Forex brokers with multiple licenses can reach more traders in many jurisdictions. Through the Admiral Markets case, let's reveal how multiple licenses can influence trading conditions.
It has come to many traders' attention that a number of forex brokers are operating with multiple licenses in order to offer their services legally across many countries. The reasons and the credibility of it have been thoroughly discussed here, so now let's move on to the more interesting part: the true case and how it influences your trading condition.
As a leading online trading service provider with a global presence, Admiral Markets (recently rebranded into Admirals) is a good example of how a multiple-licensed broker operates successfully. Founded in 2001, it is a well-known brand in the industry for many reasons; not only for being regulated in multiple jurisdictions but also for a number of advanced trading services offered to clients.
In presenting their products, Admiral Markets have different conditions to comply with the strict rules of each regulatory framework. For instance, ASIC standards may apply only for Australian traders, so UK traders are likely to have a different set of trading specs.
Admiral Markets UK
Admiral Markets UK Ltd is authorized and regulated by the Financial Conduct Authority (FCA) with registration number 595450. The service basically represents Admiral Markets in general. Per this writing, UK traders can choose five types of accounts divided into two categories: MetaTrader 5 and MetaTrader 4 accounts. Trade.MT5, Invest.MT5, and Zero.MT5 are under MetaTrader 5 category, while Trade.MT4 and Zero.MT4 belong to MetaTrader 4.
All account types save for Invest.MT5 requires a $100 minimum deposit, and retail clients are allowed to choose 1:20 - 1:30 leverage. The selection of base currencies is notably diverse as clients can choose between EUR (Euro), USD (US Dollar), GBP (Pound Sterling), CHF (Franc Swiss), BGN (Bulgarian Lev), CZK (Czech Koruna), HRK (Croatian Kuna), HUF (Hungarian Forint), PLN (Polish Zloty), and RON (Romanian Leu).
As for deposits and withdrawals, a range of payment methods like bank transfer, credit cards, Skrill, Neteller, and PayPal are all available. Aside from bank transfer that usually takes up to 3 business days, transactions are processed instantaneously.
Internal transfers are free except for accounts with different base currencies. It should also be noted that Admiral Markets UK charges an inactivity fee of €10 per month. An account is considered inactive if there is no execution of any transactions in the previous 24 months and is not used for holding open position(s). However, the broker only charges inactive accounts with a balance that is greater than zero.
Admiral Markets Australia
Admiral Markets Pty Ltd in Australia is licensed to provide financial services by the Australian Securities and Investments Commission (ASIC) under Australian Financial Services Licence number 410681. In terms of trading accounts and other conditions, Admiral Markets Australia is quite similar to its UK counterpart.
The company offers 5 types of trading accounts consisting of Trade.MT5, Invest.MT5, Zero.MT5, Trade.MT4, and Zero.MT4. The leverage is also restricted to only up to 1:30 for forex retail clients.
However, Admiral Markets Australia defines their stop out more specifically as 50% for retail clients and 30% for wholesale clients. Meanwhile, Admiral Markets UK only specifies the stop out limit as 50% for retail clients.
Another spotted difference is the base currency that clients can choose. Compared to the many types of currencies available in Admiral Markets UK, Australian traders can only choose between AUD (Australian Dollar), EUR (Euro), GBP (Pound Sterling), USD (US Dollar), and SGD (Singapore Dollar).
Furthermore, deposit and withdrawal options are generally available via bank transfer, credit cards, Skrill, and Neteller. Admiral Markets Australia does not accept PayPal, but deposits through Bitcoin are allowed. Traders looking for extra trading features may be a bit disappointed since the Australian branch does not feature similar services to what they have in the UK. For instance, copy trading and asset management are not accessible on the website operating under Admiral Markets Pty Ltd.
Aglobe Investments Ltd is licensed by the Financial Services Authority of Seychelles (FSA) as a Securities Dealer in Seychelles under license number SD073. It has the necessary license and approval to operate under the brand Admiral Markets.
Seychelles is an offshore jurisdiction that allows forex brokers under its regulatory agency to operate globally. This enables Admiral Markets to accept clients from areas outside Australia, UK, and other jurisdictions that are not covered by the two abovementioned entities. It is an important advancement as top regulatory bodies like ASIC are famously known to restrict their members when it comes to accepting clients from outside of their jurisdictions.
Trading specifications in Aglobe Investments are not that different compared to Admiral Markets UK and Australia. The classification of MetaTrader 5 and MetaTrader 4 accounts is still there, and both categories house the Trade and Zero accounts. Yet, the most significant difference is the absence of Invest.MT5 account.
Unlike the other entities, Aglobe Investments accepts a minimum deposit as low as $25. The base currency options include USD (US Dollar), EUR (Euro), BRL (Brazilian Real), MXN (Mexican Peso), CLP (Chilean Peso), SGD (Singapore Dollar), THB (Thai Baht), and VND (Vietnamese Dong).
Unfortunately, the company does not disclose much information about the available payment methods. On the intended page, it is only stated that the information can be found in Trader's Room, indicating that a trader must open an account first to know about their deposit and withdrawal details.
Despite the limited info, Aglobe does offer more interesting conditions when it comes to leverage. The company allows all clients to choose leverage as high as 1:1000 for forex and 1:500 for indices. However, spreads in Trade.MT5 and Trade.MT4 accounts start from 1.2 pips, a bit higher than what Admiral Markets UK and Australia have.
Aglobe Investments has much more limited extra features. From analytics to trading products, there's not much of Admiral Markets' advanced trading technology that is presented to Aglobe's clients. Still, a copy trading service is available here.
Apart from the three entities above, Admiral Markets has also branched into Admiral Markets Cyprus Ltd and Admiral Markets AS Jordan Ltd. Each holds licenses issued by CySEC and JSC (Jordan Securities Commission) respectively to offer financial services. With the growing expansion and commitment to be a well-received broker globally, it's only normal to expect more Admiral Markets companies to expand to different jurisdictions in the coming years.
Which is the Right One for You?
When dealing with a multiple-licensed broker like Admiral Markets, it's actually important to make sure that you are registered under the right jurisdiction. Opening an account on the broker's website that does not match your residence may cause technical problems in some key aspects, most notably the deposit and withdrawal transactions.
To conclude, choose the version that matches where you come from. You may find that it's not beneficial as one entity provides a set of advanced trading features while the others' offerings are more limited. But is it really worth all the risks and troubles just to access, let's say, copy trading if you are from Australia? After all, Admiral Markets has done as best as they can to set the trading conditions to not only match the regulatory standards in each jurisdiction but also what the market generally wants in their respective areas.