While the range of tradable properties in the trading market is narrow and the pricing is little average for regular trading, FXM Forex Capital Markets caters to different types of trader. All the algorithm traders, new traders and high-volume traders who like the robust trading tools as well as high-quality market research will definitely find this trading platform as a perfect option. This FXCM review offers a comprehensive overview of the FXCM active trader platform, spread, FXCM forex and more. So, before start using the platform, go through the information to decide whether it will be a perfect trading platform for you or not.
Forex Capital Market, FXCM was founded in the year 1999 in the United States. But currently, the company is based in the United Kingdom’s London. After facing a lot of fraud charges, the company stopped its operation in the U.S. In the year 2017, the old parent company of the firm called Global Brokerage Inc. filed for bankruptcy.
Now the company is owned by Jefferies Group, and the old name was Leucadia National Corporation. The Jefferies Group is a constituent of a Fortune 500 firm and S7P 400 index, and the company is listed on the NYSE along with JEF ticker symbol. Even though the company had gone through a few troubles, in 2018 it emerged as the second-largest retail brokerage outside of Japan.
FXCM broker offers a few verities of tradable product. The broker offers 39 currency pairs along with 32 CFDs. The FXCM trader won’t get any single-stock CFDs. On the other hand, it charges average commissions on CFDs and forex trading. It also offers FXCM active trader account which is designed for high-volume investors.
Is a broker a scam?
As per the FXCM review, the broker is legit and trustable. You might be thinking is FXCM regulated? It may be noted that FXCM is regulated under the UK FCA- Financial Conduct Authority and the license number is 217689. The broker is now considered as fully compliant after it gets acquired by Jeffries Group. It is protected under the FSCS- Financial Services Compensation Scheme that covers up to EURO 85,000.
On the other hand, in France, FXCM is regulated by the AMF – Autorite Marches Financiers. In Australia, the ASIC- Australian Securities and Investment Commission regulates FXCM. In South Africa, FXCM is regulated by FSCA- Financial Sector Conduct Authority. There are four entities of FXCM, and all are compliance with the respective regulators. So, you can trust FXCM when comes to CFDs and forex trading.
Registration and authorization
FXCM micro account open process is completely online and easy to proceed. The account can be open in countries like China, Canada, Australia, Germany, India, South Africa, Ireland, Netherlands, Malaysia, United Kingdom and the United Arab Emirates. Now let’s have a look at the process of opening a trading account with FXCM.
Sing up for the new account
First, you need to visit the official site of FXCM. Then click on the “Open Account” option. After that, you will see the appl now window. There you need to choose the country and trading platform. It may be noted that FXCM supports the MetaTrader 4 platform. Once done, click on “Begin Application”.
Form fill up and verification
On the next step, you need to provide all the required personal information such as an address, name, contact info and more. Then you need to verify the data. For this, you may need to submit a few proofs, such as ID driver’s license, passport, utility bill, or a bank statement.
Once done, you can now log into your newly created account. Just deposit the money and start trading.
Speaking about the Demo account, this broker offers a live demo account. Well, both the new and experienced traders can use the demo account. However, it is advisable for new traders to use the demo account to learn more about CFDs and forex trading.
The platform has two types of a demo account; one is for indices, forex and FXCM options. Another one is MT4 Demo forex trading. With a demo account, the traders can enjoy live selling and buying prices and will get virtual money worth of USD 20,000. You can also get free apps for MT4 trading platforms.
Deposit and commission
FXCM lets the traders the options to deposit money in their account through Skrill, bank wires, debit or credit cards, Rapid Transfer, Klarna and Neteller.
As per the official details, for the Standard account, FXCM doesn’t charge any commission. All the fees have been incorporated in FXCM active trader spreads. However, the Active Trader account holder will be charged a commission of USD 30 on per USD 1 million trade.
On the other hand, the broker doesn’t charge any withdrawal and deposit fees on the deposit made by credit cards. However, you may have to pay USD 40 for bank wire transfer. Besides, third-party fees are also applicable.
FXCM active trader spreads
Unlike other forex brokers, FXCM generally charges commissions on FXCM active trader spreads. Both the spreads and commission levels are quite reasonable. However, the FXCM review shows that in a few circumstances, the broker has the highest spread and the lowest commission. For example, for EUR/USD, the trader spreads can go down at 0.2.
In general, it is quite complicated to calculate commissions and spreads. But FXCM has made it quite easier. You will not face any confusion here.
As per the FXCM review, the traders can make withdrawals by using debit or credit cards without any fees. However, the broker charges USD 40 as bank wire withdrawal fees. However, FXCM doesn’t have any limit on withdrawal. For bank wires, the withdrawal duration can go up to 3 to 5 business day. For E-wallets, it is just one business day.
To make the trading little easier for the new as well as professional traders, FXCM also offers automated trading features. FXCM automated trading features combine the latest technologies that place and manage trades within markets automatically.
The trading execution involves a lot of process covering various elements. For some traders, it is not easy to manage all those elements. However, the automated trading feature of FXCM can help the traders in this. The feature can study the current trading market condition and suggest the trader best strategies accordingly.
The Trading Station, Ninja Trader and MetaTrader 4 comes with various tools which can be utilized to automate the trading process. The broker has introduced this feature to prevent possible human error. Some benefits of FXCM automated trading are:
- Easy to find the best possible prices.
- Accurate and instant placement of orders.
- Instant notification about prices changes in the trading market.
- Available for both desktop and mobile MetaTrader 4 trading platforms.
- Automatically checks the changing market conditions.
The feature works fine, and all most all the FXCM traders are using it.
Speaking about FXCM problems, the leverage levels are quite low for ESMA regulated retail clients. On the other hand, the traders can’t get a managed account with FXCM.
Starting from the year 2009 to 2014, the broker faced charges of fraudulent trading practices. It gave the traders the “no dealing desk” trading platform and provided them with wrong information. The trader lost their money. For this, the broker was charged by a USD 7 million penalty. However, the situations have changed, and it is managed by al leading financial service company, Jefferies Group.
However, another issue that you can face with FXCM is the highest commission. This is not applicable on the Standard accounts.
Registered office: 114 West Street, 6th Floor, Katherine & West Building, Sandton, 2196, Johannesburg, South Africa.
Contact number: +16462531401
Reviews of traders
- The broker is amazing. I have been using the platform since the last four years, and till now, I haven’t faced any issues withdrawing funds. Its market scope 2.0 platform is good. The thing that I like the most is there are no limitations in orders. I would recommend it to others. – Yuri Jane
- I have been trading with this broker for around three years. I must say, the trading platform is quite stable, and the execution is smooth. There are no major issues with deposit and withdrawals. Sometimes, I use customer support, and the team is really professional. Even though it charges fees on various transactions which is nominal. Whenever I apply for fund withdrawals, I always get the amount within two business days. – Paul Zimmerling
- I love the demo account of FXCM. It comes with USD 20,000 of virtual currencies. The account helped me a lot to learn forex trading. I used it for around 4 to 5 months before moving into real trading. My overall experience with FXCM is good. – Jimmy
- I am running a website that covers financial news, broker news and trading content. Well, I would like to thanks the FXCM affiliate program which enables me to earn some extra money. The broker offers commission up to USD 750. I am happy with this program. – Burhan