Fullerton Markets Review

fullertonmarkets.com in short

The website fullertonmarkets.com is operated by Fullerton Markets International Limited, which is incorporated and registered in Saint Vincent and the Grenadines. The company explains that it is committed to fund safety, quick execution, and a system wealth creation. Fullerton Markets offers online trading of CFDs on currency pairs, commodities, and indices via the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The minimum initial deposit is USD100.

Regulation

As a recommendation, you should be aware of the regulations of the brokerage company. Fullerton Markets International Limited is registered in Saint Vincent and the Grenadines under registration number 24426 IBC 2017. It also has a registration in New Zealand under the number 1067357. Unfortunately, the company is not authorized by a regulatory body with strict requirements, it has only registrations. You need to be careful when working with offshore companies, as they do not have as strict regulatory requirements as companies regulated by EU bodies.

Account Types

There are two main types of live accounts you can open with Fullerton Markets, which differ in the spreads offered and commissions. The minimum required deposit is USD100 and the leverage can be up to 1:500.

Variable Spreads Account – It is available through the MT4 platform. Spreads are floating starting at 0.2 pips for the EUR/USD pair. They are derived from the Tier-1 liquidity providers in Equinix LD4 data server located in London. There are no commissions charged but the fees are collected from the spreads.

ECN Spread Account – Spreads are derived from an Electronic Communication Network (ECN) that is set up with multiple Liquidity Providers, including banks and hedge funds in Equinix LD4 data center in London. Traders get raw spreads for as low as 0.1 pips direct from the market participants at a flat fee of USD10 per lot in commission charged for currency pairs. There is a commission starting at USD10 when trading CFDs on shares.

What Type of Brokerage the Company is?

Fullerton Markets claims to use the Straight Through Processing (STP) model, passing on customers’ trades directly to its liquidity providers. The company has provided its Orders Execution Policy file on the webpage and this is the document, which usually informs how the company fills client orders, no matter what it claims. So, section 2 states that the company is always the counterparty (principal) to every trade. This means that Fullerton Markets is the sole execution venue and takes all the risk by itself, acting as a market maker. Being a market maker involves a conflict of interest because when the company executes orders, it keeps the risk to itself. Every loss for customers is a profit for the company.

The Client Agreement file informs that the client acknowledges that the risk reducing orders or strategies such as stop loss orders that are intended to limit losses to certain amounts may not always be executed because of unusual market conditions or technical limitations. It is also written that Fullerton Markets aims to provide clients with the best trading execution available, and to fill all orders at the requested rate. However, there are times when orders may be subjected to slippage due to an increase in volume and/or volatility. Slippage most commonly occurs during fundamental news events or periods of limited liquidity. In other words, all types of orders are subject to slippage and stop loss orders are not guaranteed.

The Risk Disclosure document states that it is possible to lose more than your initial investment. However, the Fullerton Edge section of the webpage states about the Negative Balance Protection. It is written that “there may be rare scenarios where clients may face losses exceeding their capital. To protect clients’ interests, Fullerton Markets has introduced Negative Balance Protection, which allows affected clients to remove any negative balance on their trading accounts. All clients of Fullerton Markets get to enjoy this safety feature by simply submitting a request.” This means that if you submitted such a request, you can lose only the funds that are in your account.

Fees

In addition to the usual fees such as spread, rollover, etc., there is also an inactivity fee. The company will charge the client a nominal service fee of USD5, or the account balance, whichever is lesser, on a quarterly basis if the account has been dormant (no trading activities in the last six (6) months). This service fee will be a voluntary donation to Fullerton Foundation – the philanthropic division of the company.

Deposits and Withdrawals

Many deposit methods are available, including bank transfer, credit or debit cards and e-wallets such as Neteller, Skrill and Fasapay. The minimum deposit amount is USD100 for all payment methods except for the bank transfer where it is USD200. All transaction fees are covered by the Fullerton Market, the company claims. There is a 2-4% fee if you deposit or withdraw by exchanging cryptocurrency.

According to generally acceptable AML rules and regulations, withdrawals must be performed only through the same bank account or credit/debit card or digital wallet that you used to deposit the funds. Withdrawals from the account may only be made in the same currency in which the respective deposit was made. Withdrawals are subjected to withdrawals processing and handling fees. Those fees will be deducted from the transferred withdrawn amount. You are only allowed to withdraw your funds after 30 days from the date of deposit if deposits are done via credit card. The request will generally be processed by the company within 24 hours of reception. The time it takes for the money to reach your credit card or bank account that has been used to deposit funds may vary (usually up to five business days).

Trading Platforms

Customers can access global financial markets using most popular trading platforms: MetaTrader (4 and 5).

MetaTrader 4 (MT4) is known for its flexibility and convenience. The built-in indicators help customers perform real time market analysis. The ability to trade with the help of expert advisors (EAs) allows traders to open positions automatically at the right time.

MetaTrader 5 (MT5) is the newer version of the popular terminal. It is the righ

t choice for advanced traders. MT5 offers all the advanced tools for comprehensive trading and analyses, as well as algorithmic trading with EAs. The platform shows the depth of the market (level 2 quotation) and supports two types of trade transactions – netting and hedging.

The company provides a comparative table of both MT4 and MT5 features.

Assets

Currency Pairs – More than 10 major and minor currency pairs are available for trading. The typical spread for the EUR/USD pair depends on the trading account and is 0.2 pips in the Variable Spreads account and close to zero in the ECN Spreads accounts (at the expense of the USD10 commission per lot).

Indices – Clients can trade CFDs on 8 indices, such as DAX, S&P500 and DJIA.

Commodities – CFDs on Gold, Silver and Crude Oil can be traded.

Summary

Fullerton Markets is a company registered in Saint Vincent and the Grenadines. Although the company claims to use the STP model, the Order Execution Policy file informs that it is the counterparty to each deal, so the main conflict of interest exists. Customers can trade a few currency pairs, commodities, and indices through MT4 and MT5 terminals. Clients can deposit by bank transfers, debit or credit cards, and e-wallets such as Skrill and Neteller. Live trading can be started by depositing at least USD100. Spreads are variable and the ECN account offers raw spreads at the expense of commissions. Be careful because the company is not authorized by a regulatory body with strict requirements.