FXCM Review 2023
|Inactivity fee||Yes, 50 units of currency|
|Best for||Professional traders|
Gone are those days when investors had to be physically present on the financial exchanges to manage their portfolios. The developments in technology and finance allow us to trade multiple instruments and diversify our portfolios from the comfort of home. Brokers are intermediaries between an exchange and a trader.
FXCM is a regulated broker that offers contract for differences on multiple instruments. The company was founded in 1999 and had its headquarters in New York, United States. Traders can open up an account within minutes and trade using world-class services. To give our readers an in-depth insight into the brokerage, we will be going through its regulation, supported platforms, deposit/withdrawal methods, leverage, trading costs, etc., in our article.
Regulation and Security
Top-tier regulatory authorities guarantee the safety and security of your funds. These regulators look over all the trading activities at a broker and impose heavy fines if any misconduct is observed.
They also protect investors from losing their complete investment if the broker defaults; as per the PAUSE program, a compensation fund is maintained to reimburse investor in case of defaults. Investors must review FXCM’s regulations to check their eligbility for reimbursements.
FXCM complies with multiple Tier 1 and 2 authorities:
- United Kingdom: Financial Conduct Authority (FCA)
- Australia: Australian Securities and Investment Commission (ASIC)
- South Africa: Financial Sector Conduct Authority (FSCA)
- Cyprus: Cyprus Securities and Exchange Commission (CySEC)
The broker also has authorizations in the following jurisdications:
- Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Autorité de Contrôle Prudentiel (ACP).
- Commissione Nazionale per le Società e la Borsa (CONSOB)
In compliance with the Client Assets Sourcebook (CASS) set up by FCA, Forex Capital Markets is bound to keep your assets in a segregated account away from company funds. The third-party holding your capital is carefully scrutinized according to the FCA’s Credit Quality Step 5 rating.
Financial Services Compensation Scheme offers up to €85,000 in insurance in case of an unlikely event. FXCM cannot use the traders’ funds to recoup the losses faced by the creditors.
Is FXCM available worldwide?
The broker does aim to provide its services to all corners of the globe. However the local laws and rules set by respective countries makes it hard to reach certain areas. The table summarizes the list of nations where FXCM is not available:
|Africa||Burundi, Central African Republic, Ivory Coast, Liberia, Libya, Sudan, Zaire, Zimbabwe|
|Asia||North Korea, Singapore, South Korea|
|Eastern Europe||Belarus, Russian Federation, Ukraine|
|Island Nations||Cuba, Vanuatu|
|Middle East||Iran, Syria, Turkey, Afghanistan|
Trading software is responsible for receiving and sending your orders directly to the exchange. It also includes charting software, economic calendars, and a variety of other tools to help you in your trading journey.
Being an industry veteran, FXCM has a variety of applications for traders:
- MetaTrader 4. The MT 4 platform hosts a huge community of traders due to its simplicity. Retail traders have access to the substantial MQL 5 marketplace where they can purchase and sell their algorithms. A considerable amount of development is done in the MQL 4 coding language to develop neural algorithms and custom indicators. Traders can use the MetaTrader mobile application to trade on the go.
- Trading Station. A custom software developed by FXCM using the iOS-friendly HTML 5 language. The new 2.0 version features a dedicated education section, FXCM cloud, analytics, detachable charts, and custom price alerts. Price overlays are also available to compare multiple assets. The platform shines with its strategy testing, which allows you to backtest your game plan before implementing it in real markets.
- Trading View Pro. FXCM provides a free Trading View subscription for clients that open an account with the broker and deposit 300 CCY. Trading View is one of the top choices of many due to its beautiful charts and the availability of many indicators. It uses PineScript as the main coding language. The interface can be used to send orders directly onto FXCM.
NinjaTrader is an advanced trading software specifically built for professional traders. It features pro charting features, automated trading, OCO orders, ATM strategies, customizable user interface, backtesting, and premium alerts. A Limited Trading Authorisation (LTA) form must be submitted to start your trading with Ninja Trader 8.
BANNER: FXCM’s Excellent Offerings Put Them Ahead Of Other Leading Brokers. They Are Offering Sign Up Bonuses And Discounts For New Investors. Sign Up Today.
Forex Capital Markets has multiple account options to suit the needs of many.
A portfolio handpicked for traders who trade the markets frequently. The account offers handsome rebates and dedicated customer support. Investors must have a minimum of $10 million in trading volume each month to qualify for the cashback opportunities. Active Traders also get two months of free withdrawals.
Contract for Differences is beneficial for traders who love trading with high leverage and, therefore, additional risk. FXCM provides low fees, no stamp duty, and the benefit of speculating instruments 24/5 with their CFD account. There are no restrictions on the trade directions.
Interest-free accounts are available at FXCM to comply with the sharia laws for entertaining the general Muslim community. There are no interests charged on these portfolios.
A demo account is an excellent choice for beginners to trade risk-free. Investors can speculate on live quotes and use paper money to improve their craft. FXCM offers $20,000 in virtual funds in their demo option.
FXCM has made it simple to open an account. Traders can sign up in 5 minutes using 3 steps:
- Select your region and the choice of trading software
- Fill out the online application form
- Use the set user name and password to log in the client portal and start trading
In compliance with the regulators, FXCM is obligated to verify your identity. You can sign up for their trading account by clicking here. The process can be initiated and saved for later.
After completing their sign-up application, traders are automatically redirected to their dashboard. The interface hosts your account information, documents, and a trading platform.
Deposit and Withdrawals
Various methods, including debit/credit cards (Visa/Mastercard), Neteller, Skrill, Union Pay, bank wire transfers, and cryptocurrency payments, are available through FXCM for deposits and withdrawals. Depending on the method chosen, processing can take anywhere from one to five days. There are no fees from FXCM to deposit or withdraw funds.
The platform does not accept third-party payments to ensure the security of your account and comply with the regulations.
To fund your account, log in to MyFXCM with your username and password, then click “Deposit Funds.” The funds will be displayed in the “Account Activity” section once processed. On your portfolio, you can check the current status of your payments.
The cash-out process is also simple. To start the withdrawal process, log into MyFXCM and select “Withdraw Funds.” Choose your payment method and press the “Submit” button. The incoming requests are processed within one to two business days.
The broker has forex, shares, commodities, indices, and cryptocurrencies listed for trading. The range of available assets can differ according to the region and the platform.
The available leverage for major instruments are shown in the table as follows:
|Currency pairs(Major pairs)||1:30|
|Gold and Major indices||1:20|
|Non-major equity indices||1:10|
Commissions and Fees
Forex Capital Markets uses a spread-based model to charge traders. The costs are reduced with the help of a positive slippage as per the reports. The spreads on major currency pairs such as EURUSD and GBPUSD vary around 1-2 pips.
Selected accounts may be subjected to commissions ranging from $4 to $8 on currency pairs. The swap rates on forex can be calculated using the formula:
Intra bank swap rate x pip cost x (1±mark-up)
There are no fees for deposits. $25 is deducted for withdrawals in bank accounts in US or UK. For banks in foreign entities, the cost is increased to $40.
The use of leverage is highly preferred by scalpers or day traders looking to make quick cash. The high reward comes at the expense of substantial risk. Using a margin of 1:25 or more can be detrimental to your account.
As mentioned before, Forex Capital Markets has a 1:30 leverage for major currencies while the amount is 1:20 for major indices. The max-margin available for cryptocurrencies is 1:2.
Leverage can be a double-edged sword if used without proper analysis; You must analyse the pros and cons of leverage before using it. Find FXCM-specific details here.
Analysis and Education
At FXCM, you can daily analyze different markets and read accessible blogs. It offers information on global markets, foreign exchange, cryptocurrencies, stock indices, and commodities. Traders have a clear advantage over other traders since they have access to quick news on the current improvements and the state of the markets.
In addition, FXCM also provides free market data signals, a scanner, live forex charts, an economic calendar, online courses, and SMS trading notifications.
The website has a section dedicated to education and learning that includes several resources like tools, tutorials, guides, and research. According to FXCM, investing in education on the site is a component of your investment. Both novices and seasoned traders can benefit from the many learning opportunities.
FXCM gives several choices to reach customer support, including an online live chat feature that is accessible 24 hours a day, five days a week. You can make a call with the team at +1 646 253 1401. The trading desk is open from 5:00 PM to 5:15 PM ET on Sundays and ends at 4:55 PM ET on Fridays.
Customers can contact them via Whatsapp at +44 7537 432259 for convenience and via email at email@example.com for general and account-specific questions.
The website has contact information for its offices worldwide, including phone numbers and locations.
Reputation amongst Traders
A reliable third-party platform, TrustPilot features 150 customer reviews with an overall rating of 4/5. Traders appreciate the safety of their funds and the customer support services of FXCM.
Following are some of the significant awards that demonstrate FXCM’s excellence in the provision of brokerage and trade-related services
- Broker of the year 2022 by ultimate fintech awards(UFA)
- Best zero commission broker 2021-22 by ADVFN awards
- Best FX platform 2021 by Personal wealth.
- Best educational materials by investment trends
- Best trading tools and research 2020 by shares awards.
Partnership with FXCM can earn you decent commissions. The program’s credibility comes from the fact that the company has paid $76 million by the end of 2012 alone. This is all possible due to the deep liquidity pools, low latencies on trades, multi-platform trading, and custom branding.
- With an affiliate scheme, traders can make up to $750 in commissions from traffic for each qualified customer. A range of marketing materials is at hand alongside performance review reports and affiliate managers to help generate leads.
- The IB program offers access to various trading software available in multiple languages. The sign-ups are smooth, and custom application tracking is at your fingertips.
- Fund Manager. Asset managers at FXCM have access to various APIs for forex and CFDs. Using institutional liquidity, they can carry out trading without worrying about late fills and slippages.
- Broker-Dealer. Offers a custom solution for rising banks and dealers by providing FX and commodity trading. Trading Station, MT4, and custom GUIs are some of the software available to analyze the markets.
Can beginners trade with FXCM?
Forex Capital Markets is more suited for professional traders as it supports Ninja Trader and other complex tools. While signing up, the company requires traders to fill out their trading experience and capital. Applications are accepted if investors meet the designated requirements.
For 23 years, FXCM has been one of the top brokers competing with the likes of IG, Admiral markets, etc. The company aims to improve its current services as it nears the silver jubilee. The deep liquidity and the lack of widespread leverage make it a perfect option for those who like to build up their portfolios steadily.