Pros & cons of ThinkMarkets

ThinkMarkets Fact sheet

Safety is one of the most important things to take into account when choosing a Forex broker. When you make a deposit, you entrust your funds to the broker, and therefore, you need to make sure in advance that the broker can be trusted. 

Traders need to make sure that their broker is regulated. A regulated broker is subject to strict rules and regulations that are designed to protect the interests of traders. ThinkMarkets is licensed in various jurisdictions and therefore can be trusted. The full list of regulators includes: 

• Australia: Australian Securities and Investment Commission​ (ASIC)
• UK: Financial Conduct Authority (FCA)
• Japan: Japan Financial Services Agency​ (JFSA)
• Cyprus: Cyprus Securities & Exchange Commission​ (CySEC)
• South Africa: Financial Services Conduct Authority​, South Africa (FSCA)
• Cayman Islands: Cayman Island Monetary Authority​ (CIMA)
• Seychelles: Financial Services Authority, Seychelles​ (FSA)
• Mauritius: Financial Services Commission, ​Mauritius​​ (FSC)

Policies that ThinkMarkets follows

In accordance with a strict regulatory framework, ThinkMarkets provides clients with negative balance protection. This means that if a trader’s account balance falls below zero due to losses incurred during leveraged trading, the broker will cover the negative balance and reset the account to zero.

In addition, deposits are held in segregated accounts, away from the company’s funds. Account segregation is an important safety feature because it helps to protect traders’ funds in case the broker goes bankrupt.

ThinkMarkets offers a wide variety of tradable instruments and these instruments are mostly Contracts for Difference (CFDs). CFD trading is a popular way to speculate on the price movements of various financial instruments, including stocks, indices, commodities, and currencies. CFDs allow traders to take advantage of both upward and downward price movements, while this is not possible when trading physical shares or physical precious metals. In addition, traders can use margins to trade CFDs, which is one more advantage. On the downside, CFDs are not for investing long term due to trading fees. 

Forex trading on ThinkMarkets

There are 46 available currency pairs for trading. The maximum available leverage is 500:1 for trading currencies and trading fees depend on the account type. On commission-free accounts spreads on the EUR/USD start from 1.1 pips. On the ThinkZero accounts, there are no spread markups, however, traders are charged with commissions. There’s a 7 USD commission per traded lot round turn. 

The broker offers access to trading major, minor, and exotic currency pairs, such as: 

• EUR/USD - Euro vs US Dollar
• USD/JPY - US Dollar vs Japanese Yen
• GBP/USD - British Pound Sterling vs US Dollar
• USD/CHF - US Dollar vs Swiss Franc
• AUD/CAD - Australian Dollar vs Canadian Dollar
• USD/CAD - US Dollar vs Canadian Dollar, and more

Stock CFD trading on ThinkMarkets

Stock CFDs are the preferred way of trading for short term speculators due to the traders’ ability to use margin and trade with leverage. In addition, CFDs can be traded in both directions and there are fewer regulations and barriers to entering the market. The CFD market is more liquid than the physical shares market. As a result, CFD traders get better spreads. There are 4,027 CFDs available for trading with this broker. Leverage requirements are different for each equity, and the maximum available leverage for trading CFDs on stocks is 6.66:1.

It should be mentioned that if you are planning to trade CFDs on stocks, you should avoid downloading MetaTrader 4 as these assets are only available on the MetaTrader 5 platform.

Crypto CFD trading on ThinkMarkets

There are 21 crypto derivatives available for trading. Crypto CFD trading enables traders to speculate on the price movements without actually owning the underlying asset. In addition to all the advantages we have already mentioned above, crypto CFD trading enables traders to stop worrying about crypto wallets and difficulties related to cashing out, as profits are deposited straight to the trading account balance. Leverage is different for each crypto asset and ranges from 2:1 to 50:1. The maximum available leverage for trading Bitcoin is 50:1. ThinkMarkets enables traders to participate in crypto trading 24/7. 

Commodity CFD trading on ThinkMarkets

The broker offers hard commodities to its clients such as energies and metals and the maximum available leverage for trading precious metals is 400:1. For energies, such as US crude oil and Brent crude oil, the maximum available leverage is 100:1. You can see the full list of available commodities below:

•  US Crude Oil- WTI
• Brent Crude Oil - BRENT
• Natural Gas - NGAS
• Gold Zero - XAU/USDx
• Silver Zero - XAG/USDx
• Gold - XAU/USD
• Mini Gold - XAUUSD Mini
• Silver - XAG/USD
• Mini Silver - XAG/USD Mini
• Platinum - XPT/USD
• Copper - COPPER

Indices trading on ThinkMarkets 

An index (plural: indices) is a statistical measure of the performance of a group of stocks or other financial instruments. It is used to track the performance of a basket of stocks that represent certain sectors of the economy. In addition, indices can be traded as CFDs. There are 15 indices available for trading with ThinkMarkets. Leverage varies for each index, and the maximum available leverage is 200:1. The list of available indices includes: 

• ASX 200 - AUS200
• France CAC 40 - FRA40
• German DAX 40 - GER40
• EuroStoxx 50 - ESTX50
• Spain 35 - SPAIN35
• FTSE100 - UK100
• S&P 500 - SPX500
• Dow Jones Index - US30
• Nasdaq - NAS100
• US Dollar Index - USD INDEX
• Russell 2000 - US2000
• Nikkei 225 - JPN225
• NIFTY 50 - NIFTY50
• Hong Kong HS50 - HK50
• China A50 - CHINA50

There are lots of ways to make money in the markets and there are different trader types. In order to meet the needs of different traders, ThinkMarkets offers spread (markup) free and commission-free account types. In addition, demo and swap-free account types are also available. Swap-free accounts are also known as Islamic accounts and these types of accounts enable traders of the Muslim faith to place orders without breaking the rules of Sharia law. 

 It’s important to note that swap-free accounts are not permitted in these countries - Vietnam, Thailand, China, Taiwan, Hong Kong, and Macau. 

Pros & cons of ThinkMarkets account types

Available account currencies are: USD, AUD, GBP, EUR, ZAR, and JPY. It should be noted that it’s best to open your account in the currency that you use the most. That way, you’ll be able to save on currency conversions. 

ThinkMarkets Demo Account

This account type allows traders to practice Forex trading using virtual money without risking any real capital. It is a great way to practice and learn how to use the trading platform. In addition, demo accounts help seasoned traders test their trading strategies in a risk-free environment.

ThinkMarkets Standard Account

The Standard account is aimed at beginners and traders that place fewer orders and spend the most time preparing their trades. For instance, the account type is ideal for position traders and swing traders. Spreads on EUR/USD start from 1.1 pips, and on the index CFDs, spreads start from 0.4 pips. There are no commissions on this account. The maximum available leverage is 500:1, with the maximum tradable lot size being 50 lots. The available platforms are MetaTrader 4, MetaTrader 5, and ThinkTrader. There is no minimum initial deposit requirement for this account. 

ThinkMarkets ThinkZero Account

In order to open this account type, traders need to deposit 500 USD or more. There are no spread markups on this account and traders get raw, market spreads. For this very reason, the account type is ideal for active traders such as intraday traders, scalpers, high-frequency traders, and algorithmic traders. On the other hand, traders are charged with 7 USD commissions per traded lot round turn. In addition, account holders get account managers from the broker’s end to guide them. Only MetaTrader 4 and MetaTrader 5 platforms are available on the ThinkZero account. 

Getting Started on ThinkMarkets – Main steps

In case you have decided to open a live trading account with ThinkMarkets, this section is for you. We’ll guide you through the entire process step-by-step. Registration and account opening is fully digital. 

Step 1: Open an account

The first step is to open the broker’s main page and press the “Create account” button in green. You will be able to open a demo account or a live account from that option. 

Simply follow the steps and fill in your personal information in the registration form. During the registration, you will be asked to verify your email address and phone number.

Step 2: Time to verify your account

After the verification is completed, it’s time to verify your account. Having verified accounts enables traders to withdraw funds from their trading accounts freely. For verification, it’s necessary to provide the broker with proof of your ID (a photo or scanned version of your driving license, ID card, or passport), and proof of your residency (photo or scanned version of a utility bill or bank statement). 

Step 3: Make your deposit and start trading

The next step is to fund your account and start trading. The broker provides traders with various funding options. It should be noted that most options are instant, such as online wallets and credit cards, however, bank wire transfers may take a couple of days. Available funding methods include bank transfer, credit/debit card, crypto, Neteller, and Skrill. 

Trading fees are average with this broker. There are no fees on deposits and withdrawals. On the other hand, the broker charges traders with inactivity fees. The amount is 30 USD per month after 6 months of inactivity. 

Trading fees depend on the account type traders choose. Spreads on Standard accounts start from 1.1 pips on EUR/USD. On metals trading fees start from 0.20 USD, and on indices, spreads start from 0.4 points. The broker also offers spread markup free account type, ThinkZero. However, there’s a 7 USD commission on this account per traded lot round turn. 

Comparing ThinkMarkets fees with other brokers

Let’s compare the trading fees of ThinkMarkets with competitors. For the comparison, we picked Standard account trading fees. 

ThinkMarkets fees compared to Interactive Brokers fees

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

ThinkMarkets fees compared to CM Trading fees

ThinkMarkets fees compared to plus500 fees

ThinkMarkets fees compared to XM fees

ThinkMarkets fees compared to AvaTrade fees

ThinkMarkets fees compared to Capital.com fees

ThinkMarkets offers a full set of MetaTrader platforms to its clients along with ThinkTrader software. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are very popular trading platforms. Both platforms are designed for trading in financial markets and they have many things in common, however, there are also many differences:

• Timeframes: MT4 offers 9 timeframes, while MT5 supports 21 timeframes
• User interface: MT5’s interface is more modern looking
• Programming language: MT4 uses the MQL4 programming language, while MT5 uses the MQL5 programming language. MQL5 is more powerful and allows for the creation of more complex trading strategies. The fact that both platforms have different programming languages means that you cannot use trading algorithms of MT4 on MT5 and vice versa
• Backtesting: MT5 has more advanced backtesting features than MT4

While MT5 is a bit more modern, some traders that trade solely Forex pairs still prefer MT4. MT4 offers more simplicity and high reliability. MT4 is mainly built for trading currencies, while MT5 can be used for trading FX, stocks, bonds, futures, indices, and commodities. 

ThinkTrader is a modern-looking in-house trading platform that offers access to over 50 drawing tools, over 125 technical indicators, 20 chart types, intuitive navigation, and advanced features. There are also mobile, web, and desktop versions of the application available. 

ThinkMarkets offers access to mobile versions of MetaTrader 4, MetaTrader5, and ThinkTrader. Mobile apps can be found in the App Store and in Google Play. The platforms offer a range of features, including real-time quotes, charting tools, news feeds, and account management functions. It should be mentioned that while mobile apps are great in emergency situations, they have some limitations. For example, smaller screen sizes can damage the quality of market analysis, have slower execution speeds, and so on. Overall, the mobile apps offered by this broker are fully equipped with all the functionality that traders need. 

ThinkMarkets offer extensive tools for research and market analysis. In addition, there is lots of educational material for novice traders. The tools offered include: 

• All the latest market news, with regular insights and analysis from in-house experts
• Economic Calendar
• Technical Analysis
• Live Webinars
• Special Reports
• Education
• Articles for Traders
• Indicators & Chart Patterns
• Trading Glossary
• Knowledge Base

Great customer support is essential for success in the increasingly competitive brokerage environment. ThinkMarkets offers exceptional customer support with 24/7 live chat availability. Traders can contact the broker through the chatting window from the main page, or through social media (Messenger, LINE, Telegram, and Twitter). In addition, email and phone call options are also available. 

To sum everything up, ThinkMarkets is a well-regulated broker licensed in 8 jurisdictions. The broker offers excellent customer service which is available 24/7. The available markets for trading are CFDs, CFDs on stocks, commodities, cryptocurrencies, Forex, indices, and metals. The broker offers spread markup free and commission account types. Trading fees are average compared to competitors. Spreads on Standard accounts start from 1.1 pips on EUR/USD. On the ThinkZero account type, there's a 7 USD commission that is charged per traded lot round turn. Maximum available leverage is 500:1. There’s no minimum initial deposit requirement for opening the Standard account. However, in order to open a ThinkZero account 500 USD or more is needed.