FXTM Review 2022

Trust

This section will cover how the different entities of FXTM 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.

• Exinity UK Ltd is authorized and regulated by the Financial Conduct Authority with license number 777911. We rate the FCA as a Tier 1 regulator.
• ForexTime Ltd is regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12. It is also licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614. We rate CySEC as a Tier 1 regulator and FSCA as a Tier 2 regulator.
• Exinity Limited is regulated by the Financial Services Commission of the Republic of Mauritius, license number C113012295. We rate the FSC as a Tier 3 regulator.

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

Different regulators provide different levels of protection. For example, FXTM 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.

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

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

Regulatory requirements are subject to change. We gathered the data listed above in June 2022.

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 size of the company, and how transparent they are in terms of readily available information.

FXTM launched in 2011, reflecting a substantial operating history. According to its LinkedIn page, the company is headquartered in Limassol, Cyprus. The FXTM website states that the group of companies has over 800 employees in more than ten offices worldwide.

In our research, FXTM showed a good level of transparency in its regulatory status, with a listing of all entities and regulators in the website’s footer.

Spreads and commissions are outlined on the Account Comparison page. The Client Agreement can be found on the Account Opening Agreements page. The background and history of the company are broadly outlined on the About Us page. Overall, we rate FXTM as having a high level of transparency, better than average for the industry.

Fees

Trading Fees

We tested the spreads at FXTM across different asset classes using the MetaTrader 4 platform. The test was performed at 8 AM GMT and 3 PM GMT on June 10th, 2022. 8 AM GMT is the London open when there is a high level of liquidity in the forex market and tighter spreads in currency pairs. 3 PM GMT is during the New York trading session.

Swap Fees

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

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 June 9th, 2022.

Non-Trading Fees

FXTM charges a monthly inactivity fee of 5 EUR/USD/GBP/NGN to accounts that have been dormant for six consecutive months.

Are Fees at FXTM Competitive?

Spreads, swaps, and inactivity fees at FXTM are roughly average for the forex and CFD industry. More competitive trading costs are available via the Advantage account type, which gives a discount based on trading volume but requires a higher account balance.

Platforms and Tools

MetaTrader 4 Desktop

FXTM 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. Alerts can be delivered via audio, an email, or push notification to a mobile device.
• Watchlists. Traders can set up a list of their favourite 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. Placing a trade with a single click saves time 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. This is an order to buy or sell an instrument at the current best available price.
• Limit Order. This is an order to buy or sell an instrument at a specified price or better.
• Stop Loss Order. This is an order to buy or sell an instrument that is triggered when the market price reaches a specified level.
• Trailing-Stop Order. This is a stop-loss order that can be set at a defined percentage or dollar amount away from an instrument’s current market price. It is used to secure profits when you 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 Each instrument can be displayed in nine time frames, from one minute to one month.
• 3 chart types. Traders can choose between 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 automatically.
• Automated trading. MetaTrader 4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms. They find opportunities according to set parameters and then either create a notification or automatically open a trade.

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

MetaTrader 4 Web

The MetaTrader Web Platform (WebTrader) 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 enables 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.

FXTM Trader Mobile App

The FXTM app has a modern and intuitive look and feel. Watchlists, tracking of open, pending, and closed positions, 1-click trading, and trading from the chart are among the key features available via the app. Standard order types are available, including market orders, limit orders and stop-loss orders.

Charting via the app features:

• 9 time frames (1 minute to 1 month).
• 3 indicators (Bollinger Bands, moving averages and RSI).
• 3 chart types (candle, line and bar).

FXTM analysis and news are available, so traders can stay on top of the markets while on the move. Clients can also top up funds and make withdrawals through the app. Overall we rate the FXTM Trader App as well designed and especially good for beginners. However, it lacks some popular features such as price alerts and trailing stop-loss orders.

Order Execution

In the case of the Micro account, FXTM uses Instant Execution, and for Advantage and Advantage Plus accounts, Market Execution is used. With the Instant Execution model, FXTM acts as the middle man between the client and the market and sometimes sends a requote, which means that the position is not opened at the price requested initially. Market execution involves orders going directly to the market through an Electronic Communication Network (ECN) and being executed in milliseconds.

Tradable Instruments

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

• 62 CFDs on 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.
• 16 Index CFDs. An index is a basket of trading instruments used to gauge a market sector, stocks within an exchange, or a country’s economy.
• 5 Commodity CFDs. Commodities are raw products, such as gold and oil.

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

Customer Support

We tested customer support with various queries, ranging from tradable instruments to the base currencies available. Chat support responded immediately, and emails were typically responded to within one business day. Via phone, we also received solid support from well-informed agents.

To receive support via chat, clients must use Telegram or Facebook messenger. This requires already having or setting up an account with either one. We found that Telegram worked well, and it was convenient to have all the prior chat questions and answers remaining in the chat window, which is not always the case with chat software used by brokers.

Via chat, customer support is available in English and Chinese. In addition, relationship managers who speak English, Chinese, Spanish, French, Polish, Italian, and Arabic are available for FXTM clients.

Deposits & Withdrawals

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

Deposits

Withdrawals

FXTM offers a good range of deposit and withdrawal methods and processing times are about average for the industry. While there are fees for withdrawals via bank transfer and credit/debit card, they are relatively low.

Account Types and Terms

Account Application

To open an individual account at the Exinity UK Ltd., prospective clients must answer a series of questions covering the following:

• Gender.
• Date of birth.
• Place of birth.
• Citizenship.
• Level of education.
• Profession.
• Business Operation/Activity.
• Where you pay taxes.
• Tax Identification Number (optional).
• Current Address.
• Financial background.
• Annual Income.
• Net Worth.
• Source of Funds.
• Nature of your Business with FXTM.
• Method(s) to deposit funds.
• Anticipated account turnover within the next 12 months.
• Amount of trading experience with forex, CFDs and spread betting.
• Amount of trading experience with shares, bonds, and margined products.
• The average quarterly volume of past transactions.
• Knowledge test of 7 multiple-choice questions.

Prospective clients must verify their identity by uploading a copy of their passport, national ID card, or driving licence. In addition, they must provide proof of residence using a bank statement, utility bill, tenancy contract, or residence certificate.

Account Types

FXTM offers three account types: Micro, Advantage, and Advantage Plus. The Micro account is geared towards new traders, while the Advantage and Advantage Plus offer more experienced traders access to lower trading costs and a broader range of tradable instruments.

The features of each account type are broken down in the table below:

Demo Accounts

FXTM offers demo accounts for MetaTrader 4, MetaTrader 5, and the FXTM Trader App. 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 and indices. Once users are up to speed on a demo account, they can easily switch over to a live account.

Professional Accounts

Professional clients can trade using a higher leverage level of up to 1:300 but lose a certain level of protection. Professional account holders are responsible for ensuring that their accounts do not fall into a negative balance.

To qualify for a professional account, clients must meet at least two of the criteria outlined below:

• Traded a significant size of CFDs (at least 10 lots per quarter over the previous four quarters).
• Have an investment portfolio that exceeds €500,000.
• Have worked in the financial sector for at least one year in a professional position that requires knowledge of FX and CFD trading.

Islamic Accounts

FXTM offers a swap-free Islamic account that adheres to the principles of Sharia law. To activate this option, FXTM asks clients to provide an official document that shows their religion.

Leverage

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

For UK clients, FXTM (Exinity UK Ltd.) offers clients leverage of up to 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

FXTM takes clients from the majority of countries globally. However, the FXTM brand does not provide services to residents of the USA, Mauritius, Japan, Canada, Haiti, Suriname, the Democratic Republic of Korea, Puerto Rico, Brazil, the Occupied Area of Cyprus, and Hong Kong.

Research

FXTM’s daily market analysis covers major economic events and includes technical insights to help traders find trading ideas. Articles help explain fundamental forces such as central bank policy and highlight key support and resistance levels. Weekly forecasts help orient traders for coming sessions, and ‘trade of the week’ articles highlight specific instruments in play. Traders can follow the latest news and reports via the FXTM Twitter account, which is quite active.

The FXTM website features a robust economic calendar, which lists upcoming releases, the expected level of market impact, the actual figure, the consensus forecast, the deviation from the consensus, and the figure from the prior release.

A selection of custom MT4 indicators, such as the Pivot SR Levels indicator, can help give traders an edge in their analysis and are available to be downloaded from the FXTM website.

Education

FXTM provides dozens of educational articles to help give new traders a solid foundation. Practical themes such as identifying trends and how to use oscillators are covered in depth. These articles are useful for both beginners and experienced traders who may have gaps in their knowledge. In addition, short, easy-to-understand educational videos cover key trading and technical analysis concepts. Terms such as swaps and margin are explained along with basic themes such as the different chart types. The video content is mostly geared towards beginners.

FXTM has a useful section explaining trading strategy concepts and outlining the rules to nine different forex trading strategies, for example the ‘Bladerunner Trade’. Traders can find an archive of previous webinars on the website, the most recent being from August of 2020. These include many recordings relating to trading strategies. Five ebooks are available to clients, covering cryptocurrencies, Japanese Candlestick strategies, the habits of successful traders, and Elliott Wave Theory.

The Bottom Line

FXTM has a substantial operating history of more than a decade, a global presence, and a staff numbering over 800, making it a relatively large and established player in the world of forex and CFD brokerage.

With operations overseen by four regulators, including two top-tier regulators, we rate FXTM as a relatively safe broker. Clients with the offshore entity should be aware that their protections are limited.

The tradable instruments and available platforms are rather basic at FXTM. However, educational materials and the quality of customer service are better than average. With the different available account types, we rate this broker as suitable for both beginners and experienced traders.

FAQ