Here Are the 11 Pros and Cons

FXTM Fact sheet

Trading financial assets are associated with risks. In order to reduce the risks as a retail trader, the number one feature you should look for in a broker is safety and security.

There are a couple of indications that can help you tell whether your broker is trustworthy or not. The first and foremost is regulations. Financial regulators have policies that are designed and put in place to protect traders’ interests. FXTM is regulated by a top-tier regulator, namely the Financial Conduct Authority of the UK. The regulator has one of the strictest license requirements out there.

Among the regulatory bodies that have licensed FXTM are:

• Cyprus Securities and Exchange Commission (CySEC), 
• Financial Sector Conduct Authority (FSCA), 
• Financial Conduct Authority (FCA), 
• the Capital Markets Authority of the Republic of Kenya, 
• Financial Services Commission of the Republic of Mauritius.

The tight regulations make brokers fully disclose risks associated with trading to their clients. Regulations increase the level of safety of your funds, make the market stable and promote healthy competition among Forex brokers. 

Policies that FXTM follows

FXTM keeps the funds deposited by its clients in segregated bank accounts. Making the funds inaccessible for the broker’s day-to-day business operations, which increases the level of safety. 

What’s more, FXTM is a part of the Financial Commission's Compensation Fund. The Compensation Fund is dedicated to resolving disputes between the financial services industry and the market. 

Moreover, FXTM provides negative balance protection, which acts as insurance. Traders will never lose more money than the invested amount. Forex trading is a highly leveraged business that creates possible scenarios for losing more money than is on your trading balance. When you are trading with a broker who does not offer negative balance protection, in case your funds go negative due to high leverage and volatility, you will owe the outstanding money to your broker. 

In order to provide negative balance protection policies, brokers use Stop Out levels. Stop Out levels are predetermined margin percentages where the broker automatically closes open positions to prevent further losses. FXTM offers different Stop Out levels for its various account types. For instance, Micro accounts offer a 40% Stop Out level. Whereas Advantage and Advantage Plus accounts have a 50% Stop Out level. It’s important to take into consideration the automatic Stop Out percentage when you are placing orders, as you might be able to find a great trading setup and get closed out from an active trade due to high leverage. 

FXTM offers various asset classes for trading. The total number of instruments you can trade is more than 2,200. However, it must be noted that the number of available assets varies for different account types. In addition, you can trade more stocks and stock CFDs using the MetaTrader 5 platform. MetaTrader 4 is generally only used for trading currency pairs. 

The broker offers 646 US shares and 17 Kenyan shares. In addition to trading real stocks, you can trade stock CFDs. CFD stands for Contract For Difference and CFD trading comes with certain pros and cons. 

Forex trading on FXTM

The Forex broker provides access to trading 19 Major pairs such as AUD/JPY, AUD/USD, EUR/USD, USD/CAD, USD/JPY, and more. Major currency pairs are backed by strong economies and are more stable compared to exotic currencies. Retail traders, institutional traders, governments, international companies, and banks are exchanging more major currencies than exotic ones in the Forex market. As a result, liquidity is increased and spreads (spread is a difference between the bid and the ask price) are decreased. It’s best for novice traders to avoid trading exotic pairs due to low liquidity. FXTM offers 17 exotic pairs including CHF/NOK, EUR/HKD, GBP/PLN, EUR/TRY, USD/CZK, etc. In addition, you can trade up to 22 minor pairs which include CAD/JPY, EUR/NZD, AUD/CAD, and EUR/RUB, USD/RUB. 

Leverage for trading FX pairs using Advantage and Advantage Plus accounts is up to 2000:1. As for the Micro account, traders get 1000:1 leverage. Keep in mind that leverage can help you make more money from smaller price moves on the chart, but it can also increase your losses. Therefore, you should choose the leverage carefully. Strict regulators prevent brokers from offering high leverage. 

The minimum initial deposit required for opening a Micro account is only $10. Which is pretty reasonable. On the other hand, spreads start from 1.5 pips on the Micro account. Most Forex brokers offer lower spreads and trading-related fees than FXTM.

Shares trading on FXTM

The broker gives access to trading 646 US shares to Its clients. The list of companies includes AIRBNB, ALPHABET-A, ALIGN-TECHNOLOGY, AMAZON, and many more. In addition to US stocks, investors get access to Kenyan shares that includes BAMBURI CEMENT, EAST AFRICAN BRE, EQUITY GROUP HOL, KENIA ELECTRIC, and more. 

In addition, there are 644 single stocks available from the Hong Kong Stock Exchange. Moreover, you can also trade 17 Kenyan company stocks. 

Keep in mind that FXTM only offers trading real stocks using Advantage and Advantage Plus accounts and the minimum initial deposit to open these accounts is 500 EUR, USD, or GBP depending on your account currency. Traders can also fund their accounts using Nigerian naira starting from 80,000 NGN. 

Furthermore, trading real stocks are available from the MetaTrader 5 platform and US stocks are taxed in accordance with the US government rules and regulations, which is 30% of the dividend amount. In addition, there's a live pricing fee of 120 USD per month for HK Stocks.

HK stocks are subject to various additional fees such as HK stock commission of 0.05% which is charged by the broker and national trade fees charged by financial institutions of Hong Kong.

In case you are short on funds, trading real shares might not be the option for you and you might prefer to switch to trading stock CFDs. The reason is simple, there are no leverage offers for trading real stocks. On the upside, spreads are tighter and there are no swaps charged for keeping positions overnight.

FXTM is one of the few Forex brokers that manages to provide access to trading real stocks. The number is not too impressive if you’re planning to trade stocks, only 1307 in total. There are dedicated stock brokers in the markets that offer better trading platforms and larger pools of instruments, but for trading various asset types simultaneously, FXTM is ideal. 

Stock CFD trading on FXTM

As already mentioned, stock CFD trading is preferred by many short-term traders due to lower trading fees and accessibility. What’s more, stock trading has certain benefits over currency trading. Stocks move very differently than currencies do. Some traders succeed in trading stocks while failing in trading currencies and vice versa. As a beginner trader, it’s important to try out different markets to get an idea of what works best for you. 

With FXTM you have access to 764 US stock CFDs and 50 European stock CFDs. What’s more, leverage for American stocks goes up to 10:1, whereas for European stocks leverage maxes out at 3:1. Spreads for trading stock CFDs start from 0 pips. 

When trading stock CFDs, traders have the ability to buy and sell assets and get revenue from markets moving up or down. Whereas in order to benefit from trading real stocks, investors buy when prices are down to acquire the assets and sell when the prices increase. 

Stock baskets and indices trading on FXTM

Stock indices are a good measure of certain industries or economies. Traders use indexes as indicators for conducting technical analysis. For example, the UK 100 shows the performance of the top 100 British companies. There are various ways you can benefit from keeping an eye on the index. Let’s say you are investing in British companies, the overall health of the UK's economy can affect the valuation of your preferred stock. In case you are trading currencies, the performance of the UK 100 index can largely affect the price of the British pound.

In addition to providing useful information, indexes can be traded as CFDs. FXTM provides 17 stock indices including the S&P 500, UK 100, GER40, AUS200, and more.

FXTM provides access to trading 5 stock baskets including GreenID, Mobile ID, Social Ind, SpWarID, and VeganID. Stock baskets consist of securities that have similar themes or share certain criteria. For example, Social Ind consists of companies that own social media websites.

Commodity trading on FXTM

Commodities are raw materials. There are numerous ways you can invest in them. You can buy or sell physical metals, trade commodity CFDs, or invest in companies that mine or grow commodities. 

FXTM gives you access to trading 5 metal vs currency pairs including XAG/EUR (Silver vs Euro), XAG/USD (Silver vs US Dollar), XAU/EUR (Gold vs Euro), XAU/GBP (Gold vs British Pound) and XAU/USD (Gold vs US Dollar). Commodities such as gold and silver are used as a hedge against inflation by many investors. Metal prices are characterized by low volatility, therefore risks and rewards associated with investing in metals are generally low.

In addition to metals, FXTM gives you access to trading Brent oil, Crude oil, and NatGas (natural gas of the USA). Spreads on oil start from 3 pips, whereas NatGas spreads start from 1 pip. 

There are various types of traders in the markets. Some trade intraday to avoid swaps. Some like position trading and giving a longer time to see if their prediction works. Some trade currencies while others prefer stocks. In order to satisfy various requirements coming from different traders, brokers offer dedicated account types. 

FXTM offers 3 account types including Micro, Advantage, and Advantage Plus accounts. Each account type offers access to trading various instruments and we’ll discuss each type in more detail.

Pros & cons of FXTM account types

FXTM Demo Account

Demo trading is essential for beginner traders to master their craft and get used to using trading software. Furthermore, demo trading is very useful for experienced traders in testing and developing their trading strategies. Demo accounts are very similar to live trading accounts. Instead of placing orders using real money, demo traders open and close positions using fake money. 

While demo trading is great for practicing, it has some downsides. The biggest disadvantage of trading with a demo account is that traders are not as invested and interested when there’s no real money to be made. There’s almost no emotional connection. As a result, beginner traders often experience the importance of discipline when they go live. 

FXTM clients can demo trade Forex and other asset classes, but unfortunately, demo trading for stocks is not optional. 

FXTM Micro account

The minimum initial deposit required to open the Cent account is just $10. Unfortunately, the Cent account only offers access to MetaTrader 4. What’s more, spreads for this account are even higher than for the Standard one, starting from 1.5 pips. Leverage for Forex pairs is in a range of 25:1 to 1000:1. As for the metals, it’s 25:1 to 500:1.

Stop Out level for the Cent account is 40%. Meaning the broker will close your positions in order to prevent your funds from going negative every time the price reaches the 40% margin level. The margin call level is 60%. 

FXTM Advantage Account

The Advantage account doesn’t have spread markups from the broker, which means the prices are raw, coming straight from the liquidity providers. On the other hand, traders are charged with average commissions of 0.4 - 2 USD based on the volume traded. 

The account type is suitable for intraday and high-frequency traders as traders that are placing more orders than position traders prefer to pay for commissions and save on spreads. 

The account offers 4 base currencies: USD, GBP, EUR, and NGN. It’s recommended to choose the currency type that you use the most on a daily basis to save on conversion. Keep in mind that the account requires a higher initial deposit of 500 USD, GBP, EUR, or 80,000 NGN depending on your account base currency type. 

FXTM Advantage Plus Account

The Advantage Plus account has a lot of similarities with the Advantage account type. Both offer up to 2000:1 leverage, and both have the same initial deposit requirements and Stop Out levels. But they are very different from each other.

FXTM Advantage Plus charges 0 commission. On the downside, the spreads are starting from 1.5 pips. The 1.5 pip markup is very high compared to other Forex brokers. Keep in mind that in a live trading environment, spreads can get much higher due to a lack of liquidity. 

The account type is aimed at position traders that make fewer trades than intraday and high-frequency traders. Position traders don’t mind paying a little extra on opening positions when they know that there’s no commission per traded lot. 

In addition, the account type doesn’t offer the Nigerian currency NGN as the account base currency. 

FXTM Islamic account

FXTM offers swap-free accounts in compliance with Sharia law. The account type doesn’t charge interest to clients for keeping positions overnight. The broker doesn’t allow investors to keep positions open without any fees for too long though. In fact, if you have an Islamic account and your position is open longer than 7 consecutive days, a daily swap fee will be charged by the broker. 

What’s more, keep in mind that not all of the trading instruments are available when using the swap-free account. For example, you won’t be able to trade exotic pairs using the account type. 

Getting started on FXTM - Main steps

In case you are already thinking about opening an account with FXTM, we’ll get you through the entire process. 

Most brokers offer intuitive and user-friendly digital registration processes and FXTM is no different. However, the difficult part is choosing one account type over the other as there are 7 account types to choose from. 

There are a number of steps you need to take in order to open a trading account. 

Step 1: Open an account

In order to get started, go ahead and open the broker's home page. By clicking on the Open Account button at the top right corner, you will be sent to the registration page.

As you fill in your personal data, you will be offered different account types to choose from. You’ll be able to open a demo or live account and pick a trading platform (MetaTrader 4 or MetaTrader 5).

Step 2: Make your deposit

The next step is funding your live account. It’s important to note that the broker does not charge you any deposit fees. On the downside, you will be charged a withdrawal fee of $3 when using the credit/debit card option. 

In terms of withdrawal, your money must be sent back to the same source from which FXTM received your funds originally. For example, if you used your credit card to fund your account, everything went fast and smoothly, no fees charged. Withdrawing money using the same method will cost you $3 and the process will take up to 24 hours. 

Profits can be withdrawn via e-wallet (after activation) or bank wire transfer. Most e-wallet options are free of charge and are processed in less than a day. On the downside, a bank wire transfer will cost you 30 Euros.

Step 3: It’s time for verification

Verification is an important step as it gives you complete access to using your personal area. What’s more, you will be denied withdrawals of your funds if you don't complete this step. It’s understandable if you want to deposit your money and start trading right away, but it’s recommended to fully verify your account first and make your deposit later. 

In order to verify your account, FXTM requires two documents from you, proof of residence and proof of ID. You can upload either scanned copies of your documents or digital pictures taken straight from your phone. Just make sure that the photos are clear, with no light reflections and shadows, and that your details are fully visible. You can use your ID, passport, driving license, or any other document issued by your government. As for the proof of residence, you can use utility bills, bank statements, etc.

Step 4: Start trading

Going live is a very important milestone for every trader. Just be aware of the dangers associated with trading. Don’t let greed, fear, laziness, hope, revenge trading, and other emotions blow up your trading account. 

Remember that having a trading edge and implementing suitable risk management strategies are super important when live trading.

The fees charged by FXTM are high compared to other Forex brokers. Spreads start from 1.5 pips on a Standard account, which is a pretty big markup. Keep in mind that in live trading conditions, spreads can be even higher. 

In addition to high spreads, the broker charges its client a withdrawal fee of $3 when using the credit/debit card option. 

Moreover, there's a monthly inactivity fee of 5 EUR/USD/GBP after 6 months of inactivity. FXTM deducts this fee from your account until the balance amount is less than 5 EUR/USD/GBP.

Comparing FXTM fees with other brokers

FXTM offers some of the worst fees in the industry. To better understand how the fees work, let’s compare the FXTM Standard account fees with other brokers.

FXTM fees compared to Interactive Brokers fees

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

FXTM fees compared to eToro fees

FXTM fees compared to IG fees

FXTM fees compared to XM fees

FXTM fees compared to AvaTrade fees

FXTM fees compared to Capital.com fees

FXTM gives traders access to two of the most widely used trading software, MetaTrader 4 and MetaTrader 5. Both platforms are developed by MetaQuotes Software corp and have a lot of similarities. 

Let’s talk about the differences to make choosing easier for you. MetaTrader 4 was released in 2005 and is mostly used for trading currency pairs. Metatrader 5 was released five years later. MT5 is often referred to as an all-in-one platform due to its ability to offer different asset classes for trading. 

FXTM offers access to MT4 and MT5 mobile trading apps. You can download the software of your choice for your iPhone or Android devices. Mobile trading can be very beneficial for most traders due to the fact that it provides access to markets from anywhere in the world. 

MT4 and MT5 provide interactive charts and a full set of trading orders while giving you the ability to monitor your account status 24/7. 

It should be noted that while mobile apps are a great tool for monitoring your trades, professional traders avoid conducting any kind of analysis using their mobile phones. 

Education is vitally important in the world of trading. Beginner traders require well-put-together educational material to advance their knowledge and become profitable traders in the long run. 

FXTM offers superb educational content including a glossary, video guides, Forex trading guides for beginners, CFD trading guides for beginners, and more. The information is easily accessible from the broker's main page under the knowledge section. 

What’s more, FXTM offers an economic calendar and daily market analysis. Keep in mind that while still learning how to trade, it’s beneficial to see how various traders conduct market analysis. In addition, trusting trading signals blindly can damage your trading results. There are various trading styles, timeframes, and asset classes in the markets. Each trader needs to find what works best for him/her. 

Great customer support is the heart and soul of every company. FXTM truly shines when it comes to creating a brilliant customer experience.

There are a couple of live chat methods you can choose from. You can contact the customer support team via live chat, WhatsApp, Telegram, or Messenger. The customer support team is very responsive, professional, and friendly. 

In addition to online chat, you can send the broker an email or call a local office. FXTM customer service offices are available 24/5 over the phone and are located in different parts of the globe. The call center offices are located in India, Kenya, Indonesia, Nigeria, and South Korea.

To sum up. The broker is well-regulated, offers MetaTrader 4 and MetaTrader 5 trading platforms, has a wide range of account types, and offers extensive educational material. What’s more, the broker supports its clients with a professional and friendly team of customer support representatives. The registration and account opening processes are easy and the web page is user-friendly. 

However, FXTM has a serious downside when it comes to trading, namely fees. The broker offers higher spreads than most other Forex brokers and charges clients withdrawal and inactivity fees. On the upside, real stocks are available offering company stocks from Hong Kong, the US, and Kenya.