SA Shares had an interview with FP Markets’ Country Manager for South Africa, Nerash Pillay.
Nerash Pillay is the Country Manager for FSCA-regulated FP Markets South Africa. With over 14 Years of experience in the industry, he has Headed Prime Executive FX Brokerages representing Major Multinational Forex brands within the African region. Prior to joining FP Markets, Nerash was the Chief Executive Officer for Multibank South Africa, General Manager for Dublin Based Avatrade South Africa, and The South African Country Manager for the UK Group GKFX.
First, tell us a little about FP Markets, how long have you been in the market and why are you different to other brokers?
FP Markets is a renowned global CFD and forex broker with over 18 years of industry experience, offering a broad spectrum of trading instruments like forex, indices, commodities, and cryptocurrencies. Its standout features include stringent regulation by top financial authorities, ensuring a safe trading environment, and providing advanced trading platforms like MetaTrader 4 and MetaTrader 5 for fast and efficient trade execution. Our competitive pricing, diverse range of trading instruments, comprehensive educational resources, and robust customer support, combined with its global reach and local expertise, make it an attractive choice for traders worldwide.
In your company positioning your mention FP Markets has a strong technology-focus, can you tell us more about your tech focus and how this benefits traders?
FP Markets’ technology focus is centred on providing traders with advanced trading platforms and tools that enhance their trading experience. By offering platforms like MetaTrader 4 and MetaTrader 5, WebTrader, cTrader, and Iress, FP Markets ensures fast execution speeds, low latency, and minimal slippage, which are crucial for effective and timely trade execution. The advanced tools and features available on these platforms, such as comprehensive charting tools, a wide range of technical indicators, and automated trading capabilities, enable traders to analyse markets more effectively and execute trades with greater precision. Additionally, our investment in technology ensures a secure and stable trading environment, further enhancing trader confidence and performance.
There’s a huge difference between licensed and unlicensed brokers. Tell us about FP Markets’ licenses and regulatory compliance?
FP Markets is well-regulated by several top-tier financial authorities, ensuring investor protection and operational standards. FP Markets is regulated by:
- Australian Securities and Investments Commission (ASIC)
- Cyprus Securities and Exchange Commission (CySEC)
- Financial Services Authority of St. Vincent and the Grenadines.
- Financial Sector Conduct Authority (FSCA) in South Africa.
- Financial Services Authority (FSA) in Seychelles and the Financial Services Commission (FSC) in Mauritius
Straight question. An ODP license is one of the most sought-after licenses in Africa. Why is it important to have an ODP license?
- The introduction of the ODP license aims to bring regulatory oversight to the OTC derivatives market. This is particularly relevant for products like Contracts for Difference (CFDs) and Forex trading.
- It introduces due diligence and consumer protection measures. Brokers are mandated to conduct extensive due diligence on potential clients before allowing them to trade high-risk derivatives. That way, only well-informed and capable investors partake in these high-risk financial activities, protecting them from potential market volatility.
- The license also requires strict compliance with regulatory standards, including operational and capital adequacy requirements. This compliance ensures that ODPs maintain risk management practices and high operational standards, contributing to the overall health and stability of the financial markets.
- Transparency and accountability are also key components of the ODP license. ODPs are required to report detailed transaction information to authorised trade repositories. This level of transparency enables regulatory bodies to supervise market activities.
- The ODP license aligns South Africa’s financial market regulations with global financial standards. Post the 2008 financial crisis, there are efforts to regulate financial markets more strictly. The ODP license can help ensure South Africa’s financial markets are well-regulated and aligned with international best practices.
What are the benefits for institutional investors of using FP Markets? Why should they switch to FP Markets?
There are several benefits for institutional investors considering using their services:
Advanced Trading Platforms and Technology: As previously stated, FP Markets provides the MetaTrader 4 and MetaTrader 5 platforms with features conducive to algorithmic trading. These platforms improve trading decision speed and accuracy while removing emotional bias. This is especially advantageous for institutional investors who rely on timely and accurate market analyses and trade executions.
Algorithmic Trading Capabilities: These strategies allow for automated rebalancing of portfolios to hedge against market, exchange rate, and volatility risks. Algorithmic trading also provides benefits such as backtesting, time-saving, reduced transaction costs, and diversified investments. Institutional investors can leverage these capabilities to manage large volumes of trades efficiently and effectively
Direct Market Access (DMA): Institutional clients can receive live market prices and access quotes from multiple liquidity providers. For institutional investors, this means better pricing and a transparent trading environment
Diverse Range of Tradable Instruments: FP Markets provides various tradable instruments, including Exchange-Traded Funds (ETFs). ETFs offer several advantages, such as portfolio diversification, lower ETF pricing, and access to different financial markets and asset types. This diversity offers institutional investors looking to broaden their investment scope and manage risk through varied asset allocations
Introducing Broker (IB) Program: For institutions or individuals with a significant online presence, FP Markets offers an IB Program. This program could be advantageous for institutional investors with a network of clients, offering a structured rebate system and the potential for custom solutions to fit their business model
And for retail/individual traders – why should they use FP Markets?
Definitely, and here’s why:
Low Fees and Competitive Spreads: We are known for our low non-trading fees and competitive spreads, starting from 0 pips.
Variety of Account Types: We offer a range of account types, including Standard and RAW ECN accounts on MT4 and MT5 platforms, as well as Standard, Platinum, and Premier accounts on the Iress platform. This variety allows traders to choose an account that best suits their trading style and financial goals
Advanced Trading Technology: We provide access to MetaTrader 4, MetaTrader 5, and Iress platforms, offering advanced charting tools, over 59 indicators, and a range of execution options.
Regulatory Compliance and Safety: Regulated by ASIC, CySEC, FSCA, FSA, and FSC, we follow strict regulatory standards, ensuring a secure trading environment for traders who prioritise the safety of their investments
Educational Resources: We offer many educational resources, including webinars, tutorials, and market analysis reports, beneficial for beginners and experienced traders.
High Leverage Options: Traders can leverage up to 500:1.
Fast Execution and Order Filling: FP Markets boasts ultra-fast execution speeds, ensuring that orders are processed swiftly and at the best available prices.
Security Measures: We employ advanced encryption and security to safeguard our clients’ data and assets, providing a secure and reliable trading environment.
Flexible Deposit and Withdrawal Options: FP Markets offers a variety of funding options, including credit cards, e-wallets, and bank transfers, making it easy for traders to manage their accounts
Partnership Programs: FP Markets provides partnership programs for traders looking to expand their network and earn commissions through referrals
Do you offer rebates? If so what % cashback can a trader expect?
We do not offer any rebates. However, we provide incentives to those participating in our Introducing Brokers (IB) program. You can discover more about partnering with FP Markets here.
With the growth and volatility of Cryptocurrency, do you have any advice for investors in SA who want to trade Crypto?
We understand the complexities and allure of the cryptocurrency market, particularly for South African investors. Cryptocurrencies are highly volatile, and this characteristic can cause significant price fluctuations in a short period of time. It is critical for investors to thoroughly educate themselves on market dynamics, underlying blockchain technology, and the specifics of various cryptocurrencies. Traders should start with a small investment. This way, they can learn about the market without putting too much money at risk. In order to navigate the volatile nature of the crypto market, sound risk management strategies, such as using stop-loss and take-profit orders, are essential.
Investors should be wary of the hype and FOMO (Fear of Missing Out) that frequently surrounds the crypto market, as these can lead to rash and uninformed trading decisions. It’s also critical to understand the regulatory landscape for cryptocurrencies in South Africa, as this can have implications for trading activities and investment security. A reputable trading platform, such as FP Markets, which provides secure and advanced trading tools for various cryptocurrencies, can aid the trading experience.
Do you offer a sign-up bonus for new traders in South Africa?
While we do not provide a direct sign-up or welcome bonus for new traders as per regulatory guidelines, we do offer a referral bonus as part of our partnership programs to reward those who introduce new clients to the platform. You can view it here.
Many brokers come and go in the SA TRADING industry. One of the most important factors is a brick-and-mortar office. Do you have a registered office in South Africa?
Yes, we do have a registered office in South Africa located at Century City, Cape Town , South Africa Spaces, No.1 Bridgeways Precinct, Bridgeways Road.
South Africans are very stuck in their ways when it comes to trading in their native currency. Do you offer a ZAR dominated trading accounts?
Yes, we do offer ZAR denominated trading accounts.
Africa is the hotbed for growth currently with many international brokers entering the Continent. Are there plans to expand further in Africa?
Yes, we are increasing our presence in Africa. We recently received a non-dealing Foreign Exchange Broker License from Kenya’s Capital Markets Authority (CMA). This represents a significant step towards our expansion efforts after already a regulatory licence from South Africa’s Financial Sector Conduct Authority (FSCA).
Some brokers increase their spreads and commissions without prior informing their clients. This is one of the biggest negative reviews brokers receive on forums and online review sites. How would you address this issue as the CEO?
Transparency is key to building and maintaining trust with our clients. This includes being transparent about our pricing models and any changes to them. We ensure that any changes in spreads and commissions are communicated clearly and well in advance. This would be done through multiple channels, including emails, trading platform notifications, and website updates. Our goal is to ensure that no trader is caught off guard by changes in trading costs.
In which languages will you offer support for South African traders?
We offer multilingual customer support to accommodate a diverse global clientele. For South African traders, the available languages for support include Arabic, Chinese, English, French, German, Greek, Indonesian, Italian, Malaysian, Portuguese, Russian, Spanish, Thai, and Vietnamese.
You were recently nominated for a few Forex awards. Tell us more about these awards?
FP Markets has recently been recognised with several prestigious awards in the Forex industry. Here are some of the key awards that FP Markets has received:
- FP Markets won the award for ‘Best Trading Conditions’ and ‘Most Trusted Broker’ at Ultimate Fintech Awards Global 2023
- FP Markets won the awards for ‘Best Trade Execution’ and ‘Most Transparent Broker’ at the Ultimate Fintech Awards for the Asia-Pacific region.
- FP Markets has been awarded the ‘Best Global Forex Value Broker’ for five consecutive years (2019-2023) at the Global Forex Awards. We also won the ‘Best Forex Broker – Europe’ and the ‘Best Forex Partners Programme – Asia’ at the Global Forex Awards 2022 and 2023 respectively.
- FP Markets was crowned ‘Best CFD Broker in Africa’ at the FAME Awards 2023.
How does FP markets compete on fees vs your direct competitors?
We strive to offer some of the most competitive spreads and commissions in the market. Our pricing structure is transparent, with no hidden fees, ensuring traders can trade knowing exactly what costs they incur.
Featured SA Shares Writer and Forex Analyst.