Real and honest FXCM review

FXCM user-ratings: $50
  • Asset varierity - 0/10
    0/10
  • Trading platform - 0/10
    0/10
  • Support - 0/10
    0/10
  • Fees - 0/10
    0/10
  • Deposit/Withdrawal - 0/10
    0/10

Facts about the company:

  • Type: Forex and CFD Broker 
  • Regulation: FCA (UK)
  • Minimum deposit: $50 
  • Demo account: Free
  • Markets:  Forex,  CFDs, shares, commodities, indices, and currencies 
9.6/10
Comments Rating 9.6/10 (1 review)

Pros

  • Zero Commissions
  • Unmatched liquidity 
  • Regulated broker 
  • Powerful trading platforms 

Cons

About FXCM

FXCM is an online broker specializing in trading currencies and CFDs. Founded in 1999, the company’s vision has been “to provide traders with access to the world’s largest and most liquid market, offering innovative trading tools, hire excellent people for trading training, maintain strict financial standards, and strive for the best online trading experience in the market.

Screenshot of the FXCM landing page

The Online Broker offers its clients high-quality execution and ample liquidity. In addition, FXCM also provides Forex and CFD trading quotes and provides clients with a variety of helpful tools. FXCM is affiliated with the Leucadia company.

Leucadia as majority shareholder

Leucadia acquired FXCM in January 2015 and since then, the online broker has been able to take advantage of the size of the majority shareholder Leucadia. This includes, for example, another subsidiary called Jefferies, a renowned US investment bank. Jefferies provides the online broker with “prime brokerage services” and liquidity for currency trading. This also ensures that FXCM’s clients are able to benefit in the best possible way from the competent and multi-faceted service offering.

The FXCM History

Forex Capital Markets (FXCM) was founded in New York in 1999 and was one of the first developers of electronic trading platforms for trading in the foreign exchange market. Originally called Shalish Capital Markets, the company was renamed FXCM after one year. In 2003, FXCM expanded to another continent when it opened an office in London, regulated by the UK Financial Services Authority.

That same year, FXCM partnered with Refco Group, one of the largest U.S. futures brokers at the time. However, Refco filed for bankruptcy on October 17, 2005 after a $430 million fraud was uncovered and two months after its IPO.

In May 2010, FXCM acquired the British ODL Group. This acquisition made FXCM the world’s largest Forex retail broker with over 200,000 customers and assets of around 800 million US dollars. In June 2012, FXCM then acquired a majority stake in Lucid Markets, a London-based trading group focused on foreign exchange trading.

On January 15, 2015, FXCM’s online broker lost $225 million due to sharp fluctuations in the Swiss franc exchange rate. As a result, the company received a loan of $300 million from Leucadia to meet capital requirements, which was followed by the acquisition.

The FXCM Awards

In the years since FXCM was founded, the online broker has won a number of different awards. All awards can be viewed in detail on the website. Therefore, only a few of the most important and current awards are listed here.

  • Brokerchooser: 2019 FXCM Best Technical Tools
  • FXEmpire: 2018 FXCM – Best Customer Service
  • German customer institute: 2015 – 5-star rating in the area of customer service and price/performance ratio
  • Euro am Sonntag: 2014 – Best trading platform, very good customer service, very good website

Regulation and security of client deposits with FXCM

As an operating subsidiary of the FXCM group of companies, FXCM Germany is a branch of “Forex Capital Markets Limited” and is controlled and regulated by the British Financial Conduct Authority (FCA).

The online broker handles the deposited capital of its clients reliably by keeping the funds in separate accounts with reputable banks around the world. In accordance with FCA regulations, the client’s capital is thus protected against losses by being kept in separate accounts.

In the unlikely event that the Broker should go bankrupt, clients will then be reimbursed a share of the invested funds. The protection compensates customers up to a sum of 85,000 British pounds sterling, which is in line with the requirements of the “Financial Services Compensation Scheme” (FSCS).

The company also relies on transparent processes and a structured overview of the company’s current financial situation.

What tradable markets does FXCM offer?

Sometimes the most important aspect in selecting a suitable broker is the different markets that are available for traders to trade. FXCM is in no way inferior to its competitors in this regard and offers its clients a range of interesting trading instruments on its website. These will be briefly listed and explained below.

Forex

FXCM is the first to offer its clients the ability to trade foreign exchange in the Forex market. The Forex market is the world’s largest market, with a trading volume of over $5 trillion USD per day. With its enormous size and extremely high liquidity, it offers an ideal opportunity for a wide range of ambitious traders.

Another advantage is that the Forex market can be traded 24 hours a day, five days a week.

Forex Baskets

In addition to traditional trading in the Forex market, FXCM clients can also trade in so-called Forex baskets. Trading these baskets allows traders to speculate on volatile currencies while reducing the risk of being dependent on a single currency. Examples of forex baskets at FXCM include “The Index Basket”, “JPY Basket – The Yen Index”, and “EM Basket – The Emerging Markets Index”.

Indices

In addition to trading in foreign exchange, FXCM also offers trading in corporate shares or index funds. The advantages of trading with indices are as follows: In addition to the few trading restrictions, transaction costs are generally kept low. In addition, traders can trade with levers and make use of variable trading sizes.

Commodities

In addition to the classic trading instruments listed above, the Online Broker also offers trading in a range of different commodities. FXCM places particular emphasis on improved trade execution and low transaction costs. Various commodities can be traded, such as gold, silver, natural gas, grain, and copper. In addition, these commodities can also be traded on margin.

Cryptocurrencies

Last but not least, FXCM also offers to trade in digital cryptocurrencies. Customers can trade both the king of online currencies, Bitcoin, and other interesting cryptocurrencies such as Ethereum, Litecoin, Ripple, and Bitcoin Cash ABC. Apart from this, when trading digital currencies, customers can also test the so-called CryptoMajors Basket, which combines Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash ABC in a single trading instrument.

What platforms are available at FXCM?

In addition to the tradable instruments presented in the previous section, the choice of trading platforms available from an online broker is always a key factor. In order to provide clients with the best possible trading conditions for the above instruments, FXCM has specialized in the following three platforms: Trading Station, MetaTrader 4, and NinjaTrader. The advantages and functions of the different trading platforms are described in more detail below.

Trading Station

FXCM’s proprietary trading platform, Trading Station, is the most popular alternative among FXCM clients, offering a variety of useful charts, analysis tools, and numerous other features. The user interface is also structured and clearly laid out, as the following screenshot from the trading platform shows.

FXCM Trading Station

With Mobile Trading Station, the Online Broker also provides its traders with a mobile version so that they can trade on the move and independent of time and place.The charts integrated into the platform can be individually adapted and designed according to your needs. Trading is also possible directly from the individual charts; users can choose from a range of different indicators.

MetaTrader 4

The MetaTrader 4 (MT4) trading platform is popular around the world and gives traders access to trading forex, futures, and CFDs. It offers interactive charts, numerous selectable order types, and sophisticated analysis. In addition, there are also numerous preset and user-adapted indicators that help clients to control and optimize their trading processes.

FXCM MetaTrader 4

Trading currencies and CFDs through MetaTrader 4 at FXCM offers several additional benefits. For one, all trading restrictions are eliminated. Furthermore, the majority of available trading strategies (including scalping) are supported.

Last but not least, the platform also offers the use of Expert Advisors and Virtual Private Servers. Traders who wish to trade via the MetaTrader 4 trading platform can do so either on the web-based version or download the appropriate trading software to their own device. Apart from that, there is also the option of a mobile version.

Ninjatrader

As a final option, FXCM offers its clients the NinjaTrader trading platform, which allows them to trade foreign exchange, futures, and stocks. NinjaTrader is especially suited for “developing customized strategies”, as it provides the so-called Strategy Builder and the corresponding programming language NinjaScript. Traders can use it to design their own automated trading strategies and apply them in practice.

FXCM Ninjatrader

In addition, there is the Market Analyzer, which provides a structured overview of current market conditions and changes at any time.

The trading conditions at FXCM

After presenting the trading platforms available at FXCM, we will now present an overview of the trading conditions.

Spread Prices

Online broker FXCM offers its clients fair conditions on the trading instruments offered, in terms of spreads. For example, in Forex, the spread for the EUR/USD currency pair is 1.3 pips and for GBP/USD 1.8 pips.

Also, when trading commodities, spreads are relatively favorable compared to other providers.

Since trading costs are always calculated automatically on the trading platform when trading with FXCM, clients never lose track of the real-time spread or pip costs. The following formula can therefore be used for the exact calculation of the trading costs incurred:

Spread x pip costs x number of contracts = total transaction costs

Lever and margin
In addition to the spreads, when selecting a suitable broker it is always important to take a closer look at the levers and margins offered. As with many other online brokers, you can also trade leveraged with FXCM Forex and CFDs. This makes it possible to profit from even minimal market movements.

With leveraged trading, you trade with borrowed money. Different leverage ratios can be selected. For example, if you decide to trade a sum of 10,000 euros with leverage of 30:1, a security deposit of only 334 euros is required.

In principle, the Online Broker offers the following levers on the different trading instruments:

  • 30:1 for major currency pairs
  • 20:1 for all other currency pairs, gold, and indices
  • 10:1 for commodities (except gold) and other equity indices
  • 2:1 for cryptocurrencies

Design

In terms of execution statistics, FXCM has an above-average positive track record. In 2019, more than 89% of executions either slipped or did not slip. As a result, clients were able to trade at the exact price selected or even at better prices, allowing them to benefit from lower spreads.

And the online broker also scored points for the speed of order execution. This is because low latency plays a significant role in effective trading processes. The average execution speed at FXCM is around 0.017 seconds or 17 milliseconds.

Deposit with FXCM

FXCM also has a relatively broad range of deposit options. Clients can choose from a number of different options with the online broker to capitalize on their trading account. The following deposit options are available with FXCM:

  • Debit and Credit Card
  • Bank transfer
  • Skrill
  • Neteller
  • Klarna
  • rapid transfer

Continuing Education Opportunities at FXCM

In addition, FXCM also offers clients the opportunity to learn more about Forex & Co. In addition to comprehensive explanations of relevant topics directly on the website, clients can also benefit from online seminars. In this context, live webinars are offered at regular intervals by renowned online experts on various topics. If you are interested, the individual webinars can be viewed directly on the FXCM website.

Market Scanner

In addition, the company also offers regular seminars by experienced instructors in Berlin, which are suitable for both beginners and advanced traders.

Customer Support

FXCM takes customer support and the well-being of traders very seriously which is why customer support is available in several languages per telephone. Moreover, there is also a live chat offered between trading times on workdays. For general inquiries, it is also optional to write an e-mail to the general support service of FXCM.

Support available:24/5
Telephone:+1 646 253 1401
Adress:info@fxcmmarkets.com
Languages:several

Demo Account with FXCM

For those who would like to try FXCM as an online broker without direct financial risk, we recommend that you try the demo account. Once you have registered for the demo account offered, you can use it permanently and free of charge. Buy and sell prices are displayed in real-time, and the virtual trading capital at the time of entry is 50,000 euros. In addition, trading is possible five days a week, 24 hours a day.

Conclusion

Looking around the Internet for testimonials about FXCM as a broker, you will quickly find many voices that positively emphasize customer service. Spreads are tight and clients are offered a wide range of tradable instruments.

In the past, the broker drew attention when a fine of 2 million dollars was imposed by the National Futures Association (NFA) in August 2011 for “misconduct”. However, all clients affected by the price decline were compensated within one month.

Moreover, there are only low fees charged for transactions if even. Also, the minimum deposit is set very low with an amount of $50 that makes is easy to trade.

The bottom line is that the Online Broker is a viable alternative for beginning and experienced traders.


Most asked questions:

What is the minimum deposit and withdrawal amount?

Concerning deposits and withdrawals there is not much information available on the broker’s website. However, it can be noted that the minimum deposit is $50 and there is no fee charged for withdrawals. Unfortunately, various payment services charge a commission fee for withdrawing money.

How is FXCM regulated?

FXCM is a trustworthy broker that is regulated by the British FCA. The FCA keeps records of all formal proceedings against regulated entities that guarantee more transparency.

What markets are open for trading?

Although the focus of FXCM is on trading Forex, there are other markets offered for trading such as stocks, cryptocurrencies, indices, CFDs, and commodities.

What additional services are offered?

Great offers are available for clients of FXCM such as an economic calendar, market charts, and market news. This way, traders can stay up-to-date. Moreover, customer service is always happy to help with upcoming questions.

One Response

  1. Andre Witzel September 13, 2020

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