FXCM Review

Overall Rating

5/5

Top 5 Forex Brokers
1.
Avatrade
2.
Exness
3.
OctaFX
4.
Tickmill

 FXCM Review

📅 Year founded

1999

📈 Multiple top-tier regulation

Yes

📍 Headquarters

London, United Kingdom

🌍 Country of regulation

United Kingdom / Cyprus / Israel / South Africa / Australia

✅ Regulators

FCA / CySec / ISA / FSCA / ASIC

📈 Execution Type

Market Execution

💰 Minimum Deposit

$50 USD

🛡️ Negative Balance Protection

Yes / Not for professional clients

📉 Trading Platforms

MetaTrader4 / TradingView Pro / Trading Station

 ☪  Islamic account

Yes

📉 Trading Instruments

Forex / Shares / Indices / Commodities  / Cryptocurrencies / Trading Baskets

📱 Mobile trading

iOS / Android / Windows

💳 Payment Types Accepted

Credit and Debit Cards / Bank Wire Transfer / Skrill / Neteller / Klarna / Rapid Transfer

🎮 Demo Account

Yes

 ⓒ Copy Trading

Yes

🎁 Bonus Offer

Rebate Program / Referral Program / Deposit Bonus / Active Trader Program

💰 Account Currencies

USD

📈 Minimum Trade

0.01 Lots

📈 Account Types

PAMM / MAM

📈 Margin Trading

Yes

📈 Trading fees

Low

📈 Inactivity fee

After 12 consecutive months

💰 Withdrawal fee

$40 USD for bank wire transfers

☎ Customer Support

24/5

💰 Max. Leverage

1 000:1

✔️ Hedging Allowed

Yes

✔️ Scalping Allowed

Yes

💰 Commission

Spread only

💰 Spreads

From 1.3 pips

💰 Leverage

Flexible

💰 Currency Pairs (Total Forex pairs)

42

🔢 Number of clients

188 000 +

🥇 Instruments Offered

100 + and a wide array of shares

📙 Education

Free Online Live Classroom / Articles / Demo Account / Trading Guides

Click here ✅ Open a Trading Account

 

WHAT IS FXCM?

 

Found in 1999, FXCM is a respectable forex and CFD brokerage firm with its headquarters located in London, United Kingdom. This online broker is regulated by FCA, CySec, ISA, FSCA and ASIC.

At FXCM, clients can trade a range of trading instruments such as forex, shares, indices, commodities,  cryptocurrencies and trading baskets.

The broker also offers a variety of trading platforms to its traders including Trading Station, MetaTrader4 (MT4) and TradingView Pro.

 

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 for the best trading experience possible.

The broker is well respected in the industry and have won multiple international awards in its 24 year history.

 

PROS & CONS

 

PROS

  • FXCM is strictly regulated by a selection of regulatory entities.
  • Advanced Trading Station platform.
  • Wide variety of trading instruments are available.
  • Excellent research and education tools and resources.
  • Wide variety of user-friendly trading platforms.
  • Access to top liquidity providers.

 

CONS

  • The specialty platforms require fees to be paid that lean towards the high end.
  • Spreads are higher than their competitors.
  • While a VPS service is offered, traders must qualify for the Active Trader Program to make use of this service.

 

TRADING INSTRUMENTS

 

FXCM allows traders to access more than 40 forex currency pairs and 32 CFDs. FXCM offers the convenience of trading a 24-hours a day, 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 USD of daily trading volume. Due to its depth and unrivalled liquidity, forex is 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 Meta, Tesla and Apple.

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.

 

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 Baskets

FXCM offers an interesting option to trade various “baskets”. This offer reduces the risk to traders of focusing on only one instrument. The 3 baskets on offer are the CryptoMajor, Forex Basket and Stock Basket.

 

TRADING PLATFORMS

 

Three popular trading platforms are offered for traders who want to trade the stock or forex markets. Trading Station, MT4 and TradingView Pro are all among the top platforms for trading and are additionally bolstered by FXCM’s superior pricing and execution.

See the below for more information on the various platforms on offer by FXCM:

 

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 back-testing and optimisation.

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

 

TradingView Pro

The world renowned charting platform is now also available to trade on for FXCM users. When you deposit upwards of $300 USD, you get access to a free year-long subscription on TradingView Pro.

 

MT4

MT4 is an industry-best trading application, allowing users to trade forex, indices, shares, commodities and cryptocurrencies 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 for Active Traders.

 

ACCOUNT TYPES

 

FXCM makes provision for traders regarding accounts based on their needs and their level of experience.

 

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. Access leverage of up to 1 000:1.

 

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 $250 000 USD as well as experience working in the financial sector in a professional position.

 

Additionally, there is also a swap-free Islamic account on offer to traders.

 

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.

 

SOCIAL TRADING AND 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 analyse 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 Authorisation 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 starting from 1.3 pips.

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 USD deposit at minimum, with a commission rate of $25 USD per million traded.

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

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 utilising 100:1 leverage, you can trade with $10 000 USD while only setting aside around $100 USD as security.

For new accounts, the default is 400:1 leverage on forex and 200:1 leverage on CFDs. Accounts that have a deposit value of less than $5 000, may use leverage up to 1 000:1.

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 USD 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 and Credit Card.
  • EFT /  Bank Wire Transfer.
  • Skrill.
  • Neteller.
  • Klarna.
  • Rapid Transfer.

 

FXCM requires a $50 USD 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 USD fee.

 

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 while the website offers a FAQ section.

Traders are advised to access the help centre 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 utilise the support.

 

SAFETY AND SECURITY

 

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

For the sake of transparency, it must be stated that in 2014, the FCA fined FXCM for defrauding traders. This resulted in a 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. 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 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 such as the FSCA and ASIC amongst others.

 

PROMOTIONS

 

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 and further details can be found on their website here.

In referring family and friends, you can earn $20 USD cash in your Trading Account once your referrals have followed the required steps.

New traders can also earn welcome bonuses on a sliding scale when depositing money into their account.

 

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.

FXCM has a wealth of customisation features and over 50 technical indicators to use on their proprietary platform.

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. However, when using the TradingView Pro platform, this problem is taken care of.

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.

 

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.

Further educational videos and even free online classes can be found on FXCM’s website, ensuring a wide range of educational tools are at a trader’s disposal.

 

GLOBAL AWARDS

 

FXCM is a well-recognised company in the industry. They have been honoured with multiple 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 and 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:

  • Best in Class (2023) – ForexBrokers.com
  • Most Trusted Trading Platform Middle East (2023) – International Business Magazine.
  • Social Champion (2022) – TradingView.
  • Best Zero Commission Broker (2022) – ADVFN International Finance Awards.
  • Best FX Platform (2021) – Online Personal Wealth Awards.
  • Best Trading Tools (2020) – Personal Wealth.
  • Best Education (2020) – Personal Wealth.

 

SAFE OR SCAM?

 

FXCM’s companies are regulated and authorised by the regulation of several different governments.

FXCM is strictly regulated and authorised by the FCA and the ASIC (Australian Securities and Investment Commission). It is also regulated and authorised by ACPR in France and FSCA 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.

Although FXCM was involved in the scam discussed above, the new ownership has taken every step possible to correct those wrongdoings, keeping FXCM on the straight and narrow for over a decade now.

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 authorised by various different entities, which are some of the strictest in the industry.

 

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.

The only drawback of this broker is the slightly high spread on offer, however this does make sense as their commission is built into it while traders get other free features such as access to a VPS and TradingView Pro, under certain conditions. The broker also offers great bonus programs and thus, the team at Brokersuggest.com can highly recommend FXCM due to their good value for money offering.

 

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