FXCM Broker Review - An average broker

fxcm.com
nika
Written by:
Av
armand
Calendar
Written on:
15 August 2022
Date
Last edit:
24 July 2023
Our rating:
7.4

7.4

User rating:
5.81

5.81

FXCM Broker Review - An average broker

fxcm.com
nika
Written by:
Calendar
Written on:
15 August 2022
Date
Last edit:
24 July 2023
Our rating
7.4

7.4

User rating
5.81

5.81

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Main summary

FXCM is a multi-asset group of brokerage companies operating around the globe. FXCM group has more than 20 years of experience and offers various trading instruments to its clients. The list includes Forex, CFDs on stocks, indices, commodities, cryptocurrencies, CryptoMajor basket, Forex baskets, and stock baskets. The total number of available assets exceeds 200. 

FXCM serves more than 200,000 Global clients and provides 24/5 client support. The broker has won more than 50 industry awards for providing financial services to retail and institutional traders. FXCM is considered safe as it’s authorized and regulated by trustworthy financial institutions such as the Financial Conduct Authority (FCA) of the United Kingdom, the Australian Securities and Investments Commission, the Cyprus Securities and Exchange Commission, and the FSCA of South Africa. 

FXCM offers only a single type of account and a swap-free version for Muslim traders. For most regions only USD is available as the base currency. The leverage offered goes up to 400:1 for currency pairs and up to 200:1 for CFDs. 

In today’s review, we’ll discuss trading platforms, instruments, policies, and everything about FXCM that you need to know. What’s more, we'll compare fees with other brokers and guide you through the entire account opening process. 

Here Are the 9 Pros and Cons

  • Regulated by top-tier regulators
  • Offers access to MetaTrader 4, Trading Station, ZuluTrade
  • Charges no deposit and withdrawal fees
  • Fast and digital account opening/verification
  • 24/5 customer support.
  • Offers a live chat option, but it takes a lot of effort to locate the chat window
  • $50 inactivity fee per year after 12 months of inactivity
  • The number of assets is limited

FXCM Fact sheet

Main features
Regulations Australia, Cyprus, South Africa, UK
Fees on deposits $0
Fees on withdrawal $0
Inactivity fees $50/year. 50 units of account currency per year after 12 months of inactivity. JPY 5,000 for JPY denominated accounts
Minimum deposit $50
Minimum account activation $0
Number of available assets 200+
Leverage up to 1:400. 400:1 for FX. 200:1 for CFDs
Available trading markets CFDs on Stocks, Commodities, Cryptocurrencies, Forex, Indices
Account currencies USD, EUR, GBP, JPY. Some options are not available in some countries
Demo account Yes
Live account types Individual account FXCM offers only one type of account
Islamic account Yes
Security
Negative balance protection Yes
Part of compensation fund -
Keeps funds on segregated bank account Yes
Assets
Forex 42
Shares 0
Cryptocurrencies 17
Indices 15
Commodities 11
Total 200+
Fees & spread
Forex From 0.2 pips. 1.3 average spread on EUR/USD
Shares N/A
Cryptocurrencies From 1.1340 avg. spread on Bitcoin vs USD
Indices From 0.01%
Commodities From 0.2%
Software
Platforms MetaTrader 4, Trading Station, ZuluTrade
Mobile trading support Yes
Mac device support Yes
Commodities Yes
Payment systems
Payment methods Bank Transfer, Credit/Debit Card, Neteller, Skrill
Minimum deposit Bank Transfer, Credit/Debit Card, Neteller, Skrill
Minimum withdrawal Bank Transfer, Credit/Debit Card, Neteller, Skrill
Withdrawal processing time Up to 2 hours. Bank Wire deposit takes 3 to 5 business days
Time to open an account -
Show all

The Safety & Security of TMGM

We’ll start this in-depth review of FXCM by discussing the safety and security of the broker. The most important feature of any broker is its trustworthiness. The number of quality financial regulators can indicate the level of reliability of your financial services provider. FXCM is authorized and regulated by:

  • The Financial Conduct Authority (FCA) of the United Kingdom (is considered top tier and high trust)
  • The Australian Securities and Investments Commission (ASIC) (is considered to be a high-trust regulator)
  • The Cyprus Securities and Exchange Commission (CySEC) (is an average trust regulator)
  • The FSCA of South Africa (average trust regulator)

The high trust regulators have strict requirements for acquiring their licenses. The regulations are in place to protect traders’ interests.

Keep in mind that FXCM is a group of companies operating globally. In case you are opening an account from Australia, your account will be subject to ASIC regulations. If you’re opening your trading account from the UK, the FXCM account will be under the supervision of the FCA of the United Kingdom. As a result, the leverage offered, account base currency, and available asset types may differ from country to country. But in general, it’s safe to say that FXCM is a trustworthy broker.

Policies that FXCM follows

FXCM provides negative balance protection for retail traders. Trading is a leveraged activity, which means that investors can bet on prices going up or down using borrowed funds. In the event of sharp price movements and high leverage, it’s possible to lose more money than is in your account. To counter this, FXCM will automatically close out your positions whenever it comes close to becoming negative. In the unlikely event of your account going into the negative, you can contact the team of customer support agents and they’ll change the account balance to 0. However, negative balance protection is not available for institutional traders.

In addition, FXCM keeps the funds of their clients in a segregated account in accordance with UK’s Financial Conduct Authority requirements. 

Available Assets on FXCM - What Can You Trade?

There are 200+ instruments to choose from for trading with FXCM. However, the number is not impressive compared to the competition. You can trade Forex pairs using up to 400:1 leverage, however, the number might drop to 30:1, depending on your country of residence. The maximum leverage for the rest of CFDs is 200:1. CFD stands for Contract For Difference and enables you to go long or short and benefit from price moving in any direction. What’s more, CFDs are highly liquid and provide better spreads than physical assets. CFDs are great instruments for short-term trading, but for long-term investing, physical assets are preferred. 

Forex

FXCM offers up to 42 currency pairs. Including Major and Minor ones. As already mentioned, the maximum leverage available is 400:1. However, it should be noted that by choosing high leverage, you increase the chances of blowing up your account. Leverage is a double-edged sword and it can benefit you massively if the price goes in the predicted direction, or make you lose large positions if the trade turns against you. 

In case you’re planning to solely trade Forex pairs MetaTrader 4 will be the perfect pick for you. As the platform is simple, yet very powerful and is designed around Forex trading. 

Shares

With FXCM you can trade top shares as CFDs from the US, UK, Europe, and Hong Kong Stock Exchanges. As already mentioned, CFDs offer a lot of benefits over trading physical stocks short term. In addition, you can trade stock CFDs with leverage. Only a 5% margin is required to start trading shares. For retail traders, the maximum leverage available for trading stocks is 20:1. 

Share CFDs are accessible via Trading Station, MT4, or API. The broker also gives you the ability to trade fractional shares. For instance, you can buy or sell 0.1 shares of a certain company. However, HK shares can only be traded in increments of 1 share.

Cryptocurrencies

FXCM provides access to trading 17 cryptocurrencies as CFDs. The list includes popular currencies such as Bitcoin, Litecoin, Ethereum, Dogecoin, and more. The leverage offered goes up to 4:1. Spreads are starting from as low as 1.13 pips on Cardano vs USD, and the average spread on Bitcoin vs USD is 40 pips. 

Trading cryptos as CFDs has a lot of benefits. In addition to all of the already mentioned ones such as high liquidity, the ability to go short, and the use of leverage, there’s more. You can forget about managing crypto wallets and planning cashouts as you are not actually owning the coins when you trade them as CFDs. 

Indices

Indices are indexes that show the performance of certain industries or sectors. In addition to this function, indexes can be traded as CFDs. 

There are 15 indices available for trading with FXCM. The list includes the S&P 500 (US500), US30, Fra40, Ger30, JPN225 and more. The JPN225 index measures the collective performance of the top 225 Japanese companies that are publicly traded on the stock exchange. As such, they represent a good indicator of the Japanese economic performance as a whole. Even if you’re not planning to trade indexes, it’s wise to keep them on a watchlist as they can be used as trading instruments. For example, a bullish JPN225 can predict that the Japanese Yen will increase in value.

Commodities

With FXCM you can trade hard commodities such as gold vs USD, silver vs USD, and others. There are 11 in total. The broker doesn’t charge you a commission for trading. On the other hand, fees are represented as spread markups. 

Commodities are raw materials and their prices are generally influenced by global supply and demand. Precious metals like gold and silver increase in price in times of high inflation as the demand for gold increases to hedge against inflation. 

Which Account Types Are Offered by FXCM?

There’s not much to discuss here. FXCM only offers one type of live account, a demo account, and a swap-free version. 

Demo account of FXCM

The Demo account offered by FXCM is free of charge. It enables you to get used to trading platforms, test out various strategies, and experience broker’s policies without risking real money. In addition, you can check the list of trading instruments and spreads when using the Demo account. It’s recommended to open a demo account first before you start trading live. 

Individual account of FXCM

The Individual account offers access to trading various assets. The list includes Forex, CFDs on stocks, indices, commodities, cryptocurrencies, CryptoMajor basket, Forex baskets, and stock baskets. 

Leverage and spreads for each type of asset are different. Forex pairs can be traded with up to 400:1 leverage. Whereas, CFDs have a 200:1 maximum leverage. The maximum leverage for cryptocurrencies is 4:1. Leverage simply means that you get higher purchasing power each time you trade with leverage. For instance, 100:1 leverage enables you to manage a 100 times bigger trading size using borrowed funds. 

There’s no commission charged and trading fees are represented as spread markups. The average spread on EUR/USD is 1.3 pips. 

Islamic account of FXCM

Charging interests is prohibited according to Sharia law. In order to enable traders of the Muslim faith to place orders without going against their religious beliefs, FXCM offers interest-free accounts.

Instead of charging swaps for keeping positions open overnight, FXCM increases spread markups and adds commission fees. 

You can change your regular trading account into a swap-free version by filling in a simple application form. 

Getting started on FXCM - Main steps

In case you’re considering opening an account with FXCM, we’ll guide you through the process in simple steps. The entire process is fully digital and the web page is user-friendly.

Step 1: Choose & create your account

The first step is to register on the broker’s web page. Go ahead and open FXCM’s main page. You’ll be able to see the Open Account button in blue at the top right corner. Fill in your personal data such as country of residence and email address, then press continue. 

As you progress with the registration process, you’ll be able to choose your preferred trading software, account base currency, and password. 

FXCM registration.JPG

Step 2: Verify your account

The next step is to verify your account by providing documents that verify your identity. You can upload a scanned copy of your government-issued passport, ID, or driving license. Or you can use your phone to take a digital picture of the documents. Just make sure that the photos are of high quality with no light reflections and shadows. The second type of document that is required to verify your account is proof of residence. You can use utility bills and similar types of documents here.

FXCM verify.JPG

Step 3: Deposit funds and start trading

Once your account gets approved you’ll be able to deposit or withdraw funds. The funding options vary from country to country and you can choose between credit/debit card, bank wire transfer, Skrill, Neteller, Vietnamese online bank transfer, and local bank transfer (from the Philippines, Malaysia, and Indonesia). Keep in mind that FXCM doesn’t charge you for deposits or withdrawals, although some intermediary banks might charge you service fees. Online wallets like Skrill and Neteller, as well as using credit cards are free of charge. After the funds get transferred to your account, you can start trading with your live account.

Fees & Commissions

Fees are average at FXCM. There are no deposit and withdrawal fees. There are 1.3 pips average spreads on EUR/USD, and commissions are not charged for trading. 

Inactivity fee

The broker charges its clients an inactivity fee of 50 account base currency units per year after 12 months of inactivity. This means, if your account is in USD, you’ll be charged 50 USD and if your account is in British pounds, 50 GBP will be deducted from an inactive account every year. The amount in yen is 5,000 for JPY-denominated accounts

Comparing FXCM fees with other brokers

As already mentioned, FXGM fees are average compared to its competitors. In order to better understand the difference, let’s compare them to other brokers.

FXCM fees compared to Interactive Brokers fees

Type of FeeFXCMInteractive Brokers
EUR/USD SpreadFrom 0.2 pipsFrom 0.6
Fees on DepositsNo1%
Inactivity feeYes, $50 per year after 12 months of inactivity.No*

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

FXCM fees compared to eToro fees

Type of FeeFXCMeToro
EUR/USD SpreadFrom 0.2 pipsFrom 1
Fees on DepositsNo$5 on withdrawals
Inactivity feeYes, $50 per year after 12 months of inactivity.Yes, $10/m

FXCM fees compared to IG fees

Type of FeeFXCMIG
EUR/USD SpreadFrom 0.2 pipsFrom 0.8
Fees on DepositsNoNo
Inactivity feeYes, $50 per year after 12 months of inactivity.Yes, $10/m

Trading Platforms of FXCM Reviewed

FXCM offers the most popular Forex trading platform, namely MetaTrader 4. The platform is simple to use, yet very powerful, which is the reason it has remained relevant in the modern world. MT4 was released in 2005 and not much has changed in its design since. Many novice traders enjoy MT4 for its simplicity, while others find the design attractive. 

In addition to MT4, you can trade using Trading Station and ZuluTrade. Trading Station offers a more modern look and multi-asset platform, while ZuluTrade is best for copy trading. 

Mobile Experience

You can download mobile versions of MetaTrader 4, Trading Station, and ZuluTrade on your android and Apple devices. 

Mobile trading can be very useful in emergency situations such as power outages, breakdown of your PC, and losing an internet connection. In addition, mobile apps can keep you within arms reach of financial markets and you can monitor your trades from anywhere in the world where there’s an internet connection. 

Education & Research Tools

Quality education is a standing pillar for each successful trader. FXCM provides tools for beginner and professional traders for market analysis. As a trader, you get access to an economic calendar, earnings calendar, market news, live Forex charts, and market data signals. Additionally, there are easy-to-understand guides for novice traders available on the broker’s web page. 

Customer Support of FXCM

Great customer support is essential for increasing the company's client base. FXCM offers professionally trained customer service agents that are available 24 hours a day, 5 days a week. You can contact the broker through various means. You can send them an email, call, or chat using their web page or WhatsApp. 

The chat option is available for both existing and potential customers. However, the chat window is not easy to locate and you need to look closely to find it. When you register as a trader, the chat window appears at the top right corner of your client area. 

Conclusion

To sum everything up, FXCM is an average broker that offers average fees. The number of assets offered is not that impressive compared to the industry leaders and the live account types available are limited to 1. 

On the upside, the broker offers various trading platforms, good customer support, and various trading tools. In addition, FXCM is tightly regulated by top-tier financial institutions. 

5.81

5.81

Average based on 6 user reviews
Safety 6.33
Assets 5.67
Accounts 5.67
Fees 4.67
Desktop platforms 6.33
Mobile platforms 5.33
Education 5.00
Support 5.33
Have experience with FXCM? Log in to leave a review
aubrey.hart reviewed 393 days ago
Live 1-3 months experience, $1,000 - $5,000 account size
6.5

6.5

Good: Decent platform with bad mobile app
Pros
I really liked the availability of assets. I can trade with different asset types that I really enjoy.
Cons
I could not use their mobile application. It is poorly designed and filled with bugs.
bailey.johnson reviewed 393 days ago
no experience
2

2

Poor: Avoiding this broker
Pros
I was going to open an account with them but changed my mind. And now I receive emails from them, and it really bothers me.
Cons
I don't want to get any more emails from them
conrad.cash reviewed 393 days ago
Demo Less than a month experience
6.88

6.88

Good: Average broker with decent offerings
Pros
Really comprehensive demo so far. Plenty of features.
Cons
From what I know the spreads can be wider than usual.
guinevere.curry reviewed 393 days ago
Demo Less than a month experience
7.25

7.25

Good: average broker with a bit high spreads
Pros
Decent leverage and small initial deposit. Maybe good for beginners to just test waters. Demo trading is excellent experience though
Cons
Spreads from 1.3 are high
turner.clay reviewed 393 days ago
Live 1-3 months experience, under $1,000 account size
5.25

5.25

Average: Why trade with them when there are so many better ones?
Pros
I don't think I liked anything in particular.
Cons
I will not be trading with them again. There are not many assets to trade, and overall exp is not good.
jenson.harris reviewed 393 days ago
Live 1-3 months experience, $1,000 - $5,000 account size
7

7

Good: Decent choice for FX trading
Pros
It's a decent middle-of-the-pack kind of broker. The platform is alright. Not the widest variety of choices though.
Cons
Opening my account took longer than expected and customer service was not quick to respond to questions.

FAQs on FXCM

Is FXCM regulated?

Yes. FXCM is regulated by top-tier regulators such as ASIC and the FCA of the UK. In addition, the broker is authorized and regulated by 2nd tier regulators such as CySEC and the FSCA of South Africa.

What can I trade with FXCM?

FXCM is a multi-asset broker offering access to trading: Forex, CFDs on stocks, indices, commodities, cryptocurrencies, CryptoMajor basket, Forex baskets, and stock baskets. On the downside, the total number is only a little over 200 assets. 

Does FXCM have low fees?

FXCM has average fees. The average spread on EUR/USD is 1.3 pips. In addition, there’s no commission charged and no deposit/withdrawal fees. On the downside, there is a 50-unit base currency inactivity fee charged per year after 12 months of inactivity.