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Fusion Markets

Fusion Markets

 

Fusion Markets is a trading name of Gleneagle Asset Management Limited, located at Sydney, Australia. It is regulated by the Australian Securities and Investments Commission (ASIC) under license number 226199. In addition, Fusion Markets Pty Ltd is a Corporate Authorised Representative of Gleneagle Asset Management Limited.

Trading assets include over 90 currency pairs, 13 precious metals, 3 energy products, commodities, 10 global indices and 5 cryptocurrencies. The average spread for the EUR/USD pair is 0.8 pips and the leverage can be up to 1:500. The company also announces it welcomes scalpers.

Customers can trade through the renowned terminal MetaTrader 4 (MT4). MetaTrader 4 is the industry standard in currency trading. It is fast, convenient, and extremely stable. MetaTrader 4 is the pioneer of offering expert advisors (EAs), which are automated trading systems that are developed using the MetaQuotes language or purchasing the EA’s online. With Fusion Markets you can use all available versions – installation version for Windows PC and Mac, mobile version for iOS or Android devices, as well as a web version for each major browser.

There are two main account types, both with the same access to trading assets. The company identifies the Zero account as the most popular and designed for people who have traded before, understand how the commission sizing works and are typically more active. The spreads start from 0 pips and the commission is AUD4.50 per lot traded. The Classic account offers commission free trading with spreads starting at 0.8 pips.

Accounts can be deposited by several ways, including credit cards, Skrill, Neteller, and FasaPay and all transaction fees are covered by the company, it claims. There is no minimum deposit required and you can start trading with as much as you like.

The Financial Product Service Terms document reveals that Fusion Markets acts as principal in respect of the Fusion Markets Products issued by Fusion Markets. This means the company is the only counterparty to client deals, or it is a market maker. This creates a conflict of interest because the company benefits not only from spreads and commissions, but also from customer losses. The same document warns that trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit. The company explains that: ‘there is no such thing as negative balance protection in the underlying interbank forex market. Fusion (and you as our client) are exposed to the risk that the positions cannot be closed fast enough, and at the desired price. Losses can occur for both Fusion and you as the client; therefore, we cannot guarantee that they never happen.’

We looked in all the information provided for what kind of stop orders the company provides. However, we did not find any, so we assume that stop loss orders are not guaranteed and all orders are subject to slippage. If they were guaranteed, it should have been mentioned somewhere.

In general, this is a company regulated by the ASIC, acting as a market maker, which does not provide negative balance protection and you can owe it some money in the end. Australian brokers can still offer higher leverage (here it is up to 1:500), but this is associated with a huge risk of large losses.

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