FXCM is a well-established market-making broker that has been operating since 1999, originally based in New York. Today, it is headquartered in London, UK, and is under the regulation of the Financial Conduct Authority (FCA), along with several other stringent regulatory bodies globally. For a deeper dive into FXCM’s regulatory framework, continue reading this FXCM review.
Traders at FXCM can choose from a variety of account types, offering access to forex and CFD instruments, including commodities and cryptocurrencies, along with leverage options and an impressive range of plugins and applications.
Additionally, FXCM stands out for its extensive selection of trading platforms, featuring the Trading Station, MetaTrader 4, the copy-trading platform ZuluTrade, NinjaTrader, and various other add-on plugins available through the FXCM website. In this FXCM broker review, read more about its trading platforms.
With competitive trading fees and conditions, coupled with an exceptional level of flexibility for traders, the FXCM broker presents an attractive choice for active traders, regardless of their strategy preferences. Let’s explore different aspects of the FXCM broker in this FXCM review.
FXCM Pros and Cons
Pros
- Begin trading forex with low minimum deposits.
- The company benefits from its link to Jefferies Financial Group, providing solid financial support and expertise.
- You have the convenience of trading on your mobile device and can execute trades swiftly with one-click functionality.
- They provide educational courses on forex trading, plus access to unique data and premium resources.
- There’s also reliable customer support available 24 hours a day, five days a week, with offices around the globe to assist you.
Cons
- Once banned from operating in U.S. markets because they had misled customers before.
Who is FXCM For?
FXCM broker caters to all kinds of traders, whether you’re just starting or have been in the game for a while. They provide educational courses on FX trading, along with a bunch of trading tools, exclusive data, and top-notch resources.
Plus, their customer support is available 24/5, and they have offices in places like London and Melbourne. With a wide range of platforms and tools, experienced traders will appreciate FXCM’s focus on adding extra value through their services and resources.
FXCM is Regulated By
- In the United Kingdom, financial activities are overseen by the Financial Conduct Authority, known as the FCA. FXCM Australia Pty.
- Limited, based in Australia, adheres to the regulations set by the Australian Securities and Investments Commission.
- In the European Union, FXCM EU LTD operates under the authorization and supervision of the Cyprus Securities and Exchange Commission, often called CySEC.
- In South Africa, FXCM South Africa (PTY) LTD is monitored by the Financial Sector Conduct Authority to ensure they follow financial laws and regulations.
Top Features
1. No Limits on Stop and Limit Orders: Traders can dive into a wide array of popular currency pairs and other assets without any limits on stop and limit orders.
2. Free Live Trading Signals: FXCM provides live trading signals, giving all live account holders access to complimentary forex trading signals through FXCM PLUS, which features exclusive trading signals and technical analysis to enhance the trading experience.
3. The Regulatory Environment: The FXCM Group is overseen by several top-tier regulatory bodies across various jurisdictions, ensuring a trustworthy trading environment.
4. Customer Support and Resources: FXCM broker is dedicated to offering reliable customer support five days a week. It also provides educational courses on forex trading, trading tools, exclusive data, and premium resources to assist traders in successfully navigating the financial markets.
5. Trading Platforms: FXCM boasts a variety of trading platforms, each tailored to boost performance in forex, spread betting markets (available only for UK residents), and other trading assets. The trading platforms are as follows:
- FXCM Flagship Trading Station Desktop
- Mac-friendly Trading Station Web 3.0
- Mobile platforms
- FXCM also offers MetaTrader4
- TradeView Pro
FXCM Compliance & Regulation
In the world of forex trading, sticking to rules and regulations is essential. The FXCM group of companies ensures this by being under the oversight of major global organizations such as the Financial Conduct Authority (FCA) in the UK, The Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC), which are regulatory bodies overseeing financial markets.
These regulatory bodies impose strict financial guidelines on FXCM, requiring them to maintain adequate capital. They have the power to impose fines or even withdraw FXCM’s right to operate if any rules are breached. To further safeguard client assets, FXCM segregates client funds from its own, providing an added layer of protection.
FXCM Commissions and Fees
We noticed that FXCM offers competitive fees, particularly with a EUR/USD spread averaging 0.74, which is less than the standard industry rate of 1.08. This can make FXCM a more affordable option.
They provide additional savings through VIP discounts for those who trade actively. However, if you don’t meet the requirements for these discounts, you could end up paying more than the average market price.
FXCM Pricing
FXCM has some solid pricing, with average spreads like 1.3 pips for EUR/USD and 1.8 pips for GBP/USD. If you’re an active trader, you might want to check out the Active Trader account.
It gives you access to top-notch pricing, personalized support, API trading, and detailed market depth through Trading Station.
FXCM Account Types
FXCM offers a range of account options tailored for business clients, with support for currencies such as USD, EUR, GBP, CHF, CAD, AUD, NZD, and JPY. They provide powerful trading platforms like MT4 and Capitalise AI, which enable algorithmic trading without the need for coding.
1. FXCM CFD Account
The FXCM CFD account is a favoured choice, requiring a minimum deposit of just 50 units in the currency of your choice.
2. FXCM Active Trader Account
For those who trade in high volumes, the Active Trader account is available. It includes a five-level rebate program, API trading capabilities, VPS hosting, and indicators like market sentiment from EFX Data, along with quicker withdrawal processing. To determine eligibility, you need to contact FXCM.
3. FXCM Professional Account
Designed for traders in the European Economic Area (EEA), the FXCM professional account adheres to the 2018 ESMA regulations. It offers the same trading conditions available to those outside the EEA, although EEA traders must satisfy two out of three specified criteria to qualify.
4. FXCM Islamic Account
FXCM provides swap-free Islamic accounts, which replace overnight financing fees with fixed markups on spreads. Forex traders incur an additional charge of 0.4 pips compared to swap-based options or a $4.00 daily fee for every 1.0 standard round lot traded.
Reliability & Security
Client funds at FXCM LTD are kept separate and safe as per FCA rules for client money. This ensures that if something unexpected happens, the funds in these segregated accounts are safe and can’t be used to pay off other creditors.
Plus, the FCA keeps track of all official actions against regulated companies, which helps provide transparency and better protection for investors.
FXCM Trading Platforms and Tools
FXCM is well-known for its excellent trading platforms and tools. They provide access to popular options like MetaTrader 4 and TradingView, along with their platform, Trading Station, giving traders robust technical resources.
- Trading Platforms: FXCM offers a selection of top-notch platforms, such as MetaTrader 4, TradingView, and their proprietary software, Trading Station.
- Trading Tools: They have a wide range of tools designed to boost trading efficiency and effectiveness.
- Copy Trading: FXCM also provides copy trading services, which let users replicate the trades of seasoned traders. However, some services like ZuluTrade aren’t available to clients in the U.K., Australia, South Africa, and Italy. People living in France don’t have access to any copy trading services.
FXCM User Experience
FXCM has a wide variety of robust trading platforms that cater to different trading styles and needs. Their main offerings include the popular Trading Station Desktop, the Mac-compatible Trading Station Web 3.0, mobile apps, and MetaTrader4 for those who prefer using Expert Advisors.
Additionally, clients can take advantage of free live trading signals and technical analysis tools via FXCM PLUS, a special portal for live accounts that aims to improve the trading experience. For newcomers, FXCM provides a demo account loaded with £50,000 in virtual funds, giving users a chance to practice and refine their strategies without any risk.
Setting up a live forex trading account with FXCM is super easy and quick. There are no minimum deposit requirements, so traders of any size can kick off their forex trading journey whenever they’re ready.
Final Thoughts
According to this FXCM broker review, it has established itself as a trustworthy and safe platform for both novice and seasoned traders.
Its dedication to transparency, competitive pricing, robust trading platforms, and compliance with stringent regulatory requirements make FXCM an excellent option for anyone interested in trading forex and various other assets.
However, it’s important to note that FXCM is currently not accessible to traders in the U.S.