Estimated reading time: 9 minutes
|Regulators||FCA, ASIC, CySEC|
|Trading Platforms||Trading Station, MT4, Ninja Trader, TradingView, Zulu Trade|
|Trade On Point Trust Rating||47/50|
Est: 1999, London, the UK.
|Range of Services||**** ½|
|Spreads and Commissions||**** ½|
|Technical Tools and Analysis||**** ½|
FXCM was founded in 1999 and its majority economic owner is Leucadia Investments which is the merchant banking arm of the Jeffries Financial Group. FXCM is a long standing name in the online trading community with a strong backing from an investment banking company. FXCM is a global broker offering CFDs on Forex, Shares, Indices, Commodities and Cryptocurrencies2. Headquartered in London, UK, and they also maintain offices in Sydney, Australia and Nicosia, Cyprus making one of the few truly globally represented brokers.
FXCM is regulated by multiple tier one regulators: ASIC – Australian Securities and Investment Commission in Australia and the FCA – Financial Conduct Authority in the UK. Further to this they are regulated through Europe with CySEC – Cyprus Securities and Exchange Commission.
FXCM does not accept clients from the US territories due to an agreement made between FXCM and the CFTC of the United States.
Per regulation requirements, FXCM does not co-mingle client funds with their own internal business accounts. Client funds are held in Tier 1 financial institutions ensuring that client funds are safeguarded at all times. In addition to segregation of client funds, account holders are afforded additional protection as follows:
UK citizens are protected under FSCS (Financial Services Compensation Scheme). Under this rule, eligible claimants can be guaranteed up to a maximum of £85,000 in the event that Forex Capital Markets Limited (FXCM LTD) is unable to meet its obligations.
CySEC protects European Union citizens with the Cyprus Investors Compensation Fund which covers account holders up to €20,000 in the event that FXCM EU LTD is unable to meet its obligations.
Platform and Tools
FXCM offers trading on Metatrader 4, Ninja Trader, TradingView, and their proprietary platform Trading Station as well as social and copy trading through ZuluTrade (depending on jurisdiction). With such a variety of platforms to trade with, traders are likely to find one that best suits their needs. FXCM hosts a knowledge center providing traders with Research, Education, and Training tools. Calculators, calendars, tools, videos, classes, and trade alerts are just some examples of what is on offer.
MetaTrader 4 – The widely used MT4 platform comes equipped with advanced charting features, and a host of technical studies. MetaTrader also supports strategy back testing and automated trading capabilities thru its Expert Advisors (EA). MetaTrader is available in both Windows and Mac desktop versions and the MetaTrader Mobile App.
Ninja Trader – One of the most powerful trading platforms for experienced traders and those wanting to get their hands on the most data possible. Ninja Trader is a free charting platform but to get the most out of this powerful system traders are charged a one-time or monthly fee. Monthly data fees can also apply for full market depth analysis. Ninja Trader is a system recommended for experienced traders.
TradingView – An online web based charting platform with lots of useful features. Tradingview provides traders investment ideas and showcases their talents to an active community of traders. Easy and intuitive for beginners, and powerful enough for advanced traders. Tradingview has all the charting tools you need to share and view trading ideas.
Trading Station – The features are similar to MT4, including EA integration, micro-lot trading, custom indicators, strategy optimisation, strategy backtesting, and advanced charting. But in contrast to MT4, Trading Station is easy to use and requires less setup. That said, MT4 is still used by many other brokers, so traders who may switch brokers in the future might prefer to use the industry-standard software.
Zulu Trade – A peer-to-peer auto trading platform for traders who don’t wish to build their own strategies or closely follow their own accounts. Zulu Trade is useful for traders who have little interest in a complete understanding of trading and wish to get a piece of the industry without having to make all the decisions.
Spreads and Commission
FXCM offer two types of account, the standard account and the active trader account. It should be noted that there is also a Spread Betting account available for UK clients only which is a tax-free trading account.
Standard retail clients will commence on the standard account, with the active traders account being by application only for larger, more active trading accounts. The standard account has no commissions3 and generally comparable spreads across Forex, Shares, Indices, Commodities, and Cryptocurrency CFDs. Standard accounts max out at 30:1 leverage for major Forex pairs, 20:1 for non-major Forex, Gold, and major indices, 10:1 for commodities, and 2:1 for Cryptocurrencies.
FXCM do charge an inactivity fee of 50 units of the account’s base currency after 12 months of inactivity on an account.
FXCM offers trading on 35+ currency pairs including combinations of the USD, EUR, AUD, JPY, GBP, and CAD. Access to Exotic currencies is available in select pairs (primarily paired with USD, EUR, or GBP). CFDs in indices, Commodities, and Cryptocurrencies markets are also available at FXCM. Cryptocurrencies are currently not available for retail clients residing in the UK. Share CFDs are also available on MT4 and Trading Station.
Retail customers can take advantage of varying leverage of up to 30:1 for major Forex pairs and as low as 2:1 for Crypto currencies. Leverage should always be treated with caution. Leverage not only increases your ability to generate fast income, it can also result in quick losses.
FXCM offer mobile trading through the MT4 mobile app, and the Trading Station mobile app. Both are available on both Apple and Android devices. The MT4 interface is a simpler version of the desktop platform with limitations regarding charting and other indicators. The Trading Station mobile app is more intuitive and provides many built in charting features and the ability to sync across devices.
Support Services / Languages
FXCM support multiple payment options4 including Skrill, BPay, Credit Card, Debit Card, Neteller, Poli, Klarna, and Bank Transfer depending on the country of residence of the client. The base currencies FXCM offers to its clients include; AUD, USD, EUR, GBP, JPY.
FXCM provide extensive knowledge based tools including a wide variety of Research, Education, Trading Guides, and Trading Tools. FXCM has won a number of awards over the past few years from various different organizations for its tools and services.
FXCM also has received a number of awards for their customer support. Clients can access telephone, e-mail, and live chat, as well as SMS (in certain countries). These support services are provided 24/5 in English, French, German, Italian, and more. Free-call telephone numbers have been established in 42 individual countries for clients’ convenience.
Level of Trust
Regulated 10/10 – FXCM is regulated in the UK by the FCA, Australia by ASIC, and CySEC in Europe.
Secure 9/10 – Under the regulated entities, FXCM keeps clients money separate from operating business accounts in secure tier 1 financial institutions. No clients funds are held with company funds nor can they be used for hedging or company expenses. Clients funds in the UK and Europe are protected up to £85,000 and €20,000 respectively. Other protections vary based on regulator and country of residence of the client.
Access to funds 9/10 – Withdrawals are transferred by bank wire transfer or credit/debit card. Withdrawals can take 1-5 days to reach your account via bank transfer, however can take a full billing cycle to reach debit or credit cards. Clients who have funded with Skrill or Neteller can received their funds back through these same services. Funds withdrawal fees from FXCM by international bank transfer is high at up to 40usd, however no withdrawal fees are charged for other methods of withdrawing your funds.
Note: If the client’s base currency is not the same as their financial institution, the clients own financial institutions may also charge an exchange fee.
Recognition 10/10 – FXCM has won many awards both globally and in various international locations including the UK, Europe, and Australia. Having operated for more than 20 years as a retail broker FXCM is one of the most widely recognised names in the trading community.
Support 9/10 – FXCM offer telephone, e-mail, live chat, and SMS support to their clients in more than 5 languages 24/5.
Forex Capital Markets Limited: FCA registration number 217689 (www.fxcm.com/uk)
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FXCM EU LTD: CySEC license number 392/20 (www.fxcm.com/eu)
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FXCM’s mission is to provide traders with access to the world’s largest markets by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools, proprietary data and premium resources. FXCM provides comparable spreads with other brokers however stands out with its educational and analytical tools. FXCM is recommended for new or emerging traders intending to develop their skills with the assistance of a strong dependable company.
1Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors. 2Cryptocurrency products are currently not available for retail clients residing in the UK. 3FXCM can be compensated in several ways, which includes but are not limited to adding a mark-up to the spreads it receives from its liquidity providers, adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types. 4Currently, EU clients are able to deposit/withdraw funds through bank wire and credit/debit card.
All references on this site to "FXCM" refer to the FXCM Group Metatraderindicators.com is acting in a capacity of a affiliate of FXCM EU LTD.