History and Founding
FXCM (Forex Capital Markets) was founded in 1999 and is one of the most established brokers in the forex trading industry. Headquartered in New York, FXCM has built a solid reputation for providing online trading solutions in currencies, stocks, commodities, and indices. Over the years, it has grown into a global brand with a focus on transparency, innovative technology, and excellent customer service.
Mission and Vision
FXCM’s mission is to offer sophisticated trading solutions to retail and institutional traders globally. The company aims to provide access to a variety of markets with low spreads, high leverage, and the latest trading tools. FXCM’s vision is to be the leading provider of retail forex trading, offering clients a seamless trading experience backed by cutting-edge technology.
Global Presence
With a presence in major financial centers such as London, Hong Kong, and Sydney, FXCM serves clients in more than 180 countries worldwide. The broker supports a wide range of languages and offers localized services to meet the needs of traders across different regions.
Advantages and Disadvantages
Key Strengths
- FXCM has established a very extensive physical presence with offices in countries all around the world
- FXCM have extremely trusted regulation in place by a number of the top bodies in the industry
- FXCM has won more than 25 awards over their years in business
- FXCM has a good range of account type choices available to suit most traders
Areas for Improvement
- There are quite limited options for base currencies
- FXCM payment methods could be expanded upon to provide more choice to traders
- The education section could be expanded to cater a little more beyond just new traders
- Their US ban does not do the broker any favors
Security and Regulations
Licenses Held
FXCM is a regulated broker in multiple regions, including the UK by the Financial Conduct Authority (FCA) and Australia by the Australian Securities and Investments Commission (ASIC). The broker is also regulated by the National Futures Association (NFA) in the United States. These licenses ensure that FXCM adheres to strict regulatory standards, providing a safe environment for traders.
Fund Segregation and Insurance
Client funds are held in segregated accounts to prevent misuse by the broker, ensuring that clients' capital is protected in the event of company insolvency. FXCM also provides insurance coverage for clients’ funds, adding an extra layer of protection.
Tradable Instruments
Forex Pairs
FXCM offers a broad range of currency pairs, including major, minor, and exotic pairs. Whether you are trading EUR/USD or emerging market currencies, FXCM provides competitive spreads and liquidity for all forex pairs.
Commodities
Commodities available for trading on FXCM include precious metals like gold and silver, as well as energy products such as crude oil and natural gas. These are ideal for traders seeking to diversify their portfolios.
Indices
Traders can access global stock indices such as the S&P 500, FTSE 100, and NASDAQ. Indices allow traders to speculate on the performance of major stock markets worldwide.
Cryptocurrencies
FXCM offers limited access to cryptocurrencies such as Bitcoin and Ethereum. These digital assets are available for trading through CFDs, enabling traders to take advantage of price volatility without owning the underlying asset.
Account Types
Standard
| Minimum deposit | 0 |
|---|---|
| Commission | 1.3 |
| Available tools | 0 |
| Leverage, min | 1:1 |
| Leverage, max | 1:30 |
| Margin call level | 100 |
| Stop-out level | 50 |
Active Trader
| Minimum deposit | 0 |
|---|---|
| Commission | 1.3 |
| Available tools | 0 |
| Leverage, min | 1:1 |
| Leverage, max | 1:30 |
| Margin call level | 100 |
| Stop-out level | 50 |
Spread Betting
| Minimum deposit | 0 |
|---|---|
| Commission | 1.3 |
| Available tools | 0 |
| Leverage, min | 1:1 |
| Margin call level | 100 |
| Stop-out level | 50 |
Professional
| Minimum deposit | 0 |
|---|---|
| Commission | 3.0 |
| Available tools | 0 |
| Leverage, min | 1:1 |
| Leverage, max | 1:200 |
| Margin call level | 100 |
| Stop-out level | 50 |
Fees and Charges
Spreads and Commissions
FXCM offers competitive spreads, starting from as low as 0.1 pips on major currency pairs for Active Trader accounts. Standard accounts have slightly higher spreads but do not charge commissions, making them ideal for less frequent traders.
Swap Rates
Swap rates apply to positions held overnight. These rates are calculated based on the interest rate differential between two currencies and can vary depending on the instrument and market conditions.
Inactivity Fees
FXCM charges an inactivity fee after 12 months of no trading activity. Traders should ensure that they maintain regular trading activity to avoid any additional charges.
Trading Platforms
| Available tools | Forex, Commodities, Stocks, Indices, Metals, Energy, CFDs |
|---|---|
| CFD | Forex: 33 Commodities: 3 Stocks: 3000 Indices: 14 Metals: 3 Energy: 5 |
MetaTrader 4 and 5
FXCM provides access to both MetaTrader 4 (MT4) and MetaTrader 5 (MT5), two of the most widely used platforms in the forex market. These platforms offer a full suite of trading tools, including technical analysis, automated trading, and advanced charting features.
Trading Station
FXCM’s proprietary platform, Trading Station, is designed for both beginners and experienced traders. It provides an intuitive interface, advanced charting tools, and fast order execution. This platform is available for desktop and mobile devices.
Mobile Trading Apps
FXCM offers mobile apps for both iOS and Android devices, enabling traders to access their accounts, execute trades, and monitor their portfolios on the go.
Customer Support
Steps to Register
To open an account with FXCM, visit their website and select the type of account you wish to open. After completing the registration process, you will need to verify your identity and address before you can start trading.
Verification Requirements
FXCM requires proof of identity (such as a passport or driver’s license) and proof of address (such as a utility bill or bank statement) to comply with regulatory requirements.
Deposits and Withdrawals
Payment Methods
FXCM supports a wide range of deposit and withdrawal methods, including credit/debit cards, bank transfers, and e-wallets like PayPal and Skrill.
Processing Times
Deposit processing times can vary depending on the method used. Credit/debit card deposits are typically processed instantly, while bank transfers may take 1-3 business days.
Associated Fees
FXCM may charge fees for certain payment methods, especially for international transfers. Traders should review the specific fee structure for each payment method before making a deposit or withdrawal.
FAQ
Is the broker regulated?
Yes, FXCM is regulated by top-tier financial authorities such as the FCA in the UK, ASIC in Australia, and the NFA in the US.
What trading platforms are available?
FXCM offers MetaTrader 4 (MT4), MetaTrader 5 (MT5), and its proprietary Trading Station platform.
What is the minimum deposit required to open an account?
The minimum deposit for a Standard Account is typically $50, though the amount can vary depending on the account type and region.
What types of accounts does the broker offer?
FXCM offers Standard Accounts, Active Trader Accounts, and Professional Accounts.
What fees and commissions are charged?
FXCM charges competitive spreads starting from 0.1 pips for Active Trader accounts. Standard accounts do not have commissions but feature slightly wider spreads.
What is the maximum leverage available?
FXCM offers leverage of up to 400:1, depending on the account type and regulatory jurisdiction.
Are demo accounts available?
Yes, FXCM offers demo accounts where you can practice trading with virtual funds.
How can I contact customer support?
FXCM provides 24/5 customer support via phone, email, and live chat. You can contact their support team for any queries or assistance with your account.