FXCM (Forex Capital Markets) is a well-established online forex and CFD (contract for difference) broker, founded in 1999. The company provides trading services to both retail and institutional clients from around the world. FXCM is regulated by several financial authorities in various countries, including the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC).
In this review, we will take a closer look at FXCM’s services and evaluate its strengths and weaknesses. We will examine the different types of accounts offered by FXCM, the trading platforms available, the range of trading instruments, the fee structure, the quality of customer support, and the regulatory and security measures in place. By the end of this review, you will have a better understanding of whether FXCM is a suitable broker for your trading needs.
FXCM Review: Pros and Cons
FXCM offers a range of trading instruments, including forex, commodities, indices, and cryptocurrencies, and provides traders with access to multiple trading platforms, including the popular MetaTrader 4 (MT4) and Trading Station platforms. The company also provides a variety of educational resources and trading tools to help traders improve their skills and make more informed trading decisions.
Here are some of the pros and cons of trading with FXCM:
- FXCM is regulated by several financial regulatory authorities around the world, which can provide clients with peace of mind.
- FXCM offers a range of trading platforms, including the popular MetaTrader 4 and its own proprietary platform, Trading Station.
- FXCM offers competitive spreads on a range of trading instruments.
- FXCM provides a variety of educational resources to help traders improve their skills and knowledge.
- FXCM offers customer support 24/5, which can be beneficial for traders who need assistance.
- FXCM only offers two account types, which may not be suitable for all traders.
- FXCM’s funding options are limited compared to some other brokers, which may be an inconvenience for some clients.
- FXCM charges inactivity fees on accounts that have not been active for a certain period of time.
- FXCM does not offer negative balance protection, which means that traders could potentially lose more money than they have deposited.
- FXCM offers a limited range of trading instruments compared to some other brokers, which may not be suitable for traders who are looking to trade a wider range of instruments.
FXCM offers a range of account types to suit the needs of different types of traders, from beginners to professionals. There are 2 main types of trading accounts, each with its own features and benefits.
Standard Account: This is the most basic type of account offered by FXCM, designed for retail traders who are just starting in the markets. The minimum deposit for this account is $50, and traders can trade a variety of instruments, including forex, commodities, and indices. The standard account comes with no commissions, and the spreads are variable, starting from 1.3 pips.
Active Trader Account: This account is designed for more experienced traders who have a higher trading volume. The minimum deposit for this account is $25,000, but traders benefit from lower spreads and commissions, as well as other perks such as a dedicated account manager and priority customer support. The spreads for this account start from 0.2 pips, and commissions are based on a tiered structure that reduces as trading volume increases.
Forex Demo: In addition to these 2 main account types, FXCM also offers demo accounts, which are free and allow traders to practice trading in a risk-free environment. The demo accounts come with virtual funds and access to the same trading platforms and instruments as the live accounts.
FXCM offers a range of trading platforms to suit the needs of different types of traders, from beginners to advanced. Traders can choose the platform that best fits their trading style and preferences, and can switch between platforms as needed. FXCM offers multiple trading platforms, including:
Trading Station: This is FXCM’s main platform, which is available for both desktop and mobile devices. Trading Station offers advanced charting and technical analysis tools, as well as customizable layouts and a variety of order types. It also allows traders to use algorithms and automation to execute trades.
MetaTrader 4 (MT4): This is a popular third-party platform used by many forex traders. MT4 offers advanced charting and analysis tools, as well as support for automated trading through Expert Advisors (EAs). Traders can also access a large community of developers who create custom indicators and tools for the platform.
TradingView Pro: This is another third-party platform offered by FXCM, designed for advanced traders. TradingView Pro is a powerful charting platform that offers advanced features and tools for traders who require more advanced technical analysis and automation capabilities. It is a suitable choice for active traders who require a comprehensive platform for chart analysis, alerts, and trading automation.
FXCM mobile trading app is a useful tool for traders who need to stay connected to the markets while on-the-go. It provides access to a range of trading instruments, real-time market data, charting tools, and one-click trading capabilities. Traders can also manage their trading accounts and set up trading alerts. The mobile app is available for iOS and Android devices and can be downloaded from the respective app stores.
FXCM offers a wide range of trading instruments for its clients to trade, including Forex, commodities, indices, cryptocurrencies, and bonds. The diverse range of trading instruments across different asset classes allows traders to access a variety of markets and potentially take advantage of different trading opportunities. Traders can also access these instruments through multiple trading platforms and can choose the one that best suits their trading style and preferences.
Fees and Commissions
The fees and commissions charged by FXCM vary depending on a variety of factors, including account type, trading volume, and trading instrument. Here are the main fees and commissions that traders should be aware of.
Spreads: FXCM charges a spread on each trade, which is the difference between the bid and ask price. The size of the spread depends on the trading instrument and account type, with tighter spreads generally available for higher account balances and trading volumes.
Commissions: FXCM charges a commission on certain types of accounts, such as the Active Trader and Professional accounts. The commission rate varies depending on the account type, trading volume, and trading instrument.
Rollover Fees: FXCM charges rollover fees for positions held overnight. The size of the rollover fee depends on the trading instrument and the interest rate differential between the two currencies being traded.
Inactivity Fees: FXCM charges an inactivity fee of $50 per year on accounts that have been inactive for a period of 12 months or more. This fee is waived for clients who maintain a minimum balance of $300 or trade at least once per year.
Deposit and Withdrawal Fees: FXCM does not charge fees on deposits, but there may be fees charged by the payment provider or intermediary bank. For withdrawal, FXCM does not charge fees for withdrawals by credit card or debit card. A $40 withdrawal fee will be charged for all Bank Wire requests.
Platform Fees: Some of the trading platforms offered by FXCM, such as TradingView Pro and Capitalize Ai, may charge fees to use certain features or functionalities.
FXCM Review Summary50 USD
Safety of Funds8.0/10
Fees and Commissions7.0/10
Platforms and Tools8.0/10
Research and Education7.5/10
- Regulated broker
- Multiple trading platforms
- Competitive spreads
- Educational resources
- Experienced customer support
- Limited account types
- Limited funding options
- Inactivity fees
- No negative balance protection
- Limited trading instruments