Key to Markets Review
Established in 2010, Key to Markets is an independent online ECN broker offering traders across the world spreads from zero pips and 200+ tradeable instruments in multi-asset classes including Forex, Commodities, Stocks, Shares, Indices, Metals, Energies, Bonds & CFDs.
Key to Markets offer a complete and innovative trading experience that is available to institutional, corporate and individual retail clients. They have a team of market experts on hand that provide the same dedicated customer support to all levels of traders. They are focused on the upmost transparency for clients.
Operating as an ECN broker, Key to Markets have no dealing desk and therefore can offer tight raw spreads, good execution speeds along with competitive commissions. An Electronic Communication Network (ECN) is built on a centralised software in order to connect brokers, traders and liquidity providers without any intervention of middlemen. This technology has helped to improve the quality, reliability and transparency of trading broker services.
Key to Markets have partnered with Forex Nations CIC who are an ethical introducing broker that are legally committed to donating a portion (at least 65%) of company profits to underserved entrepreneurs around the world through a Microcredit System. This is highly commendable charitable work and helps to show that Key to Markets are a broker with good moral values.
Pros / Cons
- Strict regulation
- Segregated client funds
- Commission free trading
- FIX API
- Free VPS
- Myfxbook AutoTrade
- No US clients
- No cryptocurrencies
- Limited trading tools
- Limited educational material
Key to Markets Regulation
Key to Markets are a regulated broker with offices in Auckland (New Zealand), London (United Kingdom) and Dubai (United Arab Emirates).
Key to Markets NZ Ltd is owned by Key to Markets Limited which is part of a European group that has partners globally in the United States, United Kingdom, Europe, Middle East and Asia. Key to Markets Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with registration number 527809.
The MiFID passport enables them to carry on business in all the European countries subject to MiFID regulations.
Key to Markets DMCC is a company registered in Dubai (United Arab Emirates) under number DMCC95681 and regulated by the Dubai Multi Commodities Centre (DMCC) with trading license number DMCC-344359.
Key to Markets hold client funds in segregated accounts with custodian banks that have high credit ratings. This means they are held separate from the company funds and thus cannot be used for any other purposes such as business running costs.
Key to Markets Countries
Whilst traders from most countries are welcome, Key to Markets do not offer any services to residents of New Zealand, USA, Iran, North Korea and certain other countries where restrictions may apply.
Key to Markets Trading Platforms
Key to Markets offer two main types of trading platforms, the ever popular MetaTrader 4 (MT4) platform and a FIX API solution.
MetaTrader 4 (MT4) Trading Platform
Key to Markets offer the power of ECN trading through the highly popular MT4 trading terminal. MT4 is well known for its user-friendly interface and quick learning curve. It is used by traders of all experience levels from all over the world. It is simple enough for beginners yet has enough advanced tools integrated to satisfy the more experienced traders.
MT4 contains a vast array of built in features that can be used for efficient trading and chart analysis.
- Real time quotes for all instruments within the market watch window
- 9 chart timeframes
- Multiple order types
- Wide range of built in technical indicators and graphical objects for analysing charts
- Chart templates
- Alert notifications via email, SMS and within the platform
- Automated trading with expert advisors (EAs)
- MetaEditor for coding custom indicators and expert advisors (EAs) in the MQL programming language
- Strategy tester for back testing EAs over historical data
In addition to the standard built in MT4 features that are commonly used by trades, Key to Markets also offer the following:
- ECN price feed with transparent prices
- Instant deposit and fast withdrawal methods with no hidden fees
- Spreads from just 0 pips
- Leverage of up to 1:500
- Good execution speeds of 5 milliseconds or less
- They have no dealing desk and no requotes
- No restrictions on trading systems or scalping
- PAMM/MAM option for money managers
MT4 is available on desktop (Windows / Mac), web and mobile (iPhone / iPad / Android / Tablet). The web version runs directly in the web browser without needing to install any additional software. The MT4 app allows you to access your account and trade from anywhere at any time, provided you have an internet connection. The app is available for download on both Android and iOS devices from the relevant app stores.
The FIX API is an electronic communications protocol that was developed for the real-time exchange of trade-related information. It is commonly used by professional traders and allows you to avoid the use of intermediation software. It provides direct access to the market with your own programs.
Using the FIX API, advanced developers and quant traders can use their own proprietary algorithms and black boxes to easily connect to the Key to Markets server and use the FIX (Financial Information Exchange) price data feeds. This provides a direct connection to institutional liquidity providers with lower latency and improved fill rates.
In order to gain access to the Key to Markets FIX API, clients must have a minimum €5,000 deposit and trade a minimum of 500 lots round turn each month. There is a €500 fee if the conditions are not met. €500 is retained at the beginning of the period.
Key to Markets Trading Tools
Key to Markets have a few tools for running trading platforms remotely and following other traders. They do not however provide any additional analytical tools so clients will have to make do with those offered by MetaTrader.
Key to Markets clients have the opportunity to utilise the Myfxbook AutoTrade system. This system allows traders to link their MT4 trading account to the various trading systems available in Myfxbook. They can create portfolios based on the strategies of other traders without needing to pay any performance or management fees.
No additional software is required as it runs on its own servers. Myfxbook hand picks the systems and only allows live verified signal providers. Real historical data and statistics are available to help traders choose a strategy suitable to their style. It should be strongly emphasised that historical performance is by no means any guarantee of future results.
Trades are mirrored fully automated and systems can be added or removed at any time without restrictions. It is possible to try AutoTrade on demo at first to see if it something that you deem suitable to your requirements.
Free VPS (Virtual Private Server) Service
A VPS can be used to run a trading platform 24/7 without needing your computer switched on. This can be useful for those who wish to run expert advisors (EAs) around the clock without any hassle.
The VPS is offered by Key to Markets in partnership with Commercial Network Services (CNS), a leading VPS provider. The MT4 servers are ON NET with CNS in the New York 4 data center and thus can provide reliable execution with low latency.
Key to Markets will credit up to $35 of the monthly CNS VPS fee to the accounts of eligible traders. In order to qualify, clients need to trade at least 50 lots per round turn each month.
A Percentage Allocation Management Module (PAMM), enables traders to pool their funds together and invest into accounts that are managed by another trader. These accounts display statistics of performance which can be analysed to see if they are suitable. It must be strongly noted that past performance of PAMM accounts is absolutely zero guarantee of future performance.
The Key to Markets PAMM system is located on a dedicated web-based platform where investors and money managers can access their account using any device and without needing to install the MT4 trading platform.
Key to Markets Education
There are currently no educational materials offered at this time by Key to Markets but that may change in the future.
Key to Markets Trading Instruments
Key to Markets have a decent selection of 200+ trading instruments across multiple asset classes including Forex, Commodities, Stocks, Shares, Indices, Metals, Energies, Bonds & CFDs.
They offer CFDs on indices, shares and commodities. A CFD (Contract for Difference) is an agreement between two parties to exchange the difference between the opening and closing price of a CFD contract whose value is tied to an underlying asset. CFDs are financial instruments that provide the opportunity to trade leveraged products without needing to own the underlying asset.
Key to Markets offer access to the Forex (Foreign Exchange) market which is the world’s most liquid market in terms of trading volume with daily transaction volume totalling over $5 trillion. They have a good selection of over 100+ major, minor and exotic forex currency pairs.
Index CFDs Trading
Key to Markets offers a wide range of CFDs on indices with no dealing desk execution and low latency trading conditions, similar to that of which they offer on the forex market. Clients can buy or sell some of the world’s major equity indices without commission. Indices include the AUS200, DE30, EU50, FRA40, GER30, ITA40, JP225, SPA35, UK100, US30, US500 & USTEC.
Key to Markets offer different metals, energies and soft commodities for trading as CFDs. All of the CFDs are “Rolling spot”, which never expire. The commodities follow the same rules that they apply to forex currency pairs with the only exception being that the margin required to open a position is fixed to 1%. Commodities available to trade include Gold and Silver, Platinum, Palladium, Copper, Crude Oil (WTI, Brent) and Natural Gas, Cocoa, Coffee, Sugar & Orange Juice.
Key to Markets provide access to share trading on four different exchanges. The margin requirements vary within the range between 5% and 25% depending on the individual instruments, the full specifications can be accessed through their MT4 platform. All of the CFDs on US, German, French & Spanish shares have the same trading hours which are Monday through to Friday from 16:30 – 23:00 (GMT+2). Companies include Apple, Amazon, Facebook, Ferrari, Goldman Sachs, IBM, McDonald’s, Netflix, TESLA & Twitter.
Key to Markets Trading Accounts & Fees
Key to Markets offer flexible trading accounts suitable to different client needs. There are two main accounts that you can choose from when you start trading, the Standard & Pro. Demo accounts are available to test the different platforms and conditions before opening a real account.
Both accounts provide access to the true ECN execution model through the MT4 platform with variable spreads direct from an interbank liquidity pool.
The differences between the two accounts being one charges a commission with raw spreads whilst the offer has zero commissions but instead has a spread mark up to cover costs.
MetaTrader 4 Pro
The Pro account has a raw market spread and competitive commission of €6 or $8 charged per round lot. The minimum balance required to open this account type is $100 whilst leverage of up to 1:500 is available and the minimum position size is 0.01 lots. This account is likely to be more suited to clients whose trading strategy requires a tighter spread such as scalpers.
MetaTrader 4 Standard
The Standard account has an increased spread but charges no commissions. The minimum balance required to open this account type is $100 whilst leverage of up to 1:500 is available and the minimum position size is 0.01 lots. This account is likely to be more suited to clients whose trading strategy does not rely on tight spreads such as swing traders.
Key to Markets Customer Service
Key to Markets offer email and telephone support 5 days a week during normal office hours. Support is multilingual and available in English, Spanish, Portuguese, Italian & Russian. Unfortunately, they do not offer live online chat support at this time.
Key to Markets Deposit & Withdrawal
Key to Markets offer a selection of convenient deposit and withdrawal methods. This includes bank wire, credit card and online payment systems such as Neteller and Skrill. Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal.
Using one of the fast withdrawal methods available, your funds will be credited into your Skrill or Neteller account in less than 48 working hours. In the majority of cases, they aim to process your withdrawal request within minutes.
Some fees may be charged when using certain payment methods. Withdrawal requests are processed within the same day or next if outside working hours. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant.
Some payment systems may have transaction limits, restrictions, and requirements which are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries. Key to Markets strictly do not accept third-party payments. All funds deposited into your trading account must be under the same name as your trading account.
Accounts can be opened in USD, EUR, CHF. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
Key to Markets Account Opening
Opening a live account at Key to Markets is a simple process. There is a short online registration form to complete. After that you will need to verify your email and complete the KYC (Know Your Customer) checks. This will require uploading a form of identification such as a passport or drivers license and proof of address such as a utility bill (no more than 3 months old). Once your documents have been verified by the accounts team you will be able to fund your trading account and begin trading.
Key to Markets Conclusion
Key to Markets are a reputable ECN broker that have strict regulation in place to help give clients peace of mind. They offer a good selection of trading instruments and the very popular MT4 trading platform along with a FIX API solution. In addition to this, they provide a free VPS to eligible clients and have PAMM accounts. There is the option to trade with tighter spreads and pay a competitive commission or to trade commission free but with a marked-up spread. They could improve their offering of trading tools and educational materials which are distinctly lacking.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.