Is FP Markets Safe?

Yes, FP Markets is a safe broker. It holds licences from ASIC (Tier 1) and CySEC (Tier 2), plus FSCA and FSA Seychelles licences. FP Markets scores 82 out of 100 in our Regulation & Trust category. The ASIC licence is genuine and has been active for over two decades, which puts FP Markets among the longest-standing ASIC-regulated forex brokers in the industry. Client fund protections are in line with industry standards, and the company's 21-year track record is clean. The offshore Seychelles entity is the main concern for international clients trading outside Australia and the EU.

Regulatory Standing

FP Markets holds four licences:

The ASIC licence (286354) is the cornerstone of FP Markets' regulatory profile. It's been active since the early 2000s, giving FP Markets over 20 years of continuous ASIC oversight. Very few forex brokers can claim this kind of longevity with ASIC. ASIC requires minimum net tangible assets, segregated client funds held with Australian banks, regular financial reporting, and compliance with the Corporations Act. For Australian-resident clients, this provides strong, proven regulatory protection.

The CySEC licence (371/18) was obtained in 2018, expanding FP Markets from an Australian-focused operation into the EU market. CySEC regulation brings MiFID II protections: leverage caps of 1:30 for retail clients, mandatory negative balance protection, segregated funds, and participation in the Investor Compensation Fund (ICF) covering up to EUR 20,000. EU-based clients benefit from these standardised protections.

FSCA (50926) covers South African operations. The FSCA is a credible Tier 2 regulator that provides meaningful oversight within the South African market.

The FSA Seychelles entity (SD096) handles international clients who fall outside Australia, the EU, and South Africa. This entity offers higher leverage (up to 1:500) and fewer restrictions, but regulatory protections are minimal. As with other brokers in our review, the offshore entity is the weakest link in the regulatory chain.

FP Markets doesn't hold an FCA licence. This is the main gap in its regulatory profile. An FCA licence would give UK clients FSCS coverage up to GBP 85,000, the most generous compensation scheme in retail forex. Without it, FP Markets can't match the safety profiles of Pepperstone (FCA + ASIC), Tickmill (FCA + CySEC), or Eightcap (FCA + ASIC + CySEC).

Fund Protection Assessment

Segregated client funds: Yes, across all entities. The Australian entity holds client funds in segregated accounts with major Australian banks, specifically ANZ and Commonwealth Bank. Using Australia's largest banks for fund segregation is a positive, as it reduces the risk associated with smaller or less stable banking partners.

Negative balance protection: Yes, available to all retail clients regardless of entity. Required under ASIC and CySEC rules, and FP Markets extends it to the Seychelles entity.

Investor compensation: Available through the CySEC entity only, covering up to EUR 20,000 via the Investor Compensation Fund. The ASIC entity doesn't have an equivalent scheme because Australia doesn't operate a forex-specific compensation fund. No compensation through the Seychelles entity.

The EUR 20,000 CySEC compensation is the only formal safety net. It's the standard EU level but significantly lower than the GBP 85,000 FSCS offered by FCA-regulated brokers. For Australian clients, the absence of a local compensation scheme means they rely entirely on ASIC's capital adequacy requirements and fund segregation rules to protect their money in a worst-case scenario.

FP Markets' fund protection is adequate but not exceptional. It's standard for a broker with its regulatory profile.

Company Background

FP Markets was founded in 2005 in Sydney, Australia. The company is privately held under First Prudential Markets Pty Ltd and is not publicly listed on any stock exchange.

Twenty-one years of operation is a solid track record. FP Markets started as an Australian-focused broker offering direct market access (DMA) to the Australian Securities Exchange (ASX) and has since expanded into a global forex and CFD broker. The company now offers 10,000+ instruments, which is an unusually large range that includes DMA shares, forex, indices, commodities, and crypto CFDs.

No regulatory enforcement actions or licence revocations at any point in the company's history. FP Markets has maintained clean standing with all its regulators throughout its 21 years.

The company has grown steadily without the high-profile marketing campaigns of some competitors. Its reputation has been built primarily through competitive raw spreads, broad platform choice (MT4, MT5, cTrader, and TradingView), and the large instrument range.

Private ownership means limited public financial data. FP Markets doesn't publish annual reports or earnings. Both ASIC and CySEC require regular financial reporting to the regulators, but those figures remain confidential.

Withdrawal Reliability

FP Markets offers free deposits and free withdrawals across all methods. Bank transfers may incur fees from the receiving bank, but FP Markets doesn't charge on its end. E-wallet withdrawals clear same day, and card withdrawals follow the standard 1-5 business day window.

Base currencies: USD, EUR, GBP, AUD, CAD, CHF, JPY, NZD, SGD, HKD. Ten base currencies is generous and matches the likes of IC Markets and Pepperstone. Holding your account in your local currency helps avoid conversion fees, which is a practical saving over time.

No inactivity fee. Your account won't be charged for dormancy, regardless of how long it sits idle. This is a genuine advantage over competitors that impose monthly charges on inactive accounts. AvaTrade charges $50 after just 3 months, FOREX.com charges $15/month after 12 months, and IG charges $12/month after 24 months. FP Markets charges nothing.

Withdrawal reliability is good. No complaints patterns in regulatory databases or major public forums.

How FP Markets Compares on Safety

FP Markets scores 82, placing it in a cluster of mid-range brokers:

Safer options: IG (98), OANDA (95), CMC Markets (92), FOREX.com (92), Pepperstone (90), XTB (88), AvaTrade (85), Eightcap (85), and FxPro (85) all score higher.

Same tier: IC Markets (82), eToro (82), ThinkMarkets (82), and Tickmill (82) share similar scores. All have a mix of Tier 1 and Tier 2 regulation with some offshore presence.

Below FP Markets: XM (78), Exness (72), BlackBull Markets (70), Fusion Markets (68), Moneta Markets (65), and Errante (62).

FP Markets sits in a crowded band of brokers with one Tier 1 licence (ASIC), one Tier 2 (CySEC), and offshore entities. It's safe, but it doesn't stand out on safety alone. The differentiators are its 21-year track record (longer than IC Markets, Tickmill, or ThinkMarkets) and the large instrument range.

Our Safety Verdict

FP Markets is safe for traders who access the ASIC or CySEC entities. The 21-year track record with ASIC is one of the longest in the industry for a retail forex broker. Combined with a clean regulatory history, fund segregation at major Australian banks, and no inactivity fee, FP Markets presents a solid safety profile.

For international clients on the Seychelles entity, protections are lighter. Segregated funds and negative balance protection still apply, but there's no compensation scheme and regulatory oversight is minimal.

Our recommendation: FP Markets is a dependable choice for Australian and EU traders who want competitive raw spreads (0.10 pips average on EUR/USD), four platform options, and 10,000+ instruments under solid regulation. If safety is your absolute top priority over trading costs, Pepperstone (dual FCA/ASIC, FSCS coverage) or IG (six Tier 1 licences, LSE listed) provide stronger multi-jurisdictional coverage. But FP Markets is a well-regulated broker with genuine protections for clients in its covered jurisdictions.

Regulation & Trust Score: 82 / 100

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