Pros & cons of Ultima Markets

Ultima Markets Fact sheet

Safety is the most important metric when choosing a broker. Safe brokers guarantee that your funds are well protected, operations are transparent, and your personal data is secured. One of the main indicators of the safety and security of your broker is regulatory compliance. Ultima Markets is authorized and regulated in various jurisdictions, such as Cyprus and Mauritius. In addition, the broker is registered in St. Vincent and the Grenadines. 

• Ultima Markets Ltd. is authorized and regulated by the Financial Services Commission "FSC" of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593).
• Ultima Markets Ltd. is registered under Saint Vincent and the Grenadines Financial Services Authority (“SVGFSA”) with registration number 26330
• Ultima Markets Cyprus Ltd. is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with license number 426/23

The fact that the broker is licensed indicates that it can be trusted. However, it should be mentioned that these regulators are not very strict, which enables the broker to offer 2000:1 leverage. High leverage can be dangerous as it helps increase purchasing power dramatically, as a result, potential returns and potential losses increase. It must be noted that often beginner traders blow up their accounts due to highly leveraged trading positions. 

In accordance with regulations, Ultima Markets keeps the deposits made by the traders in segregated bank accounts. Fund segregation increases the level of safety, as even if the broker is liquidated, traders will be able to get their trading capital back.

Ultima Markets offers access to trading multiple asset classes. However, it should be mentioned that all of the assets are CFDs (Contracts for Difference). Trading CFDs enable traders to take advantage of price movements of the underlying assets without owning them. There are some main advantages that come with trading CFDs, including: 

• Leverage: CFDs are leveraged products, which means that traders can use small amounts of capital and borrowed funds from their broker to manage increased position sizes. 
• Ability to go long or short: CFDs are simply contracts, this means that you can buy or sell and get profits from both rising and falling market conditions. While, if you are investing in physical assets, such as physical precious metals and real stocks, you can only increase your returns when the price of your assets increases.
• Liquidity: CFDs are highly liquid assets. More people trade CFDs than underlying assets. This means that traders can take advantage of low spreads and an increased number of trading opportunities.
• Cost Efficiency: CFD trading costs less as there are fewer barriers to entry than trading physical assets.

On the other hand, it should be noted that CFDs are not preferred instruments for investing long-term, as there are rollover fees for keeping positions open overnight. 

Forex trading on Ultima Markets

Ultima Markets offers 39 currency pairs for trading and spreads start from 1 pip on a Standard account. This simply means that trading fees are included in the price and each time you open a trade, 1 pip is deducted from the trading balance. Live spreads depend on market liquidity and trading fees. It should be mentioned that the broker also offers spread-free accounts, which we will discuss later. 

The available currency pairs include major, minor, and exotic ones, such as: 

• Australian Dollar vs US Dollar
• Euro vs US Dollar
• Great Britain Pound vs US Dollar
• New Zealand Dollar vs US Dollar, etc. 

Stock CFD trading on Ultima Markets

There are 69 CFDs on US stocks available for trading with this broker. The US stock market is known to be the most liquid and offers lots of trading opportunities to stock traders. High liquidity translates into good trading fees and conditions. It must be noted that these instruments are best for speculating, since they are CFDs and not for investing long-term. Trading fees on stocks start from 1 US cent. Traders have access to trading the most popular company stocks, such as:

• Apple Inc.
• Alibaba group
• Amazon.com inc.
• Bank of America Corp.
• Boeing co.
• Citigroup inc.
• Walt Disney co.
• Tesla
• Walmart Inc.

Crypto CFD trading on Ultima Markets

There are 47 crypto derivatives for trading. As already mentioned, these are CFDs and not real digital coins. In addition to the benefits of trading CFDs, when it comes to trading crypto derivatives, you don’t need to worry about crypto wallets and cashouts, as all profits will be added to your trading account balance. Some of the most popular pairs that you can trade with this broker include:

• Bitcoin vs US Dollar
• Bitcoin vs Euro
• Dogecoin vs US Dollar
• Ethereum vs US Dollar
• Litecoin vs US Dollar etc.

Commodity CFD trading on Ultima Markets

Ultima Markets offers access to trading both soft and hard commodities. There are 5 CFDs on precious metals, such as gold and silver, as well as oil and soft commodities, totaling 17 tradable instruments. Trading fees start from 0.2 pips on silver vs USD. Some of the most popular pairs that you can trade with Ultima Markets include:

• Copper
• US cocoa
• Cotton
• Natural gas
• Soybean
• Sugar Raw
• US Wheat, etc.

Indices trading on Ultima Markets

There are 28 indices available for trading. Trading fees on the S&P 500 start from 0.5 pips. Indices measure the overall performance of a basket of stocks that make up the index. Some of the popular indices available with this broker are:

• FTSE100 index
• S&P 500
• US Dollar index (USDX)
• China A50 index cash CFD (CHINA50)
• Dow Jones Industrial Average

In order to meet the needs of different traders, Ultima Markets offers Standard, ECN, and Pro ECN account types to its customers. Let’s learn more about each account type to find out which might suit you best.

Pros & cons of Ultima Markets account types

Ultima Markets Standard Account

The Standard account is aimed at beginner traders, position traders, and swing traders. Trading fees start from 1 pip on EUR/USD, and there are no commissions. Traders who place orders less frequently will find this account particularly attractive as commission-free trading means less fees. The minimum initial deposit required to open the account is 50 USD.

Ultima Markets ECN Account

The ECN account is best suited for active traders such as intraday traders, scalpers, high-frequency traders, as well as algorithmic and news traders. There are no spread markups on this account. On the other hand, traders are charged a 5 USD commission. In order to open this account, you will need to make an initial deposit of 500 USD. 

Ultima Markets Pro ECN Account

The Pro ECN account is for VIP traders. The minimum initial deposit required to open this account is 20,000 USD, and similarly to the ECN account, the Pro ECN account type is best suited for active traders. Trading conditions are better on the VIP account as there are no spread markups and commissions start from 3 USD. 

Getting started on Ultima Markets – Main steps

The account opening process takes a few steps and it’s fully digital. We’ll guide you through this process. 

Step 1: Open an account

First, you need to go to the broker’s webpage and press the “Open Account” button in yellow. You will be sent to a registration page where you need to provide your personal information. Under the “More About You” tab, you will be asked to provide details about your personal income level, and level of trading experience. Later you will be able to configure your trading account by choosing your leverage, account currency, and trading account type. The broker enables traders to open accounts in the following currencies: USD, GBP, CAD, AUD, EUR, SGD, NZD, HKD, and JPY. It’s recommended that you open a trading account in a currency that you use the most often to save on conversion costs.

Step 2: Time to verify your account

The next step is to verify your trading account. For verification the broker asks two types of documents: 

• Proof of your identity (you can upload a digital photo or scanned version of your driving license, passport, or government-issued ID card)
• Proof of your residency (you can use a utility bill or a bank statement)

Step 3: Make your deposit and start trading

The last step is to make a deposit. It should be noted that you can make a deposit before your account is fully verified, however, it’s not recommended that you do so. Only verified account holders can withdraw money from their trading accounts. Ultima Markets accepts deposits via various methods, including bank transfers, Bitcoin, crypto, and UnionPay. It should be mentioned that while bank transfers it can take anywhere from 2 to 5 business days for transactions to complete, while transactions made through the rest of the methods are instant.

Trading fees with Ultima Markets are average compared to their competitors. On a Standard account traders pay no commissions, however, trading fees are included in spreads and start from 1 pip on EUR/USD. ECN and Pro ECN accounts have zero spread markups. On the other hand, ECN account holders are charged with 5 USD commissions, while on the Pro ECN account commissions are 3 USD. 

Comparing Ultima Markets fees with other brokers

To get a better understanding of how trading fees impact traders with Ultima Markets, let’s make a comparison between this broker and its competitors. 

Ultima Markets fees compared to Interactive Brokers fees

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

Ultima Markets fees compared to CM Trading fees

Ultima Markets fees compared to plus500 fees

Ultima Markets fees compared to XM fees

Ultima Markets fees compared to AvaTrade fees

Ultima Markets fees compared to Capital.com fees

Ultima Markets offers MetaTrader 4 as its main platform for desktop computers. In addition, there are mobile trading apps and web trading terminals available. The mobile trading platforms are fully equipped with tools and functionalities necessary for trade execution, order monitoring, and analyzing performance. The apps also provide traders with live price charts.

MetaTrader 4 (MT4) is the most popular Forex trading platform. It offers a user-friendly interface, charting and analysis tools, automated trading capabilities using Expert Advisors (EAs), and great reliability. MT4 offers nine standard charting timeframes and allows you to hedge your trades and backtest strategies using EAs. 

Educational material and tools for research are limited with Ultima Markets compared to industry leaders. The broker offers an economic calendar, Forex calculator, and Forex trading overview for beginners. Webinars, seminars, and material for advanced traders are lacking. 

The customer support offered by this broker is average. Existing and potential customers can contact the broker via live chat, email, or over the phone during business hours. The live chat option is available 24/5. The main page has only 2 language options: English and Chinese

To sum everything up, Ultima Markets is a regulated broker in various jurisdictions and therefore can be trusted. However, regulators are not strict. The broker is licensed by the Financial Services Commission of Mauritius and the Cyprus Securities and Exchange Commission. In addition, it’s registered under Saint Vincent and the Grenadines’ Financial Services Authority. The available trading platform is limited to MetaTrader 4, trading fees on EUR/USD start from 1 pip (Standard account), and there are around 205 tradable instruments including bonds, CFDs on stocks, commodities, cryptocurrencies, Forex, indices, and metals. The broker offers Standard, ECN, and Pro ECN account types to meet the needs of different traders. While reviewing Ultima Markets, we found nothing that helps this broker stand out from competitors.