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JDC Markets was founded in 2016 and is regulated and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license reference 316/16. JDC Markets is governed by the European Markets in Financial Instruments Directive (MiFID). The company is obliged to follow the strict policy of keeping client’s funds fully segregated from its corporate funds. All funds, regardless of classification, are placed in licensed and regulated financial institutions, the firm announces.
JDC Markets provides access to 50 currency pairs, 2 precious metals (Gold and Silver), and 2 energy products (Brent Oil and US Oil).
Customers can use the popular platform MetaTrader 5 (MT5) that is suitable for all types of investors due to its extensive functionality. MT5 is a fully flexible terminal that offers modern tools for technical analysis and is suitable for beginners and professional investors. It is available as a desktop version and as a mobile app for iOS and Android smartphones.
There is one account for all traders. The minimum deposit amount is USD100 and the spread for the EUR/USD pair starts at 2 pips. Accounts can be funded by bank transfer and Skrill.
The Order Execution Policy document shows that for the purposes of orders for the financial instrument, the company may act either as a principal (therefore, the company is the sole Execution Venue for the execution of the client’s orders) or as an agent (therefore some third financial institution will be the Execution Venue). This means that the brokerage firm decides what kind of broker to be and it can change its type any time. JDC Markets may use either the Straight Through Processing (STP) model or the market maker model to execute orders. When it acts as a market maker a conflict of interest arises because in addition to the spread, the company benefits when clients lose.
The Terms and Conditions document reveals that the company provides you with negative balance protection such that your losses can never exceed your account’s equity. If any extreme market conditions result in your account’s equity being negative, the company will zero your account. The same document informs that because of market gapping, the best available price that may be achieved could be materially different to the price set on the stop loss order and as such, stop loss orders are not guaranteed to take effect at the price for which they are set. It is also written that: “You acknowledge and agree that, despite our best efforts, the price at which execution occurs may be materially different to the price specified in your order. This may result from sudden price movements in the underlying assets that are beyond our control.” In other words, all orders are subject to slippage.
Overall, JDC Markets is a CySEC regulated company that usually acts as a market maker when it executes client’s orders. It provides negative balance protection for its retail clients who can trade through the popular MT5 terminal. However, trading conditions are less competitive – spreads are relatively high (2 pips for EUR/USD) and there are only a few instruments available for trading.