FP Markets vs XS: Which Broker Is Better?

FP Markets operates through entities that include First Prudential Markets Pty Ltd, authorised by ASIC under licence number 286354, and FP Asset Management Cyprus Ltd, regulated by CySEC under licence number 371/18. The group also has entities connected to the FSCA in South Africa and the FSA in Seychelles, allowing it to provide services across different international markets.

ASIC and CySEC licences support the group’s overall regulatory profile, but an account opened with a Seychelles or South African entity may be subject to different leverage limits, investor-protection arrangements and complaint procedures. Available instruments, funding methods and certain account features may also vary according to the legal company serving the client.

Before choosing FP Markets Standard or Raw accounts, or trading through MT4 or MT5, traders should verify the responsible entity and its licence number. This makes it possible to compare execution costs and commissions with the applicable level of regulatory oversight instead of assuming that all FP Markets clients receive the same protection.

FP Markets states that eligible client funds are held in segregated bank accounts under the requirements of the regulatory entity responsible for the account. Negative balance protection may also be available under the conditions applied by certain FP Markets group companies, helping eligible clients limit liability resulting from a negative trading-account balance.

Client-money rules, investor compensation arrangements and complaint procedures may differ between the ASIC-regulated Australian entity, the CySEC-regulated European entity and international entities supervised by FSCA or FSA. Traders should match the legal company and licence number in their client agreement with the relevant regulatory register before transferring funds.

XS operates through a broad regulatory structure that includes XS Prime Ltd, authorised by ASIC under licence number 374409, and XS Markets Ltd, regulated by CySEC under licence number 412/22, together with entities supervised by the FSCA in South Africa, the FSA in Seychelles, the FSC in Mauritius and the LFSA in Malaysia. The group also has registrations or related entities connected to the UAE and Kuwait, reflecting its international reach.

Traders should distinguish between a full financial-services licence and registrations or authorisations with a different scope. The appearance of the XS name in a local register does not necessarily provide the same level of protection available under ASIC or CySEC, and trading conditions, leverage and complaint procedures may vary according to the legal company accepting the account.

When researching XS licences, the number of regulators listed is not enough. Traders should identify the specific entity they will contract with and verify its number in the official register. ASIC and CySEC entities may be more suitable for traders prioritising strict oversight, while some international entities may offer greater flexibility under a different level of regulatory protection.

XS applies client fund protection measures according to the regulatory entity responsible for each account. These measures include separating eligible client money from company operating funds, together with controls related to deposits, withdrawals, identity verification and anti-money-laundering requirements. XS agreements also provide negative balance protection under the applicable conditions.

Negative balance protection may limit liability from losses exceeding the available trading-account balance, but legal safeguards are not identical across all entities. Investor compensation eligibility, complaint procedures and client-money protection may differ between the ASIC, CySEC and international entities in Seychelles, Mauritius and other jurisdictions. Traders should verify their legal company before depositing.