FXCM Review 2023

Trust

In our trust category, we place the most importance on how a broker is regulated. In this section, we’ll look at how the different entities of FXCM across the globe are regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

• Forex Capital Markets Limited is regulated by the Financial Conduct Authority (FCA) of the United Kingdom, Registration Number 217689. We rate FCA as a Tier 1 regulator.
• FXCM Australia Pty. Limited is regulated by the Australian Securities and Investments Commission (ASIC). Australian Financial Services License Number: 309763. We rate ASIC as a Tier 1 regulator.
• FXCM EU Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC). License number 392/20. We rate CySEC as a Tier 1 regulator.
• FXCM South Africa Pty. Limited is regulated by the Financial Sector Conduct Authority (FSCA) of South Africa. FSP number 46534. We rate FSCA as a Tier 2 regulator.
• FXCM Markets LLC is incorporated in St Vincent and the Grenadines with company registration No. 1776 LLC 2022 and is an operating subsidiary within the FXCM group of companies. We rate this entity as unregulated.

Why is it important to know where your broker subsidiary (entity) is regulated?

The level of protection varies at each regulator. For example, FXCM clients in the United Kingdom benefit from the oversight of the FCA. The FCA requires that clients have negative balance protection, which means they cannot lose more than their deposit.

When trading with a broker authorized by the FCA, client funds are also protected by the Financial Services Compensation Scheme (FSCS). The FSCS protects investments of up to £85,000 if a firm becomes insolvent. A trader working with a broker entity regulated offshore would not necessarily have these benefits.

The table below lists the protections and benefits by entity, regulator, and region.

Regulatory requirements are subject to change. We gathered the data listed above in April 2023.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, the company’s size, and their transparency.

Founded in 1999, FXCM is a pioneer in retail forex trading. However, the broker faced several challenges over the past decade, notably when the Swiss National Bank (SNB) lifted the peg on EUR/CHF in 2015, causing a loss of $225 million.

FXCM has bounced back, and its parent company, Jefferies Financial Group Inc., is publicly traded (NYSE: JEF) with a market cap of $7.1 billion at the time of this writing (April 2023). FXCM does not have a bank parent.

In our research, FXCM was transparent in its regulatory status, fees, and background information. All corresponding materials are available on the website. The regulatory status of different entities is covered in detail on their Regulation page. A rate card on their Charges and Fees page clearly outlines all costs. A Terms of Service document is available online via the General Business Terms page.

To conclude, we rated FXCM as having an above-average level of trust and stability due to the following factors:

• Regulated by multiple top-tier agencies.
• Enduring operating history.
• Ownership by a multi-billion dollar, publicly traded company.
• Good level of transparency.

Fees

FXCM offers two account types: Standard and Active Trader. We tested the standard account in this review. In the Standard Account, fees are mainly reflected in the spread. The spread is the difference between the bid (sell) price and the ask (buy) price. Narrower spreads allow you to enter and exit the market at a lower cost, which is especially important for active traders.

*Availability of Active Trader account depends on the jurisdiction.

Trading Fees

We tested the spreads at FXCM across different asset classes using the Trading Station platform at 8 a.m. GMT and 4 p.m. GMT on 3 April 2023. We made our tests at various times to allow greater perspective. 8 a.m. GMT is the London open when there is high liquidity in the forex market and tighter spreads in currency pairs. 4 p.m. GMT is during the New York trading session.

Note: there is also a small commission charged when trading CFDs on stocks of $0.003 per share.

Swap Fees

Swap fees (the cost of holding a position overnight) were average at FXCM.

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of maintaining a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). We recorded the data on 4 April 2023.

Non-Trading Fees

FXCM inactivity fee is higher than the industry average, amounting to up to 50 units of the account currency for accounts inactive for 12 consecutive months. However, unlike many brokers, FXCM doesn’t charge for deposits and withdrawals with only exception in case of bank wires.

Are Fees at FXCM Competitive?

We judged the trading related fees (spreads, commissions and swaps) for the Standard Account at FXCM to be average and in some cases better than average for the industry. Some account-related fees such as the inactive fee are more costly than average.

Platforms and Tools

The trading platform is the interface that allows users to enter orders, read charts and analyze the markets. Needless to say, this is a crucial part of a trader’s toolkit. FXCM offers an exceptional range of trading platforms, which include:

• Trading Station: FXCM’s flagship platform, available for web, desktop, and mobile.
• TradingView: TradingView live trading integration with FXCM allows you to trade directly from your TradingView charts.
• MetaTrader 4: a popular platform for trading and analyzing forex and CFDs, which can automate analytical and trading processes.
• Capitalize.ai: this platform allows you to do code-free strategy automation by simply typing your ideas.

Trading Station Web

Trading Station web is well-designed, customizable, and relatively easy to navigate. Popular features such as watchlists, alerts, 1-click trading, and trading from the chart are all available.

FXCM’s news feed and economic calendar are built into the platform. A customized trading analytics feature helps you better understand and improve your performance. Trading Station Web has a better-than-average range of available order types, which include:

• Market Orders.
• Limit Orders.
• Stop Loss Orders.
• Trailing Stop Orders.
• OCO (One cancels the other) Orders.

Time conditions can also be applied to orders, including:

• Good-til-date (GTD).
• Good-til-canceled (GTC).
• Immediate or cancel (IOC).
• Fill or kill (FOK).

Charting on the platform is robust, with over 100 available technical indicators, 20 chart types, and ten available time frames to choose from.

The platform is also available in multiple languages to cater to FXCMs global client base.

Trading Station Desktop

Trading Station Desktop has all the features of the web platform and goes beyond it with a range of advanced functionality. It exceeds the scope of most proprietary broker platforms in that it offers trade automation and strategy development tools with backtesting and optimization capabilities.

Advanced indicators are also integrated into the desktop platform, which include:

• Real Volume: FXCM’s Real Volume indicator is pre-loaded on Trading Station and provides market sentiment insight using FXCM’s large client base. Market sentiment reflects the overall attitude of traders to a financial instrument.
• Trader Sentiment: The Speculative Sentiment Index (SSI) shows whether traders are net long or short and to what degree. It is typically used as a contrarian indicator.

FXCM Mobile App

The FXCM mobile app (Trading Station Mobile) is well-designed and easy to navigate. It provides an above-average range of order types, including market orders, limit orders, stop loss orders, and trailing stop orders. Time-in-force conditions such as GTC (Good ‘Til Canceled), IOC (Immediate-Or-Cancel), and FOK (Fill Or Kill) are also available.

Charts are well-designed and offer robust functionality, with 59 technical indicators and a broad range of drawing tools, chart types, and time frames.

Price alerts are available via the Trading Station app, allowing users to stay abreast of market moves easily. Security features could be better, as Trading Station Mobile does not offer 2-step authentication or biometric login.

TradingView

The TradingView platform offers one-click trading, trading from the chart, watchlists, market news, and trading ideas. Traders can easily place trades and manage open positions and pending orders from the platform.

The market-leading TradingView charts feature 11 time frames, 11 chart types, and over 100 technical indicators. Various drawing tools, from trend lines to Fibonacci retracements, are also available.

The range of available order types is above average. Market orders, limit orders, stop-loss orders, and trailing stop-loss orders are available. Traders also have the option to apply time in-force conditions such as Good-Til-Canceled (GTC).

Users can draw inspiration from the massive community active on TradingView with features such as the ideas stream. The TradingView platform has the rare combination of being powerful in its functionality and intuitive with a well-designed interface.

MetaTrader 4 Desktop

FXCM offers MetaTrader 4 for desktop, which includes advanced functions such as copy trading and automated trading.

MetaTrader 4 is available in 39 languages, from Arabic to Vietnamese. The platform provides popular features such as:

• Alerts. This feature allows traders to be updated when an instrument reaches a specific price level. The platform can deliver alerts via audio, email, or push notification to a mobile device.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation. This feature enables traders to operate faster and is especially useful for short-term traders.
• Trading from the Chart. MT4 also allows users the convenience of trading directly from the chart.

MetaTrader also delivers when it comes to the range of available order types. The platform offers the following order types:

• Market Order. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. Trailing stop orders allows traders to secure profits when they are in a winning trade while not having to exit the position.

Charting features are robust. MetaTrader 4 offers:

• 30 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 23 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 9 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 4 allow users to copy other traders’ activity in real time.
• Automated Trading. MetaTrader 4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

The MetaTrader 4 desktop platform is one of the most feature-rich and popular trading platforms. It does not have the most beautiful interface and requires some time and effort to learn, but that is typical of advanced platforms.

MetaTrader 4 Web

The MetaTrader Web Platform (Web Trader) is a slightly stripped-down version of the desktop platform. It allows you to trade without any additional software, only an internet connection is required. The Web Platform allows users to trade directly from any browser and operating system.

Popular features include:

• One-click trading.
• Trading from the chart.
• Watchlists with real-time quotes.
• Trade History.
• Advanced charting with 30 indicators for technical analysis.

Copy trading and automated trading are also only available on the MT4 desktop platform.

MetaTrader 4 Mobile App

FXCM offers the MetaTrader 4 mobile app, which is available for Android and iOS. The app offers popular features such as alerts, 1-click trading, and trading from the chart.

The MetaTrader 4 mobile app also provides a broad range of order types including pending and stop orders. However, trailing stop-loss orders are only available from the desktop. In order to change the language of the MT4 app, you must change the language for your entire phone. As with desktop and web, the interface is not the most intuitive but the MT4 app offers an above-average range of features.

Order Execution

FXCM is always the counterparty to client trades. FXCM either executes trades internally or offsets them externally to a liquidity provider. Liquidity providers are often banks and large financial institutions. Prices come directly from a number of different liquidity providers and the FXCM matching algorithm displays the best bid and offer prices available at any given time.

Tradable Instruments

CFDs (Contracts for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at FXCM include the following assets:

• 42 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 12 Commodities. Commodities are raw products, such as gold and oil.
• 3,000+ Global Stock CFDs. FXCM offers trading in stock CFDs from exchanges ranging from the NASDAQ to the Hong Kong stock exchange. A stock is a security that represents partial ownership of a corporation. *Keep in mind that when trading stock CFDs you are speculating on the price of a stock without actually taking ownership of the underlying asset.
• 14 Indices. Available instruments at FXCM range from Japanese to UK stock indices. An index is a basket of trading instruments that is used to gauge a market sector, stocks within an exchange or the economy of a country.

In the tables below, you can see a selection highlighting the variety of instruments available at FXCM:

FXCM also offers Trading Baskets that are available for both forex and stocks.

Forex Baskets allow traders to speculate on volatile instruments while lowering the risk of exposure to a single currency. Baskets include:

• The US Dollar Index
• The Yen Index
• Emerging Markets Index

Stock Baskets allow traders to speculate on the performance of a certain sector without having to buy each stock individually. Here are some examples of available Stock Baskets:

• FAANG
• Biotech
• US Banks

Note: Cryptocurrency CFD trading is not available for retail UK clients, because the Financial Conduct Authority (FCA) banned crypto-derivatives trading in early 2021.

Overall, we judged that FXCM has an impressive range of tradable instruments, above average for the industry.

Customer Support

FXCM provided mixed customer support in our latest tests, with some wait time to get responses to phone, chat, and email inquiries. We made multiple inquiries via each medium. Our questions ranged from easy to difficult. We asked questions like ‘Does FXCM offer crypto to UK clients?’ and ‘How can I see the rollover fee for my overnight position?’

Over the phone, there was a substantial wait time, but the agents were knowledgeable and helpful. In the case of the chat, one drawback is that you must fill out a form before reaching an agent. The live chat was also offline in some instances during the week.

Deposits & Withdrawals

FXCM supports a wide range of payment providers making it easy to deposit and withdraw from your brokerage account. The broker does not charge a deposit fee. As for the credit and debit card deposits, they are often available immediately.

In the tables below we break down the fees and processing times for each deposit and withdrawal method.

Deposits

Withdrawals

FXCM does not charge fees for credit card withdrawals, but bank wires can cost as much as $40. However, if you are in the UK and you open a GBP account you can use the BACS withdrawal method free of charge. Often, withdrawals are processed by FXCM in 1-3 business days, but it can also take as long as 3-5 business days.

Account Types and Terms

Account Application

To open an individual account at the Forex Capital Markets Limited (UK) entity, prospective clients must provide the following information:

• Personal information: name, gender, address, phone, email, country of residence, citizenship, place of birth, date of birth, UK National Insurance number.
• Account related info: desired platform, account denomination (EUR, GBP or USD), username and password.
• Employment information: employment status, job, position.
• Financial background: total annual income, net worth, source of wealth, source of funds for trading.
• Trading background: trading experience level, account purpose.

Demo Accounts

FXCM offers demo accounts for the Trading Station and MetaTrader 4 platforms. Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking real money.

The demo account features live quotes and simulates live market conditions in assets such as forex and CFDs on commodities, indices, and stocks. Once users are up to speed on a demo account, they can easily switch over to a live version.

Professional Accounts

For clients in the UK, FXCM offers a Professional Account, which allows greater leverage. Professional Account holders are not subject to ESMA’s restrictions which came into force in September 2019 to protect retail investors. To apply for a Professional Account, the trader must meet at least two of the following three criteria:

• You must have carried out significantly large transactions in the relevant market, on average 10 per quarter over the previous four quarters.
• The size of your financial instrument portfolio, including cash deposits and financial assets, must exceed 500,000 EUR.
• You currently work or have worked in the financial sector for at least one year in a professional position.

Islamic Accounts

FXCM offers a swap-free Islamic account that adheres to the principles of Sharia law.

Leverage

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is using borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

The maximum leverage for retail clients in the UK is 1:30. This means that with an account of $1,000, you can control up to $30,000 worth of positions in the market. Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders must remember that it can amplify both their profits and their losses.

Supported Countries

FXCM accepts clients from the majority of countries globally. However, the following countries are restricted: Burundi, Central African Republic, Ivory Coast, Liberia, Libya, Sudan, Zaire, Zimbabwe, North Korea, Singapore, South Korea, Belarus, Russian Federation, Ukraine, Cuba, Vanuatu, Iran, Syria, Turkey, Afghanistan, the United States, American Samoa, Belgium, Bonaire, Congo (Brazzaville), Cook Islands, the Democratic Republic of the Congo, Guam, India, Japan, Kenya, New Zealand, Northern Mariana Islands, Puerto Rico, Somalia, South Sudan, Vatican City, Virgin Islands (US).

Research

FXCM checks all the boxes when it comes to research. Resources range from standard items like the economic calendar to a slew of valuable tools for generating trading ideas. Content is updated multiple times daily. Offerings include:

• Economic Calendar. Allows clients to track economic releases and events easily.
• Market News. The news feed combines FXCMs proprietary analysis with stories from outside sources such as FXStreet and Investing.com.
• Market Scanner. Enables users to screen forex and CFDs using technical indicators such as MACD, RSI, and the 200 periods EMA.
• FXCM PLUS. Free for live accounts, this provides trading signals and tools such as the Technical Analyzer, which shows important technical levels on charts.
• FXCM Market Talk. A weekly podcast that explores the key drivers affecting the financial markets.

We judged the quality and volume of research materials to be above average for the industry.

Education

FXCM offers a wide variety of educational resources, which include:

• A downloadable guide to forex for new traders.
• In-depth guides covering topics such as how to develop a strategy.
• SMS Trade Alerts to help identify potential trading opportunities.
• Daily webinars during the week covering market sentiment and highlights for various markets.
• A rich library of educational articles.

Webinars are archived and cover topics related to trading platforms and advanced materials, such as Best Practices for Creating an Algo Trading System. In a section labeled ‘insights,’ FXCM provides a range of in-depth articles covering themes related to the global economy, trading strategies, technical indicators, and a glossary.

The Bottom Line

FXCM has improved in several areas since our last review. The latest version of the Trading Station web platform has a better look and feel. We noted tighter spreads in some forex pairs, for example, EUR/USD, with spreads as low as 0.8 pips in a Standard Account. Several new payment methods, such as PayPal and Google Pay, are now available for deposits and withdrawals.

FXCM presents an exciting offering for advanced and algorithmic traders with its impressive range of platforms and tools. Since our last review, TradingView and Capitalize.ai have been added to the lineup.

In terms of financial strength and stability, FXCM is among the world’s top forex and CFD brokers. There is room for improvement in some areas such as inactivity and wire transfer fees, which remain relatively high. Outstanding research and education resources round out an above-average offering from this veteran forex and CFD broker.

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