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BlackBull Markets is the trade name of Black Bull Group Limited. It was founded in New Zealand in 2014 and is licensed by the Financial Markets Authority (FMA) in New Zealand under license number FSP403326. In addition, BlackBull Group UK Limited is registered in the UK under company number 9556804. However, the website of the FCA does not show any records of this company. There is another firm in the group, BBG Limited, which is incorporated and regulated by the Financial Services Authority (FSA) of Seychelles. BlackBull Markets claims to use a Straight Through Processing (STP) system that eliminates the main conflict of interest providing a neutral environment, it says. Client funds are held in segregated bank accounts in ANZ Bank, one of New Zealand’s oldest financial institutions.
BlackBull Markets offers CFD trading of more than 300 instruments. Nearly 40 of these are currency pairs and the rest are commodities, indices, and shares. The minimum spread depends on the account type and is 0.1 pips in the “Prime ECN” Account and 0.8 pips in the “Standard ECN” Account. The leverage can be up to 1:500.
There are two types of accounts for retail customers depending on the minimum required deposit and the spread of the instruments. The “Standard ECN” account requires an initial deposit of USD200 and offers a minimum spread of 0.8 pips. Trading is commission free. You must invest at least USD2,000 to open a “Prime ECN” account. At the expense of narrower spreads (close to zero), you will be charged a commission of USD6 per standard traded lot of 100,000 units.
You can trade via two of the most used terminals worldwide – MetaTrader 4 (MT4), and MetaTrader 5 (MT5).
BlackBull Markets connects your MetaTrader 4 (MT4) platform to the NY4 Equinix server located in New York. The Equinix server allows you to execute trades as fast as 2-5 milliseconds, using a range of prime liquidity providers, the company claims. MT4 provides a wide range of management tools, advanced charts, many indicators, and technical analysis tools. In addition, you can find a provider that uses a strategy that suits you, and an Expert Advisor (EA) can assist you in reaching your trading goals. Keep in mind that BlackBull Markets does not supply EA programs to its customers, and you should find yours by looking for free and paid EAs that work at different risk levels.
MetaTrader 5 (MT5) is the next-generation trading platform. You get faster processing times, the ability to hedge positions, advanced pending order functionality, and more tools and indicators. MetaTrader platform is available as a desktop version for Windows and MAC machines, and as a mobile app for Android and iOS devices.
The methods you can use for transactions include debit or credit card, bank wire, Skrill, Neteller, Union Pay and FasaPay. Except by bank transfer where processing takes 1-3 days, all other methods of payment are instant. The company processes any withdrawal requests as soon as practically possible, but this may take up to two working days. If you are deposited by Credit Card, Skrill, FasaPay, Neteller, or Union pay, you can only withdraw up to the amount you have deposited via that method due to AML Policies. Any additional profits must be sent via Bank.
The “Product Disclosure Statement” document shows that BlackBull will be the counterparty to every contract you enter on the trading platform. To help mitigate the risk, the company will hedge some of these positions with approved counterparties. This means that although BlackBull Markets claims to use the Straight Through Processing (STP) model to execute orders, it does not. The company is a counterparty to each client order, and it may hedge not all but some of the client orders. It generally makes its money from the spreads of the instruments and from the commission charged. However, a client’s loss may result in the profit for the company, which involves a conflict of interest because when the company executes orders, it keeps the risk to itself. The same document warns that there is also a risk that any stop loss order will not be executed at the same price, the difference is known as slippage. So, stop loss orders are not guaranteed. BlackBull Markets also warns that your potential losses can exceed the amounts deposited with it and they can be substantial. This means you are not covered by Negative Balance Protection, and you may owe some money to this company.
Overall, BlackBull Markets provides deep liquidity and low spreads through its Electronic Communication Network (ECN). However, it may not use the STP model and may act as a market maker as well. It is based in New Zealand and is regulated by the FMA of New Zealand. It offers the most popular platforms in the industry – MT4 and MT5. You must invest USD200 to open an account.
