FXCM Markets Review
FXCM (Forex Capital Markets) is one of the pioneering brokers of internet based trading. They offer trading of Forex, Stocks, Commodities, Indices, Spread Betting and CFD’s across hundreds of securities. The broker was established in the U.S in 1999 and was previously listed as one of the fastest growing companies in the U.S for 3 consecutive years by Inc. 500 List of America’s Fastest Growing Companies. Although based in New York, FXCM is a broker with a global reach extending to markets such as Australia, France, UK and Italy. However as of 27th January 2017, FXCM has ceased its operations in the U.S to focus more on their international markets particularly the European sector.
FXCM Markets Video Review
As a result of its international operations, FXCM is regulated in several jurisdictions. The main regulatory oversight over FXCM is provided by the UK’s Financial Conduct Authority (FCA) under the FCA registration number 217689. With its FCA’s registration, FXCM is also permitted to operate in member states of the European Union by “passporting” its FCA license for registration in the member states which they operate in, particularly:
- France by registering with the Autorité de Contrôle Prudentiel (ACP) under the Interbank Code: 19843.
- Germany with BaFin Registration Number: 122556.
- Greece by registering with the Hellenic Capital Markets Commission
- Italy by registering with Nazionale per le Societa e la Borsa (CONSOB)
Through its subsidiaries, FXCM is regulated in the following countries:
- In Australia regulated by Australian Securities and Investments Commission (ASIC) through the License number 30973 issued to FXCM AUSTRALIA PTY LTD.
- In Japan through the FXCM GLOBAL SERVICES LLC, TOKYO.
- In Hong Kong, through FXCM BULLION LIMITED
- In Israel through FXCM ISRAEL LIMITED
- In South Africa through FXCM SOUTH AFRICA (PTY) LTD regulated by the Financial Services Board, under the registration # 46534.
In Canada and New Zealand, FXCM entered into partnerships with local companies in order to provide residents in these two countries access to FXCM’s suite of products. In Canada, FXCM works with Friedberg Direct (a division of Friedberg Mercantile Group Ltd) and in New Zealand, FXCM entered in a partnership with Halifax New Zealand.
With close to two decades of operational history, there is certainly no doubt as to the legitimacy of FXCM as a world leading online broker. Since 2004 until 2015, FXCM has been regularly nominated by leading financial publications recognizing the broker’s achievements and contribution to the online trading industry. In 2004, 2005, 2006, 2010, they were listed by INC. 500 as one of America’s Fastest Growing Companies. In 2209 and 2010, FXCM was voted by FX Week as being the Forex broker with the best retail platform. Other notable achievements by FXCM included:
- Being recognized by INVESTMENT TRENDS UK in 2012 as one of the best spread betting broker in the UK.
- Being voted by Forex Magnates in 2012 as having the best proprietary forex trading platform
- Being recognized by FX Street as being the Best Sell-Side Analysis Contributor.
- Receiving the 2013 MONEY AM awards for “BEST ONLINE FX PROVIDER”.
- Winning the 2013 Forex Magnates London Summit awards for “BEST RETAIL BROKER EXECUTION.”
- Being recognized by FX Street again in 2015 as being the Best Sell-Side Analysis Contributor.
FXCM Trading Platforms
FXCM has provided their clients with several choices of trading platforms. The mainstay of FXCM’s trading platform is their proprietary platform called the FXCM Trading Station.
FXCM Trading Station
The award winning Trading Station is the results of 10 years of platform development. It is available in 3 different versions, as a desktop, mobile and web trading platform. The Trading Station capabilities include:
- The ability to explore multiple order types.
- View prices in real time.
- Dozens of preloaded indicators.
- Email alerts.
- Exclusive tools such as streaming news, real volume indicators and “Good Till Date” order types.
MetaTrader 4 Platform
Apart from the proprietary Trading Station, FXCM has also made available the Forex industry standard trading platform, the MetaTrader 4 (MT4) platform. The MT4 platform is well liked by brokers and traders alike due to its powerful in built features. Highly customizable, the MT4 platform is able to support automated trading through the use of Expert Advisors (EAs). It also comes with a comprehensive charting package and a wide array of technical popular indicators. The MT4 platform also supports different types of trade orders such as At best, At market range, Entry orders, Stop Loss order, Take profit, Trailing stops and Limit stops.
For traders who are constantly on the move, they will be pleased to know that FXCM has also provided them with mobile trading apps which they can download from the Google Play store and Apple’s App Store. The professionally developed app is essentially the MT4 trading platform that has been optimized for Android and iOS powered devices. Some of the unique features of the mobile trader include:
- 24 Hour Trend Locator
- Automatic Trendlines Indicator
For beginner traders who lack trading experience, there is also the option to use the ZuluTrade peer to peer trading platform. It is also suitable for traders who want to trade the markets without being emotionally entangled and for those lacking the time to develop their own trading strategies. With the ZuluTrade social trading network, traders can subscribe to the signals that are provided by those who are more experienced and time committed to online trading.
FXCM Trade Types/Instruments
FXCM offers traders the opportunities to trade 39 different pairs of currency pairs, types of commodities CFDs and 12 market indices and dozens of stock indices through its wide selections of trading platforms.
FXCM Account Types
FXCM has 3 different types of trading accounts:
1:200 leverage for CFDs
1:400 leverage for FX
21 Currency pairs
Dealing Desk Execution
Minimum deposit of $50
Minimum deposit of $20,000
1:100 leverage for currency pairs
1:200 leverage for CFDs
39 currency pairs
Non Dealing Desk
For money managers who have to manage several accounts simultaneously
*In addition to the above mentioned trading accounts, FXCM also offer their traders 2 different types of demo account. The mini demo account is topped up with $2,000 virtual currency while the standard demo account is topped up with $50,000 virtual currency. Both the demo accounts are only available for a period of 30 days.
The advantage of Trading Forex online is having the possibility to deal with no Dealing Desk. With this option, traders basically trade on rates provided directly by the banks, which enables FXCM to offer low variable spreads. Typical Standard Account spreads for FXCM traders are 0.5 pips for EUR/USD and 1.3 pips for GBP/USD, with similarly competitive spreads for other major currency pairs.
FXCM Commissions & Spreads
There are no commissions payable at FXCM. Traders are instead required to pay a slightly widened spread on the assets that they are trading. The minimum spread for Forex starts from as low as 1.4 pips for frequently trading Forex pairs such as the EUR/USD. Spreads for Indices start from a minimum of 1 pip. For commodities, the minimum spread starts from 2 pips. The table below lists some of the spreads which traders have to pay for the popular assets.
Spreads (in pips)
FXCM Deposits & Withdrawals Options
Currently, FXCM only supports deposits though credit/debit cards such as Visa, MasterCard, Discover or bank wire transfer. Withdrawals are also conducted through credit card or bank wire transfer. For withdrawals through credit cards, there is no withdrawal fee. However for bank wire withdrawals, a fee of $40 is required. The good news is there is no limit or minimum withdrawal amount requirement at FXCM. Withdrawal requests are typically processed within 2 business days. However, traders should take note that it will require several more days before they can see the withdrawal amount being posted to their bank account.
FXCM Bonus & Promotions
At present, FXCM does not offer any kind of bonuses nor have any promotional campaign. However despite the lack of bonuses or promotional offers at FXCM, the broker does provide an incentive to their traders by letting their traders earn interest in the available balance in their trading account.
FXCM Customer Support
For the benefit of their international clientele, FXCM’s website in translated into 14 different languages such as Arabic, Chinese, German, Spanish, French, Italian and Tagalog. Although FXCM’s customer support service is available on a 24/7 basis, traders can only get in touch with the support team through email or live chat. There is no provision for live chat support.
FXCM Pros & Cons
- FCA Regulated Broker
- Ultra Tight Spreads
- Around The Clock Customer Support
- Choices Of Trading Platforms
- 2 Main Types Of Trading Accounts
- High Quality Trading Analysis
- Low Minimum Deposit Required
- Lack of localized telephone support numbers
- No ECN platform
- No live chat support
- No Bonuses or Promotional offers
Yes, FXCM is a regulated broker under the UK’s Financial Conduct Authority. In addition, FXCM is also regulated in several others countries such as ASIC in Australia, by the FSPR registrar in New Zealand. In Japan through the FXCM GLOBAL SERVICES LLC, TOKYO.
In Hong Kong, through FXCM BULLION LIMITED. In Israel through FXCM ISRAEL LIMITED
In South Africa through FXCM SOUTH AFRICA (PTY) LTD regulated by the Financial Services Board, under the registration # 46534.
How safe is FXCM – Is FXCM a scam?
With close to 2 decades of operational history behind them, FXCM has taken every measure possible to ensure that their traders have safe and secure trading environment to conduct their trading activities. As a testament to their commitment to the well being of their clients, FXCM has been winning many recognition awards for several international finance reviewers.
FXCM’s headquarter is based in the UK with its office location at Northern and Shell Building, #10 g Lower Thames Street, 8th Floor, London.
How does FXCM make money?
While FXCM doesn’t charge their traders any commissions on the trades that they make through FXCM’s trading platforms, they are required to pay a small spread on top of the prices that they get quoted.
How to deposit in FXCM account?
To deposit funds in an FXCM trading account, traders can fund their trading account using their credit/debit cards or through a bank wire transfer.
How to withdraw money from FXCM?
The withdrawal of funds at FXCM by a trader can only be done through credit card of bank wire transfer.
How to open an account with FXCM?
To open a live trading account, a trader has to complete the registration form on FXCM’s website and then submitting it FXCM.
Yes. Apart from being regulated by regulatory agencies, FXCM follows international best practices to ensure that their clients have a safe and secure trading environment.
Does FXCM use MetaTrader?
Yes, the MetaTrader 4 trading platform is also part of FXCM’s stable of trading platforms provided to all traders.
The maximum available leverage is 1:400. For CFDs trading, the maximum leverage is 1:100.
FXCM’s traders can be assured that their money will be safe with this award winning broker. The strong background of the broker allows traders to enjoy attractive spreads below the average of what most brokers in the industry are offering. This makes FXCM an ideal broker for high volume traders trying to minimize their trading costs. For beginner traders, FXCM is also a good choice as a broker since they can open a trading account for as low as $50.