JP Markets Review: A Quality Broker in South Africa?

Mon 23 July 2018

JP Markets is a South African Forex trading broker and one of Africa’s leading Forex powerhouse. It offers the trading of commodities, CFDs, and currencies. 

The South Africa’s Financial Services Board (FSP) regulates it. It also has operations across the world including Pakistan and Bangladesh. According to their official website, they have achieved success by treating their clients uniquely and approaching them with open mind making them South Africa’s largest broker.


Accounts


It only offers one trading account that has variable spreads. Its leverage goes up to 1:500 which allows them to earn a commendable amount on its assets. PAMM services which connect traders and investors is featured too. Apart from this, they also have the STP market execution, which allows them to provide the best possible execution to every trader (source: jp markets review at forexsouthafrica).


You should however note that the JP Markets does not allow the use of (EAs), scalping, and hedging.

Trading platforms and options


JP uses the Metatrader 4 platform, which is a widely used trading platform. This platform supports two execution modes that include the marketing order and pending order. Depending on trader’s preference, the user can either execute the trading instantly or wait for the right price. The automatic aspect of the Metatrader 4, which involves the use of Expert Advisors (EA), is not supported.


When choosing the pending order, you will be asked about you expiry period and the price. You can ether choose to set the expiry date or leave it blank.


Spreads


The average spread of JP Markets averages at 2.0 pips on USD/EUR under normal market conditions. This is relatively higher compared other leading brokers. The spread is relatively better for trading. An advantage of the lower trades is the high chances of getting money back. Higher spread rates ranging from 6-10 pips have high chances of failing.


Reputation


When it comes to investing, keeping your money safe is important. A big broker like the JP always wins the confidence of a potential trader. From the customer complaint platform, some complaints about lost money and transaction difficulties were noted. The biggest reputation spoilers like lawsuits against them regarding any abuse of investor funds does not appear. Apart from the normal complaints, the JP has not faced any major systemic problems to warrant the red lights.


FSP is in charge of supervising and licensing the brokerage industry. It has an enforcement committee that deals with breaches and runs a customer complaint service which acts as direct platform.

Funding methods


JP Markets only use funding methods approved by the FSB. Clients can fund or withdraw from their accounts through different electronic money transfer. This makes it easy to conduct trades and access funds. The transactions are also fast as it takes less than a day provided the verification process is successful. JP Markets has collaborated with trusted money transfer service providers like Skrill, Neteller, Bitcoin and various banks. The users can also use Debit/Credit cards to fund their accounts. For other unapproved methods of payments like the Mandela coins, one should cash in at the banks then transfer to their accounts through the approved channels.
For first time funding, they give clients 30% welcome deposits for a 60 day period and 20% redeposit bonus.
Some traders have complained of delayed funding process when it comes to withdrawal of funds. The verification process for funds above R10000 may take time as shared by one of the JP traders.

Fees and trading instruments

In comparison to other South African brokers, the JP Markets demands a fair Initial deposit requirement. It amounts to 3500 South African Rand, which translates to about 260 US dollars. Other South African brokers charge up to R5000. Apart from the initial deposit requirement, they charge zero transaction and training fees. They also charge no commission fees.


Other expenses incurred in the process of income production are also deducted. The tax deductions depend on the income tax tables as determined by the respective revenue authority.


Conclusion


Apart from a few transaction glitches and customer complaints, the JP Markets is generally good. The spread rate is good to assure minimal trade losses and prevent higher risks. Their trading platform however restricts user preference. The platform users are restricted from using fully automated strategies. Its one-account option also limits the user preference. If these restrictions are not a great deal for you, you might find it enjoyable trading with them.

By Philip, Category: my fx reviews