JP Markets is among the many forex markets that are increasing in popularity. It gives its clients a single type of account with variable spreads, as well as additional benefits. However, the site does not allow the use of (EA) automated strategies, scalping and hedging.

Who is behind JP Markets?

Established in 2016, JP Markets is a forex broker that has its base in South Africa, and happens to be the leading African and South African Forex broker, with services expanding into other countries such as Bangladesh, Swaziland, Kenya and Pakistan.

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

The company operates under approval from the Financial Services Board (FSB), South Africa, FSP 46855. This gives the technology and platform allowing African-based clients to trade successfully in forex markets around the world.

JP Markets focuses on assisting clients at a localized level through customer service as well as tools that can assist in succeeding on that front. The company prides itself on being the only brokerage worldwide that gives interest on trading accounts (this is subject to a specific minimum balance), as well as other industry firsts and benefits to various clients.

The founder is a South African entrepreneur, Justin Paulsen. He has extensive knowledge on the financial sector, having obtained a degree in Economics and Finance from the University of Cape Town. He has also worked with several brokers and forex agencies before setting up the company.

Trading services offered

You can trade up to 30 forex pairs, other CFDs, gold, stock indices and oil on the site, which uses the MT4 (MetaTrader 4) platform.

You may wonder why the base is in South Africa. One reason is that many investors view South Africa as a country with great potential, since it is among the most developed countries on the continent. The regulator, FSA, has enforcing powers that allow it to deal with breaches in forex brokerage, while it also runs the Office of the Omud for Financial Services Providers, which is a customer complaints service.

Regulation within the country is not among the best in the world, though there is some level of reliability in the sector. If you are a local broker with a trading license, you need to keep all your client funds in recognized banks in the country within segregated accounts.

Advantages of MT4 trade platform

As the industry standard platform, MT4 lends itself to various traders as an easier alternative, thanks to the richness of its features. It places itself among the leading platform in online trading due to its foreign exchange agency model implementation, unconventional organization of trading, as well as competitive assessments.

You can use algorithmic traders as well as Expert Advisors (EAs), which automate your exchange and make the process easier for you. MT4 allows you to see the marketplace you are dealing with, all within real time, highly accurate and impeccably judge all your exits and entrances.

Accounts available on the platform

Clients have a single account type to choose, and this account comes with no commission fees imposition, fixed spreads, STP (Straight through Processing) market execution and leverage that reaches a maximum of 1:500. You can get PAMM services as well.

Straight Through Processing

This service means that the forex broker will send the customer’s order directly to larger brokers or banks without the order passing through a dealing desk. That implies that there are no delays in the process and the processing of transactions is faster.

It has several advantages, which include:

  • STP brokers make their money through addition of small commissions, which are markups to the spreads

  • The losses of the client are not the profits of the broker

  • When the trader loses or wins, the exact markup will go to the broker, so this eliminates conflict of interest

A related aspect to STP is NDD (No Dealing Desk), which gives brokers access to the inter-bank forex markets. In addition, this eliminates conflict of interest, filling orders and re-quotes.

Deposit and withdrawal options

Deposits

The platform does not offer a wide range of deposit options. The bank option is Ned bank, with the deposit details. Keep in mind that the South African Reserve Bank (SARB) will always convert international payments to their base rate. Other options include Bitcoin, credit and debit cards, Neteller and Skrill.

You need an initial deposit minimum of R3500, and this is a reasonable amount especially when you compare it to other South African brokers. In addition, allocations of payments can take a maximum of 24 hours on business days (from Monday to Friday).

Withdrawal options

An interesting aspect to JP Markets is the allowance for sending withdrawal requests through WhatsApp, which is unseen on other platforms. The withdrawals are easy and fast to process (the process takes about 24 hours), and you can do the process on official working days from 9am to 5pm.

The platform uses secure and safe ways to send you your money, while all transactions undergo rigorous processing to ensure your money stays safe.

The option is through local bank transfer, as the site does not allow e-wallets or any other mediums of withdrawal. The time it takes to receive funds depends on the bank you use. For instance, Standard Bank, ABSA, Nedbank and FNB allow you to get your money within the same day, while other banks could take up to two days.

As with any other withdrawal process, you need to have proof of documentation before you submit your withdrawal request. This includes scanned copies of your ID, bank statements and proof of address, all confirming your details as per regulations from the FSB.

Keep in mind that all withdrawals that you make through credit cards have an extra fee of R50. For the case of bank transfers, there are no charges for withdrawals, but you are liable for any fees that the individual bank charges in the transaction, including the use of intermediaries.

Commissions, leverages and spreads

Leverage

The maximum amount of leverage you can get is 1:500, which many investors consider high, even with other brokers offering higher or similar rates.

Note that with higher leverage comes higher risks of losses, and this is the reason many jurisdictions set caps on leverage rates.

Any promotional bonuses?

There are a few promotions that the company offers, which include:

  • 20% redeposit bonus

  • 30% welcome on deposit bonus, and this is valid for 60 days

  • Happy hour bonuses

  • Rebate bonuses.

Currently, the minimum amount that qualifies you for any bonus is R3000. There is also not much information regarding bonuses.

Spreads

The platform does not charge you extra commission fees, which may be a good thing. However, we do not like the spreads, as we find them too wide to be competitive – they are 2.4 pips on average for USD/EUR.

Even though fixed spreads are wider than floating ones generally, many other brokers will offer you a better deal.

Pros of the JP Markets platform

  • The FSB regulates its activities

  • MT4 is available on the site

  • You can get bonuses

  • NDD execution

  • Same day deposits and withdrawals are possible

  • You can trade in Rand, other than USD or EUR

Cons

  • There is a limited choice of trading platforms

  • The spreads are too wide

  • You cannot use EAs, hedging or scalping techniques on the platform

Final thoughts

JP Markets is a CFD South African broker and forex company that the FSA regulates actively. They support the MT4 platform, making them easy to use for many traders. However, the spreads are higher than the average, and this unfortunately places many restrictions on trade.

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