FXCM Broker Review
FXCM, or Forex Capital Markets, is a broker established in the United Kingdom that offers forex and CFD trading. FXCM was founded in 1999 and is owned by Jefferies Financial Group, a New York Stock Exchange-listed company with a background in investment banking. Although the brokerage firm started in the US, it moved its operations from the country in 2017.
If you want to open up an account with FXCM, consider this review first.
You can find our transparent FXCM review below. Broker reviews are updated frequently!
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Pros / Cons
- FSCA Regulated
- Low Minimum deposit
- Well Established
- Broker Verified
- No ZAR Account Currency
- No MT5
The Financial Conduct Authority has authorised and regulated Forex Capital Markets Limited (FXCM LTD) in the United Kingdom (FCA). Since its takeover by Jefferies Financial Group, FXCM has been fully compliant.
If you join FXCM LTD, you are covered by the Financial Services Compensation Scheme (FSCS) for up to £85,000.
FXCM founded FXCM EU Ltd in Cyprus in 2019 and submitted for an operating licence with the Cyprus Securities and Exchange Commission in 2020. The Commodities Futures Trading Commission (CFTC) once regulated FXCM in the US.
FXCM is regarded as a secure broker due to its long track record, strong parent corporation, and regulation by top-tier financial regulators. FXCM’s regulated entities additionally take a variety of other precautions to protect you as a trader. Offering negative balance protection is one of them. This safeguard ensures that you cannot lose more than the amount of money on their account.
Your funds are always kept in segregated accounts with top-tier financial institutions when you trade with FXCM’s registered businesses. This ensures that even if the broker runs into financial difficulties, you are protected.
FXCM Tradeable products
FXCM is primarily a forex broker with 39 currency pairings for trading. This comprises a variety of major, minor, and exotic currency pairs and some forex futures.
FXCM also offers thirteen index CFDs, nine commodity CFDs, and one bond CFD in addition to forex. Recently, the brokerage business launched five cryptocurrency CFDs and one cryptocurrency basket. Though the asset selection is fairly limited compared to other brokers, it should satisfy you as a beginner.
FXCM Account types
FXCM offers four trading accounts: standard, active trader, Islamic, and spread betting account.
The FXCM Standard account is the most popular option for many people; you will have access to 39 forex currency pairs with this trading account. CFD markets on key indices, commodities, metals, and bonds are all included.
A $50 (for non-EU and UK clients) minimum deposit keeps the account accessible to all types of traders, and with a very large liquidity pool available on FX and all markets, spreads can start as low as 1.3 pips for EUR/USD.
If you intend to trade in large volumes, FXCM’s Active Trader account is the ideal choice. When compared to a standard account, this gives superior spreads and customer support.
The EURUSD spread, for example, is 0.2 with the Active Trader account. If you open a corporate account, there is a one-time fee of $300. This cost will be deducted from your initial deposit.
If you are interested in spread betting, the FXCM spread betting account is ideal. Currently, the account is only available to FXCM traders based in the United Kingdom and Ireland. There are more than 39 instruments available here. FXCM allows UK traders to begin trading with as little as £300.
FXCM also provides an Islamic account that has no swap fee.
In addition, FXCM offers an unlimited demo account. This means that you can keep your demo account even if you open a live trading account. This is ideal for trying out new strategies.
Opening an account
To open an account with FXCM, you have to go through the following steps:
- Choose your platform, account type and base currency.
- Fill out a KYC questionnaire and enter your personal details. KYC is an abbreviation for “Know Your Customer”, and it refers to a consistent and controlled process for identifying clients.
- Submit documentation to prove your identity and residency. You can prove your identity by uploading a copy of your ID/passport and your residency by uploading a bank statement/utility bill.
There are seven base currencies for opening an account with FXCM. These include:
EUR, USD, GBP, AUD, CHF, JPY, CAD.
Even though FSCA regulates FXCM, as a South African, you can’t open an account in ZAR, the great thing is that you can open up an account in ZAR.
FXCM allows you to trade on various platforms, including MT4, NinjaTrader, TradeStation, and TradingView.
With MT4, you have a highly secure platform, tremendously resilient, user-friendly, and lightweight enough to work on practically any device. You will also get access to many charting tools and indicators and the option to auto trade and utilise strategies via the EAs function.
FXCM Trading Station is FXCM’s proprietary trading platform. It is accessible via their very user-friendly and appealing web trader, which can be accessed via your browser or on both desktop and mobile devices.
FXCM Ninjatrader is another third-party trading platform available through the broker. Again, you may benefit from a very user-friendly platform design, as well as an extensive level of charting capabilities and an outstanding depth of Algo-trading power using this trading platform. This trading software also allows for spread betting and backtesting of any robots or trading methods you may consider implementing.
Tradingview is a third-party application provided through FXCM. The broker does a good job of giving you the premium version of the service for free for a year. Tradingview software is great for research and can assist you in recognising market patterns.
Average Standard Account Spreads on Majors
- EUR/USD: 1.3
- GBP/USD: 1.7
- USD/JPY: 1.4
- AUD/USD: 1.8
FXCM Commissions and fees
FXCM only offers floating spreads, so fixed spread trading is impossible. These floating spreads start at 1.3 pip on forex but can be reduced to 0.2 pip if you qualify for the active trader program.
The Spread Betting account, which is only available to traders in the United Kingdom and Ireland, has 0.8 pips spread on the same currency pair. Index and commodities CFDs are attractively priced.
This spread is very high by industry standards, but a wide choice of pairs are available and the distinctive forex baskets, which include a USD basket, an emerging markets basket, and a Yen basket.
On overnight positions, FXCM uses swap rates. Because each asset has its own charge, which is always changing based on the market, you can acquire the most up-to-date information at that time by using the brokers’ trading platforms.
FXCM charges an inactivity fee. However, this only happens after 12 months with no client-initiated activity. The inactivity fee is $50 per year.
The amount of FXCM leverage you have access to is determined by two things. The first is the type of regulation you are subject to, and the second is the asset you are trading.
Due to regulation, the maximum leverage available in Europe, Australia (ASIC), and the United Kingdom on any market and from any broker is 30:1.
If your equity is less than $20,000, you will have access to leverage of up to 1:400 on main currency pairs in South Africa. If your equity exceeds $20,000, the leverage reduces to 1:200.
Deposits and Withdrawals
FXCM provides you with the option to fund your trading account using bank transfers, credit/debit cards, Skrill, Neteller, UnionPay, and Rapid Transfer.
Depending on the method you select, depositing with the broker is usually instant in most circumstances. Having stated that, your initial deposit may take two or more business days to complete. Withdrawals can take up to 48 hours to process.
If you deposit in a currency other than the base currency, you may be charged a currency conversion fee. Depending on the policies, your bank may also charge you for wire transactions.
Education and Research
FXCM sends free educational material via email when you open a demo account.
The FXCM video library is large, with content on topics such as charts and numerous order and categories.
There are free live webinars, pre-recorded films, and pdf publications accessible—these range from trading fundamentals to platform tips and tactics.
The majority of FXCM research tools are offered on the FXCM Plus platform, which is separate from the trading platform. This is somewhat inconvenient.
FXCM offers trading suggestions. FXCM’s Trading Signals and Technical Analyzer sections contain recommendations. These suggestions are based on technical analysis.
FXCM’s Market Scanner tool also offers you an up-to-date and quick summary of market trading opportunities.
You will also receive a free one-year subscription to TradingView Pro. This can also help you in conducting an effective market analysis.
Because of the broker’s global presence, they also have over 20 phone numbers you can call from anywhere in the world to reach customer care. In addition to the phone, you can reach FXCM customer care through the website’s live chat and email.
Bonuses and Promotions
Currently, FXCM provides no bonuses and promotions.
FXCM offers four free API options for traders of all skill levels to create automated trading systems that interface directly with the FXCM trading server.
This brokerage hosts a wide choice of free and paid plugins for all trading platforms, rounding out its substantial support for automated trading solutions ranging from retail accounts to professional traders to asset management organisations.
FXCM is an excellent example of expanding your offerings and is a true leader in this industry.
FxPro South Africa
As a South African, you will be pleased to hear that FXCM accepts South African clients and is regulated by FSCA. However, you can’t open an account in ZAR.
FXCM offers a fair affiliate program to IBs and Affiliates.
The broker’s strong background, years of successful operation, and ownership by a recognised firm in the financial sector contribute to FXCM’s dependable and safe trading environment.
As a trader, you will undoubtedly benefit from appealing broker offers, as well as excellent technical development and a wide range of instruments to employ.
Active or large volume traders can profit from various available interfaces, good and competitive value spreads, or offers with advanced technical features.
If you are a beginner trader, FXCM is also an option because there is no need for large deposits to begin trading, and supportive customer managers are always available. Besides, there is an impressive selection of tools to begin, from Auto-trading to the diversity of comprehensively supported indicators.
Overall, FXCM is a pleasing option for all traders.
FXCM is an impressive forex and CFD broker. It has a strong parent corporation governed by several top-tier financial regulators, including the FCA and ASIC.
FXCM’s account opening process is excellent, and its technical research and educational resources are of high quality and well organised.
Feel free to give FXCM a try because their minimum deposit is inexpensive, and their inactivity fee applies after a year.
Thinking of Trading with FXCM?
What is FXCM’s minimum deposit?
The minimum deposit for UK traders is £300, and $50 for international traders.
How do I deposit/withdraw from my FXCM account?
You can deposit/withdraw funds through debit or credit card, bank wire transfer, Skrill, Neteller, UnionPay, and Rapid Transfer.
Is FXCM spreads high?
FXCM has relatively higher spreads.
What is the maximum leverage at FXCM?
FXCM offers maximum leverage of 1:500
Does FXCM use MetaTrader?
Yes, FXCM uses MT4.
Is FXCM available in South Africa?
Yes, FXCM is available for South African traders.
Yes, I want to demo trade
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