Markets.com which is a brand and trademark operated by Safecap Investments Ltd is a contract for difference (CFDs) broker which allows users to trade stocks, indices, forex, commodities, bonds, and cryptocurrencies. Markets have over five million registered accounts. CFDs enable traders to speculate on an asset without actually owning the underlying asset. CFDs allow traders to apply large amounts of leverage and also to take short positions. This is a benefit as most cryptocurrency trading services do not enable traders to take short positions.
Markets offer six cryptocurrency trading instruments. The products include Bitcoin, Bitcoin Cash, Dash, Ethereum, Litecoin, and Ripple. 1:2 leverage is offered in all the products apart from Bitcoin which offers no leverage. This is less leverage than competitors offer. Most of the products are offered 24:7 with Bitcoin futures being available between Sunday 11 pm and Friday at 10 pm.
The fees for Markets are difficult to find on the website. The reason Markets doesn't have any clear fees disclosed is because they do not charge any trading commissions. Markets include their fee in the bid-ask spread which means that their spread will be significantly wider than some competitors. There is also a financing fee which is paid on overnight positions. The financing fee varies per instrument and is subject to change in the calculation but is about on par with competitor rates. Overall, the fees for Markets.com are some of the least transparent and most difficult to find.
Note: 76.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
- Enables traders to go both long and short and apply leverage
- Fees are really difficult to find and are not transparent
- Spread is wider than competitors because the fee is included in the spread
- Fewer instruments offered than competitors
- Financing fee applied for overnight positions
- Fewer leverage options than competitors