FXCM (Forex Capital Markets) is a UK-based Forex and CFD broker headquartered in London. Established in 1999, FXCM operates as a subsidiary of Jefferies Financial, formerly known as Leucadia. They have a global presence with offices in the UK, EU, South Africa, Australia, Israel and Canada. The ultimate aim of FXCM is to offer exceptional financial trading services to traders worldwide. Additionally, the companies that form a part of the FXCM group are regulated and authorized by the world’s most renowned regulatory bodies.
FXCM is known for its high-quality market research and advanced trading tools. Thus, if you are looking for a Forex broker who can help you take your trading to the next level, FXCM is undoubtedly a good choice. However, its range of asset classes is pretty narrow compared to other brokers available in the market. In this review, we have covered everything you need to know about FXCM to help you decide whether FXCM is the right choice for you.
Features of FXCM:
Offerings and Investments:
FXCM is a leading provider of Forex and CFD trading. When it comes to Forex, FXCM lets you trade a wide range of currency pairs and CFDs. However, note that cryptocurrencies, commodities, shares and indices can only be traded through CFDs.
FXCM provides access to a wide range of plugins and tools for experienced traders. It supports several specialty platforms like QuantConnect, MotiveWave, NeuroShell Trader, Capitalize, StrategyQuant, AlgoTerminal, Sierra Chart and Seer Trading Platform to help traders take advantage of algorithmic trading. There’s also a dedicated support team available to help traders develop their own EAs (Expert Advisors).
When it comes to trading platforms, FXCM offers many options. Firstly, traders have access to the standard MT4 available in desktop, mobile, and web versions. FXCM also has its own proprietary Trading Station platform, which is equally capable but has a better look and some additional functionality. Apart from this, ZuluTrade is also available for those interested in copy-trading. In addition, FXCM offers TradingView and NinjaTrader for those who want to develop and try automated strategies.
FXCM’s educational tools are exceptional and primarily take the form of articles, videos, comprehensive guides and more. However, some of the content is only available if your balance exceeds certain minimum thresholds. FXCM’s materials range from some basic concepts for beginners to advanced topics for professional traders. FXCM also features historical data to offer unique insights to traders for hands-on experience.
Compliance and Regulation:
FXCM maintains utmost transparency, safeguards the users’ data and insures them against losses in the event of losses. One of the significant benefits of FXCM is that it is licensed by the UK’s Financial Conduct Authority (FCA). It means that the relevant traders are protected against all unethical practices.
Reliability and Security:
FXCM traders experience excellent reliability and security with 24*7 customer support and multilingual customer service. Though the platform incorporates a wide assortment of tools and plugins, they all run seamlessly. Getting in touch with FXCM’s customer support team is easy and quick. There is a contact number for each geographical location where FXCM operates, with agents able to speak the relevant language to users. A live chat feature is also available. Email mode of communication also enables traders to solve their queries within one business day. Another aspect that favors FXCM’s reliability is its regulatory status. FXCM keeps user funds in separate accounts, which is yet another important feature of FXCM which ensures its security.
Low Commissions and Spreads:
FXCM traders are required to pay as little as $50 to open a standard account to start trading. The most preferred FXCM account is the Standard account with a competitive commission and spread. Though for EU accounts, the minimum deposit requirement is €300; however, there are no commissions, plus the spreads start as low as 1.3. The users of Active Trader accounts generally enjoy tight spreads and a discounted commission of $25 per trade worth $1 million.
With FXCM, you can use leverage on both Forex and CFDs to execute your trades with borrowed money. All new FXCM accounts are defaulted up to 400:1 leverage for both Forex and CFDs.
FXCM offers two account types: Standard Account and Active Trader Account. While the minimum deposit requirement for a Standard account is $50, traders need to pay a lot more ($25,000) to open an Active Trader account with FXCM. However, if you plan to trade high volumes, FXCM’s Active Trader account would be a good choice for you. Compared to standard accounts, traders here get lower spreads and better customer service. The provision of demo accounts is also there for traders who want to practice first before starting with live trading.
Pros and Cons Of FXTM:
- FXCM is a regulated broker, making it safe for traders interested in trading Forex and CFDs.
- Excellent customer support is available.
- Well-organized educational resources are available.
- Access to both in-house trading platforms and third-party trading platforms.
- FXCM is a leading provider of algorithmic trading solutions.
- Access to high-quality technical tools.
- Superior trading conditions for Active Trader account users.
- Although a wide range of third-party trading platforms are available, the unavailability of MT5 (MetaTrader 5) disappoints several traders.
- High minimum deposit requirements for Active Trader
- Limited product portfolio.
FXCM has been into Forex and CFD trading since 1999 and is presently owned by Jefferies Financial Group, making it a highly reliable and trustworthy option. FXCM’s status as an FCA-approved regulated broker and its extensive list of features (MetaTrader, Copy trading, algo trading and more) make it one of the best brokers in the industry, especially for professional traders looking for reliable and advanced trading tools. It’s an excellent choice for advanced or institutional traders who are comfortable with a slimmer range of Forex and CFD options. Although FXCM particularly aims at algorithmic traders, beginners can also benefit from FXCM, owing to its wide range of educational tools.