FXCM Review 2021
FXCM Review: is one of the best online Forex brokers with more than two decades (1999) of financial market experience. FXCM gives access to retail traders and corporates to the world’s largest liquid market, offering Forex, shares, indices, commodities, and more. Although the range of tradable instruments (89) is much less than other brokers, FXCM has received international recognition for its multiple advanced trading platforms and award-winning market research tools. Trading platforms including its proprietary trading platform, and legendary MetaTrader 4 platform, ninja trader, and many others.
Top Key Points for FXCM in 2021
Founded in 1999, FXCM is a Leucadia Company, which falls under the arm of Jefferies Financial (NYSE: JEF). FXCM is regulated in three tier-1 jurisdictions, making it a safe broker (low-risk) for trading forex and CFDs.
Regulated by top 3 top-tier regulatory bodies (FCA, FSCA, and ASIC) making it a safe broker (low risk). Operating under Leucadia National Corporation and which is listed on the NYSE (The New York Stock Exchange).
Offering multiple platforms & best in class advanced research tools.
Professional educational materials for free.back to menu ↑ back to menu ↑
Is FXCM safe or a scam?
No, FXCM is not a scam. In fact, in safety measure, FXCM is highly trusted and have a good long term reputation from its customers and worldwide recognized by industry experts. FXCM is regulated and authorized by some of the strictest regulatory bodies in financial industries. FXCM is authorized by 3 top-tier regulatory institutions Financial Conduct Authority (FCA), Australian Securities & Investment Commission (ASIC), & The Financial Sector Conduct Authority (FSCA). Its parent company is publicly traded, does not operate a bank. Clients’ money is kept in segregated funds. it does offer negative balance protection but it’s limited to $ 50,000 and we think it’s enough for most accounts if not all. Only European clients will be able to get compensation funds because of European regulations, and the rest of the world will trade under different regulators.
- Founded in 1999, serving almost 300k clients worldwide with a good reputation for more than 2 decades
- Regulated by some of the strictest regulatory institutions. (FCA, ASIC, FSCA)
- Negative balance protection
- Compensation fund available only for European clients
FXCM broker licensed globaly from multiple regulatory institutions. There are some regulatory information:
- Forex Capital Market Limited is regulated and authorized by the FCA ( Financial Conduct Authority) in the UK, registration number is 217689.
- FXCM AU is regulated by ASIC (the Australian Securities and Investments Commission) license number is AFSL 309763.
- FXCM South Africa (PTY) Ltd. is authorized by FSCA (Financial Sector Conduct Authority) as a financial services provider with registration number 46534.
Trading Instrument at FXCM
Although FXCM offers fewer trading instruments than most other brokers on the market, there is still plenty of opportunities to diversify your portfolio. Currently, they are offering 89 instruments including popular markets and some exotic pairs as well as Forex, indices, commodities, and cryptocurrencies. The range of product you will be able to trade it depends on which global entity under FXCM house you are trading with. Spread betting available only for UK and Ireland clients.
|Cryptocurrency (CFD)||Yes (except UK)|
|Stocks and Shares||6|
Cryptocurrency trading is available in form of CFDs. (You cannot buy the underlying asset). And remember cryptocurrency is not available in UK entity nor to UK residence.back to menu ↑ back to menu ↑
Commissions and Fees
Fees: In forex trading fees are generally of two types. Trading fee and Non-Trading fee.
- A trading fee is charged every time when you open a position. Training fees include spreads, commission fees, swaps, and currency conversion fees.
- Non-trading fees include deposit and withdrawal fees, and inactivity fees.
Trading Cost: With FXCM broker only trading cost you have to pay is floating spread. It’s pricing slightly higher than other competitor brokers, often not the cheapest option, but not a premium option either. The chart below lists the trading cost of a standard account:
|Minimum Initial Deposit||£300|
|EUR/USD Spread||1.3 pips|
|Commission on Islamic Accounts||No|
|Withdrawal Fees||Yes (in a few methods, bank Withdrawal fee $40)|
The market was much more volatile due to the coronavirus pandemic in the second quarter of last year, so we noticed a slightly higher spread than usual, seeing 1.4 pips spread on the EUR / USD pair.back to menu ↑ back to menu ↑
Fxcm provides rebates to its active traders, there are five levels of rebate program available, traders can receive $5 to $25 per million traded, rebates depends on traders monthly trading volume.
The following rebates apply when you trade forex, USOil, UKOil, and some others.
- Tier 1: $5/million for 10 to <25 notional volume
- Tier 2: $10/million for 25 to <50 notional volume
- Tier 3: $15/million for 50 to <150 notional volume
- Tier 4: $20/million for 150 to <300 notional volume
- Tier 5: $25/million for 300 and over notional volume
Affix em charge a currency conversion fee it depends on the amount traders convert, we found currency conversion fee between 10 and 150 pips.back to menu ↑ back to menu ↑
FXCM Review: Inactivity fees
Yes, FXCM charges inactivity fees, if an account has no activities for a continuous period of one year a $50 fee will be charged once a year.
There is no charge, if:
- The account is closed.
- Trading activity recommences on the account.
- The balance reduced to zero.
Deposit and withdrawal fees
Although there are no fees while making deposits but you have to pay certain fees for withdrawal using some methods. This is one of the major drawbacks of FXCM broker is their Bank withdrawal fee, in order to withdraw with banks you have to pay a fat $40 withdrawal fee. The fee amount also varies indifferent entity. If you are trading with a small account (under 5k) then you should use another alternative withdrawal method that has less or zero fees.
If you are comfortable with bank payments because it’s more reliable, then you should use a broker that does not charge fees for deposit and withdrawal, XM could be a better option for you. Check out our full review about XM brokers.back to menu ↑ back to menu ↑
Trading Platforms and Tools
Trading Platforms: FXCM broker is recognized for its best class trading platforms and professional-level research tools. In our 2021 Forex brokers list, FXCM sets its position higher than its competitors. It offers 5 different powerful trading platforms and an advanced Capitalise AI trading platform which able to execute orders automatically, with multiple order types, an advanced charting system and powerful indicators that help to enhance the trading experience and achieve the trading goal.
- Proprietary Trading Station
- MetaTrader 4
- Capitalise AI
Web Platform: Fxcm has its own proprietary web trading platform which comes with a respectable array of features. Its user interface is modern and responsive which is suitable for both beginners and advanced traders. Market news updates, educational videos, recharge tools, signals, and trading central news with external links are available on their web trading platform. Different charts can be opened through floating window and save custom individual chart layout as preset, so you can use it in the future.
MetaTrader 4: MetaTrader 4 is the legendary forex and CFD trading platform recognized by all levels of traders. It’s accessible from all kinds of devices. The desktop version of MetaTrader 4 gives you control over everything including all advanced types of orders, open positions, use stop loss or take profits, pending orders, or even control expert advisor, test your different trading strategies. Metatrader 4 has 30 built-in indicators and thousands of free and paid additional indicators.
NinjaTrader: Ninjatrader is another awesome advanced trading platform offered by FXCM. It offers 100+ indicators and 40+ chart drawing tools. Traders can create different custom trading strategies and indicators in ninja trader using ninja scripts and advanced C# programming.
ZuluTrade: Traders looking for copy trading ZuluTrade could be the best option for him. ZuluTrade is a peer to peer Auto trading platform. Zulutrade can be the alternative if you are a newbie trader or someone who is not yet comfortable with trading by himself. You can choose strategies from different individual traders and track their previous performance and copy their strategies.
FXCM offers a wide range of research tools from a combination of in-house and third parties resources including an economic calendar, global market news, Market scanner for a best possible entry. Fxcm gives access to premium content from trading Central, news from ingesting.com, and FxStreet. And FXCM plus traders have the opportunity to access trading signals.back to menu ↑ back to menu ↑
FXCM provides professional-level educational materials for free, resources like beginer courses, webinars, glossary, Market outlooks, and many more. FXCM Plus account holders have access to more premium stuff like market scanners, signals, tradingview premium account.back to menu ↑ back to menu ↑
FXCM Review: Conclusion
FXCM could be a better choice for more advanced traders with big accounts who want more advance algorithmic trading with the best popular platforms. Although it features less tradeable instruments we think it would be enough for most traders if not all. Not to mention their rich educational resources will satisfy most beginners and medium traders.
- 20+ Years of Market Experience
- 89 tradeable instruments
- Demo accounts, swap-free accounts
- Best in class Research tools & multiple trading platforms
- Average cost
- Less tradeable instruments
- Higher bank withdrawal fee
- No 24/7 support