FXTM Review 2023
FXTM is a forex and CFD brokerage firm with their headquarters in Cyprus. Operating under the brand name of Exinity Group and ForexTime Ltd, the company holds numerous regulations worldwide and is Tier 1, Tier 2 and Tier 3 regulated. The broker is famous for its seamless trading conditions and advanced research facility. However, the absence of the company’s proprietary trading platform in some opinions could put the broker at a competitive disadvantage. Today, we review the broker in detail.
Regulation and Security
FXTM is a multi-regulated brokerage firm. The company is fully authorized and regulated by several top-tier regulators worldwide.
United Kingdom: Exinity UK Limited holds regulations from the Financial Conduct Authority (FCA) under license number 777911.
Cyprus: ForexTime Ltd has regulatory oversight of the Cyprus Securities and Investment Commissions (CySEC – License number 185/12).
South Africa: Financial Sector Conduct Authority (FSCA) of South Africa also oversee the company under FSP No. 46614.
Kenya: Exinity Capital East Africa Ltd is regulated by the Capital Markets Authority (CMA) of the Republic of Kenya under license number 135.
Mauritius: Exinity Limited is subject to the regulations of the Financial Services Commission (FSC) of the Republic of Mauritius, bearing license number C113012295.
Further, the broker employs advanced security protocols (SSL web encryption and two-step authentication) to protect investors’ confidential data, keeping it out of the reach of intruders.
The broker is a member of the Financial Commission’s Compensation Fund and the Financial Services Compensation Scheme (FSCS). EU clients can claim compensation of up to 20,000 EUR per case, while UK clients can claim up to 85,000 GBP if the company faces liquidation.
Negative Balance Protection
Under extreme volatile market conditions, clients sometimes incur negative balances in their accounts. Fortunately, the company provides Negative Balance Protection. This means that in a rare instance, if your balance falls below zero at anytime, you cannot lose more money than the value of the funds in your account (you will not owe the broker money).
In compliance with the robust regulatory framework and AML directives, the company keeps clients’ investments in segregated bank accounts. That means the company cannot use your funds for investment purposes in any case.
Is FXTM available worldwide?
Being a global CFD brokerage firm, the company has a physical presence in almost all major parts of the world, including Europe, Africa, and the UK. The company serves customers in 150+ countries. However, the broker doesn’t accept clients from a few jurisdictions due to regional restrictions, such as Japan, Canada, Iraq, Hong Kong, Iran, Syria, Cuba, the United States, Mauritius, Haiti, Suriname, the Democratic Republic of Korea, Puerto Rico, Brazil, Cyprus and Quebec.
FXTM does not provide any proprietary trading platform. However, traders can access the market-leading MetaTrader 4 and MetaTrader 5 platforms via the web, desktop and mobile phone channels.
Online trading: Those who prefer accessing the market via a browser can use the MT4/MT5 web terminal. The web trading platforms let you keep tabs on the markets and make deals in real-time. Among trading platforms, traders prefer MT4 due to its abundance of technical indicators and tools. The MT4 web trading platform is user-friendly and has the fundamental and advanced trading capabilities required for successful trading outcomes.
Desktop trading: Both MT4 and MT5 are also downloadable on a PC. The state-of-the-art MT4 desktop trading platform offers a rich trading experience to both novice and experienced traders. However, the MT5 desktop trading platform is the upgraded version of MT4. It has a built-in economic calendar and charting feature besides having more technical tools and indicators than MT4.
Notably, MT4 is still more famous among traders due to its user-friendly interface. Moreover, it depends upon the client’s preference whether they wish to stick with the older version or prefer exploring the markets using the full potential of the newer MT5 trading software.
Mobile trading: Although FTM lacks to offer a custom-built trading app for web or desktop trading, the broker has recently introduced its cutting-edge trading app for mobile devices. However, it is currently available in selected regions only. Therefore, clients must rely on the MT4/MT5 mobile trading platforms until the app becomes available globally.
The features and services accessible via the MT4/MT5 mobile trading app are the same as those offered in the web terminal or desktop platform. However, clients might feel obstructed in performing technical analysis due to the mobile phone’s small screen. The MT4/MT5 allow clients to explore the markets and manage their positions anytime, anywhere using single-click trading.
Keeping in view the need of all stakeholders, the company offers flexible account types, including Micro, Advantage, and Advantage Plus.
Micro: The account mainly targets newbies looking for budgeted trading solutions with limited funds to invest. The company doesn’t charge any commission in this account. Available financial instruments in the micro account include forex, commodities, metals, indices and stock baskets.
Advantage: The advantage account is well suited for skilled professionals. It’s a commission-based account that comes with market execution. The broker defines the margin call for advantage account holders as 80%, while the stop-out level is 50%. The minimum trade size is 0.01 lots, whereas clients can place unlimited orders.
Advantage Plus: FXTM registers VIP clients in this account. The advantage plus account comes with identical features and services as available in the advantage account except for the commission element. The company doesn’t charge commission in this account either.
The broker also offers swap-free accounts to facilitate shariah practising traders. Although Islamic accounts are not a part of the company’s default offering, clients can request one by connecting with customer support or clicking the swap-free check box during registration. You can find more information about particular account types by clicking here.
Opening an account with the broker is pretty straightforward. However, the company mandates account verification owing to strict AML directives. Clients must verify their identity before being allowed to trade. You can submit a copy of your National ID card, Passport or Driving license for identity verification. The broker also needs you to confirm your address. Your bank statement or utility bill is acceptable for address verification.
START YOUR ACCOUNT APPLICATION
The registration process involves the following steps.
- Fill up the registration form and complete your profile. You must enter details like your name, address, and employment details.
- Select your preferred account type and choose the base currency of your account. You also need to select the desired leverage level and a trading account’s password.
- Access the dashboard and submit the supporting documents to verify your account.
- Choose your preferred payment method from the available options, including Mastercard, Visa Card, e-wallets, and bank transfers. Enter your payment details and authorize the transaction to complete the registration process.
Although you can complete the signup process within a few minutes, the KYC process may take 1-2 working days. Once you have completed the verification process and added funds to your account, you can start placing trades.
FXTM trading dashboard is relatively easy to navigate. The broker provides multiple tabs on the left pane. All of the options seem self-explanatory. While My Accounts tab enables clients to manage their accounts, investors can use my money tab to access the deposit and withdrawal page and view transactional history. My Platforms tab allows you to access available trading platforms, while you can subscribe to the funds’ management service using the ”FXTM Invest” tab.
My Profile and My Documents tab relate to the configuration and verification of the account. Trading signals and indicators are categorized under the Trading Services tab, while the Stock Trading tab lets investors access the equity market. Promotional offers, contests, and cash rebates are accessible via the contest tab. The educational library featuring webinars, seminars, and e-books comes next. A dedicated shortcut to reach customer support appears to be the last tab on the side navigation panel.
The broker’s website is accessible in 15+ languages. You can switch it to your preferred language using the language icon available in the top right corner of the dashboard. Next to it is an option to log out of your trading account.
Deposit and Withdrawals
FXTM supports multiple payment methods for deposits and withdrawals, including but not limited to Debit Card, Credit Card, Google Pay, Fasa Pay, Perfect Money, Skrill, Neteller, and Cryptocurrencies.
The minimum deposit amount to sign up for a micro account is $10 or equivalent. Clients looking to open the advantage or advantage plus account must deposit at least $500 or equivalent. Notably, third-party payments are not welcomed at FXTM. Therefore, the payment source should be in your name.
The broker doesn’t stipulate minimum or maximum deposit and withdrawal limits. However, your payment provider might have some restrictions you must confirm before proceeding with payments.
FXTM process cards payments within 24 hours. However, bank transfers can take between 3-5 business days.
FXTM’s product portfolio comes with limited tradable assets. However, the company strives to provide you with all popular instruments across multiple financial markets. For example, clients can trade 60+ minor, majors, and exotic currency pairs with the broker.
While Gold, Silver, Palladium, and Platinum are available in the spot metals category, clients have UK Brent oil (spot), US natural gas, and US crude oil (spot) at their disposal to trade as commodity CFDs. You should also explore the range of markets offered by FXTM to predict your profitability.
Supported indices include GDAX (Dax 30), AUS200 (Australia 200), ND100m (US Tech 100 Mini), UK100 and SP500m (US SPX 500 Mini) amongst others. Moreover, a handful of crypto coins, such as Bitcoin, Litecoin, Ethereum, and Ripple, also make part of the product listings at FXTM. The broker doesn’t deal in real cryptocurrencies, so clients can only trade them as CFDs.
Be informed that the broker’s product selection might vary depending on the selected account type and jurisdiction. For example, clients with micro accounts might not be able to trade stock CFDs, while crypto CFDs are unavailable to UK-based clients due to FCA restrictions.
Commissions and Fees
Although the company claims to have a competitive pricing structure, the overall cost (trading & non-trading) seems higher than some brokerage firms.
For example, the company charges a 3% withdrawal fee on credit cards while it applies a 0.5% commission on releasing funds via Perfect Money. Moreover, clients requesting funds through bank transfers must pay EUR 30, which is way higher than average industry standards.
Further, the broker penalizes dormant account holders with a $5 or equivalent charge for keeping their account inactive for more than six months.
Regarding trading costs, the company charges a commission between $0.40 and $2 per $100K notional value.
MORE DETAILS ABOUT COMMISSIONS
FXTM employs a variable spread charging policy. The applicable spread charge depends upon market conditions, account type and the underlying financial instrument.
While the micro and advantage plus spread starts from 1.5 pips, the advantage account starting spread is 0.0 pip. However, the average spread on major currency pairs like EURUSD stays around 2.0 pips.
Leverage involves opening positions with borrowed funds. Brokers allow investors to use leverage up to a specific limit to help them maximize their market exposure. While the company offers maximum leverage of up to 1:2000, clients residing in countries with strict regulatory frameworks can only access the leverage up to 1:30. Please note that leverage also varies from country to country and selected financial instruments. You can visit the broker’s official website to know the offered leverage for each tradable asset.
Remember that excessive leverage can be dangerous. While leverage increases your profit-making potential, it magnifies the risk of loss.
Analysis and Education
FXTM offers rich analysis and educational resources. While maintaining a good balance between written and video content, the company pays special attention to educating newbies. More than 50 video tutorials on the company’s website cover a wide array of basic and advanced level topics on forex and CFD trading. The company keeps posting on its Youtube channel once a week.
Further, the broker posts fundamental and technical analyses daily on major and minor currency pairs. While technical studies help clients find market trends, the fundamental analysis provides a concise overview of the market’s developments. The company also features an economic calendar to help clients track major recent and upcoming economic events. The glossary section can also help novice traders become familiar with different trading terminologies.
FXTM offers a service called FXTM Trading Signals, aimed at traders interested in actionable information. The best thing about the broker’s educational library is the filter option that offers customized access according to clients’ skills and exposure.
FXTM offers quick customer support around the clock. While the staff is friendly, it appears to be empathetic as well. The company provides multilingual support so interacting with the broker becomes more convenient for clients from various jurisdictions worldwide. While you can reach the company via live chat, telephonic support and email correspondence are also available. Clients can get connected with the broker on WhatsApp and Telegram as well. Further, the company has representation on various social media platforms, including Facebook, Twitter, LinkedIn, Instagram, etc. The following information may help contact the company.
Telephone: +44 20 3734 1025
Reputation amongst Traders
FXTM holds a good reputation among investors. The company has a rating of 3.5/5 from over 80 votes on Myfxbook. Traders have complimented FXTM’s quick withdrawals and applauded their deposit and withdrawal timeframes with no deposit fees in place. There has been a comment written about the brokers poor efficiency regarding short term trading. Another comment mentions increased slippage during high-impact news events but this can be frequently found with even reputable brokers due to the increased volatility during such events.
FXTM has won dozens of awards for the level of its services, education, technology and trust.
- Most Trusted Forex Broker 2022 Award by World Financial Award
- Best Islamic FX Account 2022 Award by World Financial Award
- Best Online Leveraged Trading Specialist 2021 Award by Global Business Award
- Best Trading Experience 2021 Award by World Finance
- Best ECN Broker 2020 Award by Daytrading.com
Can beginners trade with FXTM?
Yes, FXTM holds various reasons to become a preferred choice for newbies. While the low deposit requirement makes it easy for everyone to come on board, the availability of micro accounts allows beginners to start with trading small lots. The rich educational resources enable clients to learn the basics of different trading and money management strategies, whereas virtually funded demo accounts help newbies to practice their learnings without fearing the risk of loss.
However, CFD trading is a relatively riskier market to trade for beginners. Therefore, it is best for novice traders to sign-up for demo accounts first. Once they become confident to go live, switching to a live account is just a click away. Alternatively, newbies can also use the broker’s copy trading feature to earn passive income from day one.
FXTM is an all-in-one trading solution backed by multiple regulatory bodies. Besides the broker’s competitive spreads and high leverage, the copy trading function is particularly impressive. In addition, the broker’s funds insurance plan and cutting-edge security processes offer reasonable protection to your hard-earned money. However, the company’s product offerings are limited, and it doesn’t have a proprietary trading platform. Finally, the broker’s competitive edge comes from its extensive instructional materials, cutting-edge analytical tools, and round-the-clock customer support.