Who is AC Markets?

According to research in South Africa Advanced Currency Markets – better known as AC MARKETS (ACM) – is a Swiss company founded in 2002 and with headquarters in Geneva, Switzerland.

AC MARKETS also has offices in Zurich, Dubai, Uruguay and in the USA in New York and has built up a relatively solid reputation on the forex trading business.

AC MARKETS provides a reliable and simple Forex trading platform for trading in currency pairs and gold and silver. Spreads are on average 3 pips for the major pairs in standard account and are 4 pips and over for mini account.

The company is an institutional forex broker that offers currency trading services to private traders and financial establishments. AC MARKETS works with large institutional providers of liquidity.

Safe or Scam

One of the best benchmarks to measure the safety of a broker like AC MARKETS, is to establish which regulating authorities are watchdogs over its actions.

AC MARKETS is compliant with several important regulatory bodies, including:

• The Swiss Financial Market Supervisory Authority (FINMA)
• The Emirates Securities and Commodities Authority of Dubai
• Ernst & Young, through regular audits

AC MARKETS also claims to be the first online forex broker to be ISO 9001 and ISO 27001 certified.

Pros and Cons

Leverage

Leverage enables a trader to get a much larger exposure to the market the person is trading than the amount deposited to open the trade. Leveraged products, such as forex trading, magnify a trader’s potential profit – but also increase the potential loss.

Leverage is expressed as a ratio, for instance, 50:1, 100:1, or 500:1. Assuming that you have $1 000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the collateral to cover any credit risks that may arise during trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you need to have enough funds in your trading account to ensure sufficient margin.

For example, on a 1% margin, a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

At AC MARKETS the leverage ratio is 1:100.

Accounts

A forex account at AC MARKETS is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is issued with the purpose of trading on currencies with the broker.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differ depending on the country in which it operates and the regulatory authorities under whose jurisdiction it falls.

AC MARKETS offers the following types of accounts:

• Demo accounts, that offer real time prices and trading conditions for a period of 30 days. These accounts are free and start off with a balance of $100 000 virtual money.
• Mini Account
• Standard Account
• VIP accounts,
• Islamic Accounts (Swap Free)
• Institutional Accounts
• Managed Accounts.

The Swiss regulations require a very long registration process comprising filling in personal details, employment and financial status. Customers must also submit bank details, passport number, a photocopy of their passport and a copy of a utility bill.

Deposits into the account can be made in the following currencies: USD, EUR, CHF, GBP, AUD and JPY.

Market Instruments

The most popular market instruments available from most brokers for trading include:

Forex:

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities:

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices:

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals:

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy:

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

AC MARKETS offers the following of the above:

• 39 currency pairs
• Gold and Silver.

Fees

Cost and fees depend on different factors, like spread and margins, and AC MARKETS clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

AC MARKETS has fixed spreads and does not charge commissions. The fixed spreads and lack of commission help traders to know the costs up-front and contributes to transparency in trading. They do not publish an extensive list of trading spreads though but offers an average of three pip spreads for the most popular currency pairs. Spreads as low as 0.5 pips are available in some cases.

Deposit and Withdrawal

Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of AC MARKETS, the following methods and minimum deposits are required:

• Minimum deposit for mini accounts is $2 000, much higher than most brokers’ requirement
• Minimum deposit for standard accounts is $5 000.
• Minimum deposit for institutional accounts is $50 000
• Demo accounts

The following methods can be used to fund accounts and to execute withdrawals:

• Credit cards
• PayPal
• Wire Transfer

Trading Platforms

The forex trading platform provided by AC MARKETS to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

AC MARKETS provides four trading platforms. They are:

• The Advanced Trader, a professional trading software application,
• The Advanced Web Trader, which can be used from any Web connection without any download,
• The Advanced Mobile Trader, which allows trades to be placed and can monitor your account from any WAP-enabled mobile phone,
• The Advanced Flash Trader.

Some sources also mention that FX Book and MetaTrader4 can be used with AC MARKETS. All platforms are accessible with the same username and password.

These trading platforms are offered in 14 languages, including English, French, German, Spanish, Dutch, Portuguese, Arabic, Farsi, Chinese, Japanese, Turkish, Greek and Russian.

The trading platforms are user-friendly, intuitive and customisable, all with charting tools and news, analysis reports and financial calendars. These are also accessible on an external website.

How to open an Account

Similarly to a bank, to register a forex trading account with AC MARKETS for the first time, you will be required to go through a basic “know your customer” process, which will allow AC MARKETS to ascertain that your submitted details and ensure the safety of your funds and account details.

Due to some strict Swiss regulations and laws the process of opening an account with AC MARKETS cannot be done completely through the AC MARKETS website. Only part of the process can be performed digitally, then hard copies of some signed paperwork must be mailed to the company.

This cumbersome process is in contrast with the quick world of online foreign exchange market trading.

Customer Support

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of AC MARKETS customers can reach the support team in real time by phone, chat, e-mail and return call.

The company’s customer service is quick, efficient and polite and available during market hours. Professional staff provide support in English, French, Spanish, Italian, German, Greek, Farsi and Russian.

Education

Before starting to trade, potential clients of AC MARKETS should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

AC MARKETS offers educational material which includes an introduction to FOREX trading, a FOREX trading glossary, a telephone deals glossary, trading examples and more.

Research

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With AC MARKETS customers have access to partnership programmes, daily analysis, a trading glossary, a telephone deals glossary, trading examples and more.

Awards

Being an awarded company instils extra confidence by traders. AC MARKETS can show several awards accumulated during its years in business, including awards as Best Online Forex Broker for 2007, 2008 and 2009.

Conclusion

AC MARKETS can be described as a company that is easy to use, with competitive available spreads and the usability of its trading platforms.

The broker is known to be quite reliable and favoured among seasoned foreign exchange market traders.

AC MARKETS has a fairly strong global reach and can accommodate traders from all over the world. With headquarters in Geneva, though, European traders are more likely to use them.]

AC Markets’ dealing desk is fully operational and available to assist traders as needed, but the lack of guarantees or promises regarding trading against their own customers makes it compare unfavourably with major brokers.

Their competitive spreads seem to be AC MARKET’s biggest selling point.

Disclaimer

AC MARKETS warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with AC MARKETS, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

AC MARKETS warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence AC MARKETS cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with AC MARKETS?

You can trade several different instruments with AC MARKETS, which include the following:

• 39 currency pairs
• Gold and Silver.

Which platforms are supported by AC MARKETS?

AC MARKETS provides the following popular trading platforms:

• Advanced Trader,
• Web Trader,
• Mobile Trader
• FX Book
• MetaTrader 4.

Do AC MARKETS offer leverage?

Yes, AC MARKETS offers maximum leverage of 1: 100

What spreads can I expect with AC MARKETS?

AC MARKETS offers spreads of 3 pips on average for the major pairs in its standard account, and 4 pips and over for the mini account.

Does AC MARKETS charge commission?

ACM does not charge commissions.

Are AC MARKETS regulated?

Yes, AC MARKETS is regulated by FINMA, ESA, DGCX

Is AC MARKETS a recommended forex trading broker for experts and beginners?

AC MARKETS offers a trading environment for experienced traders, due to its high minimum deposit requirements.

What is the overall rating out of 10 for AC MARKETS?

6/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Do AC MARKETS offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used at real-time prices and trading conditions for a period of 30 days.

Which live trading accounts do AC MARKETS offer?

• Mini Account,
• Standard Account
• Institutional Account
• VIP accounts,
• Managed Accounts.

What are the available deposit currencies for a live trading account?

USD, EUR, CHF, GBP, AUD and JPY.

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for AC MARKETS?

Mini accounts – $2 000

Standard accounts – $5 000

Institutional accounts – $50 000

How do you make a deposit and withdrawal with AC MARKETS?

AC MARKETS offers the following deposit and withdrawal methods:

• Credit cards
• PayPal
• Wire Transfer

Withdrawals can be done via:

• Credit Cards
• PayPal
• Wire Transfer

Do AC MARKETS charge withdrawal fees?

No, but fees from financial institutions may apply/Yes, the different amounts can be found on the company homepage.

How long does it take to make a withdrawal?

Withdrawals usually take only a few days. Depending on bank services it may take several days for the money to be available though.