FXPro Experiences: STP on a Commission Basis and Much More

FXPro is a British CFD and FX broker as well as a well-known brand in the industry not least due to its Premiere League and Formula 1 sponsorships. The broker’s offer includes STP trading without mark-ups exclusively on a commission basis. In addition, further market and account types are part of the service offering. MetaTrader and cTrader are used for trading. In addition to FX, the underlying assets also include precious metals, commodities, stocks, indices, and futures contracts. Algo Trading is possible through expert advisors, cBots, or the social trading platform SuperTrader, which is based in Cyprus.

Pros & Cons of the FXPro Evaluation

Table of Contents

Broker Review: Our FXPro Experiences

1.Trade Conditions: STP FX Trading for $4.50 Each without a Broker Spread

• Typical Spread EUR/USD cTrader (STP without Mark-ups): 0.40 Pips
• Commissions FX Trade cTrader: $45 per traded million (Half-Turn)
• Typical Spread EUR/USD MetaTrader (STP with Mark-ups): 1.20 Pips
• Typical Spread DAX: 1.20 Points
• Typical Spread EuroStoxx50: 1.5 Points
• Minimum Spread Gold: $0.30

FXPro customers can choose between the MetaTrader4, MetaTrader5, and cTrader trading platforms, with the trading platform also deciding on the account and market model. The FX trading conditions via the cTrader platform positively factor into our FXPro evaluation: A STP market model without mark-ups is being used.

Traders, who are gaining experience with an OTC broker such as FXPro for the first time, are reminded of the two possible STP trading variants: Brokers can leverage their coverage contributions either via mark-ups on the spreads of the liquidity pool or via commissions. The latter variant is clearly preferable since the role of the broker is limited to that of a service provider and conflicts of interest can thus be excluded.

The minimum spread for cTrader trading is therefore 0.00 pips. The average spread in EUR/USD is 0.40 pips, which is equivalent to a cost of $4 when trading a standard-lot position. The commission is priced at $45 per million (half-turn, when opening and closing a position).

The MT4 Booster Package includes numerous additional applications for the trading platform MetaTrader4

There are no commissions for trading via MT4 and MT5. Instead, the broker takes mark-ups on the spreads (MT5) or acts as a market maker (MT4). The minimum spread is $0.60 per standard lot so that the minimum costs of the broker spread noticeably exceed the commission costs – a constellation that is typical for FX trading.

When trading precious metals via cTrader, the same commissions are charged as in FX trading; spread mark-ups are designated for MT accounts. Trading in futures, shares, and indices (only possible via MetaTrader) does not incur any commissions. The spreads in the major leading indices are 1.2 points for the DAX and 1.5 points for the EuroStoxx50, for example.

Rating: A

2. Underlying Assets/ Trade Platform Offering: FX, Precious Metals, Futures, Shares, Indices

The scope of the catalogue of underlying assets depends on the selected account or market model. Via the MT4 account, 69 FX pairs as well as indices, metals, futures, and shares can be traded. MT5 allows for the trading of 54 FX pairs, indices, metals, and futures. Via CTrader, 69 FX pairs, and energies as well as precious metals can be traded on the spot market/ using its rates.

Outside of the FX market, the underlying assets are 20 indices (financial indices, energy, and agricultural commodities), 30 indices, more than 150 shares, gold and silver, and three spot energies. A major plus in the FXPro test especially for precious metal traders: Gold and silver can be traded with several contract sizes and on both a EUR and USD basis. In the case of gold, contract sizes of 100 ounces and 100 grams are possible for example. Many brokers are still forgoing small contracts to date and they often endanger the risk management of their customers by doing so.

The margin requirements for most of the underlying assets correspond to the usual market conditions. The initial margin is 1% for most indices and 0.50% for most precious metals. The maximum leverage on all three platforms is up to 500 times the equity and is used primarily in FX trading.

Rating: B

3. Order Features of the Trading Platform: The Most Important Order Types are Available

The selection of tactical order options must also be considered in the broker test: A wide range of order types extends the tactical scope for both discretionary and automatic trading approaches. Which specific order types are available depends on the respective trading platform.

When trading via MT4, both instant orders and pending orders are available. Pending orders include limit-buy, limit-sell, stop-buy, stop-sell, stop-loss, and take-profit orders. The same order types are also available when trading via cTrader and MT5. However, there are some differences regarding the order execution. Requotes are only possible in MT4, while partial executions are only possible in MT5. Slippage is possible on all three platforms – both positive and negative. Stop and limit orders must be placed 1-2 pips apart (FX main currency pairs) in MT4 and MT5.

MetaTrader 4 – up to 1:400 leverage for forex

The detailed information regarding the market models, which can be found in many places and which few competitors offer, is one major positive aspect of our FXPro evaluation. The broker thus provides insight into the processes behind its trading platform. As such, interested parties can learn how orders are passed on to the liquidity pool:

“Smart Order Routing” gives you the best available price, while improved liquidity ensures that your order is processed automatically in 99.9% of all cases. In case of many partial executions, cTrader automatically collects all available liquidities at the best possible price and executes them at the VWAP (volume-weighted average price).”

Rating: B-

4. Analysis Features of the Trading Platform: Drawing Tools, Indicators, AutoChartist and More

The three trading platforms are available as a client version as well as a web-based and a smartphone version. MT4 and MT5 as well as cTrader provide users with basic drawing tools (trend lines, Fibonacci retracements, etc.) and indicators. The user interface can be partially modified for all three platforms: cTrader allows for different background colours, line widths, etc., for example.

Not just for beginners, the AutoChartist tool, which is provided to all customers with a minimum credit of €200, is one big plus in the FXPro test. AutoChart is a kind of market scanner that can be searched for specific constellations (chart formations, resistances, etc.).

It is possible to specifically search for constellations with a high forecast quality. The tool is used by many traders less as a decision-making tool and more so for the purpose of finding ideas. In addition, customers can obtain trade signals from the Trading Central service: Therein, concrete entry options are discussed on the basis of the chart analysis.

Rating: A-

5. Regulation, Deposit Guarantee, and Risk Limitation: Complicated Construct, No Margin-Call Obligation

Anyone that is not dealing with a broker like FXPro that is specialized in off-market CFD and FX trading for the first time will know: The structuring of such companies can sometimes be quite complicated. This is also true in this case: When opening an account, traders must decide whether to enter into a contract with FXPro UK Limited or with FXPro Financial Services Limited.

FXPro UK Limited is supervised by the British Financial Supervisory Authority (FCA), while FXPro Financial Services Limited is under the jurisdiction of the Cypriot Financial Supervisory Authority, CySEC. This is analogous to the responsible deposit-guarantee and investor-indemnity authorities, FSCS (UK) and ICF (Cyprus).

However, the responsibility of FSCS and ICF should primarily be relevant for claims from open transactions and not for the safety of funds itself. Customer deposits are deposited into segregated accounts with banks with good credit ratings outside of Cyprus including Barclays Bank, Royal Bank of Scotland, and Bank of America.

There are hardly any significant differences between FXPro UK Limited and FXPro Financial Services Limited in terms of the service and conditions offered. The latter has access to the FXPro SuperTrader platform and a portfolio management service.

The mandatory exclusion of margin-call obligations above and beyond the account balance is a major pro in the FXPro test report. This rules out a negative trading account balance, which is a considerable risk particularly in connection with gaps, which cannot otherwise be eliminated by stop loss orders.

Rating: A-

6. Automated Trading: Expert Advisors, cTrader Bots, and SuperTrader

Automated trading is in vogue: The prospect of being active on the market on the basis of optimized algorithms with little time is attractive to both novices and professional traders. Algo Traders can expand their experiences with FXPro: Expert Advisors are available in MT4 and MT5, cBots in cTrader and the “SuperTrader” platform.

The Expert Advisors application possibilities are well known, since MT4 and MT5 serve various competitors as a front end, too. CBots are created using cAlgo. According to the broker, this is an “extended algorithmic and technical indicator-coding application.” This makes it possible to create algorithmic trading strategies and individual indicators. The tool has its own code editor, via which users can develop their own cBots and check their suitability within the framework of back-testing. An optimization function facilitates the search for the best parameters, but also comes with the risk of accidental over-optimization.

FXPro SuperTrader

As an alternative to the use of cBots and Expert Advisors, investing in strategies of the SuperTrader platform is possible. Here, investors choose a particular strategy and invest money with FXPro providing up to 80% of trading capital as a credit. The strategies are exclusively algorithmic strategies. The platform has a social trading component: Signal providers can offer their strategies on the platform and are compensated for trade turnovers.

If you want to be the creator of a trade strategy, you must demonstrate FXPro expertise and quality. There are different acceptance criteria for profit per position, duration, strategy, leverage, etc.

Rating: A

7.Account Opening and Minimum Deposit: $500 Minimum Deposit for STP without Mark-ups

The minimum deposit required for opening an account is $500 or an equivalent amount in another currency – regardless of the chosen account type. Opening an account is simple: During the application process, new customers must first specify whether an account is to be opened with the British or Cypriot subsidiary.

In accordance with the legal provisions, providing details on one’s final financial situation and previous trade experience is required. The last step of the application process is to define the account settings, including the currency, leverage, etc. Deposits for UK accounts are possible via bank transfer and credit card. Deposits on accounts in Cyprus can be made via Netteller, Paypal etc.

Along with the account type, new customers also opt for one of the market models, with market making (MT4), STP with mark-ups (MT5), and STP on a commission basis without a broker spread being the available options. The size of the catalogue of underlying assets depends on the model selected, too. It is possible to open a demo account – even without getting in touch with the customer service team first.

Rating: A-

8. The Broker and Its Competitors: Strong Background

Many brokers with a (partial) regulation in Cyprus are relatively new to the market or even act as a white label legally speaking. In case of FXPro, the situation is different: Firstly, the broker is essentially British and has been active in the market for a long time. The broker offers solutions for Introducing Brokers and asset managers.

FxPro sponsorships have included Formula 1

A strong market position is indispensable for STP brokers, since both reach and financial strength guarantee access to high-quality liquidity networks, which are typically characterized by high access barriers. Like many competitors, the broker demonstrates its financial strength through cost-intensive sponsoring. In the past, FC Fulham, AS Monaco, and Aston Villa. Formula 1 sponsorships (Virgin Racing Team and BMW Sauber F1) as well as rugby, sailing, and volleyball sponsorships could be found on the broker's reference list. The strong market position is a big plus in the FXPro test – especially for traders who choose STP trading.

Rating: B

9. Additional Services and New-Customer Offers: Webinars and Trader Dashboard

Customers and prospective customers can access webinars on the broker's YouTube channel. Topics such as TA and fundamental analysis, the use of trading platform, risk and money management, stock-market psychology, the development of trading strategies, etc. are regularly discussed. Alongside webinars, attendance seminars are held on a regular basis. The broker also regularly partakes in various financial fairs, trading days, etc.

There are some useful tools, including the trader dashboard besides calculator tools and calendars with economic data in particular. The dashboard combines general market information with information on the cumulative positioning of the broker's customers. The share of traders who have opened long or short positions for an underlying asset thus becomes visible.

Traders can access webinars on the broker's YouTube channel

Rating: B

10. Great Customer Service and Website

The customer support is generally accessible by phone, e-mail, and live chat. For this test, the service quality was tested using a sample. The result: A live-chat agent was quickly found who was able to speak to the differences between MT4 and cTrader accounts.

There is no classic customer-referral program: If you convince your friends or acquaintances to open an account through a personal, first-hand FXPro experience report, you will only receive bonuses for your referral under an IB agreement. The bonus amount depends on the trade volume of the referred customers.

FXPro is represented in many countries

In recent years, deposit bonuses have rarely been part of the broker’s new-customer policy. You should take into account that FXPro offers several market models and deposit bonuses are typical for market makers, but less so for STP brokers. However, one-off bonuses should not be the decisive factor in a broker comparison anyway.

The broker’s online presence has been equipped with much more information than most of the competition provides. In particular, information on the order execution and the nature of the liquidity pool can be found here. In some areas, the wealth of information makes for a confusing website layout. There are few translation errors to be found on the broker’s website.

Rating: B

FXPro Test Conclusion

The broker’s cTrader account is especially convincing: STO Trading without mark-ups on the spreads is the desirable standard in FX trading. With commissions of $4.50 per lot and average pool spreads of 0.4 pips in EUR/USD, the market model promises both transparency and low trading costs. Alternatively, both STP with mark-ups via MT5 and market making via MT4 are available. The combination of expert advisors, cBots, and the social trading platform SuperTrader makes FXPro a great address for Algo Trading. The excellent customer service, the underlying assets, and numerous trading platforms as well as the background of the broker and the broker’s efforts in the field of knowledge transfer are huge pluses as well. The UK regulatory environment is another plus, which new customers explicitly have to choose, however.

Our FXPro Rating as a Test Score: B+