SP Markets Company Overview

Founding Date and Background

SP Markets is a forex broker that was established in 2017. The company operates under the name Security Placements Limited and offers a range of trading services primarily focused on foreign exchange and commodities. The broker presents itself as a platform for retail traders, providing various educational resources to assist novice investors.

Parent Company/Ownership Structure

SP Markets is owned by Security Placements Limited, which is registered in New Zealand. However, it's important to note that the company has faced regulatory challenges, including the revocation of its financial services license.

Headquarters Location

The headquarters of SP Markets is located in New Zealand. However, there have been concerns regarding the accuracy of the registered address compared to its actual operating location.

Global Business Scope

SP Markets primarily serves retail traders interested in forex, metals, commodities, and indices. While it claims to have a global reach, its lack of regulation and the revocation of its license raises questions about its operational legitimacy in various markets.

Main Regulatory Bodies

SP Markets was previously regulated by the Financial Service Providers Register (FSPR) in New Zealand, but its license has been revoked. This lack of regulation places the broker in a precarious position regarding client trust and operational legality.

Back to top

Company History and Development

Key Milestones

Since its founding in 2017, SP Markets has aimed to establish itself as a reputable forex broker. However, the revocation of its regulatory license in recent years has been a significant setback, affecting its operational capabilities and reputation.

Business Expansion Journey

SP Markets has attempted to expand its offerings by providing various educational resources and trading platforms, including the popular MT4 platform. However, its growth has been hampered by regulatory issues and an inaccessible website.

Customer Base Growth

While SP Markets has promoted itself as a user-friendly platform, the lack of regulation has likely limited its customer base growth. The company has not disclosed specific figures regarding its active users or accounts.

Platform Development History

The broker primarily utilizes the MT4 platform, which is well-regarded in the trading community for its user-friendly interface and robust features. However, there have been no significant updates or enhancements reported for the platform since its inception.

Important Awards or Recognitions Received

As of the latest information available, SP Markets has not received any notable awards or recognitions that would enhance its credibility in the competitive forex market.

Back to top

Trading Services Offered

Forex Trading Options

SP Markets offers a limited selection of forex trading options, including a handful of major currency pairs. The exact number of currency pairs available is not specified, but the broker focuses primarily on major currencies.

Stock Trading Options

SP Markets does not offer stock trading options. Its services are concentrated on forex, metals, commodities, and indices.

CFD Trading Products

The broker provides Contract for Difference (CFD) trading on various commodities and indices. However, specific details regarding the range of CFD products available are not disclosed.

Other Financial Instruments

SP Markets offers trading in metals and commodities but does not support cryptocurrencies, energies, stocks/shares, options, funds, or ETFs. This limited range of financial instruments may deter traders looking for diverse trading options.

Special Services or Unique Advantages

One of the unique features of SP Markets is its commitment to providing educational resources, including investment training and instructional videos. The broker also offers 24/5 live chat support, which can be beneficial for novice traders seeking assistance.

Back to top

Regulatory and Legal Background

Detailed Regulatory Information

SP Markets was previously regulated by the Financial Service Providers Register (FSPR) in New Zealand. However, its license has been revoked, and the broker is currently not regulated by any recognized financial authority.

Legal Entity Structure by Region

The legal entity of SP Markets is registered in New Zealand under the name Security Placements Limited. The lack of a regulatory framework raises concerns about its operational legitimacy and client protection.

Client Fund Protection Measures

Due to the revocation of its regulatory license, SP Markets does not have any formal client fund protection measures in place. This absence of safeguards increases the risk for traders using the platform.

Countries/Regions Served

SP Markets claims to serve a global clientele; however, its lack of regulation limits its ability to operate legitimately in many jurisdictions.

Compliance History

SP Markets has faced significant compliance issues, particularly regarding its regulatory status. The revocation of its FSPR license indicates serious concerns about its operational practices.

Back to top

Competitive Landscape

3-5 Main Competitors

SP Markets faces competition from various forex brokers, including:

• IG Markets: A well-established broker offering a wide range of financial instruments and a strong regulatory framework.
• OANDA: Known for its transparency and extensive educational resources, OANDA is a popular choice among retail traders.
• FXCM: Offers competitive spreads and a variety of trading tools, positioning itself as a robust alternative for forex traders.

Positioning in the Industry

SP Markets positions itself as a user-friendly platform with educational resources aimed at novice traders. However, its lack of regulation and limited trading options hinder its competitiveness in the forex market.

Market Differentiation Factors

The primary differentiation factors for SP Markets include its focus on educational offerings and live chat support. However, these advantages are overshadowed by its unregulated status and limited range of financial instruments.

Back to top

Conclusion

SP Markets is a forex broker that has faced significant challenges since its inception in 2017. With a focus on providing educational resources and trading support, it aims to attract novice traders. However, the revocation of its regulatory license and limited trading options raise concerns about its legitimacy and reliability. Potential investors should exercise caution and consider the risks associated with trading on an unregulated platform.

For more information about SP Markets, you can learn more here.