BlackBull Markets Review

Review

BlackBull Markets is a Forex / CFD brokerage house which has been in business since 2014. They are based in New Zealand, and describe themselves as “a true ECN, No Dealing Desk brokerage specializing in Forex, CFDs, Commodities, Fibre Optic Communications and Fintech solutions for a global clientele.” They see their primary focus as offering “institutional level resources to retail clients”. They have sought to establish a global presence beyond New Zealand, opening branch offices recently in Malaysia and in New York, U.S.A.

Blackbull Markets provides its clients with access to trade 27 different Forex currency pairs and crosses, including several minors, the precious metals gold and silver priced in U.S. Dollars, U.S. crude oil and natural gas, and 6 major equity indices of major national stock markets.

BlackBull Markets

 

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Regulation & Security

BlackBull Markets enjoys a moderate level of regulation. It is based in Auckland, New Zealand and is registered with the New Zealand Financial Services Provider Registry (FSPR) under registration number FSP403326 and is also a member of the Financial Services Complaints Limited (FSCL) dispute resolution scheme. BlackBull Markets reports to the New Zealand Financial Markets Authority (FMA) on anti-money laundering and counter financing of terrorism matters. BlackBull Markets is wholly owned by Black Bull Group Limited. Domiciled in New Zealand, Black Bull Group Limited is a registered company under registration number 5463921.

BlackBull Markets holds client funds at a tier 1 bank (currently ANZ bank) in segregated accounts and offers same day withdrawal and deposit methods.

Blackbull Markets Safety & Security

BlackBull Markets does not offer negative balance protection, meaning that leveraged traders could theoretically be legally liable for losses beyond their total deposits.

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Fees

A Forex / CFD brokerage’s fees structure must always be one of the top three considerations in selecting a broker. Fees are almost as important an issue as safety and security of deposits. In reviewing any such fee structure, it is useful to split costs and fees between trading fees, such as spreads, commissions, and overnight financing; and miscellaneous fees, such as charges for account inactivity, or commissions charged by the brokerage itself against account deposits or withdrawals. The trading fee element is by far the more important of the two.

Looking at trading fees first, we analyze BlackBull Markets’ spreads and commissions, taken together as a comprehensive “round trip” cost of opening and closing one trade. Although BlackBull Markets offers its clients a choice of different types of account, all the accounts follow an ECN, “no dealing desk” execution model. Spreads are always a minimum of 0.1 pips but may be as low as that.

The minimum round-trip cost of trading the benchmark EUR/USD Forex currency pair is at least 0.8 pips without commission with a Standard Account, which requires a minimum deposit of $200. This is roughly average for the industry. The Prime Account, which requires a minimum deposit of $2,000, has a minimum round-trip cost of trading the EUR/USD at a minimum of 0.1 pips plus commission equivalent to 0.6 pips, meaning holders of accounts of this type will never pay less than 0.7 pips. Again, this is roughly average for the industry.  The Institutional Account, which requires a minimum deposit of $20,000, has spreads as low as zero and negotiable commission rates. This could be an extremely competitive deal for large depositors with at least $20,000 in funds, suggesting that BlackBull Markets are making some effort to attract high net worth individuals.

The average round trip fees and costs for other CFD instruments offered such as commodities, individual stocks and equity indices are average for the industry.

These levels of spreads and commissions are broadly competitive. The minimum deposit required to open what seems to be a wholly “true” ECN account is $2000.

An often-overlooked element of the fee structure is overnight swaps (financing), which are applied when a day ends in New York. These fees are, theoretically, calculated from intrabank tom/next intrabank rates. BlackBull Markets’ rates can be found within the trading platform: they are not advertised on their website. A comparison of BlackBull Markets’ rates to the industry average at the time this review was written shows that their swap rates are reasonably competitive and close to the industry average.

BlackBull Markets do not charge any incidental fees such as account inactivity fees.

Our bottom line on fees: BlackBull Markets’ fees are nothing special but are perfectly acceptable by the standards of the industry. Their fee structure overall is quite average.

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What Can I Trade ?

Following regulation and safety, and fees, the next major issue to consider in choosing a Forex / CFD brokerage is the question of which assets you can trade. Some traders want to trade only one single asset class, such as Forex, or CFDs on individual stocks and shares, but others will be seeking diversification which requires a wide variety of asset classes to achieve.

BlackBull Markets offers the following instruments for trading:

Forex – more than 27 major and minor currency pairs and crosses.

Blackbull Markets currency pairs

Metalstrading in spot gold and spot silver paired with the U.S. Dollar.

Commodities – a narrow selection of commodities, with only energies offered: crude oil and natural gas.

Equity Indices – a selection of 6 major equity indices, offered from approximately 5 developed nations (no emerging markets are included within the selection).

Blackbull markets index CFDs

Our conclusion regarding BlackBull Markets’ offering of tradable assets is that a range of asset classes is offered that should satisfy most traders looking to trade Forex and major equity CFDs. However, the offering overall is relatively narrow, and is unlikely to suit traders seeking diversification across a wide range of markets.

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Account Types

A choice of three different major account types is offered.

All accounts offered are ECN Accounts, which operate an ECN-execution model.

The ECN Standard Account requires a minimum deposit of $200 and offers a minimum spread of 0.8 pips. No commissions are charged. The equinix server used for trading this account is NY4.

The ECN Prime Account requires a minimum deposit of $2,000 and offers a minimum spread of 0.1 pips. Commissions are charged at $6 per lot per round trip, equating to an additional spread of 0.6 pips. A selection of equinix servers can be used for trading this account: NY4, LD4, or TY3.

The ECN Institutional Account requires a minimum deposit of $20,000 and offers a minimum spread of 0 pips. Commissions are negotiable individually by any client. A selection of custom equinix server options is available.

Blackbull markets ECN Account

Some additional account types are also offered.

The Prime Account requires a minimum deposit of $2,000 and offers a minimum spread of 0.2 pips. Commissions are charged at $3 per lot per round trip, equating to an additional spread of 0.3 pips.

 

A swap-free Islamic Account is offered as an alternative to both the Standard and Prime Accounts, to Muslims.

Finally, successful and high-volume traders may be eligible to open an Active Trader Account, with custom negotiable solutions and packages.

A maximum leverage of 500 to 1 is offered across all account types. Such a relatively high rate is possible as New Zealand imposes no legal restrictions on maximum leverage.

Every type of account offered by BlackBull Markets allows hedging, scalping, and automated trading via Expert Advisers. As BlackBull Markets only uses the MetaTrader 4 and MetaTrader 5 trading platforms, there is a wide range of automated tools available which work with these platforms.

MAM and PAMM accounts are also available. If you are looking for social / copy trading, BlackBull Markets partners with ZuluTrade and myfxbook to make this available to its clients.

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Trading Platforms

Bottom Line: BlackBull Markets has no proprietary platform. Clients of all account types have a choice between using the extremely well-known and popular MetaTrader 4 or MetaTrader 5.

Most traders will be completely fine with this. The beloved old MetaTrader 4 platform is still extremely widely used. However, anyone who does not like MetaTrader or who wants features not offered there might be disappointed.

The choice between the two platform types regardless of account types shows some nice flexibility and not all brokers manage that concerning their trading platforms. It may be argued MetaTrader 4 is more suitable for trading Forex while MetaTrader 5 is better for trading stocks and commodities. The other important difference is that MetaTrader 5 meets the U.S.A.’s “no hedging” regulation which effectively makes precise hedging impossible.

Both MetaTrader 4 and MetaTrader 5 are available on all operating systems, tablet, mobile, app-based or web-based. Plenty of users report that the apps tend to run with less glitches on a PC or laptop compared to the web version, although that has nothing to do with the brokerage per se.

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Unique Features

BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients. The company was founded by individuals with strong backgrounds in financial technology, which has enjoyed rapid growth in New Zealand over recent years. As such, clients can expect fast, reliable execution under true ECN conditions.

Company Information

  • Broker's Name : BlackBull Markets
  • Headquarter : New Zealand
  • Regulation : FSPR

Account Information

  • Type of Broker : ECN/STP
  • U.S. Clients Allowed :
  • Minimum Deposit : $200
  • Maximum Leverage : 1:500
  • Commissions / Spreads : BOTH
  • Account 1 : Standard
  • Account 2 : Prime
  • Account 3 : Institutional
  • Account 4 : Active Trader
  • Demo Account :
  • Islamic Account :
  • Segregated Account :
  • Managed Accounts :
  • Institutional Accounts :
  • Deposit Options :
  • Withdrawal Options :

Instruments Traded

  • ETFs :
  • CFDs :
  • Commodities :
  • Metals :
  • Stocks :
  • Oil :
  • Gold :
  • Binary Options :
  • Indices :

Trading Platforms

  • Type of Platform : MetaTrader 4, MetaTrader 5, Web-based
    • Platform Languages :
      • English
      • Spanish
      • Arabic
      • Italian
      • French
      • Turkish
      • German
      • Japanese
      • Chinese
      • Russian
      • Portuguese
      • Dutch
      • Greek
      • Malay
      • Thai
      • Bahasa
      • Swedish
      • Polish
      • Hungarian
      • Other
    • OS Compatibility :
      • Mac
      • Windows
      • Linux
      • Mobile
      • Web
      • iPhone
      • iPad
  • Trading Signals :
  • Charting Package :
  • Market Analysis :
  • Chart Trading :
  • Automated Trading :
  • Scalping :
  • Hedging :
  • Mobile Alerts :
  • E-mail Alerts :
  • Trailing Stops :
  • Guaranteed Stop Loss :
  • Guaranteed Limit Orders :
  • Guaranteed Execution :
  • One-click Execution :
  • OCO Orders :
  • Interest on Margin :
  • Web-based Trading :
  • Mobile Trading :

Customer Support

    • Website Languages :
      • English
      • Chinese
  • E-mail Support :
  • SMS Support :
  • Chat :

Pros and Cons

  • Good regulation / reputation
  • ECN-style account options
  • Only MetaTrader platforms offered
  • Not very diverse asset range

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Research & Education

BlackBull Markets’ education offering is fairly comprehensive but a little on the light side. Their education section offers 11 videos on learning to trade, 5 trading guides, and a trading glossary.  The “trading resources” subsection offers, most notably, an economic calendar, and approximately 10 pieces per month of timely, current analysis (technical and fundamental) about major tradable markets.

Quite frankly, research and education from a broker is a “nice to have”, not a “must have”, so it would be foolish to base a decision on opening a relationship with a new Forex / CFD brokerage on this factor.

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Customer Support

BlackBull Markets pride themselves on offering what they claim to be excellent customer support.

Their customer support has a good reputation, partly because they are a regulated and global Forex / CFD brokerage, and partly because they are seen as a “hungry” company with something to prove.

Support is given by email or chat. There is also an FAQ section covering common support questions which clients can refer to instead of spending time on direct contact, providing a quicker resolution to issues.

BlackBull Markets

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Bonuses & Promotions

No bonuses or promotions are currently offered.

Please note that such bonuses and promotions are nearly always subject to onerous terms and conditions. It would be very rare for such an offer to be worthy of seriously influencing a decision as to opening an account with a new brokerage.

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Opening an Account

The account opening process with BlackBull Markets has been found to be very speedy. Many new clients find they are able to get an account open and ready within one business day! It is just a question of navigating a few screens and submitting the usual details and typical proofs.

It is worth noting that residents of the U.S.A. and “retail” clients in New Zealand, as well as a few other countries, cannot be accepted as new clients by BlackBull Markets.

As well as providing personal and account details, new clients are required to verify their identity and prove their place of residence, as is customary. The process is totally digitized.

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Deposits & Withdrawals

BlackBull Markets requires a minimum deposit of at least $200.

No additional fee is imposed upon any deposit.

A reasonably wide range of deposit and withdrawal methods are supported by BlackBull Markets. The most notable channels are Neteller, Skrill, UnionPay, and fasapay. Major credit cards are also accepted, and bank transfers can also be used.

Withdrawals can be made using the same methods. In practice, withdrawals must be made through the same channels that deposits are made through, which is a common practice applied by almost all retail Forex / CFD brokerages.

Unfortunately, BlackBull Markets charges a withdrawal fee for some withdrawal options. The most notable fees average to about $20 for bank transfers. The minimum credit card withdrawal allowed is $10.

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FAQ

Where is BlackBull Markets based?

New Zealand, but there are branch offices in Malaysia and in the U.K.

How does BlackBull Markets make money?

BlackBull Markets makes its money from spreads and commissions charged on trades, and from an overnight financing (swaps) mark-up.

How can I deposit into a BlackBull Markets account?

BlackBull Markets provides several methods for depositing and withdrawing funds. Transactions may be conducted through Skrill, fasapay and Neteller as well as credit cards and bank wire transfers.

Is BlackBull Markets regulated? Are its clients protected by regulatory deposit insurance?

BlackBull Markets is regulated in New Zealand by the FSPR (Financial Services Providers Register). They are also a member of the Financial Services Complaints Limited (FSCL) dispute resolution scheme under participant number 5623 which may award compensation of up to NZ $200,000 to clients.

What is the maximum leverage offered by BlackBull Markets?

The maximum leverage offered is a very high 500 to 1.

How do I open an account with BlackBull Markets?

The easiest way to open an account with BlackBull Markets is to click on the Open Account buttons on this review and fill out the form. Registration is quick and easy.

Does BlackBull Markets offer the MetaTrader trading platform?

Yes, BlackBull Markets offers both the MT4 and MT5 trading platforms.

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Summary

BlackBull Markets deserves a mostly positive review. Fees are reasonably standard while trading conditions are very good. The range of assets offered for trading is not highly diverse, making BlackBull Markets a more suitable broker for traders happy to focus on Forex, and the major metals and energies, and major stock indices only. BlackBull Markets’ reputation is fairly good, with a 5-year track record and good standing in New Zealand. Its reputation for technology and trade execution is excellent.

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