BlackBull Markets Review

Trust

BlackBull Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the two entities operating under the BlackBull Markets trade name:

• Black Bull Group Limited is licensed and regulated by the Financial Markets Authority (FMA) of New Zealand under FSP number 4033226. We rate the FMA as a Tier-1 regulator.
• BBG Limited is licensed and regulated by the Financial Services Authority (FSA) of Seychelles under license number SD045. We rate the FSA as a Tier-3 regulator.

We have summarized the most essential aspects of BlackBull Markets in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All BlackBull Markets entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. All broker entities ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. None of BlackBull’s entities have a compensation scheme.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with BlackBull Markets is 1:500.

Is BlackBull Markets Safe to Trade With?

My research showed that BlackBull Markets is well-regulated and complies with some of the most rigid safety requirements in the industry. Despite one of its entities being regulated offshore, the broker ensures negative balance protection and the segregation of client funds. That is why I consider the broker to be quite safe to trade with.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and the transparency of information provided.

I reviewed BlackBull’s legal documents, such as the Client Agreement, risk disclosure, and execution policy, and found everything to be in order. The legal texts are free of ambiguous language, and the broker’s services and responsibilities are clearly defined.

The account creation process includes a rigorous client categorization procedure aimed at distinguishing between experienced and inexperienced traders, ensuring each is matched with the most suitable services available.

I also appreciated BlackBull Markets for providing abundant information about its various costs and contract specifications. Even non-registered clients (without access to a BlackBull Markets platform) can quickly assess the affordability of BlackBull’s costs from the website.

In summary, my research indicates that BlackBull Markets can be regarded as having a sufficient level of trust and stability due to the following factors:

• Holds one Tier-1 regulation
• Ensures negative balance protection
• Provides clear and concise documentation
• Has strict client categorization practices
• Maintains a high degree of fee transparency

Fees

BlackBull Markets Trading Fees

BlackBull Markets Spreads

I tested BlackBull Markets’ spreads on 20 February 2024 during the London and New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, BlackBull Markets charges low spreads on indices and cryptocurrencies, low-to-high spreads on commodities, average spreads on FX pairs, and high spreads on share CFDs.

BlackBull Markets Commissions

BlackBull’s Standard account carries no commission. However, its Prime account incurs a $6 round-turn commission per traded lot (100,000 units), with $3 charged for opening a full-sized trade and an additional $3 for closing it. I determined that this $6 commission rate aligns with the industry average.

BlackBull Markets Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My tests indicate that BlackBull charges average-to-high swaps. This configuration is fine for intraday trading but less ideal for longer-term strategies, such as day trading and position trading.

BlackBull Markets Non-Trading Fees

The broker does not charge dormant accounts with an inactivity fee. It also does not charge a handling fee on deposits. However, withdrawals are liable for a $5 handling fee charged internally that may be added to any third-party banking fees the trader may have to pay depending on the used payment method.

Are BlackBull Markets’ Fees Competitive?

In my analysis, BlackBull Markets offers competitive pricing, largely influenced by the type of instrument traded and the trading strategy employed. I think the broker’s pricing structure is particularly well-suited for intraday trading. Additionally, BlackBull’s pricing is advantageous for trading certain metals, indices, and notably cryptocurrencies, with a significantly low spread on Bitcoin.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of BlackBull Markets’ two account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that the pricing mechanism of BlackBull’s Standard account meets the industry average when it comes to commission-free trading accounts. Meanwhile, its Prime account features marginally lower prices compared to most ECN accounts.

Platforms and Tools

I tested the performance of BlackBull’s cTrader platform and found it to be extremely versatile and user-friendly. What stands out is the extensive array of tools and configurations available to traders. Notably, cTrader offers an impressive selection of over 20 timeframes and supports one-click trading, making it an excellent choice for scalping.

Yet another great thing about cTrader is that it has many built-in videos explaining what its multiple technical indicators do and how they can be used in real-world trading. This feature is great for beginners who still haven’t fully developed their trading systems.

BlackBull Markets also provides FIX API and Virtual Private Server (VPS) hosting for low-latency trading, mitigating the risk of negative slippage. Free VPS hosting is available to clients with $2000 or more in their accounts and at least 20 lots of traded volume per month.

Finally, I tested the BlackBull Trade app, which is quite sophisticated and easy to navigate. It adds extra layers of protection, such as its finger recognition software.

BlackBull’s Desktop cTrader Platform

General Ease of Use

cTrader has a very familiar layout, with its charts positioned in the middle, order execution on the right-hand side, and account info at the bottom. On the left-hand side of the main panel, you can switch between the platform’s several settings (retail trading, automated trading, and copy trading).

When in the retail trading regime, you can easily configure the smart stop-out option from the bottom of the window or take advantage of cTrader’s multiple integrated research tools, such as an economic calendar and news screener.

Finally, the platform affords ample information about order execution. You can read about margin requirements, current spread rate, and much more before proceeding to open a position.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. In my experience, a chart’s most important attribute is its fluidity – how easy it is to scale price action up and down.

I have broken down the available analytical tools and chart configurations on cTrader below:

• 67 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. cTrader is a fluid platform, and adding more indicators does not decrease the chart’s clarity.
• 23 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels.
• 26 timeframes. cTrader stands out with its impressive assortment of timeframes, which allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. Most timeframes are with lower periods, which makes the platform especially suitable for scalping.
• 6 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the cTrader platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

The other thing I found quite useful about cTrader is its ‘Smart Stop-Out’ feature. If the margin call threshold is reached and no new funds are added to the account, the system will start the partial closing down of open trades. That way, the risk of incurring bigger losses is lessened, while the chance for a reversal is retained. The smart stop-out tool provides highly speculative traders with more sophisticated protection against adverse volatility.

My Key Takeaways After Testing the cTrader Platform

cTrader is probably one of the most well-rounded platforms out there. It combines copy trading, algo trading, and retail trading seamlessly and supports sophisticated technical analyses while offering plenty of supporting tools and content for newbies. cTrader also caters to the needs of high-yield/high-risk traders with its smart stop-outs.

The platform is also one of the best choices for scalping due to its vast array of timeframes, along with BlackBull’s fast order execution (under 75 milliseconds), FIX API, and VPS hosting.

BlackBull Markets’ Mobile Trader App

BlackBull’s mobile app affords quick and easy access to the market on the go. It is very useful for making snap adjustments to any open trades.

The market is volatile and ever-changing, and staying on top of the latest developments is made easy with BlackBull’s mobile app. It can also be used to place market, limit, and stop orders, as well as to adjust the exposure of open trades.

My Key Takeaways After Exploring BlackBull Markets’ Mobile Trader App

The BlackBull Markets app has a pleasant design and is crucially important for making snap adjustments to any open trades to regulate the overall market exposure. I also appreciated this app for its extra layers of security. Traders can use finger recognition to access their accounts from the app.

Tradable Instruments

Compared to the industry average, BlackBull offers an average amount of FX pairs and commodities, and a high number of share CFDs, indices, and cryptocurrencies.

The offering is mainly geared towards speculative trading (scalping, contrarian trading, etc.), though the addition of several futures contracts also allows traders to hedge their overall market exposure by entering into positions with predetermined prices for future delivery.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With BlackBull Markets?

My Key Takeaways After Exploring BlackBull’s Instruments Offering

BlackBull Markets’ instrument offering is quite extensive, covering various markets. The standout feature is the impressive range of over 26,000 share CFDs. This diversity meets the needs of traders worldwide, ensuring there’s always at least one market open for trading.

The offering primarily focuses on higher-yield/risk assets. However, there are several futures contracts available for more experienced traders to hedge against both expected and unexpected changes in volatility.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 21 February at around 14:50 CET via live chat. I inquired about the broker’s inactivity fee and then about the execution method. An agent connected almost instantaneously to my chat. Their responses were quick and to the point, and I appreciated their politeness.

I concluded that BlackBull Markets’ customer support is reliable, and its availability 24/7 makes it even more valuable.

Deposit and Withdrawal

BlackBull Markets Deposit Methods

BlackBull Withdrawal Methods

Account Types and Terms

BlackBull’s Account Opening Process

The account creation process with BlackBull Markets is straightforward and quick. You can go at your own pace and be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Join Now’ from the top-right corner of the main page.
• Step 2. Enter your personal details, including email, name, and country of residence.
• Step 3. Provide additional details, such as your address and national tax number.
• Step 4. Choose an account type, base currency, account leverage, and trading platform.
• Step 5. Enter your employment and financial data by stating the source of your trading funds, estimated funding amount, net worth, and more.
• Step 6. Verify your email address.
• Step 7. Upload proof of ID and address to verify your account.

BlackBull Markets Account Types

The Standard account is quite accessible, given that it has no minimum deposit requirement, whereas the Prime account offers more competitive pricing.

BlackBull Markets has integrated robust safety nets with a margin call at 70% and stop-out at 50%. This combination suits more risk-averse traders and also those with less experience, as the likelihood of incurring significant losses due to adverse volatility is decreased.

Demo Account

BlackBull Markets offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account need to contact BlackBull Markets’ customer support and request the service from there.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage by Asset Class

In the table below, I have listed the maximum retail leverage available with BlackBull for instruments from different asset classes:

BlackBull Markets Restricted Countries

BlackBull Markets does not provide its services in Canada, the United States, and the countries sanctioned by OFAC.

Research

I have broken down the available research content by type below:

• Trading Opportunities: Brief written and easy-to-understand articles that inform traders of currently unfolding trading opportunities. Each article contains a robust fundamental analysis.
• BlackBull Research: Comprehensive stock market research that focuses on NZX, ASX, and US shares. This type of content is incorporated from ATM Strategy Research, an Auckland-based company that specializes in investment portfolio research.
• News Screener: Integrated directly on the cTrader platform, the news screener allows traders to stay on top of the latest market developments without even leaving the platform.
• Economic Calendar: It is an essential tool in a trader’s arsenal that informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.

My Key Takeaways After Exploring BlackBull Markets’ Research Content x

I assess that BlackBull Markets’ research content is mostly geared towards technical analysis, with some fundamental breakdowns. This combination is practical and mostly tailored to suit the needs of less experienced traders who are less likely to pay attention to the big picture and what is driving the market. However, BlackBull Markets’ content lacks nuance.

Education

I have broken down BlackBull Markets’ educational content by type below:

• Courses. There are four courses (Forex, Commodities, Shares, Crypto) available in three levels: beginner, intermediate, and pro. The content does a good job of introducing the reader to the particulars of trading instruments from each asset class.
• Videos. More than 60 videos on the broker’s YouTube channel introduce the trader to essential concepts. However, I felt a lack of nuance and diversity. For instance, there is barely any information on fundamental analysis, risk management, or the psychology of trading.
• Platforms videos. I found over 50 platform tutorials that guide users through the trading platform’s features, tools, and strategies.
• Webinars and podcasts. 13 past webinars and 19 podcast episodes are available from the broker’s YouTube channel. Being highly informative with an unconventional structure, I found this content useful for those interested in learning about more abstract trading topics.

The Bottom Line

BlackBull Markets, a forex and CFD broker based in New Zealand since 2014, caters to a global clientele, offering access to over 26,000 tradable instruments across various markets.

The broker distinguishes itself with an extensive selection of trading platforms. Traders have the option to choose from seven platforms, supporting social and copy trading, automated trading, and advanced technical analysis. Additionally, algo traders can benefit from BlackBull’s FIX API and VPS hosting services.

While BlackBull provides valuable research content, its educational resources are somewhat limited in scope.

Given its fast execution speeds, averaging around 75 milliseconds, and affordable pricing, BlackBull Markets is particularly well-suited for high-frequency trading. The broker is also an excellent option for technical traders, including those interested in social and automated trading strategies.

FAQ