Read our comprehensive FXCM review below.

 

WHAT IS FXCM?

Found in 1999, FXCM is a respectable forex and CFD brokerage firm with its headquarters located in New York, United States. This online broker is regulated by FCA, ASIC in Australia, ACPR in France, and FSP in South Africa.

At FXCM, clients can trade a range of trading instruments, such as Forex, Shares, Commodities, Indices, and Cryptocurrencies.

The broker also offers a variety of trading platforms to its traders, including Trading Station, NinjaTrader, and MetaTrader 4 (MT4).

 

INTRODUCTION

FXCM is a broker based in the United Kingdom.

Founded in 1999, FXCM has grown to have offices in the UK, Germany, Australia, France, Italy, Greece, Hong Kong, and South Africa with affiliate offices in Canada and Israel.

Across these offices FXCM is constantly developing as technology grows and changes to help drive quality prices and transparent execution of the best trading experience possible.

PROS & CONS

Pros

  • FXCM is strictly regulated by a small selection of entities.
  • Spread betting, CFDs, and Active Trading accounts are offered
  • Advanced Trading Station platform
  • Wide variety of instruments
  • Excellent research and education tools and resources
  • Wide variety of user-friendly trading platforms
  • Access to top liquidity providers.

Cons

  • FXCM does not offer individual stocks and shares.
  • While they do offer CFDs there are not many available to trade.
  • The specialty platforms require fees to be paid that lean towards the high end.

FXDD Forex Broker Review

TRADING INSTRUMENTS

FXCM allows traders to access more than 39 Forex currency pairs and 32 CFDs. FXCM offers the convenience of trading a 24-hour market, 5 days a week. Traders can access deep liquidity and can also trade on margin.


Forex

The forex market is the largest in the world and has more than $5 trillion of daily trading volume. Due to its depth and unrivalled liquidity, Forex is a one of the most lucrative settings for active traders around the world.


Shares

All from a single platform, enjoy the ability to trade some of the largest and most popular companies in the world such as Facebook, Tesla, and Apple, as well as instruments such as Forex, indices, commodities, and cryptocurrency.

Trading share CFDs with FXCM allows you to take a position in the market without having to own the physical share. Trade top international stocks on the market with both minimal margin requirements as well as minimal costs- Simply look at the shares available below.


Indices

Stock indices are a suitable selection for those who want to speculate on the direction of an entire industry without having to pick individual stocks.

FXCM offers a variety of products that are traded as CFDs, or contracts for difference. With CFDs, you can trade on margin. This simply means that you only must put up a fractional portion of your capital, while still enjoying the full stake of the trade.


Commodities

Gold, natural gas, copper, and oil are all products that can be traded in the global commodity market. FXCM is a trading platform that offers a variety of natural resources to trade. As with every FXCM product, commodities can be traded as CFDs.

FXCM enables you to trade your opinion on the changes in price levels of metals, gas, and oil, just like you would do with Forex. All you are required to know is the contract size and symbol of the product that you wish to trade.


Cryptocurrencies

Trade popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin, or simply try FXCM’s unique CryptoMajors Basket.


TRADING PLATFORMS

Three popular trading platforms are offered for traders who want to trade the stock or Forex markets. Trading Station, MetaTrader 4 and Ninja Trader are all among the top platforms for trading and are additionally bolstered by FXCM’s superior pricing and execution.

FXCM offers a variety of trading platforms to suit a diverse range of traders of different styles and experience. FXCM offers traders a wide variety of platforms to choose from. You can select between the following:


Trading Station

FXCM’s proprietary trading platform, Trading Station, offers advanced charting applications, preloaded indicators, and multiple order types.

Trade automation strategies are available to help you find the most profitable trades. These strategies have been developed and perfected through backtesting and optimization.

Not only is trading with our Trading Station app available on your computer or tablet, but you can also access the markets on your mobile device.


NinjaTrader

NinjaTrader is a platform that enables clients to trade equities, futures, and forex. The company’s platform specializes in custom system development.

Their standardized Strategy Builder tool and NinjaScript programming language are both instrumental for creation of custom systems. The Market Analyzer, a fully tailorable spreadsheet, is updated in real-time for optimal performance during live trading.

After the trading session, traders can revisit the past with the Market Replay tool and fine-tune their trade execution and management abilities.


MetaTrader 4 (MT4)

MT4 is an industry-best trading application, allowing users to trade futures, Forex, and CFDs with ease. MT4 is one of the most popular platforms in the world, with interactive charts, differentiated order types, and advanced analytics.

FXCM offers a trade automation service to MT4 users through the Expert Advisor application, as well as free VPS hosting.


ACCOUNT TYPES

FXCM makes provision for traders regarding accounts based on their needs and their level of experience. The Spread Betting Account offers tax free and commission free spread betting with a maximum leverage of 1:30.


CFD Trading Account

With this account, traders have access to the markets to trade currency, stock indices and commodities which include gold and oil. Traders can execute more trades with relatively low spread costs as well as having access to reasonable leverage, multi-asset platforms, as well as both rising and falling markets.


Active Trader Account

This account offers elite/active trader pricing with dedicated support. There is API trading made available as well as institutional derived trade ideas and custom solutions to issues and a view of the market depth.


FXCM Pro account

This account requires certain prerequisites to open including traded leveraged derivatives in significant sizes in trades spanning over the last four quarters, a financial instrument portfolio greater than EUR 500,000, as well as experience working in the financial sector in a professional position.


HOW TO OPEN AN ACCOUNT

Opening an account with FXCM is easy. You can do it completely online and the application process only consists of three steps.

Other than basic information, an applicant also must provide a valid copy of identification and proof of residence. These are necessary components of the “Know-Your-Client” (KYC) requirements.

As soon as FXCM has verified the application, your account will be activated, and you will be able to deposit funds and begin trading.


DEMO ACCOUNT

Demo accounts are simulations of how the real market would work. As a result, there are a few key points of difference that make them distinguishable from real accounts. These include a lack of real-time market liquidity, pricing delays, and the availability of products which may not normally be available on a real account.

Simulated accounts also do not suffer operational deficiencies such as rejected orders or slippage that would otherwise be typical in real-time. There may also be times where current margin requirements are different between live and demo accounts.


COPY TRADING

ZuluTrade

With ZuluTrade, you can copy other successful traders and their trades in Forex, shares, CFDs and cryptocurrencies directly from the comfort of your FXCM trading account.

ZuluTrade is a social auto-trading app that lets you follow and imitate the trading activity and strategies of the best traders within a diverse network. Sit back while ZuluTrade traders monitor and analyze the market for you!


Profit Sharing

In a default ZuluTrade account, you do not have to pay anything unless successful trades are made for you. Simply select the Trader you want to follow, and trade with the competitive spreads offered by FXCM.

A percentage of the profits is paid only when the Trader has earned you a positive ROI.


Auto-Pilot | Combos Plus

Managed Portfolio Service. If you don’t have time to check your portfolio every day, automated trading through Autopilot may be the option for you.

ZuluTrade’s Certified Management Portfolio Team will take care of everything by managing your account and re-balancing it when required.


Get Started in Less Than 10 Minutes

  1. Create a Live Account
  2. Sign up for an FXCM ZuluTrade Account
  3. Submit a Limited Trading Authorization form for copy trading to be opened in your account
  4. Your ZuluTrade account will be activated as soon as FXCM contacts you with additional instructions.


Practice Copy Trading with a demo account

  1. Register directly through ZuluTrade for a demo account.
  2. Follow traders and discover how ZuluTrade works- once you are ready, open a real FXCM ZuluTrade account and get trading!


COMMISSIONS & FEES

FXCM’s rates are based on the trade instrument and the trading account used.

A variety of spreads are available for traders in standard accounts. All these spreads are based on the trading instrument. As an example, EUR/USD and USD/JPY both have a spread of 1.3.

Accountholders with a basic account only have set spreads that are charged

The most popular of the accounts FXCM provides is the Active Trader account. Traders who make high volume trades will find competitive prices thanks to low commission rates and average spreads.

The Active Trader account requires a $25,000 deposit at minimum, with a commission rate of $25 per million.

Traders trading the EUR/USD currency pair incur a $4 commission per turn. This means the cost of trading (post-commissions) is 0.45 pips in total.

Swap rates and overnight charges do apply, and the exact amounts can be accessed from inside the trading platforms.

There is a charge for inactive accounts that have been untouched for more than 12 months. The fee is either $50 USD or the equivalent in the trader’s currency if they are not using USD as their base currency. A $30 monthly hosting cost may also apply to traders who use the VPS service.


LEVERAGE

Forex and CFD trading are available with leverage. This can increase your options during volatile markets with the smallest moves.

The trades executed by FXCM are conducted with the use of borrowed funds. For example, by utilizing 100:1 leverage, you can trade with $10,000 while only setting aside around $100 as security.

For new accounts, the default is 400:1 leverage on FX and 200:1 leverage on CFDs. Accounts that have a deposit value of more than 20,000 CCY will be given a risk level of 100:1 on FX transactions.

The leverage limit in an account will be adjusted in accordance with the equity present. FXCM reserves the last right to modify your leverage, at its own discretion.

If you have an account with less than 20,000 CCY and only 200:1 leverage, you can request an increase. FXCM reviews all requests on a case-by-case basis and has the absolute right and discretion to reject any request.


WITHDRAWALS AND DEPOSITS

Traders can deposit funds into their account using the approved methods below:

  • Debit/Credit Card
  • EFT/ Bank Wire
  • Skrill
  • Neteller
  • Rapid Transfer


FXCM requires a $50 deposit to open an account. They do not accept third party payments, so any payments that are made in this manner will be rejected and returned to the depositor.

When withdrawing funds from a trading account, the same payment method is required to withdraw as what was used to deposit. Debit/credit withdrawals are free, but bank wires incur a $40 fee.


SAFETY AND SECURITY

Under license number 217689, the United Kingdom Financial Conduct Authority (FCA) is responsible for regulating FXCM’s activity.

In 2014, the FCA fined FXCM for defrauding traders. This resulted in an FCA fine of £4 million and restitution paid to clients of £6 million.

FXCM was fined under its previous owners but is now compliant with current regulations. under Jefferies Financial Group. FXCM LTD currently protects traders up to £85,000 under the FSCS.

The company’s funds and its customer’s funds are kept separate, as required under the FCA CASS in the UK. All third-party institutions have obtained the same credit rating of FCA Credit Quality Step 5.

FXCM is in complete compliance with federal regulations with all three of its entities and has been able to regain its customers’ trust.

FXCM’s FCA regulations are solely applicable to traders in the United Kingdom. However, traders in other areas of the world can potentially be served by FXCM’s other regulations.


CASHBACK

FXCM offers different rebates based on how much you trade and is designed for the most active traders.


REQUIREMENTS:

  • Currently have an account with FXCM or open a new one
  • Meet a minimum monthly volume of USD $10,000,000.


FXCM will review your trading account and associated USD notional trading volumes at the end of each month. Rebates will be paid in 15 business days and this is expedited for the next month.

Your account must be in good standing when the rebate falls due to the account.

Rebates for customers will be calculated based on the total combined USD notional volume they traded during that month.


RESEARCH

FXCM provides extensive tools for traders on their website. Some of these tools include:

  • An Economic Calendar
  • Market News
  • Live Forex Charts
  • Trading tools such as FXCM Plus, FXCM Apps, Market Scanner, Technical Levels and Trading Signals


However, the FXCM Plus platform where the tools are located is separate from the trading platform. This can be inconvenient for users who are looking for research tools.

  • Trading Ideas
  • Trading ideas and recommendations can be found on the Trading Analyzer and Trading Signals pages.
  • Fundamental Data
  • Fundamental data is not provided by FXCM.
  • Charting


FXCM has a wealth of customization features and over 50 technical indicators to use.

There is also an app called Market Scanner that can tell you whether to buy or sell based on technical indicators such as the MACD or RSI. However, it is only available for a few select products.


News Feed

A quality news feed, newsletter, and economic calendar are available for use. The news can be easily accessed through the Global Market News page. We found it helpful that you can search popular keywords by category.

There are many ways to stay on top of the market and trade it, like reading the Before the Bell morning newsletter. The newsletter commonly contains 5-6 trading ideas based on technical chart analysis.

The economic calendar has a clean look and interface but lacks a country filter.

FXCM does a good job of offering professional algorithmic trading and data. They offer four APIs for free, but you can buy more if you find it necessary. The free APIs are REST API, FIX API, Java API, and a ForexConnect API.


GLOBAL AWARDS

FXCM is a well-recognized company in the industry. They have been honored with awards and accolades for their work as a brokerage firm.

Forex and CFD markets are global. They include people from all over the world. FXCM has established a large network of business partners to provide traders access to premium foreign exchange and CFD markets.

As of 1999, FXCM has led the foreign exchange market with its technology.

FXCM has received acclaim for a variety of reasons. It has been praised for its well-developed trading platform, and its commitment to customer service while ensuring that the advancement of Forex and CFDs is sustained.

Companies need to stay ahead to thrive and stay competitive in the Forex industry. FXCM is a premier brokerage firm that has been around for years. They have worked hard to meet the needs of their clients, and it shows through the recognition they receive.

FXCM has won the following awards and accolades:

  • Personal Wealth- 2020- Best trading tools
  • Personal Wealth- 2020- Best Education


SAFE OR SCAM?

FXCM’s companies are regulated and authorized by the regulation of seven different governments.

FXCM is strictly regulated and authorized by the FCA and the ASIC (Australian Securities and Investment Commission). It is also regulated and authorized by ACPR in France and FSP in South Africa.

FXCM is compliant with strict financial standards and company requirements, such as segregating client funds and protecting clients in the unlikely event of company insolvency.

FXCM is required by regulation to submit financial reports and keep records of formal proceedings.

FXCM is a safe broker because it is regulated and authorized by four different entities which are some of the strictest in the industry.


CUSTOMER SERVICE

Clients can contact FXCM either via telephone, via SMS (UK residents only) or via email. Traders can search the website or contact customer support as the website does not offer a FAQ.

Traders are advised to access the help center before contacting customer support, however if customer support is needed it is provided 24/5 and can be reached through the provided toll-free numbers, SMS texting in the UK, email, live chat, or calling the trading desk.

This extensive support system is superior to competitors and follows high standards with a comprehensive approach, however FXCM’s system prevents most traders from needing to utilize the support.


EDUCATION

A wide range of educational tools are available such as educational videos and webinars. Demo accounts are available too but only for a limited set of countries.


PROMOTIONS

In referring family and friends, you can earn $20 cash in your Trading Account once your referrals have followed the required steps. You can earn a $20 welcome bonus until 30 June 2021 by creating an account and funding it with as little as $50.


CONTESTS

FXCM Monthly Trading Contest

Showcase your trading skills against other traders and be the next Top African Trader. Terms and Conditions apply


CONCLUSION

FXCM caters for traders of various levels of experience. It has a competitive offering of pricing, spreads, trading instruments, tools and platforms which cater for the needs of any trader. It provides the best trading experience to traders and there is constant development pertaining to innovation and technology.

FXCM is transparent in its operation and beginners and advanced traders can get the best out of trading when opening a FXCM account.