FXCM Review – Best Forex Brokers

1. Standard Individual Account
2. Active Trader Individual Account
3. Joint Account
4. orporate Account

The Active Trader Account offers significantly lower spreads when compared to the Standard Individual or Joint Accounts (e.g., 0.2 average spread on Eur/Usd trading, as compared to an average spread of 1.2 – 1.4 pips for Standard Accounts).

Active Traders can enjoy receiving monthly trading rebates, provided they meet the minimum monthly trading volume required to qualify for trading rebates ($10 million USD). The rebate percentage paid out to individual traders varies based on their total level of trading volume for the month.

Active Trader Accounts also qualify for expedited transfer and withdrawal services. In addition to institutional traders and companies, many individual traders prefer to trade through a Corporate Account, because doing so may provide substantial tax advantages.

A Joint Account is helpful for married couples, and also in situations where the primary account holder wishes to provide another individual with the ability to manage the account’s trading activities.

All in all, clients of FXCM can access financial markets comprising more than 250 traded financial securities. Trading financial assets other than currency pairs is available primarily in the form of CFDs (Contracts for Difference). Assets available for trading include all of the following:

1) Foreign Exchange – FXCM offers clients forex trading in all the major currency pairs, as well as many cross pairs and exotic pairs – nearly 50 currency pairs in all.

In addition, clients can invest in currency “trading baskets”, which are themed portfolios of investments in several related currencies; for example, the “emerging markets” currency basket consists of investments in the Chinese renminbi, Mexican peso, South African rand, and the Turkish lira.

2) Stocks – Stock shares of companies, as well as major stock indexes such as the S&P 500 Index and the Nikkei 225, are available to FXCM clients. Among them is the volatility index (VIX), which is a popular security in these uncertain economic times when the world’s stock markets frequently spike up and down.

Traders can purchase partial stock shares and trade with a minimal margin requirement – just 5%.

3) Commodities – Commodity futures available to trade as CFDs include both precious and industrial metals (such as copper), oil, and natural gas.

4) Cryptocurrencies – The list of cryptocurrencies FXCM has available to trade is continually expanding. In addition to CFDs on the major cryptocurrencies, Bitcoin and Ethereum, several other popular crypto coins, such as Stellar Lumens, are available. Contract sizes are equal to the price of the cryptocurrency; for example, with Ethereum trading at $1,125, one contract of Ethereum is $1,125.

Traders can, of course, trade fractional contract amounts of cryptocurrencies. Leverage and margin requirements vary depending on the trading asset.

CFDs are a trading instrument that enables traders to simply trade the difference between trade opening and trade closing prices, rather than buying the actual financial securities being traded. Traders in the UK like the fact that CFD trading profits are not subject to a stamp duty, thanks to CFDs being derivative financial instruments.

Also, with the rise of cryptocurrency as a part of the financial market, crypto tax has become an important issue worldwide as in the UK. However, keep in mind that tax laws are constantly changing, and that going after investors’ capital gains appears to be a favorite target of governments looking for ways to increase their tax revenue.

CFDs can be used either for speculative investing purposes or as a means of hedging other investments in your portfolio.

Using leverage, traders can trade larger positions with significantly less trading capital than what would be required to trade the same level of positions without the benefit of margin trading.

Unfortunately, gone are the good old days when forex traders enjoyed the ability to trade with leverage as high as 500:1 (even 1000:1 with some brokers). Following the 2008 financial crisis, financial regulatory authorities – especially in the UK and the US – severely restricted the amount of leverage that regulated brokers could offer their clients.

It’s difficult to see how drastically reducing the amount of leverage traders can use does anything other than hurt individual retail traders, while benefiting large institutional traders that have sufficient capital to trade freely with any amount of leverage… or even with no leverage at all.

Nevertheless, FXCM offers the following levels of leverage trading, which vary according to your country of residence (and, therefore, what regulatory authority trading rules you’re subject to):

• In the UK, the EU, and Australia, the maximum amount of leverage available to clients is 30:1 for trading major currency pairs (leverage on exotic currency pairs is limited to a maximum of 20:1). This is in line with the maximum amount most tier-1 regulated brokers offer.
• In South Africa, where trading is regulated by the Financial Sector Conduct Authority (FSCA), and in some other jurisdictions where FXCM operates, traders have access to significantly higher leverage in all forex trades – as high as 400:1 – although traders who have $50,000 or more in their trading account are only allowed 100:1 leverage (200:1 leverage trading of CFDs on assets other than forex).
• Australia offers cryptocurrency traders 2:1 leverage, while South African crypto traders can use twice as much leverage – 4:1.

FXCM will indicate the amount of leverage available to you, based on your country of residence, within the account opening details. Leverage is an extremely valuable trading tool, as it enables you to amplify your trading profits significantly.

However, traders should always keep in mind that leverage is a double-edged sword, in that it also amplifies losses. Some traders’ level of risk tolerance makes them uncomfortable trading on margin at all.

Trade Execution

FXCM is an ECN (Electronic Clearing Network) broker, which means client trades are executed directly through the interbank market, where FXCM connects with more than 10 key liquidity providers – including Barclays Bank, Deutsche Bank, and its parent company, Jefferies Financial Services.

This means that, unlike a dealing desk broker, there are no requotes to slow you down. According to FXCM, on average entering a market order takes about 30 milliseconds.

ECN brokers are generally always preferred because there is no possible conflict of interest when dealing desk brokers fulfill requotes on your trade themselves. Traders are provided with real-time charts and on them, they have the option of using one-click order execution.

A significant plus is the fact that all of FXCM’s mobile apps were specifically designed for maximum user-friendly visual appearance and functionality on both Android and iOS cell phones.

FXCM Trading Station Web, Desktop, and Mobile App

FXCM’s proprietary web-based trading platform, Trading Station Web 2.0, has been recently updated to provide a more intuitive user look and feel. The platform is constructed in Mac-friendly HTML5 coding, but is compatible with Windows computers.

Additionally, the mobile version of the software is compatible with both Android and iOS phones and can be downloaded from the Google Play Store (Android) and Apple Store (iOS). The platform can be accessed through the FXCM mobile app and the FXCM website. There is also a downloadable desktop version of the platform.

Both the online and desktop versions offer a charting package that includes a wealth of technical analysis tools, including customizable technical indicators, trading strategy backtesting and optimization tools, and a Real Volume indicator.

One especially useful feature is the Speculative Sentiment Index (SSI), a trader sentiment tool that reveals whether traders in the market are overall net long or net short, and to what extent. The latest market news and commentary, access to the day’s economic reports calendar, and other fundamental analysis education and research resources are built into the trading platform.

FXCM also offers traders a continual stream of trading ideas generated by its Market Scanner, Trading Signals, and Technical Analyzer programs. The Trading Station mobile app was separately designed for ease of use when traders are out and about, while still offering access to FXCM’s suite of sophisticated trading tools and market info.

MetaTrader 4

FXCM clients also have the option to use the popular MetaTrader 4 (MT4) trading platform from MetaQuotes Software. MetaTrader 4 has been a favorite of forex traders ever since its creation in 2005.

It’s extremely user-friendly, comes pre-loaded with dozens of customizable technical indicators and its own Expert Advisors (EAs), supports automated and copy trading, offers a Virtual Private Server (VPS) connection and programmable alerts, and gives traders the option to just partially close open positions they have.

One reason for the popularity of the MetaTrader platform is the fact that so many custom technical indicators have been created for it. There are literally thousands of MT4 indicators and hundreds of trading robots that can easily be added to the list of indicators and EAs that the platform comes pre-loaded with.

Additionally, MetaTrader comes with a demo account where traders can “test drive” trading strategies before risking real money on them. (Demo accounts are also available with the Trading Station platform.) Like the Trading Station platform, FXCM’s MetaTrader platform can be accessed online through the FXCM website, with a mobile app, or by using the downloadable desktop program.

The MT4 trading platform also offers copy trading of MT4 Signals provided by various other traders. You can examine the available trading signals by results, percentage growth, and won/lost percentage. MetaQuotes provides a live market news feed to MT4 users to help them stay on top of relevant economic events as they unfold.

TradingView Pro

Here’s an especially nice FXCM extra: Clients who open a new account with FXCM can get a free year of TradingView Pro (a $179.40 value). TradingView.com is an investor resource praised by traders in every financial market, with a variety of stocks, options, futures, forex, and cryptocurrencies.

It offers excellent tools such as crypto screeners and heat maps, and a charting package that’s second to none. The TradingView charting program is so sophisticated that it can even combine both fundamental and technical analysis indicators.

TradingView also offers social trading through the TradingView community, where you can connect with millions of traders around the world while having access to endless market news, expert analysis and trade ideas, and investor education resources.

The one drawback with TradingView is that it has limited direct connections to brokers. Thus, you can’t make forex trades with FXCM directly from the TradingView charting program. You may, however, place stock, futures, or cryptocurrency trades directly from the TradingView platform if you use other brokers to trade those markets.

For example, TradingView does have direct broker connections to TradeStation and Interactive Brokers. Despite that one disadvantage of limited direct broker connections, many investors cheerfully pay more than $700 a year for TradingView’s Premium subscription package.

Other Trading Platforms

If these platforms haven’t piqued your interest, FXCM also offers trading through the NinjaTrader platform – one of the most popular alternatives to MetaTrader, social and copy trading through ZuluTrade, and artificial intelligence (AI) trading through Capitalize AI.

FXCM clients can also access specialty algorithmic trading platforms and programs that FXCM has partnered with, such as QuantConnect, AgenaTrader, SeerTrading, and NeuroShell Trader. Capitalize AI and several of the specialty trading platforms can effortlessly create an automated trading strategy from you simply typing in your trading strategy idea in plain English – no complicated program coding required.

You just tell the program what trading strategy you want to implement, and it does the work of building an algorithm for the strategy’s execution. Among the many trader education resources available, including live streaming market analysis and trade ideas throughout each trading day, FXCM offers a complete forex trading course.

The course is designed to teach even absolute forex beginners everything they need to know to start trading the forex market like a seasoned professional.

Bid-ask spreads are variable, change based on market conditions (spreads are generally wider when markets are more volatile), and are lower on the most widely traded and, therefore, most liquid assets; spreads are higher on assets where there is relatively lower trading volume, such as the exotic currency pairs like Usd/Sgd (the US dollar vs the Singapore dollar).

For example, if the lowest bid and ask spread available in the interbank market for Eur/Usd was 1.2 pips, then FXCM might quote a spread of 1.3 pips. In that scenario, FXCM’s trading fee would be 0.1 pips (1.3 – 1.2 = 0.1). FXCM does not charge any commission fees on trades.

In addition to its trading fees, which are the primary source of its revenues, FXCM also charges a number of non-trading-related fees, including the following:

• Bank wire withdrawal fees – these vary according to whether the bank wire is being sent domestically or internationally, but are typically in the range of $25-$45.
• Inactivity fee – If you leave an account inactive for an entire year, then FXCM charges an inactivity fee, which is $50 at the time of writing.

FXCM Deposit/Funding Methods

FXCM offers several account funding options for clients. There are no deposit fees charged; however, there may be withdrawal fees charged, depending on the method of withdrawal. Clients can deposit and/or withdraw funds from their FXCM trading account using any of the following payment methods:

• Debit card or Credit card (e.g. Visa, Mastercard)
• Bank wire transfer
• Skrill payment service
• Neteller payment service
• Klarna payment service
• Union Pay payment service
• Deposit/Withdraw from/to a Cryptocurrency Wallet

Debit card, credit card, and cryptocurrency deposits are usually available instantly or within just a few minutes. Bank wires typically take 1 to 2 business days for domestic wires, 3 to 5 business days for international wires. Note that the fees charged by third payment processors such as Skrill and Neteller may be substantial, and therefore, it’s recommended that you avoid them.

Like many forex brokers, FXCM offers deposit bonuses of up to several hundred dollars, depending on the amount. The deposit bonus specials are constantly changing/rotating, so check to see which ones are available when you’re looking to open an account.

For a forex broker with lower spreads, see our review on IC Markets.

SSL encryption is the standard online technology used to guard against hackers or identity thieves obtaining financial information such as clients’ credit card numbers or personal identity information.

All client funds are held in segregated bank accounts with major banks, such as Citibank. European clients have additional financial insurance protection provided by the Financial Services Compensation Scheme (FSCS).

Trader Education Resources

As mentioned earlier, FXCM offers a wealth of free trader education resources, starting with a complete forex trading course. Clients can access daily webinars and live trading sessions on the company’s website.

Webinars and trading sessions are conducted by expert market analysts and, therefore, offer a great way to get some one-on-one training for free from experienced traders. Once completed, webinars are added to FXCM’s extensive video library that clients can access at any time.

In addition to the wealth of video training and education resources, FXCM’s trader education center has multiple written trading guides to the various financial markets and articles about every aspect of trading, from basic concepts of fundamental and technical analysis to explanations on the use of various technical indicators, to articles that detail specific trading strategies.

There are both video and written guides on how to use each of FXCM’s trading platforms, including information on the different types of orders that clients can place, and on how to access current market news and analysis from within the charting/trading programs.

There is an FAQ page on the website, a good starting point when you’re trying to find some specific information. The trading desk can be contacted by telephone if, for example, your internet service is out, or you’re having problems connecting to FXCM servers on the trading platform.

Summary

FXCM is one of the oldest and most well-respected forex brokers in the world. Its mere longevity in the business, and the fact that it’s licensed and regulated in multiple jurisdictions across the globe, makes it a brokerage firm which inspires confidence in even the most cautious of traders.

FXCM keeps up with the needs of the modern trader by continually expanding and improving the services that it offers to traders, with access to financial markets ranging from stocks to cryptocurrencies. The wide selection of sophisticated trading platforms that FXCM offers is far above what the vast majority of other forex brokers have.

It is also clear that FXCM values trader education and a strong broker-client relationship, providing clients with complete libraries of free resources and excellent, responsive customer service.

About the only improvement one might want to see is a substantial expansion of the list of assets available for trading. FXCM provides access to a lot of different financial markets, but the list of assets available for trading within each market is somewhat limited.

FXCM offers clients the ability to trade, in total, a few hundred different assets. In contrast, for example, the brokerage firm IG offers the ability to trade nearly 5,000 different assets. The only other major negative is the fact that FXCM’s excellent trading resources and services aren’t available to traders in the US.

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