CA Markets Review

Trust

CA Markets Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing 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 three entities operating under the Corporate Alliance trade name:

• CA Markets Limited is licensed and regulated by the Vanuatu Financial Services Commission (VFSC) under license number 700714. We rate the VFSC as a Tier-3 regulator.
• Corporate Alliance Group Pty Ltd is licensed and regulated by the Australian Securities and Investments Commission (ASIC) under license number 523351. We rate ASIC as a Tier-1 regulator.

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

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

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. Both entities ensure the segregation of 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. Both entities provide negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. None of CA Markets’ entities participate in 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 CA Markets Limited is 1:500.

Stability and Transparency

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

I reviewed CA Markets’ legal documents for transparency issues and found that essential information is readily available and easy to understand. The Client Agreement contains all relevant information regarding the broker’s safety mechanisms (segregation of client funds, negative balance protection, etc.).

CA Markets has also implemented a ‘best execution policy,’ which is a legal mandate obliging brokers to provide their clients with the optimal price quotes under the prevailing market sentiment. The policy lessens the risk of negative slippage.

Is CA Markets Safe to Trade With?

I concluded that CA Markets is quite safe to trade with due to the following factors:

• Client funds are kept in segregated funds
• Guarantees negative balance protection
• Has issued a ‘best execution policy’

Fees

CA Markets Trading Fees

CA Markets Spreads

I tested CA Markets’ spreads on 30 July 2024 during the London and the New York open. The results are shown in the table below:

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

CA 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 base currency contract (100,000 units).

My tests indicate that CA Markets charges very low overnight charges. This is particularly suitable for implementing longer-term trading strategies, such as swing and position trading.

CA Markets Commissions

CA Markets charges a $3.5 single-turn commission per traded lot (100,000 units) on its Ace account, which applies to instruments from every asset class. In other words, executing a full contract costs $7 ($3.5 to open it and $3.5 to close it) on top of the spread. This commission rate exceeds the industry average of $6 per traded lot.

CA Markets Non-Trading Fees

Deposits with CA Markets are free of charge if the trader meets specific criteria. Withdrawals, however, are subject to a handling fee, depending on the chosen payment method. Furthermore, payments to and from the broker may be subject to third-party banking fees.

CA Markets does not charge dormant accounts with an inactivity fee.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of CA Markets’ three retail 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) in 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

According to my findings, CA Markets’ Standard and Pro accounts’ fees exceed the industry average. On the other hand, the Ace account features the most competitive prices. The account type also has a low barrier to entry at $50, making it quite affordable.

Are CA Markets’ Fees Competitive?

I discovered that CA Markets’ spreads on the Ace account are extremely low, but the commission rate of $7 per traded lot is higher than the industry average. Overall, this account type’s fees are more favorable for low-volume trading. As trading volume increases, the pricing becomes less competitive. CA Markets does not charge inactivity fees for dormant accounts and offers free deposits, making trading conditions more favorable.

Platforms and Tools

The Desktop Version of CA Markets’ MT5 Platform

In this review, I tested the MetaTrader 5 platform, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs) feature. The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions.

CA Markets offers MAM and PAMM accounts, enabling market experts to trade on behalf of their clients. All client funds are pooled in a single MAM/PAMM account, where the market professional executes orders using the aggregate balance. The expert collects a fixed fee from the generated profits, and the remaining profits are redistributed among clients based on their equity relative to the total amount.

Additionally, MetaTrader 5 has an intuitive mobile app, which helps traders stay connected to the global capital markets even on the go.

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen. Charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window. A panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

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

• 38 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.
• 24 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. Despite the rather large collection of drawing tools, MT5’s ruggedness makes it difficult to discern price action behavior.
• 21 timeframes. One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 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.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

MetaTrader 5 features three types of order execution: market, pending, and one-click trading (top-left corner). One-click trading allows immediate entries at the spot price.

I have broken down the available order types on the MetaTrader 5 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.

My Key Takeaways After Testing the MetaTrader 5 Platform

In my opinion, MT5 is a good option for fast and simple order execution. On the other hand, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

CA Markets’ Execution Model

CA Markets operates as a Straight-Through-Processing (STP) broker without a dealing desk.

I measured its average execution speed over several days and discovered that it fluctuates between 46 and 56 milliseconds. This is faster than the industry average and generally suitable for high-precision trading.

For ultra-fast execution speeds below 5 milliseconds, traders can use CA Markets’ free Virtual Private Server (VPS). The feature is available to funded trading accounts with at least $1000, on which traders execute at least 20 lots in volume per month.

CA Markets’ MT5 Mobile App

The mobile app version of MT5 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Tradable Instruments

Compared to the industry average, CA Markets offers a high number of indices, an average number of currency pairs and commodities, and a low number of cryptocurrencies.

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 CA Markets?

My Key Takeaways After Exploring CA Markets’ Instruments Offering

CA Markets offers a decent range of currency pairs and indices, giving its clients enough flexibility. Moreover, the availability of indices and cryptocurrencies affords speculative trading.

On the other hand, the broker does not offer share CFDs. Furthermore, its lower-risk securities – bonds and agricultural futures contracts – are only available to accounts funded with at least $500 and upon request.

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 support test on 17 July at around 09:36 a.m. CET via live chat. Before starting a chat, I had to enter my account credentials.

An agent connected within 30 seconds. Initially, I asked about CA Markets’ offering of agriculture and treasury instruments and why I could not see them on my account. The agent explained that those are only available upon request.

My overall impression of the broker’s support is a positive one. The agent’s answers were quick and well-informed.

Deposit and Withdrawal

CA Markets Deposit Methods

CA Markets Withdrawal Methods

Account Types and Terms

CA Markets Account Opening Process

To create an account with CA Markets, follow these easy steps:

1. Click ‘Open Account’ at the top-right corner of the main page.
2. Choose between an Individual account and a Corporate account.
3. Enter your personal details, including your name, email, and country.
4. Enter the confirmation link sent to your email address.
5. Sign in to the client portal.
6. Choose between a live and demo account.
7. Select an account type, base currency, and leverage.
8. Upload proof of ID and proof of address.

CA Markets Account Types

While trading fees at the Standard and Pro accounts exceed the industry average, the Ace account type features more favorable prices. All account types are pretty accessible, given their low deposit requirements. Furthermore, the broker has set its stop-out level at 50%, reducing the likelihood of clients incurring a negative balance, though it doesn’t eliminate the risk entirely.

Demo Accounts

CA Markets offers a demo account that introduces traders to the broker’s services and allows 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 along with a live CFD account.

Islamic Account

CA Markets does not offer Islamic accounts for swap-free trading.

What is CFD Leverage?

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 leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. 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 CA Markets for instruments from different asset classes:

CA Markets Restricted Countries

CA Markets does not accept clients who are residents of the United States, Australia, New Zealand, Vanuatu, Singapore, Japan, Iran, Russia, North Korea, and jurisdictions listed on the FAFT and global sanctions lists.

Research

CA Markets’ market insights offer a general overview of current market developments. Each article includes a brief economic breakdown of the factors that drive price action behavior.

The broker does not offer any actionable trading signals, video breakdowns, or any other types of research content. It, however, has an intuitive economic calendar informing traders of upcoming viable opportunities.

My Key Takeaways After Exploring CA Markets’ Research Content

While CA Markets’ daily insights are very informative, they lack supporting charts. A technical breakdown would help traders better understand how to exploit the underlying trading opportunity.

Education

CA Markets’ educational articles, though limited in number, are highly informative. I appreciated the detailed explanations in each article, often supported by illustrative graphs and images. The topics covered, such as ‘how to place orders,’ ‘what the spread is,’ and ‘how to trade forex,’ are fundamental to all traders.

The Bottom Line

Established in 2023, CA Markets is an upcoming forex and CFD broker regulated in Vanuatu by the local Financial Services Commission. It offers access to more than 80 tradable instruments across different asset classes.

CA Markets stands out for its relatively fast execution speed of around 50 milliseconds, diverse account types, and low minimum deposit requirements. Additionally, CA Markets has very low swaps, which is quite suitable for implementing longer-term trading strategies, such as swing trading.

However, a notable drawback is the rather limited scope of the broker’s educational and research content.

In summary, I concluded that CA Markets is a good choice for experienced long-term traders who can do their own market research.

FAQ