In this review of FXCM, we take a look at a broker with over 20 years of experience and a strong reputation within the industry. FXCM has been providing clients with brokerage services since 1999 and now offers over 60 trading instruments. This includes currency pairs, commodities, indices, and shares. The broker also offers unique ‘baskets’ for both forex and cryptos to certain clients, subject to regulations.
In addition to a diverse range of markets and products, if you choose to trade with FXCM you will also benefit from licenses from three top-tier authorities. This regulation means you can always expect fair trading in a secure environment. FXCM also impressed our reviewing team with a variety of trading platforms, extensive educational materials, and robust analytical tools. This makes the broker a great choice for all types of traders, so continue reading to find out more about FXCM and why it could be the perfect broker for you.
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FXCM General Information and Licensing
FXCM was established in the wake of the modern forex trading in 1999. FXCM was originally a US broker yet it has since expanded its services to Europe, South Africa, and Australia. In doing so, it has gained licenses from the following authorities:
- Forex Capital Markets Limited is authorized and regulated with the Financial Conduct Authority (FCA) of the United Kingdom. Registration Number 217689.
- FXCM Australia Pty. Limited is regulated by the Australian Securities and Investments Commission. Australian Financial Services License Number: 309763.
- FXCM South Africa (PTY) LTD is an operating subsidiary within the FXCM group of companies (collectively, the “FXCM Group”). FXCM South Africa (PTY) LTD is an authorized Financial Services Provider and is regulated by the Financial Sector Conduct Authority under FSP No 46534.
In addition to the licenses listed above, FXCM is also subjecft to the control of other EU regulators, such as BaFin and CONSOB. Our FXCM review also found that the broker works with Friedberg Group to offer you secure services through IIROC in Canada.
For extra confidence in the broker, you’ll also be pleased to know that FXCM is owned by the New York Stock Exchange listed company, Jefferies Financial Group LTD. This gives you more transparency as all NYSE companies must submit public financial reports.
FXCM Trading Instruments
In our FXCM review, we found that you can trade over 60 instruments with the broker. This includes
- 39 currency pairs
- 3 forex baskets
- 13 indices
- 11 commodities
- Cryptocurrencies*
- 1 crypto basket*
- Single share
We were impressed to find that FXCM has recently branched out into cryptocurrencies and we were excited by the trading opportunities the broker’s unique ‘baskets’ present. Each forex basket is made up of 4-5 currencies in different markets. This includes an Emerging Markets basket, an Index basket, and a JPY basket.
*Availability subject to regulations.
FXCM Platforms
The US broker has a variety of platforms for the different markets it operates in:
- Trading Station – This sophisticated proprietary platform offers all a trader can wish for, from analytical tools to powerful charts and automated strategies, as well as custom indicators.
- MetaTrader 4 – If you prefer a more familiar platform, our FXCM reviewers recommend trading via MT4. With FXCM, you can benefit from all of the charting tools MetaTrader 4 is well known for and you can also enjoy a high level of customization and trading on the go.
- NinjaTrader – This is a platform with great execution performance on a large ECN network, connecting traders to the biggest liquidity providers in the industry. The platform is known for features like strategy builder (automated help to build your strategy without being a programmer), the market analyzer (real-time quote sheet), and market reply.
- ZuluTrade – At FXCM, you can also trade via ZuluTrade, a platform created specifically for copy trading. ZuluTrade allows you to benefit from peer-to-peer trading solutions that are perfect when you don’t have the time to build your own strategies.
Account Types
Besides the standard demo account which is for free, the FXCM broker caters to different traders’ needs by offering two more account types:
- The Standard account has an accessible minimum deposit of $50 (£300 for UK and EU residents) and traders get access to lower spreads on the no dealing desk platform where they are directly linked to market quotes. Spreads for EUR/USD start from as low as 1.3 pip, and there are zero commission fees. With this account, you can trade all of the available instruments via all trading platforms.
- The Active Trader account is designed for high-volume traders. With minimum requirement to maintain equity of $25,000 in trading account, Active Trader account holders benefit from very competitive spreads starting at just 0.2 pip and reduced commissions of just $3 per lot. With this account type, you can also take advantage of dedicated support, VPS hosting, API trading, and institutional derived trade ideas.
Please note that whilst FXCM offers competitive leverage amounts, leverage is a double-edged sword. Whilst it can dramatically amplify your profits, it can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors. The spreads listed here are derived from tradable prices at FXCM from 2020 Q1. These spreads are variable, however, and are subject to delay. As such, these spread figures are for information purposes only. For the latest Spreads, please refer to the FXCM website or trading station.
When executing customers’ trades, FXCM is compensated in several ways, which include, but are not limited to: spreads, charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads it receives from its liquidity providers for certain account types, and adding a markup to rollover.
FXCM Bonuses
FXCM does not have fixed bonuses but, from time to time, the broker runs promotions where they award newcomers with no-deposit bonuses starting from $100. Cash-back bonuses are also occasionally offered for a limited period, however, you should note that all bonuses and promotions are restricted from traders in the EU due to regulatory laws.
Funding Options with FXCM
Our FXCM review found that the broker offers you multiple payment methods for both depositing and withdrawing. At FXCM, you can deposit and withdraw via MasterCard, Visa, Discover, Bank Transfer, Skrill, Union Pay, and Neteller. Do note, however, that accepted methods may change depending on your jurisdiction. All deposits are processed instantly and FXCM does not charge depositing fees.
Withdrawals are also processed quickly, within 1-2 business days. Credit/debit card withdrawals will usually take no longer than 5 days to reach your account, international bank transfer withdrawals should take the same amount of time, and domestic bank transfers should only take between 1-2 days. FXCM does not charge for withdrawals made by credit/debit card, but there is a $40 fee for bank transfer cashouts.
FXCM Customer Support
FXCM customer support is available 24 hours a day, 5 days a week, and you can contact the broker via email, phone, or live chat. Our FXCM reviewers were happy to find that the broker’s competent staff speak over 20 languages and there are also over 40 freephone numbers to choose from. This means that advice is free, no matter where you are in the world.
FXCM also offers extensive educational materials, that come in handy to new traders, and a comprehensive FAQ section. The FXCM website is neat, tidy, and user-friendly on all devices too.
When executing customers’ trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads it receives from its liquidity providers for certain account types, and adding a markup to rollover, etc. Commission-based pricing is available on Active Trader account types.