BlackBull Markets is a forex and CFD broker that provides traders with the well-liked MetaTrader 4 and MetaTrader 5 platforms to trade with high leverage on currencies, indices, precious metals, and energy products. The company is a domestic FX and CFD broker with its headquarters in Auckland.
Summary of BlackBull Markets
The company offers a small number of highly liquid trading instruments at competitive prices but lacks a diverse range of trading products. There are 64 FX pairings, 15 indexes, 23,000 stocks, and 21 commodities among the investment instruments.
Blackbull offers investments in the underlying stock as well as Share CFDs. Additionally, the mobile app allows users to purchase underlying share assets (BlackBull Shares).
A demo account can be opened to test either MT4 or MT5, although they only last for 30 days, despite the fact that customers can have up to 100 days.
Leverage for trading is available up to 1:500.
Our manual addresses:
- Blackbull Markets Overview
- Trading Fees at Blackbull Market
- How to Begin with Blackbull Markets
- Questions and Answers
Checking out other platforms and Blackbull Markets side by side? This is covered in full in CMC Markets vs. Plus500 vs. IG vs. Blackbull Markets.
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Prior knowledge: Risk alert for FX and CFD trading
Companies like BlackBull Markets are not constrained by New Zealand legislation in how much leverage they give to customers. Additionally, they are not required to carry out competency checks to see if clients have the necessary background to trade highly speculative assets like FX and CFDs. Leverage up to 1:500 is available on BlackBull Markets. Remember that you can choose to reduce the leverage when you join up with this supplier to a rate you are more comfortable with. If you’re new to forex and CFDs, we strongly suggest reading our instructions to:
Investment risk caution for forex and CFD trading
Any investment carries risk since there is always a possibility that the market value of a position may be lower than what you initially paid for it when you decide to liquidate it. Trading highly speculative and leveraged items, such as options, contracts for difference, and FX, is significantly riskier. Make sure you have a proven trading plan in place before investing in any goods, whether it be leveraged CFDs or cash equities.
Platforms for Trading at Blackbull Markets
Platforms for MetaTrader 4 and MetaTrader 5 are available from Blackbull Markets. Both MetaQuotes-developed platforms are well-known in the forex trading community and don’t need any introductions.
Although all MT4 and MT5 platforms appear the identical at first glance, traders worry about what happens in the background, and that is how brokers compete. There can be significant differences amongst brokers in terms of the platform hosting quality, execution venue latency, price feed quality, and product selection.
If you’re a point-and-click trader, you’ll just have a cursory understanding of a broker. The automated trading features of the MetaTrader platforms, however, make things like execution quality and latency increasingly important.
BlackBull’s automated trading solutions
The advanced material in the parts that follow is probably not important to most readers, but we have included it for completeness.
BlackBull provides customers with a free Virtual Private Server (VPS) to install their preferred trading platform on, where they can run an automated trading strategy 24 hours a day with little to no interruption. This is available to customers with deposits over US$2,000 and trade volumes exceeding twenty lots (i.e., 20 million NZD/USD, 2,000 ounces of gold, or 20 AUS20 index contracts).
The native messaging protocol of the securities trading sector, FIX, is accessible through BlackBull. The majority, if not all, forex transactions are conducted via the FIX protocol. It enables direct communication between servers without the need for buy or sell buttons to be pressed manually or for software like MT4 to execute an automated trading algorithm. A FIX connection can be established by BlackBull to any of their trading servers in NY4 and LD5. Many times, all of the major regional market-makers and venues are physically connected, or cross-connected.
A key feature of BlackBull’s positioning as a destination for automated traders is its use of a low-cost, low-latency, deep-liquidity, straight-through processing (STP) model without a dealing desk. It’s difficult to determine what these buzz words—which many brokers use—really signify.
We define a few of these terminology and concepts in the section below and explain why some traders find them important:
NDD: Non-Dealing Desk Since a broker has the ability to influence your orders, choosing whether to fill it and at what price, many traders believe dealing desks should be avoided. This assumption utterly disregards the fact that, if not your broker, then another person must decide whether to accept your order. Dealing desks are not disliked for this reason. They add a second layer that slows down execution, which is bad for high-frequency trading techniques.
Network for electronic communication (ECN): Similar to a stock exchange, an ECN serves as a marketplace or trading platform. The most economical ways to trade forex are believed to be through forex ECNs. The establishment levies a commission on each transaction, typically as little as 0.005%. (half a basis point). Forex ECNs draw a wide variety of users, each of whom is there for a distinct purpose—some are there to buy, while others are there to sell. Spreads are minimized by diversity and competitiveness.
Significant liquidity from Tier-1 banks: A forex ECN’s drawback is that it is reliant on participant activity, making it unpredictable at times. Banks run dealing desks, may charge significantly more, but have the ability to immediately complete huge transactions. A bank’s tier-1 status simply denotes its size as an organization. Actual retail brokers are unlikely to transact with banks like Barclays, Deutsche Bank, or Credit Suisse directly; instead, they would use a prime broker.
STP: Straight through processing STP is a general idea in computing. It simply means that requests are delivered without any human involvement to their intended recipients. Brokers like to state that they use a STP model even if it is already indicated that they do so because there is no dealing desk.
Co-location and low latency The difference between one second and half a second won’t be noticeable to the average point-and-click trader, but it can have a big impact on automated trading strategies. Latency is influenced by processing power, bandwidth, and distance from a source. In an effort to minimize the distance that information must travel, brokers aim to install their servers as close as possible to other participants. Given how far apart New Zealand is from London and New York, latency can be a problem. For faster execution than trading from a computer in Auckland, many traders run automated trading methods on VPSs close to the main trading servers in New York, London, or Tokyo.
BlackBull Markets is an authority on forex and a few other extremely liquid items. 64+ currency pairings, indexes from significant markets, precious metals like gold and silver, and commodities like energy, gas, and oil are among the instruments that are accessible.
Even though there are less products available, the trading conditions can be better for your strategy. Of course, BlackBull is not for you if you want to trade CFDs on Apple stock. Then you might just find what you’re searching for if you’re an avid ASX200 day trader seeking minimal spreads and commissions.
Trading fees with BlackBull Markets
Customers of BlackBull Markets have three account options to choose from, each of which has a minimum deposit requirement. The fees decrease as the deposit required increases. The main expenses are commissions, spreads, and swaps, similar to other brokers. When trading with BlackBull, there are no market data costs or inactivity fees.
Compare trading accounts
Standard, Prime, and Institutional are the three different account kinds. It is hard to offer a useful comparison using the Institutional account because it needs a minimum deposit of US$20,000, commissions are described as “negotiable,” and spreads begin at 0 pip. As a result, the Standard and Prime account options are examined in our analysis of the fees associated with placing a transaction.
- Regular account
- 50 dollars minimum deposit
- Spreads start at 0.8 pip.
- Commission: nil Swaps: dependent on the instrument
For instance, the spread is 0.9 pips when you open and close a deal for 0.5 lots of EUR/USD. Per lot of EUR/USD, 1 pip is worth $10. As a result, you would pay a spread of US$4.50 to open the position and US$4.50 to terminate it. The entire price is $9 USD.
In a different illustration, let’s figure out a trade for 0.2 lots of AUD/NZD with a spread of 2.8 pips at open and 3.2 pips at close. Per lot of AUD/NZD, 1 pip is worth $10 NZ. The spread to begin the position would cost NZ$5.60, while the spread to exit it would cost US$6.40. The total price is $10.00 NZD.
Prime Account 2
- $2000 minimum deposit
- Spreads start at 0.1 pip.
- Commission: $6.00 per lot with rounds
- Instrument-specific swaps
A transaction for 0.5 lots of EUR/USD is placed, and the spread is 0.2 pips both when the deal is opened and closed. Per lot of EUR/USD, 1 pip is worth $10. This implies that you would spend US$1 in the spread to begin the position and US$1 to close it. The commission charged US$6 per lot for the round trip, which broke down to US$3 for opening and US$6 for closing each lot. In this case, each side would cost $1.50 USD. There is a $5.00 USD total cost.
In a different illustration, let’s figure out a trade for 0.2 lots of AUD/NZD with a spread of 2 pip at open and 2.4 pip at close. Per lot of AUD/NZD, 1 pip is worth $10 NZ. Accordingly, you would pay a spread of $4 NZD to initiate the trade and $4.80 USD to finish it. The commission assessed a round-trip fee of US$6 per lot. In this case, you would pay US$1.20 per side, which would be NZ$1.68 per side at the current exchange rate of 0.714. It will cost you $12.16 in total.
How to begin using Blackbull Markets
You should always open a demo account before getting started with BlackBull Markets—or any other broker, for that matter. A demo account serves as a testing ground for your trading approach as you examine the platform’s features, the variety of trading products, spreads, and swaps. Here is where you may sign up for a BlackBull Markets demo account. The account is intended to expire after 30 days, which is something to keep in mind. Since most brokers do not impose lifespan limitations on demos, this trait is unique. We anticipate that they will gladly extend the demo period if you politely request it.
Open a Live Account 2.
Applying for a live trading account is possible here. Keep in mind that you must have a valid ID, such as a passport, on hand when you register, as well as documentation proving your residency. We won’t go into great depth on why brokers require sensitive personal information because we believe that the majority of our readers are already aware of what is necessary to open accounts for financial services goods online. Their capacity to safeguard it is crucial. The benefit of doing business with a New Zealand-based company is that they are conversant with the privacy regulations that must be adhered to.
Adding money to your trading account
A range of financial options are available from BlackBull Markets. Unlike the majority of brokers in New Zealand. Along with standard bank transfers and credit/debit card purchases, the business also accepts payments through Skrill, Neteller, China Union Pay, and FasaPay.
Customer monies are kept in ANZ Bank’s segregated accounts. Additionally, money can be deposited into accounts with Maybank and RHB. The business takes deposits in NZD, AUD, USD, EUR, GBP, SGD, CAD, JPY, and ZAR altogether. Not all payment options accept the full range of deposit currencies. When adding money to your account, keep in mind that there will be a conversion fee of 3% if you subsequently decide to open a new account in a different currency.
Frequently Asked Questions for Blackbull Markets
Can I open an MT4 and MT5 account with BlackBull Markets at the same time?
Yes. You can create several trading accounts on several platforms. You can move money from one trading account to another using the client portal.
What happens if my account balance is less than the $50 minimum deposit?
Only your initial deposit is subject to the minimum deposit requirement. After your initial deposit, you can make additional deposits at any time in smaller amounts. You don’t have to worry about your account being disabled if you lose money and your balance drops below US$50.
Does the 30-day trial period for the account truly end?
According to reliable sources, this is untrue. It seems like the trial account expiration after 30 days is just a ploy to get new traders to use their demo account and practice during that time.
Not from New Zealand am I. Does BlackBull Markets still allow me to register an account?
Yes. Although BlackBull Markets accepts customers from the majority of nations, their anti-money laundering policy places some restrictions on this.
How long does it take to register for a BlackBull Markets account?
The registration procedure can be finished fast because it is done online. Just make sure you have all of the necessary identification and address proof on hand. Providing blurry or cropped photographs is the main reason for delays, so make sure that whatever you give is flawless. Within 24 hours of receiving the documents, you should anticipate hearing back.
Where is BlackBull Markets headquartered?
BlackBull Markets is headquartered in New Zealand, where the Financial Markets Authority has granted the business permission to act as a derivatives issuer. Additionally, there is a comparable organization called BBG Limited that was established in Seychelles and is subject to FSA regulation.
What distinguishes a demo account from a live account?
Demo accounts are intended to offer an equivalent experience to live accounts without the danger. To evaluate the functionality of a trading platform and the terms and conditions of a certain broker or product, a demo account is funded with fictitious money. To align the experience, brokers should work to keep the live and demo trading systems consistent. The phenomena of slippage, which happens in a live trading environment and is challenging to imitate, is one example of something that cannot be copied.