FXCM Ltd is a forex brokerage firm that offers online trading services in forex, shares, indices, commodities, and cryptocurrencies. The company is an operating subsidiary of Forex Capital Markets Group based in the United Kingdom. The broker is well-known for its trade execution, transparency, and competitive spreads. Founded in 1999, the broker holds multiple regulations worldwide. The company has a variety of trading platforms available and allows clients to subscribe to copy trading services. Apart from customized trading solutions to both retail and institutional clients, the broker offers special incentives to active traders. The company accepts clients from most parts of the world, including Canada. Instant withdrawals, advanced trading tools, rich educational resources, and multilingual customer support are some commendable services of the broker. In this FXCM review, we’ll cover all the main aspects of the broker in detail.
FXCM Group of Companies holds multiple regulations in various jurisdictions across the globe, including UK, Europe, Australia, and South Africa. Given below is the list of respective regulatory authorities in the concerned regions.
- Financial Conduct Authority (FCA) – UK
- Cyprus Securities and Exchange Commission (CySEC) – Cyprus
- Australian Securities and Investments Commission (ASIC) – Australia
- Financial Sector Conduct Authority (FSCA) – South Africa
Moreover, the broker is also a member of the Investment Industry Regulatory Organization of Canada (IIROC) in Canada.
Opening FXCM Trading Account – Account Types
The types of accounts available with FXCM depend upon your selected entity/region. For example, accounts that are available in the UK, might not be available to Australian clients. In most regions, the broker offers two types of accounts, including Standard and Active trader accounts.
The account opening process is simple but time-consuming. Due to strict regulatory requirements, the broker asks for too much information. You need to mention everything to complete registration with the broker, including personal account details, source of funds, average income, and previous trading experience. To make it easy for you to sign up with the broker, let us enlist a few simple steps to follow.
Step1: Choose the country of your origin and select the preferred trading platform from the drop-down list available on the sign-up page of the broker.
Step2: Enter your details, such as first and last name, date of birth, citizenship, mobile phone number, and email address.
Step3: Complete the KYC process. Clients need to verify their identity before the broker allows them to access a trading account. You can use the following documents for identity verification.
- National ID Card/Passport/Driving License
- Bank Statement or Copy of Utility Bill
Step4: Confirm your employment status and indicate your sources of funds for trading.
Step5: Provide financial information, such as your total annual income, net worth, along with any other sources of income. You also need to specify your previous trading experience.
Step6: Read the terms and conditions and confirm your agreement.
Step7: Use your account login credentials to access the dashboard.
Step8: Access the deposit and withdrawal page, select the payment method from the available options.
Step9: Enter the amount you wish to deposit and provide payment details. For payments through debit or credit cards, enter your full name, card expiry date, and three digits security code available on the backside of your card on the payment page.
Step10: Enter OTP to authenticate the transaction. Once you have successfully transferred funds to your live trading account, you can start placing trades.
Let’s quickly review the features and services available in the accounts offered at FXCM one by one.
Standard: The broker does not specify a minimum deposit to open a standard account with FXCM. Clients can get started with the amount they see fit for their trading needs. However, the minimum payment accepted via credit/debit card at FXCM is $50. The maximum leverage available is 1:400 on FX pairs, and 1:200 on CFDs for accounts having equity of up to $20K. Spreads in the standard account start from 1.0 pips. The broker does not charge any commission from the standard account holders. Clients can trade almost 39 currency pairs with a minimum trade size of 0.01.
Active Trader Account: Facilitating high volume traders, the broker offers an active trader account with distinct features and benefits, including customized trading solutions, premium services, dedicated support, and rebates, etc. Clients from UK and Ireland can also become eligible for discounted prices, tax-free, and commission-less accounts offered under different tiers at FXCM. Traders need to trade a minimum volume of $10 Million on monthly basis to receive a rebate of $5 per million traded. Similarly, a rebate of up to $25 per million traded is available for investors with a monthly traded volume exceeding 300 Million U.S. Dollars. With a spread on EUR/USD starting at 0.2 pips and NAS100 at 1.05 pips, the broker does not employ any stops, restrictions, or price requotes in Active Trader accounts.
*The broker also offers interest-free Islamic accounts. Clients have to fill up a form to get their accounts converted to Islamic Accounts.
** Active trader account is available only in specific regions.
FXCM Deposit & Withdraw & Fees
FXCM offers multiple payment methods to deposit funds in your account. The broker does not charge any deposit or administrative fees. However, clients depositing funds in a currency other than the base currency of their accounts may be charged a conversion fee by their respective banks. The broker does not require any specific amount to be deposited in a live trading account. However, clients need to deposit a minimum of $50 to use a debit or credit card while $300 to fund their account via wire transfer. All deposits except wire transfers are instant while withdrawals may take up to 3-4 working days to get processed by FXCM. Similarly, wire transfers can also take 3-4 business days to reach clients’ accounts.
The broker changes the status of an active account to dormant after a consecutive in-activity period of more than six months. If a client remains inactive for a year, the broker charges an inactivity fee. However, the broker doesn’t specify the amount charged as an inactivity fee on all dormant accounts.
Given below is a list of supported payment methods at FXCM.
- Debit card/Credit Card
- Mater Card
- Wire transfers
- SEPA transfers
- Rapid Transfers
Spreads With FXCM
FXCM claims to keeps spread costs as competitive as possible. The broker does not charge a fixed spread. The broker even offers reduced spreads to Active Traders. For example, the average spread on EUR/USD in a standard account starts from 1.3 pips, while it drops to 0.2 pips for trader holding active trader accounts.
Listed below are the average spreads on some of the major currency pairs and CFDs.
Average Spread on Major FX Pairs
1) EUR/USD – 1.3 pips
2) USD/CAD – 2.2 pips
3) USD/JPY – 1.4 pips
4) GBP/USD – 1.7 pips
Average Spread on CFDs
1) NAS100 – 1.05 pips
2) XAU/USD – 0.38 pips
3) XAG/USD – 0.05 pips
4) US OIL – 0.04 pips
Leverage with FXCM
FXCM allows its clients to use excessive leverage. The broker has set the leverage as 1:400 on FX pairs, and 1:200 on CFDs. Clients having funds deposits over $20,000 can use maximum leverage of up to 1:100. The broker keeps adjusting the leverage size depending upon the available equity in clients’ accounts. Trading forex and CFDs on leverage enable clients to open sizeable positions with limited capital investment. However, high leverage also increases the risk of loss. Please be informed that the available leverage in countries where the broker holds regulations is not more than 1:30. If for some reason the broker doesn’t live up to your expectations, you can check out other broker reviews or the top forex brokers list for 2021.
FXCM User Experience
FXCM is a global broker that offers trading services across a wide range of tradable assets. The easy account opening process enables clients to get started with the broker immediately. Multiple trading platforms provide clients the flexibility to use select the one that fits their trading needs. Competitive spread cost along with the option of using high leverage seems to be enough features for having a rich trading experience.
However, the signing-up process could have been more simplified. It is difficult to find information on the broker’s website, such as negative balance protection, types of account available, Islamic accounts, the minimum deposit requirement, the fee that applies on inactive accounts, etc. Information on Islamic accounts was not available either. The broker may take several days to verify your documents leading you to wait longer before you could start placing trades.
On the other hand, the broker supports copy trading services and offers multiple trading tools and features depending upon the selected trading platform, including Trading Station, MetaTrader 4, and Zulutrade. Moreover, the broker also provides trading platform comparison tools to help traders compare the different features that come with each trading platform. Keeping in view the needs of all stakeholders, the broker’s trading platforms are compatible across all channels including web, desktop, and mobile phones. While it is easy to navigate across all trading platforms, these are fully equipped with the latest trading and risk management tools needed for a smooth trading experience.
Coming towards the payment options, the broker facilitates clients via multiple deposit and withdrawal methods. Not to mention, the broker is quick to process deposits while fast enough to release funds when requested. The broker also offers multilingual customer support to serve clients across different regions of the world. Overall, the broker offers a good trading experience.
Who Is FXCM For?
FXCM is best for all types of clients, including novice, professional, and institutional investors. Competitive pricing along with rebate programs makes it a top favorite broker for high-volume traders. The availability of demo accounts and copy trading services offers a sigh of relief to both novice traders and veterans. Demo account help traders to learn and improve their trading skills without risking their real money. On the other hand, copy trading services allow clients to copy trades of other professional traders and generate a reliable source of passive income.
FXCM Customer Support
FXCM offers multilingual customer support round the clock five days a week. Clients can reach the company via phone, messages, email, and live chat. The company has mentioned toll-free numbers for various jurisdictions on its website. Customers can also communicate with the FXCM customer support team on WhatsApp.
FXCM Review – Final Thoughts
After a detailed FXCM Review, we conclude that FXCM is one of the leading forex and CFD brokers available around. The company is well suited for both retail and institutional investors. With a competitive pricing structure, lightning-fast trade execution, and copy trading services, the broker has a certain edge over its competitors. As far as the security of the client’s funds is concerned, the broker keep clients investment in segregated bank accounts. The company also ensures advanced level security protocols to protect the online transmission of customers’ sensitive data. Multiple regulations across different regions of the world add a further layer of assurance to the broker’s credibility.
Countries that FXCM is NOT available in:
Listed below are the countries where FXCM does not offer its services:
- The central African Republic
- Ivory Coast
- North Korea
- South Korea
- Russian Federation,
- United States
The minimum deposit is $50 at FXCM.
FXCM offers maximum leverage of up to 1:400. However, the broker does not offer leverage of more than 1:30 in regulated jurisdictions.