Pros & cons of Key to Markets

Key to Markets Fact sheet

When it comes to trading, the most important topic is safety and security. Traders need to make sure that their broker is trustworthy before depositing funds. But how can we make sure the broker can be trusted? The answer is simple, regulations. 

Key to Markets is authorized and regulated by: 

• The Financial Services Commission of Mauritius, (FSC) as an Investment Dealer 
• The Financial Conduct Authority (FCA)

It’s worth mentioning that the FCA of the UK is a top-tier regulator and has strict rules to make sure the traders’ funds are safe. The FSC is a mild regulator compared to the FCA.

Policies that Key to Markets follows

In accordance with the strict regulations from the regulatory bodies they are licensed under, Key to Markets provides negative balance protection, keeps clients’ funds in segregated accounts, and is a member of the Investors Compensation Scheme. 

Traders can borrow funds from their broker to increase their purchasing power, which is called leveraged trading. High leverage makes it possible for traders to lose more money than what’s on their trading balance. In order to prevent this from happening, Key to Market implements Stop Out Levels and guarantees that your account will never go negative. If for some reason your account does go into the negatives, you can contact customer support and they’ll turn the balance back to zero.

Along with that, because the broker keeps traders’ funds in segregated accounts, even if the company goes bankrupt, traders will be able to keep hold of their funds.

Key to Markets provides access to trading 156 instruments, including Forex, commodities, indices, cryptocurrencies, and shares as CFDs. All the asset types are CFDs, which stands for Contract For Difference. When it comes to trading and investing, CFDs have their pros and cons and are preferred for short and medium-term market speculations. However, for long-term investing, physical stocks, tokens, and precious metals are preferred. 

Forex trading on Key to Markets

Key to Markets provides access to trading 65 currency pairs, including majors, minors, and some exotics. The offered leverage is up to 500:1, however, it’s worth noting that high leverage can be extremely dangerous to novice traders. Leverage helps increase purchasing power, and as a result, the potential for greater returns and greater losses increases as well.

When it comes to trading fees, it all depends on the account type. The broker offers spread-free and commission-free accounts. In general, position traders, who place orders less frequently than day traders, pick commission-free accounts. The fact that they place fewer orders makes the account type more attractive, as spread markups do not matter that much. For high-frequency traders, spread-free accounts are more suitable. The Standard account charges a 1 pip markup and zero commissions, while the Pro account charges 0 spread markups and 8 USD round turn commissions per traded lot. 

Stock CFD trading on Key to Markets

There are 65 stocks as CFDs for trading with Key to Markets. Traders have access to the most liquid US shares, such as Tesla, Google, Alibaba, Amazon, Apple, Coca–cola, Netflix, Microsoft, etc. The US shares are only available for trading during work days. 

There are also German, French, and Spanish shares available for trading. The list of shares includes BMW, Siemens, Volkswagen, Société Générale, BBVA, and so on.

Trading shares as CFDs has its benefits and drawbacks. Let’s look at the benefits first:

• Traders can go long or short and make money even if the markets are falling. Since the contract for difference doesn’t mean that you actually own any stock
• Traders can use leverage to increase their purchasing power
• Lower trading costs
• CFD markets are more liquid than physical markets and therefore, CFDs have tighter spreads
• Fewer barriers to entry. It’s super easy to open trading accounts and trade with CFD brokers
• CFDs are great for short and medium-term market speculating

On the downside, CFDs have larger long-term trading fees and spreads. Swaps are charged for keeping positions active overnight making them less valued by long-term investors. Along with this comes the risks inherent in using leverage, and traders are advised to be careful when using this asset class.

Crypto CFD trading on Key to Markets

With Key to Markets, traders can speculate on 4 crypto prices. The cryptos are paired with US dollars and offered as CFDs. The full list of crypto assets offered includes:

• Bitcoin – BTC/USD
• Dash – DSH/USD
• Ethereum – ETH/USD
• Litecoin – LTC/USD

We’ve already mentioned the benefits of trading CFDs for short and medium-term speculating, and these same benefits apply when it comes to trading crypto CFDs. In addition, traders do not need to worry about where to store their coins or how to cash out as no crypto wallet is needed. The profits go straight to your trading balance. 

Commodity CFD trading on Key to Markets

Commodities are raw materials and with Key to Markets, traders have access to precious metals and energies. All the assets are CFD type. 

The list of commodities includes:

• XAU/USD – Gold
• XAG/USD – Silver
• XPD/USD – Palladium
• XPT/USD – Platinum
• XWTI – US WTI Crude Oil
• XBRENT – Ice Brent Crude Oil
• NGAS – Natural Gas

Commodity prices are dependent on global supply and demand. In case you are planning to trade these assets, it can be noted that usually commodity prices are immune to inflation and might even see rises in price during difficult economic periods.

Indices trading on Key to Markets

Key to Markets provides access to 15 of the most popular indices. Indices are following the performance of a basket of certain shares and consequently, they have two general uses; they are indicators of the health of certain industries and economies, and they are trading instruments. Indexes can be traded as CFDs. 

The complete list of indices offered by Key to Markets includes:

• CN50 – China 50 Index
• HKG50 – HK Hang Seng 50 Index
• IND – 50 India 50 Index
• RUSS2000 – US Russell 2000 Index
• XAUS200 – Australian ASX 200 Index
• XEU50 – Euro Stoxx 50 Index
• XFRA40 – French CAC 40
• XGER30 – German DAX 30 Index
• XJP225 – Japan Nikkei 225
• XSPA35 – Spanish IBEX 35 Index
• XUK100 – UK FTSE 100 Index
• XUS30 – US Dow Jones 30 Index
• XUS500 – US S&P 500 Index
• XUSTEC – US Nasdaq 100 Index
• USVIX – US Volatility Index

There are various types of market speculators. Some prefer planning more and placing fewer, more calculated orders, while others trade frequently. There are scalpers, news traders, trend and range traders, along with intraday, swing, and position traders, each with their own preferences. Some traders prefer to pay spread markups and zero commissions, or vice versa, depending on their trading style and strategies being employed. In order to meet the needs of different traders, Key to Market offers spread-free and commission-free account types. 

Pros & cons of Key to Markets account types

Key to Markets Demo Account

There’s a demo version of both the Standard and Pro account types available with Key to Markets. The account is free to open and use. Demo trading can help you get familiar with the broker’s policies. It’s also highly beneficial for testing and developing trading strategies. Novice traders use the account to learn how certain markets work, they learn how to use platforms and indicators. Demo trading is similar to live trading, with the main difference being that real money is not at risk. The main downside of trading using the Demo account is that it fails to prepare traders emotionally. When traders place live orders with real money, they might experience greed, hope, fear, excitement, and other feelings that can influence their trading decisions.

Key to Markets Standard Account

The Standard account is for position traders, novice traders, and swing traders. The account charges 1 pip markup to trades, and there are no commissions. Traders have access to FX, indices, commodities, and shares. Leverage goes up to 500:1 and the minimum initial deposit required is 100 USD. Both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are available as trading platforms. 

Key to Markets Pro Account

The pro account offers many similar features. The minimum initial deposit is 100 USD, the leverage is up to 500:1, and traders have access to the full set of MetaTrader platforms. The main difference is that there are no spread markups, but commissions are 8 USD per traded lot round turn. The spread-free account is especially beneficial for traders that place lots of orders within a day. 

Getting started on Key to Markets – Main steps

In case you have decided to open a live trading account with Key to Markets, we’ll guide you through the entire process. The web page is super user-friendly and the process is very intuitive. 

Step 1: Open an account

The first step is to open the broker’s main page and click on the “Open a Real Account” button in greed. The button is located in the middle-top area of the page. The button will transfer you to the registration page where you will be required to fill in the form.

Step 2: Time to verify your account

After registration is complete, it’s time to verify your identity and residency. The broker will require proof of identity and proof of residency documents from you. You can upload scanned documents or take digital photos straight from your smartphone. It’s important to note that the pictures should be clear, and there should not be shadows or light reflections. 

• Proof of identity – you can provide a copy of your passport, government-issued ID, a driving license, etc. 
• Proof of residency – you can use a utility bill, bank statement, or any other official document that shows your residency

Verification will give you full access to your account, and you’ll be able to deposit and withdraw money after it is complete.

Step 3: Make your deposit and start trading

After the verification process is concluded, you can make your first deposit and start trading. No matter which account type you pick, the minimum initial deposit required is 100 USD. There are various funding methods available. The methods include Visa, Mastercard, bank transfer, Neteller, Skrill, STICPAY, UnionPay, SEPA transfer, and ALIPAY. Note that most credit card and online banking options are instant, however, bank wire transfers may take up to 3 business days. 

Fees and commissions are affordable with Key to Markets. The broker offers both free-of-commission and free-of-spread markup account types. In addition, there are no transfer fees or inactivity fees. Let’s do a comparison with other brokers to find out more about the payment policies. For the comparison, we’ll use the Standard account that has 1 pip markup. 

Comparing Key to Markets fees with other brokers

Key to Markets fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

Key to Markets fees compared to eToro fees

Key to Markets fees compared to IG fees

Key to Markets fees compared to XM fees

Key to Markets fees compared to AvaTrade fees

Key to Markets fees compared to Capital.com fees

There is a full set of MetaTrader platforms available for trading Key to Markets. Both support Expert Advisors (EAs), algorithmic trading, as well as copy trading. In addition, traders can use an AutoTrade Account powered by Myfxbook. 

MT4 was built in 2005. The platform gained popularity quickly and remains one of the most popular FX platforms even today. Both MT4 and MT5 are highly reliable offering a simple design that enables anyone to run its software. For some, the platform may look outdated, but they are super reliable. MT5 was released 5 years after MT4, in 2010, and it is built for trading multiple asset classes. MT4 is mainly used for trading FX pairs. 

The AutoTrade platform doesn’t require installation, it is an online terminal. There are live trading strategies available for sharing and the platform picks only the best-performing strategies and offers them to other traders. Signal providers get incentives and increase their income. What’s great about this platform is that a demo version is available and the demo version enables traders to get used to the software and test how AutoTrade works before depositing funds. 

Mobile apps help traders to keep track of market developments from anywhere in the world. The broker offers mobile trading to both Android and Apple device users. The advantages of mobile apps include:

• Real-time charts 
• Availability of mobile push notifications
• Access to every order type and execution mode
• Availability of trading history journal
• Free access to the trading account through several devices simultaneously.

Quality education is essential for the development of novice traders. Key to Markets provides traders with tools for research and educational material to boost the learning process and speed up the learning curve. 

Tools for improving market analysis offered by the broker:

• Weekly market updates
• Market analysis
• Thoughts and insights

Material for boosting education offered by Key to Markets:

• Webinars
• Learn to trade FX
• Learn to trade CFDs
• Learn to trade stocks as CFDs

Quality customer service is the backbone of every successful business that is serving its customers. Clients can contact the broker using email, over the phone, and using live chat. However, the live chat option is limited to already existing customers. The fact that there’s no live chat option to answer potential clients’ questions, is an obvious downside. Other than that, the service is highly professional. What’s more, customer support is available in English, Spanish, Portuguese, and in Indian languages. The phone call option is available during business hours of 9 a.m. to 6 p.m. GMT. 

To sum everything up, Key to Markets is a decent broker that is regulated by the UK’s FCA, which is a top-tier regulatory body, and by the FSC of Mauritius. Traders have access to 156 instruments, including Forex, commodities, indices, cryptocurrencies, and shares as CFDs. The broker provides access to a full set of MetaTrader platforms. Key to Markets offers both spread-free and commission-free account types in order to attract different traders. Trading fees are reasonable and the minimum initial deposit required is only 100 USD. The broker offers extensive educational material and tools for analysis. However, customer service is lacking live chat options for potential customers. Overall, it’s safe to say that Key to Markets is an average Forex broker.