FXCM vs FXTM (or ForexTime) are two multi-regulated forex brokers that good education, a wide range of trading platforms such as MetaTrader 4 and range of CFD products. Read about each broker in our head to head review.
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FXCM offers two types of trading accounts:
FXTM provides its clients with a choice of six trading accounts:
The Standard accounts feature only a bid-ask spread and no trading commissions and are an appropriate choice for novice Forex traders. The ECN accounts feature much lower bid-ask spreads and include a small trading commission. This type of account is best for Forex traders with experience.
FXTM offers 3 standard accounts with different trading conditions:
Meanwhile, FXCM’s Standard account can be opened with a minimum deposit of $50 in jurisdictions outside the EEA, while the minimum deposit requirement for countries within the EEA is $300. FXCM clients can access 40 currency pairs along with 3 FX baskets and a selection of 5 trading platforms.
FXTM’s ECN account ensures the best possible pricing for clients, which is derived directly from a pool of top-tier liquidity providers. The ECN account can be opened with a minimum deposit of $500 and grants access to 48 currency pairs, 3 Spot Metals and 14 Spot CFDs traded on ForexTime’s MetaTrader 4 platform.
FXTM’s ECN Zero account can be opened with a minimum deposit of $200. Clients can access 48 Forex pairs, 3 Spot Metals and 14 Spot CFDs on the broker’s MetaTrader 4 software and 33 Forex pairs and 2 Spot Metals on its MetaTrader 5 platform.
And finally, the FXTM Pro Account is designed for professional traders only, with the minimum deposit required being $25,000. It grants access to 43 Forex pairs and 2 Spot Metals traded on ForexTime’s MT4 platform.
All ECN accounts are suitable for trading styles such as scalping as well as for traders who employ expert advisors (EAs).
Meanwhile, FXCM’s Active Trader account is an ideal solution for high-volume traders who can receive a set of benefits (dedicated customer support, premium services among others) and are eligible for discounted pricing.
The brokerage will offer discounts on spreads for active traders who meet its minimum notional volume requirement of USD 150 million per month. Forex traders will receive different tier rebates depending on their trade volume.
Note* FXCM’s rebate program is valid only for financial instruments such as currency pairs, Stock Indices and a selection of Commodity CFDs.
Other benefits for active traders include:
The minimum deposit required to open an Active Trader account is $25,000, while Forex spreads start from 0.2 pips on major pairs such as EUR/USD.
Yes, both brokers offer an Islamic account (swap-free) option on their regular trading accounts, suitable for clients of the Muslim faith. Additionally, a free demo account that mimics real-time market conditions is available at both FXCM and FXTM.
Overall, both forex brokers offer account types that are suitable for beginners and active traders. However, FXTM’s offering includes a more diverse list of account types that caters to every conceivable need.
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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).
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:
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.
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.
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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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:
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:
Similar leverage caps are also valid within the European Economic Area (EEA).
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.
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.
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:
Meanwhile, FXTM’s MT4 also offers much in terms of features and tools, including:
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.
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.
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.
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:
FXCM stands out for offering unique trading products, including:
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.
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:
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@example.com, while FXCM can be contacted for general and account-specific inquiries at firstname.lastname@example.org.
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:
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.
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.
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.
With FXCM, clients can choose from five different account funding options, while the broker will charge no deposit fees:
In comparison, FXTM allows account funding via seven payment options and will also charge no deposit fees:
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.
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.
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.
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:
Meanwhile, FXTM and its corporate arms are regulated in the following jurisdictions:
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.
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.
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.
If you are looking for alternate brokers regulated by tier-1 financial authorities, check out Pepperstone, eToro, FxPro or OANDA.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.