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FXCM Review

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FXCM is a forex trading services broker. They give traders access to a wide variety of instruments in several markets like currencies, indices, commodities and bonds.

Pros

  • Segregates client funds
  • Established in 1999
  • Regulated by Financial Conduct Authority
  • Min. deposit from $1

Cons

To open a live account, you’ll need a minimum deposit of at least $1. Alternatively, FXCM offers a demo account that you can use to practice and familiarise yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 217689), and ASIC (AFSL #309763). FXCM puts all client funds in a segregated bank account and uses tier-1 banks for this. FXCM has been established since 1999, and have a head office in United States.

Before we dive into some of the more detailed aspects of FXCM ’s spreads, fees, platforms and trading features, you may want to open FXCM ’s website in a new tab by clicking the button below in order to see the latest information directly from FXCM.

Visit FXCM

Full disclosure: We may receive a commission if you sign up with a broker using one of our links.

FXCM screenshot Open a demo account

79.79% of retail investor accounts lose money when trading CFDs with this provider.

What are FXCM's spreads & fees?

Like most brokers, FXCM takes a fee from the spread, which is the difference between the buy and sell price of an instrument.

The spreads displayed below are based on the minimum spreads listed on FXCM’s website. The colour bars show how competitive FXCM' spreads are in comparison to other popular brokers featured on BrokerNotes.

FXCM
EUR/USD (Average: 0.7 pips) 1.4 pips + $8.00 0.7 pips 0.1 pips
GBP/USD (Average: 1.1 pips) 1.2 pips + $8.00 1.7 pips 0.1 pips
USD/JPY (Average: 1.1 pips) 1.6 pips + $8.00 0.6 pips 0.1 pips
AUD/USD (Average: 0.8 pips) 0.8 pips + $8.00 0.6 pips 0.2 pips
USD/CHF (Average: 2.3 pips) 1.9 pips + $8.00 2.3 pips 0.2 pips
USD/CAD (Average: 2.9 pips) 2.2 pips + $8.00 0.5 pips 0.3 pips
NZD/USD (Average: 3.6 pips) 2.1 pips + $8.00 2.8 pips 0.3 pips
EUR/GBP (Average: 2.4 pips) 2.4 pips + $8.00 0.5 pips 0.1 pips

Spreads are dynamic and are for informational purposes only.

As you can see, FXCM’s minimum spread for trading EUR/USD is 1.4 pips - which is relatively high compared to average EUR/USD spread of 0.70 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with FXCM vs. similar brokers.

See all Spreads

How much does FXCM charge to trade 1 lot of EUR/USD?

If you were to buy one standard lot of EUR/USD (100k units) with FXCM at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $3. Here’s a rough breakdown of the fees and how this compares against IG & Forex.com .

FXCM IG Forex.com
Spread from: $ 3.00 $ 6.00 $ 10.00
Commission: $0.00 $0.00 $0.00
Total cost of a 100k trade: $ 3.00 $ 6.00 $ 10.00
$3 more $7 more
Visit FXCM Visit IG Visit Forex.com

All fees/prices are for informational purposes and are subject to change.

General Fees

  • FXCM doesn’t charge inactivity fees*
  • FXCM withdrawal fees varies on payment method

Commissions

  • FXCM does charge commission on CFD shares

What can you trade with FXCM?

FXCM offers over 70 different instruments to trade, including over 39 currency pairs. We’ve summarised all of the different types of instruments offered by FXCM below, along with the instruments offered by IG and Forex.com for comparison.

FX / Currencies FXCM IG Forex.com
# of forex pairs offered 39 90 80
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes Yes
Exotic forex pairs Yes Yes Yes
Cryptocurrencies No Yes Yes
Commodity CFDs FXCM IG Forex.com
# of commodities offered 0 34 12
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural Yes Yes Yes
Index & Stock CFDs FXCM IG Forex.com
# of Stocks offered 0 8000 220
UK Shares No Yes Yes
US Shares No Yes Yes
German Shares Yes Yes Yes
Japanese Shares Yes Yes Yes
See FXCM's InstrumentsSee IG's InstrumentsSee Forex.com's Instruments

What’s the FXCM trading experience like?

1) Platforms and apps

FXCM offers the popular MT4 forex trading platform. To see a list of the top MT4 brokers, see our comparison of MT4 brokers.

FXCM Screenshot

FXCM also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

See FXCM 's platforms

Trading Features:

  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit

Accounts offered:

  • Demo account
  • Mini account
  • Standard account
  • Islamic account

Still not sure?

Open a practice account & learn to trade

2) Executing Trades

With FXCM, the minimum and maximum trade requirements vary depending on the trader and the instrument. As FXCM offer STP execution, you can expect tighter spreads with more transparency over the price you‘re paying to execute your trades.

As a market maker, FXCM may have lower entry requirements compared to an ECN broker who benefits from a higher volume of trades and typically has larger capital and minimum trade requirements. Market makers typically have a lower minimum deposit, smaller minimum trade requirements and no commission on trades.

As a nice bonus, FXCM are one of very few brokers that claim to have no requotes, so you don’t have to worry about slippage (your trades being ordered at a different price to what you executed them at ).

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments. You can see the latest margin requirements on their website.

Finally, we’ve listed some of the popular funding methods that FXCM offers its traders on the right.

Funding methods:

  • Credit cards
  • Bank Transfer
  • Payoneer

3) Client support

FXCM support a wide range of languages including English, Italian, Spanish, German, Russian, French, Portuguese, Hebrew, Arabic, Chinese, Japanese, and Urdu.

FXCM has a BrokerNotes triple AAA support rating because they offer a wide range of languages and support options.

4) What you’ll need to open an account with FXCM

As FXCM is regulated by Financial Conduct Authority , every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While you might be able to explore FXCM’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with FXCM you can visit their website here.

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from https://www.fxcm.com/ on 01/08/2019.

79.79% of retail investor accounts lose money when trading CFDs with this provider.