Read This Key To Markets Review For One Of The Best ECN Access In The Financial Markets
Key To Markets (KTM) is a relatively unknown Forex broker that is quietly confident of its ability to provide real ECN trading accounts for a wide range of market assets, including Forex currency pairs, indices, precious metals, and energy trading. KTM is one of the biggest ECN Forex providers that connect traders directly to tier-1 liquidity providers for complete market access, thereby allowing FX traders to take advantage of the immense liquidity in the market provided by the numerous market players. ECN brokers have several unique advantages over conventional market maker brokers such as better security of funds, faster execution times, lower cost of trading, and reduced conflict of interest between the broker and its clients.
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Key To Markets was initially launched as a New Zealand Forex company in 2013 and is registered in the Financial Services Provider Registry (FSPR) of New Zealand. Under the new regulatory guidelines of the New Zealand Government, Forex brokers in New Zealand are required by law to be regulated by the Financial Markets Authority (FMA), to provide financial products and other allied services to native traders. However, Key To Markets is not regulated by the FMA, as the company is simply registered as a financial company under the FSPR guidelines. Therefore, traders and investors from NZ should note that KTM is not legally authorized to offer brokerage services or any other products under the existing FMA regulatory framework. Regardless, the mandatory Key To Markets regulation is carried out by the Financial Conduct Authority (FCA) of the UK under its branch establishment in the London’s financial district. Ever since the broker started expanding its Forex operations, the company has been using its London office as its main headquarters for all legal, licensing, and marketing purposes. FCA is considered to be one of the most popular and highly regarded regulatory licenses for retail traders across Europe and other parts of the world. FCA regulation also provides KTM the ability to operate across all European countries under the European MiFID derivatives. Therefore, as far as trust and security of the broker are concerned, Key To Markets does seem to be a reputed and reliable Forex company. Key To Markets accepts clients from different parts of the world through its partners and affiliates scattered across the US, Africa, Middle East, and Asia. US traders are free to join KTM under their US regulated subsidiary, thereby granting KTM an elite status in the every growing list of retail Forex brokers. Naturally, US traders are subjected to different trading restrictions and guidelines imposed by the CFTC, such as a maximum leverage of 1:50, FIFO, and no-hedging rules.
An Overview Of The ECN Accounts At Key To Markets
There are two types of Key To Markets accounts, both of which provide ECN as the standard trading account for all kinds of traders. We find this to be a commendable strategy, especially since ECN accounts have virtually no conflict of interest with traders. Most traders these days prefer signing up for an ECN account for the apparent trading benefits. The first type of trading account is the MT4 Standard account, which starts with KTM spreads of 1 pip markup plus the raw spreads. The commission for each trade is included in the spreads as a markup, which allows traders to enjoy a virtually commission-free trading environment, similar to a market maker model. The second type of trading account is called the MT4 Pro account, which is designed along the lines of a standard ECN account. The MT4 Pro account has Key To Markets spreads starting from 0 pips, while there is a commission of $0.06 to $0.08 per 1K round trade. There are only a few subtle differences between the two ECN accounts, and are designed to satisfy the discerning requirements of modern-day retail traders. The minimum account balance for a KTM account is $100, which gives access to a maximum Key To Markets leverage of 1:500. The leverage is lowered to 1:50 for US traders, but traders from other parts of the world can enjoy a significant amount of leverage offered by the company. A large amount of margin may not be suitable for ECN trading conditions, as extreme market volatility and direct market access can induce margin calls. Traders must be cautious with their approach while choosing margin traded products, especially when slight movements in the markets can have disastrous consequences on the trading balance. As is evident from the types of accounts, the MT4 serves as the primary Key To Markets trading platform, which is also available as KTM apps for mobile traders. MetaTrader has developed individual apps for Windows, Mac, iOS, and Android, which ensures that Key To Markets mobile users can access the markets through their preferred devices. The broker also supports numerous funding options, as traders can deposit or withdraw funds using bank wire, credit/debit cards, Neteller, Skrill, and Regular Pay. KTM is very honest with the fees and other commissions associated with payments, which is indeed a useful feature, considering that most FX brokers are highly secretive about the hidden costs.
Is KTM A Financially Sound FX Broker?
KTM is regulated by the FCA, which should render it the much-needed credibility in this crowded marketplace. Key To Markets’ standard ECN platform should be an excellent proposition for all types of traders, especially since they offer an ECN account for as low as $100. Customer service is one of the main weaknesses of the company, as the broker does not offer a live chat feature on their website. Sure, traders can contact their support through Skype, email, or by dedicated phone numbers to their UK and NZ offices, but there is a significant delay in getting a favorable response from the KTM staff. A sub-par customer support channel is surely a huge mistake from the broker, especially when other brokers are known to invest massive amounts of resources into ensuring the highest level of customer satisfaction among their peers. Another disadvantage is the lack of a Key To Markets bonus, but we don’t expect FCA regulated brokers to offer anything regarding bonuses or rewards unless they provide binary options or spread betting products. Nevertheless, there are numerous positives about the broker that should keep the average trader satisfied.