WM Markets

WM Markets Review

WM Markets offers an excellent opportunity to trade currencies and over-the-counter derivatives (OTC). Based on our evaluation, we found that WM Markets is an innovative broker with strong features for both new and experienced traders. WM Markets is also an excellent choice for those interested in trading via MT4 or MT5, as many online brokers commonly use these platforms.

WM Markets offers plenty of flexibility in account types, pricing, and leverage, making it a good option for many traders. Everything we reviewed indicated that WM Markets is a solid choice for making your trading decisions, but to fully evaluate them, more than spreads and platforms need to be considered.

The review will cover the company's history, its regulatory structure, cost transparency (Fees) and risk profile to give you the necessary information you need to make an educated decision. The review will use an unbiased, impartial tone throughout, so you can determine whether WM Markets is the broker for you.

Company Background and Operations

WM Markets is a global brokerage brand that offers online trading services across different countries and regions worldwide. WM Markets presents itself across multiple domains and a variety of brand presentations, a common feature among offshore-regulated brokers. WM Markets has established a structure like this, meaning it’s essential for traders to know which legal entity they are contracting with when opening an account. In many instances, official publications or online documents refer to WM Markets as WM Markets Ltd, while some references on their websites associate Infinity Markets Ltd as the operational entity. Traders should be diligent in reading the terms, conditions, and other relevant documentation related to their particular account, as the legal entity applicable to any dispute regarding the relationship governs the applicable laws, dispute resolution, and the regulatory authority(s) above WM Markets.

WM Markets primarily provides retail trading services and uses leverage to offer products such as spot forex and contracts for difference (CFDs). Furthermore, the products available and how WM Markets conducts its operations suggest it has specifically targeted short-term traders, scalpers, and speculators rather than long-term investors.

About Regulation

When evaluating a broker, traders need to consider the regulatory framework under which they trade with it. WM Markets is regarded as an offshore entity, but the broker states that WM Markets Ltd is registered and licensed by the Mwali International Services Authority (MISA).

WM Markets Ltd is currently registered in the official registry of Mwali as an Active Registered Company and an Authorized Broker. Therefore, WM Markets is considered a legitimate company per regulatory authority regulations.

In addition, on some WM Markets websites, Infinity Markets Ltd. is also identified. Infinity Markets Ltd, like WM Markets, is also a regulated broker by the Financial Services Commission of Belize (FSC). The Financial Services Commission of Belize has a license verification process that traders should be aware of when confirming the status of their broker-issued license. To confirm the status of their license, traders should use either the broker's name or the license number.

Traders should be aware that both MISA and FSC are considered offshore regulators and do not have the exact capital requirement or level of supervision as regulatory bodies the in United Kingdom (FCA), Australia (ASIC) and Cyprus (CySEC), which means that there is no government-sponsored compensation program and that any customers of the aforementioned brokers/traders do not have access to the protection previously outlined.

In addition to the potential risks of doing business with WM Markets and/or Infinity, the Financial Services Agency (FSA) has issued a consumer notice stating that WM Markets Ltd. Is providing financial services without being registered to operate as a broker within Japan. Although the above notice relates specifically to Japan, it serves as an example of potential regulatory issues and future limitations for WM Markets.

Account Types

WM Markets primarily promotes two different live trading accounts, each of which can accommodate various trader profiles:

- Prime Account:

The Prime Account has been created for new and lower capital traders. It offers:

• A reduced initial deposit requirement

• A waiting list of starting prices for all trading products of approximately 1 pip according to the broker's documentation

• No fixed commissions on numerous trading products

• The possibility of a swap-free Islamic Account

• The potential for high leverage

A Prime Account has been designed to be easy to use while providing as much predictability as possible. Therefore, this type of account may not appeal to traders who are primarily focused on finding the tightest possible spreads.

- Zero Account:

The Zero Account has been designed for experienced traders and offers:

• Starting spreads of 0 pips

• A fixed commission for every traded lot

• A higher minimum deposit requirement than a Prime Account

• Tighter pricing designed explicitly for scalping and/or high-frequency strategies

• No swap-free account option in most instances

For volume-driven traders, the Zero Account can yield a low overall cost if they factor commissions into their trading strategy for all trades executed on this account type.

Fee Structure

WM Markets employs a multi-tier pricing methodology based on the type of account a trader has. Costs typically have four main components:

• Spreads: Variable spreads based on market price and trading account type.

• Commissions: Commissions are generally charged for zero-account users.

• Swap/Rollover Fees: Applied to open trades at the end of the day unless the user is using a swap-free account.

• Non-Trading Fees: Includes potential fees from inactivity or from third-party payment processors.

WM Markets provides basic pricing information on its website; however, actual trading costs can differ significantly from what is posted during volatile market conditions or when the market is not very active. Customers should strongly consider testing costs in a demo account or a low-balance live account before using larger amounts of money.

Leverage and Margin Policy

WM Markets uses high leverage that exceeds that of most regulated firms in the EU and the UK. They also use a dynamic margin schedule, which adjusts margin requirements based upon each of the following factors:

• Instrument

• Position Size

• Volatility

• Trading Hours and Current Events

Dynamic leverage offers greater flexibility for traders; however, it can also increase overall risk. Fixed leverage assumes there will be no adjustments to margin requirements, but can lead to sudden increases in margin and, therefore, potential position close-outs.

Trading Platforms

WM Markets supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5) as its primary platforms for customer trading; they are among the most popular retail Forex trading platforms. Some features of these platforms include:

• Charting capabilities and technical indicators

• Expert Advisors

• Mobile/Desktop Access

• Support of Third-Party Tools

WM Markets also promotes its proprietary trading app; however, most customers will continue to use the MetaTrader platform.

Client Fund Protection and Insurance

WM Markets states that it provides customers with an insurance policy up to USD 1,000,000 underwritten by Lloyd's of London. This policy was created to provide an additional layer of protection for customers.

While this statement by WM may provide some comfort to clients, it is essential that they carefully read the insurance policy, as it does not constitute a statutory scheme and may also include restrictions, exclusions, and terms of coverage that vary by location.

Risk Considerations

WM Markets provides attractive trading conditions with a less-than-desirable regulatory framework. Therefore, their structure appeals to customers seeking high leverage and flexible account structures; however, it also increases counterparty risk for those customers.

Key risk factors include:

• Offshore brokers generally have little power to enforce laws or regulations.

• Offshore brokers don't have statutory government compensation programs.

• Certain countries have warned about doing business with offshore brokers.

• WM's business structure contains numerous entities and is complex.

The prudent trader generally minimizes their risk exposure by starting with a low deposit, testing withdrawal capability, and using low leverage.

Conclusion

WM offers a modern trading experience with numerous account types, supports MetaTrader trading platforms, and offers competitive pricing with high leverage. At the product level, they effectively meet the needs of active retail traders.

However, because they are offshore and have a mixed corporate structure, WM is best suited for customers who understand and accept the associated risks. WM Markets will likely appeal to experienced traders who want flexibility; however, traders should approach this broker with due diligence and proper risk management.