While FP Markets have more Forex pairs with 64 (vs 45) and lower spreads (from 0.0 pips), FXCM has more trading platforms (TradingView, MetaTrader 4). Read FP Markets vs FXCM review to find the best Forex broker.
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In this review, we will be comparing FP Markets and FXCM (including Friedberg Direct With FXCM technology in Canada) so you can decide on the best CFD broker for you.
FP Markets was founded in Sydney, Australia in 2000. The broker’s operations are regulated in Australia and Europe and are also a registered company in St Vincent and the Grenadines allowing them to accept traders from across the globe.
Spreads with this FP Markets are ultra-low as your trades do not involve a dealing desk. To achieve this, all trades use straight through processing (STP) execution meaning your trades are passed onto liquidity providers with no intervention from the broker. In this model, the liquidity provider is your counterparty, not the broker which keeps spreads
FXCM was founded in 1999 and is part of the Leucadia Investments group. This broker has offices in multiple countries including the UK, Europe, South Africa, Australia and Israel.
This broker uses what they call FXCM enhanced execution to carry out your trades. Enhanced execution means all trades pass through the FXCM trading engine and the broker will then determine how the trade is carried out. Most of the time, the broker will act as your counterparty but because quotes are aggregated from their pool of liquidity providers the broker does not have a say in the price. For this reason, FXCM does not consider itself to be a market maker.
To compare these brokers we will be looking at the accounts offered, which include standard and commission accounts. These accounts have different fee structures so are suitable for different trading styles.
When using standard accounts you won’t have to worry about paying commissions on trades, which helps you keep track of trading fees. Instead, brokers include their fees within the bid-ask spread, which is why standard account spreads are larger compared to on-commission accounts.
The module below compares the spreads of standard accounts using spreads published from brokers’ websites.
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Standard Account Spreads
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0.10 | 0.20 | 0.30 | 0.30 | 0.20 |
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0.30 | 0.40 | 0.70 | 0.90 | 0.60 |
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1.12 | 1.22 | 1.40 | 1.69 | 1.47 |
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1.13 | 1.01 | 1.71 | 1.66 | 1.12 |
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1.20 | 0.90 | 1.50 | 1.80 | 1.80 |
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1.20 | 1.40 | 1.50 | 1.60 | 1.50 |
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1.10 | 1.20 | 1.40 | 1.50 | 1.20 |
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1.10 | 1.30 | 1.30 | 1.30 | 1.30 |
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1.20 | 1.80 | 1.90 | 1.90 | 1.60 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
View FP Markets ReviewVisit FP Markets
Based on the spreads module we can see average there are better options for no-commission trading such as Pepperstone or IC Markets.
FP Markets spreads start from 1 pip for major pairs but as our spreads module shows, they are floating slightly higher on average. When using the FP Markets Standard account, you can trade with either the MetaTrader 4 or MetaTrader 5 trading platform, IRESS is not available.
A swap-free account Islamic account is also available for traders that follow sharia law. Swap-free accounts don’t charge overnight interest fees on trades as doing so would be considered a violation of the Islamic faith.
The FXCM standard accounts have average minimum spreads of 0.7 (EUR/USD) but are usually higher. Like with FP markets, these spreads are variable and therefore subject to change depending on market conditions. The EUR/USD for example can be 1.3 pips (or higher) which means the broker may be significantly more than their minimum spread.
Unlike FP Markets, FXCM does not offer a swap-free Islamic account.
Looking at the average standard account spreads for the forex pairs, it’s clear that there are some differences between FP Markets, FXCM, and the industry average.
FP Markets consistently offers lower spreads across all forex pairs compared to FXCM. For instance, the spread for EUR/USD is 1.1 for FP Markets, while it’s 1.3 for FXCM. This trend continues across all pairs, making FP Markets the more cost-effective option in terms of spreads.
| Forex Pair | FP Markets | FXCM | Industry Average |
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| EUR/USD | 1.1 | 1.3 | 1.35 |
| USD/JPY | 1.3 | 1.5 | 1.54 |
| GBP/USD | 1.3 | 1.4 | 1.68 |
| AUD/USD | 1.3 | 1.7 | 1.63 |
| USD/CAD | 1.5 | 2.1 | 1.93 |
| EUR/GBP | 1.3 | 2.1 | 1.69 |
| EUR/JPY | 1.5 | 1.7 | 2.04 |
| AUD/JPY | 1.6 | 2.4 | 2.31 |
Standard Account Analysis Updated September 2023[1]September 2023 Published And Tested Data
However, when we compare these brokers to the industry average, the picture changes slightly. The industry average spread for EUR/USD is 1.35, which is higher than both FP Markets and FXCM. This suggests that both brokers offer competitive spreads, with FP Markets having a slight edge.
In conclusion, if you’re looking for the most cost-effective option in terms of spreads, FP Markets would be my recommendation. However, it’s important to remember that spreads are just one aspect of trading costs. Other factors such as commission fees, ease of use, and customer service should also be taken into account when choosing a forex broker.
Commission accounts have spreads that are closer to true market condition spreads which makes them suitable for scalping and higher volume trading. The tighter spreads however mean you also need to pay commissions.
Since commission accounts have no markup, it follows that spreads will be tighter than with a standard account. Even with commission fees added, you are likely to benefit from this type of account.
The spreads module below shows what kind of spreads one can expect by gathering data published on the broker’s website and this is updated monthly.
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ECN Broker Spreads
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0.20 | 0.30 | 0.10 | 0.30 | 0.20 |
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0.47 | 0.50 | 0.12 | 0.40 | 0.22 |
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0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
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0.30 | N/A | 0.30 | 0.50 | 0.40 |
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0.24 | N/A | 0.17 | 0.54 | 0.30 |
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0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
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0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
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0.77 | 1.41 | 0.44 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
While FXCM does not provide their average spreads, spreads published by FP Markets indicate that on average they may be slightly higher than their competitors. This difference however is marginal and some currency pairs compete very well compared to other brokers.
FP Markets ‘Raw’’ account has spreads with zero pips. This is true for most pairs however some major currencies crossed with exotics like SGD, HKD, CZK and TRY do have higher minimum spreads. Commission pricing is $7 USD/AUD round-turn per standard lot (100k units) traded, you pay half to open your trade and the other half to close your position.
FXCM has 2 commission accounts. These accounts have commissions starting from 0.2 pips.
With a minimum deposit of $25,000, the Active Trader account is for high-volume traders and uses tiered commissions. To be eligible you must trade at least 150million (50 million in Canada) and your commission costs will be $25 for every million you trade. Canadian traders with Friedberg Direct with FXCM technology also have the option of a fixed fee commission account. To qualify, you must trade at least 50 million in a month and deposit $5000 or more. If you trade above 150M then you will receive an extra $10 discount for each million traded.
The winner of the account comparison is FP Markets, they have tighter average spreads as well as the swap-free account option. If you’re trading high-volume you might want to go with FXCM but for all other purposes, we recommend FP Markets.
View FP Markets ReviewVisit FP Markets
The FP Markets Raw account has a minimum deposit of $100 AUD for traders inside Australia. While traders outside of the country will need to deposit $50 USD/GBP/EUR to open an account.
FP Markets have a variety of payment methods. These include Visa/Mastercard credit and debit cards, bank transfer, BPay, Poli, PayPal Neteller, Skrill, PayTrust, Ngan Luong, FasaPay, Online Pay and Broker to Broker. The broker does not charge deposit or withdrawal fees but you may get charged by the payment provider.
FXCM has different minimum deposit requirements depending on the account type you are using. Standard accounts are $300 to open while the Active Trader is $25,000. Canadian traders (with Friedberg Direct) also have the option of a CFD account which has a minimum deposit of $5,000.
To top up your trading account with FXCM you can use Visa/Mastercard debit and credit cards, bank transfer, Skrill, NETELLER, Klarna or Rapid Transfer. You also will not be charged deposit fees for these transactions.
The winner of this category is FP Markets due to their more extensive funding options. They also have lower minimum deposit amounts, making them a clear winner.
While both brokers have MetaTrader 4, FXCM offers a larger range of trading platforms overall.
MetaTrader 4 is available with both brokers, this platform is one of the most popular for forex traders. It is the most widely used for forex trading giving access to 31 trading indicators, 33 analytical tools and 9 timeframes as well as Expert Advisors which help automate trading. As long as you don’t plan to trade CFD stocks, this is the obvious platform to choose.
With over 40 technical indicators and drawing tools, 6 pending orders and 21 timeframes, MT5 is a powerful upgrade on MT4. Other features MT5 offers that MT4 does not include centralised trading so you can trade stocks and depth of Market pricing for better control of your trades. Since MT5 still receives support and development from Metaquotes, it is more future-proof than MT4, so can be a smarter choice than other platforms.
FP Markets also have its own Mobile Trading App that you can use, it gives users a wide range of trading tools and technical indicators to conduct market analysis. It also has over 60 currency pairs to trade and is available on Apple iOS and Android.
The IRESS trading platform is only available for Australian traders. Thanks to direct market access trading execution, this platform is best for stock trading since it gives users the ability to access financial market prices directly from the exchange. The IRESS platform is Web-Based and gives you access to 59 technical indicators and over 50 drawing tools.
Trade Station is FXCM’s proprietary trading platform and is available on desktop (Windows), web browser and mobile app (iOS and Android). Features include 3rd party tools to help analyze the market and place trades. One such feature includes the RadarScreen which helps traders find real-time trading opportunities in the market.
Other 3rd part tools include:
FXCM also includes NinjaTrader, which is a platform that offers full functionality for traders as well as offering their own brokerage. The trading platform is highly flexible with advanced trade management, along with the ability to customise your platform functionality and trading experience.
Capitalise.ai is available with FXCM and is a trading platform for algorithmic trading where you can write code in plain English without having to learn complex coding languages.
You can also use the TradingView platform with FXCM, this platform has a large collection of charts and indicators giving you the chance to improve your trading and make better trading decisions.
*Not available in Canada
If you wish to engage in social trading or copy trading, Myfxbook and FP Markers social trading app are available with FP Markets, while FXCM has ZuluTrade,
The winner in this category is FXCM. Looking at both platforms and tools offered by these forex brokers it’s a very close call. While FXCM doesn’t have MetaTrader 5, it offers a range of very useful tools for traders, which is an advantage of FP Markets.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
FP Markets have a comprehensive range of major, minor and exotic forex pairs with 63 available in total. If you prefer to trade shares, MT5 with 814 shares and with the IRESS platform over 10,000 shares to trade are better options than MT4. A good selection of cryptocurrencies, indices, bonds/treasuries and ETFs are also available making FP Markets a well-rounded broker.
Australian and European retail traders can trade Major Forex pairs with 1:30 and minor and exotics with 1:20. Professional traders and those outside of Australia and Europe Union (such as traders in the UK) comfortable with high-risk trading will have access to 1:500 leverage.
FXCM has over 40 pairs available including popular options such as the USD/EUR and USD/JPY pairs. They also offer 7 cryptocurrency pairs available such as Bitcoin but this isn’t for Canadian residents.
Forex Leverage with FXTM depends on which subsidiary of FXCM you join:
FP Markets is the winner in this comparison, this is because they have more forex pairs available to trade including ETFs and fewer limitations based on locality. We believe traders will benefit from this extensive range.
Using a broker regulation in your jurisdiction indicates you can place a certain level of trust in the broker. This is because the broker must comply with operating standards set by the financial regulator to operate in the country of the regulator’s jurisdiction.
FP Markets is regulated by the following oversites
If you are outside Australia or the Europe Union, you will be joining the FP Markets subsidiary based in St Vincent and the Grenadines. This country doesn’t have a Forex regulator, which means FP Markets regulated itself. You will find the broker applies regulation in line with the standard set by ASIC.
FXCM have more regulators covering a range of jurisdictions in five countries. They are governed by more regulatory entities than FP Markets which include the UK, Canada and South Africa.
In this comparison, we will give FXCM the winning verdict for regulation. They have more regulators suggesting that they aim for more reputable practices as a forex broker.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
Looking at the Trustpilot reviews for FP Markets we can see that they score exceptionally high with an average of 4.9 stars for their reviews. This score is much higher than most forex brokers and the reviews show that many are satisfied with the customer support they received.
FXCM has good reviews on Trustpilot with an average score being 4.3 stars, this isn’t as high as FP Markets but still reasonable compared to most forex brokers.
In this comparison between FXCM and FP Markets, the winner is FP Markets. What stands out is their range of CFDs as well as their tighter spreads and platform offerings. FP Markets is our broker of choice.
No commission account spread propiety testing data and published wesbite spread information, centralised on our standard account spread page..
