Ultima Markets is a global forex and CFD (contracts for difference) broker that has attracted attention in recent years for offering flexible account types and high leverage. It allows speculation via CFDs on the price movement of foreign currencies, commodities, indices, and shares in large companies such as Apple and Netflix. In this article, we’ll look at what Ultima Markets does well, and the areas where it currently falls short.
Key terms:
Contracts for Difference (CFDs) are a type of financial derivative that enables speculation on the price movement of assets such as foreign currencies, shares in companies, commodities, or indices, without actually owning the underlying asset. Your profit (or loss) is based on the difference between the opening and closing price of the trade. In practice, this means you don’t buy the asset itself (like gold or crude oil), you just trade on whether its price will go up or down.
Indices are market benchmarks composed of a group of leading shares within a specific country or sector such as the S&P 500, FTSE 100 or the Dow Jones Industrial Average. For example, the Dow Jones Industrial Average (often referred to as “the Dow”) is a U.S. stock market index composed of 30 large, publicly traded American companies.
Trading Products
Ultima Markets offers CFDs on foreign currencies, indices, and commodities such as gold, oil, and even agricultural products like coffee, wheat and soybeans. It also offers contracts for difference on some shares (although doesn’t offer direct stock ownership). This makes Ultima Markets a relatively versatile option for those who want to speculate across multiple asset classes.
Platform choice centers on MetaTrader 4, a favorite for its charting tools, automated strategies, and stable execution. The broker also offers a proprietary mobile app, aimed at on-the-go trading. Copy-trading functions are also available, allowing users to follow the investment strategies of experienced traders.
Key terms:
Spread: The spread is the difference between the buy (ask) price and the sell (bid) price. Essentially, it’s a cost you pay the broker that’s built into the price rather than as a separate commission.
ECN commission rates: In forex/CFD trading, an ECN account connects your orders directly to a pool of banks and other traders rather than going through the broker’s own internal system. This usually means tighter spreads because you’re seeing “raw” market prices. Since the broker isn’t adding much to the spread, they still need to earn money for providing access to the pool of capital. Instead of widening the spread, they charge a commission fee on each trade.
Leverage is a tool that allows traders to control a larger position in the market than the amount of money they actually deposit. It’s expressed as a ratio (e.g., 50:1), meaning for every $1 of your own funds, you can trade $50. Leverage lets you amplify potential profits, but it can also amplify potential losses.
Margin requirements: Margin requirements are the minimum amount of money a trader must deposit in their account to open and maintain a leveraged position. It’s essentially a deposit that ensures you can cover potential losses when using leverage. For example, if a broker requires 2% margin on a $1,000 trade you would need to have $20 in your account to open that position.
Advantages of Ultima Markets
- Awards: A winner of multiple awards including Best Forex Trading Platform Asia Pacific 2024 (World Business Outlook Awards) and Best Multi-Assets Trading Platform Asia 2024 (International Business Magazine Awards).
- MetaTrader 4: The availability of MetaTrader 4 is a significant advantage. It’s one of the industry’s most popular platforms, supporting custom indicators and a large library of third-party add-ons.
- Flexible account types: Ultima Markets offers a choice between Standard (spread-only) and ECN/Pro (tighter spreads + commission) accounts. This flexibility lets beginners focus on simplicity, while more experienced traders can pursue lower spreads and faster execution.
- Wide leverage options: Leverage of up to 1:2000 is available. While high leverage is inherently risky, those who know how to use it cautiously can benefit from increased trading flexibility.
Disadvantages:
- Weak regulatory standing: Unlike brokers licensed by regulators such as the British FCA or Australia’s ASIC, Ultima Markets primarily operates under offshore jurisdictions. This weakens the legal protection available to clients if a dispute arises.
- Withdrawal complaints: Multiple independent reviews cite issues with delays, rejected withdrawal requests, or excessive documentation demands once profits are made. While not every client reports this, the pattern is concerning.
- Limited educational and research tools: Educational materials and advanced market research are thin compared to brokers that invest heavily in training resources. Beginners may find themselves needing external sources to build trading knowledge.
- No direct ownership: Ultima Markets doesn’t offer direct ownership of the assets involved. This means you don’t actually own shares in Netflix; you own a CFD that tracks the price movement of Netflix’s shares.
Key term:
Lot: This is the standard trade size in forex. It refers to how much of the base currency you’re trading. If the trading pair is USD/GBP, the base currency would be U.S. Dollars.
There are Standard, Mini, and Micro lots.
1 Standard Lot is 100,000 units of the base currency, e.g. $100,000 if trading a USD/GBP currency pair.
1 Mini Lot is 10,000 units (0.1 lot), e.g. $10,000.
1 Micro Lot is 1,000 units (0.01 lot), e.g. $1,000.
Pricing & Economics:
- Spreads and commissions (trading costs): With a Standard Account, the spread is higher but there’s no commission per trade. With an ECN Account, the spreads are lower but commission is around USD $5 per lot. With a Pro ECN Account, spreads are even lower again as too is the commission (around USD $3 per lot) but this account requires a much higher minimum deposit.
- Minimum deposits: For Standard Accounts the minimum deposit is around USD $50, for ECN Accounts it’s around $500, and for Pro ECN it’s $20,000.
- Deposit fees: No fees from the broker for most deposit methods. The broker states that deposits are free in most cases. However, bank or credit-card processor fees may still apply.
- Withdrawal fees: For many withdrawal methods, there are no fees. For bank wire withdrawals, the first one each month is free, but subsequent wire withdrawals within the same month incur a USD $20 fee.
- Minimum withdrawal: USD $40 in many cases. Below this amount, the request may be declined unless it’s for the full remaining balance.
- Inactivity fees: None.
- Other costs: Other costs like swap/rollover fees apply for holding positions overnight.
Conclusion
Ultima Markets does well in terms of trading technology (MetaTrader 4 in particular), the absence of inactivity fees, and account variety. For risk-tolerant traders outside the European Union, high leverage is another draw. Some users have also highlighted smooth customer service experiences.
However, when a weaker regulatory framework than others in the industry is combined with negative reports around withdrawals, there are real risks investors should keep in mind. This is especially true for those investing for retirement for whom fund security is a priority.
Ultima Markets can be good for experienced traders who understand the risks and want to test high leverage or flexible accounts. However, for those prioritizing fund security brokers under the strong oversight of regulators like Australia’s ASIC, the British FCA, or the United States’ SEC will likely be safer choices.
Disclaimer: The purpose of this website is education and financial journalism. It is not a recommendation or personalized financial advice. Your personal circumstances have not been taken into account, and this website is not a substitute for consulting a qualified financial advisor. Past performance is not indicative of future returns. All images are for illustrative purposes only, and do not necessarily show Ultima Markets in use.