Company

Spread

for EUR/USD

Min.

Deposit

Platforms

Offered

Account

Types

Spread

Type

Funding

Methods

Customer

Support

Execution

Details

FXCM

Offers two ways to trade: Forex,CFDs

 
FXCM
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  • MT4
  • WebTrader
  • Mobile apps
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  • Micro
  • Standard
  • VIP
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  • Fixed
  • Variable

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  • Credit cards
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Contact Details
  • Market Maker
  • DMA
  • ECN
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Trust Score:

AA

Established in:

1999

Regulated by:

Financial Conduct Authority

CFDs are leveraged products and can result in the loss of your capital. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For Instant Execution

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose FXCM
For Instant Execution?

FXCM scored best in our review of the top brokers for instant execution, which takes into account 120+ factors across eight categories. Here are some areas where FXCM scored highly in:

  • 18+ years in business
  • Offers + instruments
  • A range of platform inc. MT4, Mirror Trader, Web Trader, NinjaTrader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 1.4 pips
  • Used by + traders
  • Allows hedging
  • 2 languages
  • Leverage up to 1:200

FXCM offers two ways to trade: Forex,CFDs. If you wanted to trade EURUSD through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

FXCM have a AA trust score, which is v. good. This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being established for over 18 years, and much more. For comparison:

Trust Score comparsion

FXCM
Trust Score AA
Year Established 1999
Regulated by Financial Conduct Authority
Uses tier 1 banks
Company Type Public Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who FXCM is (& Isn’t)
Suitable For

As mentioned, FXCM allows you to trade in two ways: Forex,CFDs.

Suitable for:

  • CFD Trading
  • Forex Trading
  • Social Trading

Not Suitable for:

To trade with FXCM, you'll need a minimum deposit of $50. FXCM offers a range of different account types for different traders including a mini account, .

Finally, FXCM isn't available in the following countries: No.

Part 3

A Comparison of FXCM vs. vs.


Want to see how FXCM stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
FXCM
Fixed Spreads
Variable Spreads
EUR/USD Spread 1.4
GBP/USD Spread 2.0
USD/CAD Spread 2.2
USD/JPY Spread 1.6
DAX Spread 1
FTSE 100 Spread 1
S&P500 Spread 0.5

Comparison of account & trading features

FXCM
Spread type Fixed
EUR/USD Spread 1999
EUR/GBP Spread Financial Conduct Authority
Crude Oil Spread
Gold Spread Public Private Private
DAX Spread

Part 4

What is Instant Execution?

There are two types of execution methods available to traders; instant execution and market execution.

Whereas market execution is used by no dealing desk brokers, and allows traders to get their order filled at the best price available in the market; instant execution is used by dealing desk brokers, who execute the order at a precise price – the last price quoted on the trading platform. Traders can nominate stop loss and take profit levels before the order is executed; risk management elements that are not available before entering a trade with market execution. Orders are then filled at the requested price (or a specified deviation from this price). However, as orders can be processed with a delay, a requote from the broker may be required if the price deviates outside of the requested parameters. Although there are no requotes with market execution, the price that a trader desires may not be the price that their order is filled at. A potential advantage of instant execution, therefore, is that orders are only processed as long as they remain at the requested price, within the price parameters, or at the requoted price if accepted by the client.

This execution type can be useful for news traders who wish to avoid significant price changes while executing trades during high volatile events, such as interest rate decisions and inflation releases. Instant execution is also useful for high frequency scalpers who target just a few pips in every trade, and set stop loss and take profit levels to manage the risk in their trading strategy. There may, however, be limits that apply to trading strategies such as this when using the instant execution method.

There are also disadvantages associated with instant execution. The chief disadvantage is that traders may miss a good price. For example, a trader may wish to buy EUR/USD at 1.2050, but after the processing delay, the price has moved up to 1.2052 and there is no option to buy EUR/USD at a price two pips higher than the price quoted. A requote would be required in this instance, but by the time the trader has accepted the new price and the order processed, the price may have moved further, requiring another requote, and so on. This can be somewhat mitigated by setting deviation parameters.

Pros and Cons

Some of the same pros and cons that apply to no dealing desk versus dealing desk brokers also apply here. Whereas with no dealing desk brokers, orders are executed direct with the market at the best price available; with dealing desk brokers, the price is supplied by the broker and there is a delay before the order is executed, which can lead to requotes.

Instant execution still offers a number of advantages, however, including the ability to set stop loss and take profit levels; and the certainty surrounding the price that an order will be executed at. However, during periods of volatility, traders may miss a good trading opportunity as the broker is required to repeatedly requote as the price moves.

Brokers that offer Instant Execution

It is important to research a broker’s approach to instant execution and market execution before making trading strategy decisions, establishing, for example, whether they are able to switch between execution methods when trading forex.

Brokers such as AvaTrade and FxPro offer instant execution, and as regulated brokers, also offer a degree of protection for their clients, as required by the stringent regulatory standards they adhere to.

Conclusion

A trader needs to decide whether instant execution is suited to their trading style by weighing up the advantages and disadvantages. It may be more suitable for traders that require an exact filling price and for traders wanting to manage the risk of making trading decisions based on emotions by setting stop loss and take profit levels.

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