FXCM Review 2024
Website: www.fxcm.com
Min. Deposit: US$ 50300
Leverage: 1:200 | 1:30
Trading Platforms: MT4, Trading Station, ZuluTrade, TradingView, Ninja Trader, Capitalise AI
Regulation: ASIC, FCA, FSCA
Headquarters: UK
Founded: 1999
Regulatory Licenses:
- Forex Capital Markets Limited (FXCM LTD) - authorized by FCA (UK) registration no. 217689
- FXCM Pty. Limited (FXCM AU) - authorized by ASIC (Australia) registration no. AFSL 309763, ACN: 121934432
- FXCM (PTY) Ltd - authorized by FSCA (South Africa) registration no. FSP 46534
Updated on March 1, 2024
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In our comprehensive review process, we meticulously analyze and compare FXCM against a rigorous set of criteria developed through our extensive experience in the forex industry. This review is the culmination of detailed research and comparison of FXCM alongside over 1000 brokers, assessing key factors such as regulatory compliance, trading platforms, instruments offered, customer service, education, and trading conditions. Our aim is to provide traders with a clear and unbiased evaluation to make informed decisions.
FXCM stands as a premier online trading provider specializing in Forex and CFDs trading across a wide array of assets such as Stocks, Commodities, Indices, Cryptocurrencies, and spread betting, exclusively available for UK and Ireland residents. Established in 1999 and headquartered in London, UK, FXCM has built a strong foundation of trust and performance, regulated by top-tier authorities including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Financial Sector Conduct Authority (FSCA) in South Africa. FXCM's mission is to offer global traders access to the world's most liquid markets through cutting-edge trading tools, comprehensive educational resources, and adherence to strict financial regulations.
Pros
FXCM is recognized for its reliable and favorable trading conditions worldwide.
Offers competitive spreads and low costs across a single account.
Provides a minimum deposit requirement that is accessible for many traders, alongside leverage options.
Boasts an extensive selection of free professional education and research tools.
Cons
Charges withdrawal fees for Bank Wire transfers in certain regions.
Customer support is not available 24/7.
Futures and options trading is not supported, which may deter some traders.
FXCM Review Summary in 12 Points
Headquarters: UK
Regulation: FCA, ASIC, FSCA
Platforms: MT4, Trading Station, Zulutrade, TradingView, NinjaTrader, Capitalise AI
Instruments: Forex, Indices, Shares, Commodities, Cryptocurrencies, and Spread Betting (UK and Ireland residents)
EUR/USD Spread: 1.3 pips
Demo Account: Available
Minimum Deposit: $50 and 300 GBP for UK and EU clients
Base Currencies: USD, GBP, EUR
Education: Free professional education and resources
Customer Support: 24/5
Overall FXCM Ranking
FXCM achieves an impressive score of 4.0 out of 5.0 in our overall ranking, reflecting its excellent trading conditions for Forex and CFDs, global accessibility, and commitment to supporting both new and experienced traders with advanced technical solutions.
The accolades awarded to FXCM over its decades of operation underscore its enduring success and legitimacy in the brokerage industry. Notable awards include:
MOST TRANSPARENT FOREX BROKER (GLOBAL) – Global Forex Awards 2022
BEST FOREX TRADING PLATFORM (MENA) – Global Forex Awards 2022
BROKER OF THE YEAR – Ultimate Fintech Awards 2022
These awards affirm FXCM's dedication to providing transparent and high-quality trading experiences.
FXCM is a highly reputable broker, authorized and regulated by stringent regulators such as the FCA and ASIC, ensuring it operates with a low risk profile. These regulatory bodies also provide compensation schemes and mandate secure transaction practices, bolstering FXCM's credibility and safety for traders.
Our Conclusion on FXCM Reliability:
Considering FXCM's extensive regulatory compliance, global office network, and commitment to transparency and security, we conclude that FXCM is a reliable and trustworthy broker for traders seeking a robust trading environment.
FXCM provides the opportunity for leverage trading of Forex and CFDs, offering a significant advantage even with minimal market movements. Leverage is essentially a loan provided by the broker to your trading account, enabling you to increase the size of your trading positions. While leverage can notably boost your potential profits, it can also amplify your losses, and therefore, it's crucial to use leverage cautiously and determine the appropriate size for each instrument. The leverage levels at FXCM are determined by the trader's account balance and the regulatory requirements of their residence:
1:30 for clients in Australia, the UK, and Europe
1:100 for clients in South Africa
However, due to regulatory restrictions in Europe under ESMA, leverage is capped at 30:1 for Forex products, 20:1 for non-major currency pairs, gold, and major indices, 10:1 for other commodities besides gold and non-major equity indices, and 2:1 for cryptocurrencies.
FXCM offers a single trading account, allowing traders to access a variety of trading instruments. Opening a live forex trading account is a straightforward process that begins with signing up for a Demo account. Following confirmation of residence and compliance with the application, traders can start live trading. Additionally, FXCM features an Active Trader account tailored for high-volume investors, offering premium services, custom solutions, and discounted spread costs based on trading volume.
Trading indices and commodities with FXCM involves only the payment of the floating spread, with enhanced index CFDs enabling trading without stop and limit restrictions or re-quotes. Below are the average spread costs on CFDs and other fees like funding fees. Nonetheless, for the most accurate data, consult the official website or the FXCM platform. FXCM's fees scored 4.0 out of 5 in our evaluation, compared to other brokers from our research of over 1000. These fees may vary depending on the entity with which you register your account. FXCM's forex trading pricing is below the industry average.
Our analysis found that FXCM's fee structure is competitive, with an average spread of approximately 1.3 pips for the EUR/USD pair for some instruments, though it's important to remember that spreads are variable and may be subject to delay. Additionally, consider overnight fees or swaps as part of your trading costs if you pursue swing or long-term trading strategies. Active traders benefit from discounted pricing, enhancing the value. FXCM's spreads received a score of 4.0 out of 5 based on our testing and comparison with other brokers, offering lower than average spreads for all assets, no commissions for trading, and generally better conditions compared to several other brokers.
FXCM presents a comprehensive suite of market instruments, catering to a diverse trading community. The broker's offerings encompass major markets and several exotic pairs, alongside Forex, Indices, Commodities, Cryptocurrencies, and Spread Betting exclusively for UK and Ireland residents. It's important to note that while FXCM facilitates cryptocurrency trading through CFDs, direct exchange trading of the underlying asset is not available. Our evaluation of FXCM’s Instrument Score stands at 7.0 out of 5.0. The selection of instruments is commendable, however, the absence of options and futures, along with variations in instrument availability based on the trader's registered entity, warrants consideration.
FXCM streamlines account setup with an option for a free practice account, allowing for platform testing and an overview of account advantages. The Deposits and Withdrawals score is 8.0 out of 5.0, reflecting a low minimum deposit requirement for certain entities and a wide array of funding methods with minimal to no fees. The minimum deposit for an FXCM account varies by entity, with UK and EU clients facing a GBP300 initial requirement. Withdrawal processes are equally user-friendly, utilizing the same payment methods without fees for credit or debit card transactions. However, a $40 fee applies to international Bank Wire withdrawals. Withdrawal requests are typically processed within two business days, with additional processing time dependent on the payment provider.
FXCM distinguishes itself with a robust selection of trading platforms including industry leaders MT4 and MT5, along with Trading Station, NinjaTrader, TradingView, Zulutrade, and Capitalise AI. Our Platforms Score of 9.0 out of 5.0 reflects the excellent variety and quality of these platforms. Each platform offers unique features, such as advanced charting tools, automated trading strategies, and exclusive indicators. The availability and functionality of these platforms may vary by trading entity.
FXCM's client-oriented approach is evident in its comprehensive customer support, available through live chat, phone, email, and dedicated lines for the African region, reflecting its focus there. This multi-channel support has earned high client satisfaction and contributes to our Customer Support score of 8.0 out of 5.0. Despite the extensive support options, it's notable that 24/7 support is not available.
FXCM places a strong emphasis on education, hosting events worldwide with a particular focus on the African region. The broker provides an extensive range of educational materials, including courses, webinars, seminars, tutorials, and analytical tools. Our Education score of 8.2 out of 5.0 highlights the broker's commitment to providing high-quality educational resources and tools, accessible in various formats and free of charge.
FXCM's established presence, comprehensive trading solutions, and reputation for reliability make it a recommended choice for both novice and experienced traders. The broker's offerings cater to a wide range of trading preferences, from autotrading and social trading to comprehensive educational resources. However, potential clients should verify trading conditions and regulatory compliance in their jurisdiction. FXCM is particularly well-suited for:
Beginning Traders
Professional Traders
Traders who prefer MT4 and MT5 platforms
Currency Trading and CFD Trading
Running various Strategies
High Leverage Trading
EAs trading
Social Trading
Excellent Research
In summary, FXCM is a versatile broker that accommodates a diverse trading community, providing a secure and resource-rich environment for trading success.
