FXCM Review 2022

FXCM Spreads And Costs

In the module below, the Compare Forex Brokers team compiled the average spreads from brokers that provide the data on their website.

FXCM Standard Account Spreads And Costs

FXCM standard spreads generally fall in the midrange when compared with other brokers with the most competitive spreads on offer appearing to be for AUDUSD and AUDJPY currency pairs.

FXCM Standard Account Spreads	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD
	1.30	1.40	2.10	1.70	2.40
	0.70	2.20	1.30	1.30	0.30
	0.80	1.80	1.70	0.90	2.80
	1.40	2.40	1.60	1.30	1.90
	1.20	1.90	1.60	1.40	2.20
	0.62	0.83	1.27	0.77	1.50
	1.61	1.67	1.44	1.87	3.09
	n/a	0.20	0.60	0.50	0.70
	1.20	1.50	1.40	1.40	1.50

Data taken from broker website. Accurate as at 01/01/2022

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FXCM Active Trader spreads

An FXCM dealing desk determines the best execution means which can result in FXCM acting as a market maker or using a dealing desk.

When comparing the spreads to other brokers, FXTM at first glance appears to have only average spreads. While FXCM is competitive when looking at the EURUSD, USDJPY and even AUDUSD currency pairs with other brokers and poor when comparing EURGBP, GBPUSD and EURJPY to other brokers, the following consideration needs to be kept in mind.

Active Traders commissions can be less than most ECN brokers once you factor in that FXCM has lower commissions.

Commissions with most other brokers are $7.00 round-turn, while Active Traders can be as low as $5 round-turn.  This represents a saving of 0.2 pips. If you subtract 0.2 pips from each spread, then the spreads appear to be more competitive.

FXCM Commission Account	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDGBP/USDEUR/GBPAUD/USDAUD/JPYEUR/JPYUSD/JPYUSD/CADUSD/SGD
	0.20	0.60	0.60	0.30	0.50
	0.70	2.20	1.30	1.30	0.30
	0.80	1.80	1.70	0.90	2.80
	1.40	2.40	1.60	1.30	1.90
	1.20	1.90	1.60	1.40	2.20
	0.62	0.83	1.27	0.77	1.50
	1.61	1.67	1.44	1.87	3.09
	n/a	0.20	0.60	0.50	0.70
	1.20	1.50	1.40	1.40	1.50

Data taken from broker website. Accurate as at 01/01/2022

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FXCM 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.

FXCM Spreads Conclusion

If you are looking for the best possible spreads, then Active Trader is the best choice. Spreads with FXCM’s active trader account are cheaper than they may appear when you compare with other brokers as FXCM off lower commission fees. The overall lowest spreads are offered by IC Markets in our head-to-head comparison.

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

Leverage FXCM Forex Broker Comparison

FXCM operates four subsidiaries around the world that are overseen by different financial authorities. The leverage you are able to trade with depends on whether you sign up to the UK, European, Australian or South Africa entity.

Leverage in the UK, Europe and Australia

FXCM in Australian (ASIC), European (CySEC), and UK (FCA) regulated territories offer a maximum leverage of 30:1 for major currency pairs and 20:1 for minor and exotic currency pairs. This is in line with the maximum amount most tier-1 regulated brokers will offer.

You can trade crypto with leverage of 2:1 with the ASIC regulated branch, and 4:1 with the FSCA regulated branch in South Africa. Cryptos are only available to professional traders in the UK, not retail traders.

Leverage in South Africa (and the rest of the world)

FXCM South Africa is regulated by the FSCA and permits maximum leverage of 400:1 for all forex pairs. Clients who have more than 20,000 CCY ($20,000) equity in their trading account will only be allowed to trade with 100:1 leverage.

When trading with a leveraged product, it is important to keep in mind that while leverage can be a powerful tool for profitable gains,  high leverage can exaggerate your losses when currency movements don’t work in your favour and should be used responsibly.

Note: 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.

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

FXCM – Transparency, Trust through Performance

FXCM list statistic regarding their performance when it comes to execution and slippage. Transparency gives their clients a level of assurance and trust that the broker is meeting the client’s expectations when it comes to trading. FXCM to deliver on the client’s requirement of fast order execution with no slippage, competitive pricing and no re-quotes.

FXCM Slippage And Execution Speed

Slippage can make a big difference to your trading success. Lag time, which naturally occurs due to the time taken between placing your order and completing your order, can see prices change. The changes are called slippage and can be positive or negative. As a trader, you want pricing certainty and execution certainty.

In the first quarter of 2020, FXCM had the following performance highlights.

As per FXCM’s Spread Report

As per FXCM’s Spread Report

These stats show that FXCM completes your orders with no slippage more than 60% of the time. This is made possible thanks to an average execution speed of 28ms and good till cancelled market orders speed of 29 ms.

When slippage does occur, FXCM trading infrastructure is generally favourable for traders, with slippage being positive nearly 30% of the time and over 70% of the time for limit orders.

FXCM Platform Review

Our FXCM review found the forex broker offers one of the extensive choices of trading platforms from all online brokers. Not only does FXCM offers a choice of 4 trading platforms (2 of them social trading platforms), the broker also offers 7 speciality platforms.

FXCM Trading Station

FXCM’s in-house developed proprietary trading platform built from feedback from FXCM traders and 10 years of trading data

Trading Station Desktop

FXCM is especially proud of their own Trading Station II (not to be confused with another platform TradeStation). It was built based on the feedback from FXCM traders and trading data accrued from over 10 years to meet the needs of their clients.

The FXCM Trading Station forex platform is generally hard to fault, it has a very user-friendly design and comes with has become FXCM’s hub for investment advice. One of the key features of the platform is the free professional charting tool known as Marketscope 2.0 which consists of price alerts, charts and a wide selection of indicators. One of the key features of Marketplace is the ability to open and manage all your trades directly from the charts. This means you can perform all your trading analysis, opportunity identification and order execution all in one place.  This simplified trading process makes the platform a great tool for beginner traders.

Trading Station Web

The recent upgraded Trading Station Web 2.0 migrated from Flash to HTML5 now offers a cleaner, more modern and intuitive user interface. The new platform incorporated many of the features found on Trading Central Desktop, including:

• FXCM Cloud: Ability to store profiles and chart settings in the cloud
• Chart – Detachable charts for use on second browsers
• 50 customisation technical indicators
• 20 advanced drawing tools
• Enhanced trading analytics tools available directly from the trading platform

Trading Station Mobile

• Trade with 56 forex currency pairs
• Wide range of charts with the following timeframe – m1, m5, m15, m30, H1, H2, H3, H4, H6, H8, D1, W1, M1
• Chart Indicators
• Trend Lines
• Real-time Market News
• Economic Calendar
• Range of Order Types

MetaTrader 4

This platform is the most widely used platform by traders and the most offered platform by brokers, many consider MetaTrader 4 to be the ‘gold’ standard when it comes to platforms. While you can find platforms with more indicators, more charts, faster speed, as a whole, MetaTrader 4 offers one of the most complete packages because it does everything really well. MetaTrader 4’s reputation and reliability make it a sound choice for all traders.

NinjaTrader 8

This platform is a worthy alternative to Trade Station and MetaTrader. NinjaTrader is perfect for scalpers thanks to its Advanced Trader Management feature (ATM) which allows semi-automated features so you can manage your positions through orders such as entries, stops, targets and exits and trading automation with C#.

It is also a great option for active traders who benefit from an abundance of technical analysis tools, including over 150 analytical tools and a wealth of customisable charts and drawing tools.

Zulu Trade

If you prefer social or copy trade, then Zulu Trader might be your preferred choice of trading platform. This type of trading allows you to copy the trades of experienced traders, making it a great choice for beginner traders wanting to learn the trading strategies of successful traders. One of the key features of the Zulu trade is the social element. The feature gives users the ability of traders to share ideas and strategies and help other traders. Zulu Trader has over 1 million users, making it one of the larger social trading communities available.

FXCM also offers a range of speciality platforms to enhance your trading experience. Most of these tools are exceptionally useful for algorithmic traders and high-volume traders. These tools are useful for both forex and CFD and include:

• QuantConnect – This is a cloud-based and open source algorithmic engine used for trading. It allows the client to build and test their algorithms directly via FXCM platforms.
• MotiveWave –  This tool provides charting for both technical and also algorithmic traders.
• AlgoTerminal – Users can use a terminal for back-testing and execution of algorithmic trading approaches.
• AgenaTrader – This advanced trading tool gives professional traders access to 130 indicators along with 14 chart types for automated trading. AdenaScript(C#) allows for sophisticated automated trading.
• Sierra Chart – A multi-asset trading platform for financial markets that is compatible with external trading services
• SeerTrading – Another trading platform that can assist with automated trading.
• NeuroShell Trader – This is a point and clicks GUI that assists with technical analysis indicators.
• StategyQuant – This platform uses machine learning and genetic programming for automated trading. Its simplicity means no programming experience is needed.

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

FXCM Range Of Markets (CFDs & Forex)

Clients of FXCM have the option of the following contracts for different (CFD) products:

• 39 Forex currency pairs
• 13 Stock indices
• Shares CFD
• 9 Commodities
• 3 Metals
• 7 Cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash, Stellar, EOS)
• 3 Types of baskets (forex, stocks, cryptocurrency)

All CFD option is commission-free, which means costs are included in the spread.

The range of markets available with FXCM is quite broad however you can find other brokers that offer more choices for each financial instrument. 39 currency pairs, for example, would put FXCM at the lower end of the broker for currency choices.

Cryptocurrency

FXCM offers a choice of 5 cryptocurrencies. The broker claims to offer some of the tightest spreads on the market when it comes to trading BITCOIN.

Please note, due to recent changes to FCA regulation, UK retail traders are not able to trade cryptocurrencies with UK brokers. If you want access to crypto markets, you will need to sign up for an FXCM subsidiary outside of the United Kingdom.

FXCM Specialised Baskets

One feature FXCM offers that is not commonly found with other brokers is the trading of specialised indices. FXCM offers 3 types of baskets of trading:

• 3 Forex trading baskets (Dow Jones FXCM Dollar Index Basket, JPYBasket (Yen), EMBasket (Emerging Markets Index)
• 6 Stock Baskets – BioTech, Cannabis, eSports, FAANG, CHN.ECOMM, CHN.TECH)
• Crypto Basket (Bitcoin, Ethereum, Ripple, Litecoin and BitCoil Cash)

Trading with Indices allows you to reduce the risk of your exposure when trading volatile instruments.

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

FXCM review – Customer Services and Support

FXCM offers 24/5 award-winning customer services with customer support contactable via live chat, email, phone and even SMS text message. If you wish to call FXCM, there are 42 country based numbers one can call from. Countries range from South Korea, United Arab Emirates to Venezuela.

If you prefer to place orders by phone, FXCM offers a trading desk line that can be handy should your internet go be down.

Should you prefer to solve your issues yourself, there is a search feature on their website that should be able to point you to relevant pages to solve your question however the website doesn’t have a devoted FAQ page.

Customer Services – Knowledge

FXCM has a knowledge section that consists of research or market analysis tools and education.

Education

The education section of a wide range of educational tools that help their clients understand forex better, navigate FXCM features and accounts, and master their trading platforms. Education tools include:

• A comprehensive guide explaining what Forex is
• A video library covering information topics such as the FXCM trading platforms, order types, forex trading and FXCM account features
• Free daily online trading course – a live webinar to enhance your trading skills and discuss economic events around the world and understand how they impact your trading decisions
•  Trading guides – a learning course covering all topics about forex. The online content is split into 2 sections, for beginners and for successful traders.

While there is a wealth of material for forex, education is lacking when it comes to CFD education.

Research Tools

Market analysis tools consist of the standard tools most brokers offer. This includes an economic calendar, live forex charts, and the latest market news. Additional trading tools are available such as a market scanner, market data signal however to get to the really useful information such as trading signals, technical analyser, trading analytics requires a sign up with FXCM.

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

Minimum Deposits and Funding Methods

FXCM has the following minimum deposit requirement

• Standard Account – $50 CCY (depending on payment method)
• Active Trader Account account – $25,000 to open an account

Deposit Methods

When making a deposit into your account with a credit card or debit card (Visa or MasterCard) there is a minimum of $50 per deposit and a limit of $30,000 per month for all FXCM clients.

All other deposit methods do not have a minimum deposit requirement however may have limits on how much can be deposited each month.

International Funding Options

• Bank Wire – No monthly limit
• Skrill / Neteller – 20,0000 CCY limit per month

Australia

• BPAY – no monthly limit
• POLi – 20,000 CCY limit per month
• Union Pay – 20,000 CCY limits per month

The UK and Europe

• Klarna – 5,000 CCY limit per month
• Rapid Transfer- 5,000 CCY limit per month

Most deposit methods take up to 1 business day to complete however bank wire can take 1-5 working days. FXCM charges no fees for deposits.

Withdrawal methods

Withdrawal can be done by card, Bank Wire or Skrill, Neteller and in Australia by Electronic Funds Transfer and Union Pay. While there are no withdrawal requirements, there are fees when using Bank Wire and Union Pay.

The table below summarises the fees:

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

Regulation

The FXCM group is part of the Leucadia Investments group and has the following regulations:

The United Kingdom

• Forex Capital Markets Limited (“FCA”) is regulated in the United Kingdom by the Financial Conduct Authority (FCA) with the registration number 217689

South Africa

• FXCM South Africa (PTY) LTD (“FXCM ZA”) and is regulated by the Financial Sector Conduct Authority (FSCA) under FSP No 46534

Australia

• FXCM Australia Pty. Limited (“FXCM AU”) and is regulated by the Australian Securities and Investments Commission (ASIC) under AFSL 309763

Europe

• FXCM EU LTD (“FXCM EU”) and is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 392/20

Other FXCM entities

• FXCM Markets Limited (“FXCM Markets”) was incorporated in Bermuda. Bermuda does not require FXCM Markets to have a financial services license to offer its products or services.

FXCM does not accept residents of the following countries – United States, Russian Federation, Ukraine, Singapore, Turkey, Japan and the Virgin Islands.

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*Your capital is at risk ‘67% of retail CFD accounts lose money’

Editors FXCM Review Conclusion

As a global player, originally founded in America but now headquartered in the UK due to regulatory restrictions in the US, Forex Capital Markets (FXCM) has targeted market share in Australia for some time with a very competitive Australian forex broker offering, including standard accounts as well as an active trader account for those budding Forex enthusiasts.

Experienced Australian forex traders that require a very specific niche forex platform should consider FXCM. Those that require high leverage or are looking for low spreads/fees should review our Australian forex broker comparison table and a provider like Pepperstone for advanced traders.