open a MarketsX account and try to lower costs that way, although it can also be difficult to determine the precise spread based on the information provided.
A lot of the spread data is not made pubic by the broker, so we have to trust that as they say, the MarketX account spread is lower. More competitive again is the professional account spread, although you do have to meet certain criteria.
Overall, from our perspective, Markets.com is a great choice if you want an increased number of markets to choose from when you trade and are not particularly worried about the cost.