FXCM vs FXTM

Which Broker Has the Best Spreads?

Since FXCM and FXTM have different pricing models, we shall present a comparison of minimum spreads offered on a selection of financial instruments. For FXCM we have used spreads offered on its Active Trader commission-based trading accounts, while for FXTM we have used spreads offered on its ECN trading accounts.

At FXCM, the commission rate is $3.0 per 100,000 units traded ($6.0 round-turn commission), which can be reduced to $2.5 per 100,000 units traded ($5.0 round-turn commission).

1. Minimum spreads on major currency pairs:

• EUR/USD – 0.1 pips at FXCM, 0.1 pips at FXTM;
• GBP/USD – 0.3 pips at FXCM, 0.2 pips at FXTM;
• USD/JPY – 0.1 pips at FXCM, 0.1 pips at FXTM.

2. Minimum spreads on minor currency pairs:

• EUR/GBP – 0.2 pips at FXCM, 0.1 pips at FXTM;
• GBP/JPY – 0.5 pips at FXCM, 0.2 pips at FXTM.

3. Minimum spreads on Spot Metals: 

• Spot Gold (XAU/USD) – 31.0 pips at FXCM, 5.0 pips at FXTM;
• Spot Silver (XAG/USD) – 4.4 pips at FXCM, 0.4 pips at FXTM.

As an STP broker, FXTM clearly offers more competitive spreads. Minimum spreads can go even as low as 0.0 pips on Forex pairs on its Pro Account, but traders are required to keep a minimum account balance of $25,000/EUR 25,000/GBP 25,000 all the time.

On the variable spread model, FXTM offers the following trading conditions:

• Standard account – The brokerage offers variable spreads, which starts from 1.3 pips on major Forex pairs and encompass all other trading costs.
• Cent Account – spreads are again all-inclusive and starts from 1.5 pips on major currency pairs.

Similar to FXTM, FXCM offers all-inclusive, variable spreads on its Standard account, which starts from 1.2 pips on major pairs such as EUR/USD. Since FXCM is compensated by adding a mark-up to spreads, or to rollover fees, it will not charge clients any commissions for trading Forex, Shares, Crypto and Commodity CFDs.

FXTM ECN Account Spreads

At FXTM, spreads start from 0.1 pips on major currency pairs and a commission of $4.00 per round turn will be charged for every 1 Standard Lot traded. Yet, terms for MT4 ECN account commissions tend to be flexible and will depend on traders’ equity and trading volume (lower commission for higher equity and larger trading volume).

Forex spreads are higher on this ECN Zero account type compared to the other two ECN trading accounts, as they start from 1.5 pips, but yet, ForexTime will not charge any trading commissions.

On the FXTM professional account, there will be no re-quotes and no commissions charged, while Forex spreads start from 0.0 pips. However, institutional-level spreads can be accessed only if traders’ account balance is maintained above the minimum deposit level all the time.

FXCM vs. FXTM: Conclusion

This is a close match-up, as there is no sizeable difference in terms of the trading costs. By industry standards, both brokers offer relative high spreads so there is no material advantage with either of the two brokerage trading firms. On the plus side, at FXCM standard account you can enjoy commission-free trading.

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What Leverage Is Available?

The maximum leverage allowed for CFD and Forex trading is controlled by the limits imposed by the regulatory bodies. Overall, the maximum leverage ratio for Forex FXCM allows on all new trading accounts is 1:400, while at FXTM the ratio goes up to 1:2000.

Let us discuss the maximum leverage allowed in greater details. In both South Africa and Australian jurisdictions, FXCM, by default, allows leverage ratios of up to 1:400 for Forex trading and ratios of up to 1:200 for CFD trading, given that its clients’ account balance is lower than $20,000. If traders’ equity exceeds $20,000, the broker will reduce the max leverage for Forex to 1:100.

In comparison, in its South Africa jurisdiction, the maximum leverage ratios offered by FXTM depend on the live trading account type chosen. More precisely, it will be:

• 1:2000 on FXTM’s Standard account, Cent account, ECN account and ECN Zero account
• 1:200 on FXTM’s Pro Account
• 1:10 on FXTM’s Stock CFDs account

The UK and Europe FX Leverage

Max leverage allowed is much lower in other jurisdictions. For example, in the United Kingdom, under ESMA/FCA rules, the maximum leverage ratios both brokerages offer retail clients are limited to:

• 1:30 on major currency pairs;
• 1:20 on minor and exotic currency pairs, Gold and major Stock Indices;
• 1:10 on other Metals and Commodity CFDs;
• 1:5 on Shares CFDs;

Similar leverage caps are also valid within the European Economic Area (EEA).

FXCM vs. FXTM: Conclusion

Again, both of these two forex brokers offer attractive leverage trading conditions that are subject to caps depending on your jurisdiction. Clearly, forex traders located outside the EU and UK can enjoy higher leverage ratios.

View FXTM Review >>Visit FXTM >>

What Forex Trading Platforms Do the Brokers Offer?

Both brokers have provided clients with a good choice of trading platforms – from MetaTrader 4 to proprietary software solutions. FXCM tops FXTM as it offers a selection of 6 trading platforms compared to 3 platforms found at FXTM. FXCM’s main standout trading platform is Trading Station compared to FXTM’s brand new mobile App.

FXCM vs. FXTM: Comparing Brokers’ MetaTrader 4 Software

Along with its layout customizability options and technical analysis package of 30 built-in indicators, over 2,000 free custom indicators and 700 paid indicators, FXCM’s MetaTrader 4 also offers a number of other features and benefits:

• Clients can set Stop Loss and Take Profit orders while opening a new position
• Micro lots trading available for tighter risk management
• Ability to develop and use expert advisors for automated trading strategies
• Position hedging allowed
• Partial closing of positions allowed
• No restrictions on trade orders, a condition that best suits trading styles such as scalping
• Copy-trading capability with MT4 Trading Signals
• Access to VPS hosting service – it will be completely free if clients trade an average notional volume of at least 500,000 per month for the prior 3 months
• Access to additional trading tools with FXCM Plus, including Trading Signals, Trading Analytics and Technical Analyzer
• Fast execution with price improvement – FXCM’s MT4 ensures average execution speed of 28 ms, while, according to 2020 performance statistics, over 87% of client orders were executed with zero or positive slippage
• MT4 WebTrader is compatible with popular web browsers

Meanwhile, FXTM’s MT4 also offers much in terms of features and tools, including:

• The full technical analysis package
• MQL4 environment for development and testing of expert advisors;
• Access to FXTM Trading Signals – a tool that combines popular technical indicators and presents different scenarios
• Access to additional Forex trading indicators such as Orders Indicator, Pivots SR Levels, Spread Indicator, Day Bar Info Indicator among others
• Execution with price improvement – according to 2020 performance statistics, the majority of FXTM client orders were executed with positive slippage
• Platform accessible from both Windows and Mac OSX devices;
• MT4 WebTrader compatible with six browsers (Internet Explorer, Microsoft Edge, Mozilla Firefox, Google Chrome, Safari, Opera)

FXCM vs. FXTM: Mobile trading

Both brokers offer MT4 mobile apps for iOS devices (iPhone, iPad) and Android devices (smartphones, tablets) while ensuring greater trading flexibility for clients.

Additionally, FXTM offers iOS and Android mobile apps for MetaTrader 5, along with the FXTM Trader mobile app. The latter represents FXTM’s proprietary software that features state-of-the-art charting tools, one-click trading and trading across multiple devices.

FXCM vs. FXTM: Other trading platforms

Along with MT4, FXTM has also included MetaTrader 5 in its list of available platforms. It offers even a wider range of technical indicators, analytical objects and timeframes, more types of pending orders as well as richer interface customizability options in comparison with the MT4 software. It also offers market depth functionality.

Meanwhile, FXCM clients can take advantage of the broker’s proprietary CFD and Forex trading platform, Trading Station, available for Windows, Mac OSX, iOS and Android. It offers powerful analytical tools, advanced features and charting as well as good interface customizability options. The Desktop version of the platform grants accesses to advanced indicators such as Real Volume and Speculative Sentiment Index as well as access to a sound environment for automated strategy backtesting and optimization.

FXCM also grants access to ZuluTrade, one of the biggest social trading platforms, which allows clients to copy trades in Forex, Shares, Cryptocurrencies and CFDs directly into their FXCM account. For a monthly subscription fee of $30, clients can access strategies from top-performing traders and pay 25% of earnings to a trader they copy, in case he/she has generated a positive return.

Finally, another trading platform, available only in FXCM’s EU, UK, Australia and South Africa jurisdictions, includes NinjaTrader 8. Along with CFD trading, it also allows spread betting for UK and Ireland clients.

FXCM vs. FXTM: Conclusion

Overall, FXCM delivers the ultimate trading package with an impressive selection of proprietary trading platforms and third-party platforms. At FXCM, algorithmic traders can also find a complete solution of 8 different third-party platforms. However, we found that FXTM provides a superior mobile trading experience.

View FXCM Review >>Visit FXCM >>

What Forex Pairs And Other Financial Instruments (CFDs) Can Your Trade?

Our review has found that FXCM focuses mostly on forex trading along with other unique trading baskets. At the same time, FXTM doesn’t keep its focus only on the FX niche but offers the ability to trade on numerous shares. Both brokers also offer some stock indices and commodities as well as for cryptocurrencies as CFDs.

Although crypto products are offered by both brokers, retail traders in the UK are no longer able to trade cryptocurrencies. The UK’s Financial Conduct Authority (FCA) recently changed regulation, banning retail traders from accessing crypto markets.

Note * At FXTM, traders can access +250 financial instruments compared to only 98 CFDs offered by FXCM.

Risk warning: Trading CFDs on retail investor accounts is associated with a high risk of losing capital rapidly due to high leverage ratios. Therefore, clients need to be fully aware of how such complex instruments work before they start trading on a live account.

Tradable financial instruments offered by both FXCM and FXTM can be summarised as follows:

• Foreign Exchange – 40 major, minor and exotic Forex pairs at FXCM vs. 62 Forex pairs at FXTM
• Stock Index CFDs – 15 contracts at FXCM vs. 11 contracts at FXTM
• Crypto CFDs – 7 Cryptocurrencies at FXCM (Bitcoin, Ethereum, Litecoin, Ripple, etc.) while FXTM lacks crypto trading (not available in UK)
• Commodity CFDs – 11 Spot Metals, Energies and Agricultural Commodities at FXCM vs. 8 Spot Metals and Spot Energies at FXTM
• Stock and ETF CFDs – 15 US Stock CFDs available on FXCM’s MetaTrader 4 and Trading Station platforms vs. 141 US Stock CFDs and 50 European Stock CFDs available on FXTM’s MetaTrader 5 platform.

FXCM stands out for offering unique trading products, including:

• 3 forex baskets (us dollar index, Japanese Yen index and emerging market index) – the currency baskets are designed to display the performance of the USD, JPY and emerging currencies against a basket of major currencies.
• 6 stock baskets (BIOTECH, CANNABIS, ESPORTS, FAANG, CHN.ECOMM and CHN.TECH) acts as benchmarks that track the price movement of different stock sectors.
• 1 crypto basket (CryptoMajor) a weighted crypto index made up of 5 of the most traded cryptocurrencies

FXCM vs. FXTM: Conclusion

Overall, FXTM offers more CFD instruments, but FXCM covers more asset classes and has unique baskets that give you exposure to specific sectors. On the other hand, FXTM clients can get access to a wider selection of FX pairs and more stocks to trade. FXCM also has forex trading, but it’s not accessible for all FX pairs like with FXTM.

View FXTM Review >>Visit FXTM >>

Do The Brokers Offer Good Customer Support And Services (Education, Research)

Both brokerages offer professional customer support service through several popular channels. First of all, 24/5 support via live chat is available with both brokers. FXTM also offers other chat options such as WhatsApp, Viber, Telegram and Facebook Messenger. We were left with some positive impression by the live chat option at both brokers, as we obtained useful information on the matters we asked about.

Second, 24/5 support is also available over the phone:

1. Clients can contact FXTM’s support team by dialling +357 25 55 87 77
2. Clients can contact FXCM’s support team by dialling +1 646 253 1401.

In addition, FXCM provides a list of international free call numbers for its clients. More, FXCM customer support can be contacted via SMS message.

Third, both brokers can be contacted via email. In both cases, we received emailed response to our inquiries in a bit less than 24 hours, while the information was precise. Clients can contact FXTM at [email protected], while FXCM can be contacted for general and account-specific inquiries at [email protected].

FXCM vs. FXTM: Education and Research

As we were navigating the brokers’ websites, it immediately became clear that both FXCM and FXTM had particularly invested resources in their Forex trading education sections, offering diverse content to clients.

For example, FXTM offers a selection of free eBooks that cover topics such as 50 Successful Traders’ Habits, Elliott Wave Theory, Bitcoin trading, Bullish and Bearish Candlestick Patterns.

Additionally, it has provided an easy-to-read education section that contains Forex trading strategies such as The Pop ‘n’ Stop Trade, Forex Dual Stochastic Trade, The Bladerunner Trade as well as an explanation of some popular Forex technical indicators such as Ichimoku Kinko Hyo, Stochastic Oscillator, Bollinger Bands and Forex trading styles such as Day Trading, Scalping, Swing Trading and Position Trading.

As an award-winning broker when it comes to Forex education, FXTM also conducts free trading webinars regularly with a focus on risk management, trading psychology as well as complex trading strategies.

Last but not least, the STP broker has provided short Forex trading videos focused on concepts such as Forex Basics, Trading Basics and Technical Analysis.

And let us not forget FXTM’s extensive glossary containing explanations of the most important terms within the Forex industry.

Meanwhile, FXCM offers its clients two comprehensive trading guides – Forex Trading for Beginners and Best Practices of Successful Traders.

The broker’s education section also includes:

• Free Forex trading webinars and live market updates, conducted five days per week and featuring Senior Market Specialist Russell Shor.
• A vast Forex video library covering Forex trading basics, platform functionality, trading strategies and more.
• Free subscription service to FXCM’s SMS Trade Alerts in Forex, Shares, Bitcoin and CFDs, which are delivered to their mobile device on a daily basis.

And finally, along with education materials, FXCM offers an entire suite of research tools and market resources, including an economic calendar, a free daily newsletter, market scanner, market data signals and a daily snapshot for trading ideas.

FXCM vs. FXTM: Conclusion

Overall, both forex brokers are well prepared to serve and assist clients with their needs via a professional customer support service. Clients should be aware that all the educational and research content is provided with sole informational purposes and should not be taken as investment advice. If you have an inquiry about the online trading service offered by any of the two brokerage trading firms, don’t hesitate to contact them directly.

View FXTM Review >>Visit FXTM >>

What Are the Minimum Deposit, Deposit and Withdrawal Methods Available?

As we discussed earlier in the current review, the minimum deposit required depends on the trading account type chosen. FXCM minimum deposit is $300 compared to FXTM’s minimum deposit, which ranges from $10 up to $25,000.

While FXCM allows deposits made in five different major currencies (EUR, USD, GBP, AUD, CHF), FXTM supports seven different base account currencies, including USD, EUR, GBP, PLN, CZK, INR and NGN.

Deposit and Withdrawal Options

With FXCM, clients can choose from five different account funding options, while the broker will charge no deposit fees:

• Debit Card or Credit Card by Visa, MasterCard or Discover – the fastest account funding option, but there will be a maximum deposit limit of $30,000 per calendar month;
• Bank wire transfer – deposits will take between 3 and 5 business days for international transfers, less for domestic transfers;
• Skrill – maximum deposit limit of $20,000 per calendar month;
• Neteller – maximum deposit limit of $20,000 per calendar month;
• UnionPay – maximum deposit limit of $30,000 per calendar month.

In comparison, FXTM allows account funding via seven payment options and will also charge no deposit fees:

• Debit Card or Credit Card by Visa, Maestro or MasterCard;
• Bank wire transfer
• Electronic wallets: PayPal, Neteller, Skrill, Dotpay
• Western Union Quick Pay

When it comes to withdrawal options, FXCM will not charge any withdrawal fees for Debit/Credit Cards and E-wallets. However, it will apply a fee of up to $40 for withdrawals via bank wire transfer. The fees will depend on the base account currency and the location of the target bank account.

Meanwhile, at FXTM, fund withdrawals via Credit Cards, the bank wire transfer will incur a small fee of USD 3, while PayPal withdrawals will incur a 2% commission rate.

FXCM vs. FXTM: Non-trading Costs

There will be no account maintenance fees and deposit fees at both brokers.

However, both FXCM and FXTM will charge an inactivity fee. FXCM will charge an inactivity fee of $50, in case there is no client-initiated activity for a period of 12 months. FXTM will charge such a fee ($5/EUR 5/ GBP 5), in case there is no trading activity for a period of 6 months.

FXCM vs. FXTM: Conclusion

While FXTM supports more base currencies and offers more payment options, both brokers cover the most popular online payment methods. Both forex brokers aim to offer secure and easy ways to fund your trading account. On the downside, we should point that FXTM charges a small withdrawal fee.

View FXCM Review >>Visit FXCM >>

What Regulation and Risk Management Do The Brokers Offer?

Both FXCM and FXTM comply with regulatory standards for a few of the most respected Forex regulators worldwide. FXCM and its corporate arms are authorised to conduct online trading business and are regulated in the following jurisdictions:

• United Kingdom – Forex Capital Markets Limited, an entity regulated by the Financial Conduct Authority (FCA) with registration number 217689
• Australia – FXCM Australia Pty. Limited, an entity regulated by the ASIC with AFSL number 309763
• South Africa – FXCM South Africa (PTY) Ltd, an entity regulated by the Financial Sector Conduct Authority (FSCA) with FSP number 46534
• Internationally – FXCM Global Services LLC, which is incorporated in Bermuda and is not subject to regulatory oversight.

Meanwhile, FXTM and its corporate arms are regulated in the following jurisdictions:

• United Kingdom – ForexTime UK Limited, an entity licensed and regulated by the Financial Conduct Authority (FCA) with License No. 777911
• South Africa – ForexTime Limited, an entity licensed by the Financial Sector Conduct Authority (FSCA) with FSP number 46614
• EEA – ForexTime Limited, regulated by Cyprus-based CySEC with CIF License No. 185/12
• Internationally – Exinity Limited, which is authorised and regulated by the Financial Services Commission (FSC) of the Republic of Mauritius with Investment Dealer License number C113012295.

Fund Protection

Both brokers assure that client funds are kept fully segregated from their corporate accounts at reputable financial institutions. FXCM states that it keeps client money at financial institutions that have a “credit rating equivalent to the FCA’s Credit Quality Step 5 rating.”

In addition, since FXCM is FCA-regulated, retail clients have a guarantee that they will be compensated by the Financial Services Compensation Scheme (up to GBP 85,000), in case the broker fails to meet its financial obligations. At the same time, since FXTM is a member of the Cyprus Investor Compensation Fund, its clients will be compensated in an event of FXTM insolvency.

Negative Balance Protection

As far as negative balance protection (NBP) policies are concerned, FXCM states that it “will waive the first US $50,000 of a client’s total negative balance ….. This policy will apply to negative balances incurred during all market conditions, including exceptional market movements.” A negative balance that exceeds the $50,000 threshold will have to be repaid by clients.

FXTM also follows a negative balance protection policy. In case of an unexpected market occurrence that results in a negative balance, the broker will not request the respective amount from its clients and will bring their account balance back to zero.

FXCM vs. FXTM: Conclusion

The bottom line is that FXCM and FXTM bear several similarities, more or less being regulated in the same jurisdiction and offer fund protection along with NBP policy. In the end, the decision to open an account with FXCM or FXTM comes down to your personal preference and trading needs.

View FXCM Review >>Visit FXCM >>