In the wild west world of forex trading, it pays to know who you can trust. One false move could see your hard-earned funds vanish into the abyss. That’s why we’re here to shed light on FXCM (Forex Capital Markets) – one of the most storied names in currency trading for over 20 years.
But can you safely trade with this veteran broker? Or will you end up biting the dust like so many wayward traders before you?
Read on and discover everything you need to know in this extensive, no-holds-barred FXCM review. We’ll break down their background, fees, platforms, asset offerings, customer support and more.
By the end, you’ll have all the evidence you need to decide if FXCM is your trusty partner for forex success or potential hazard along the trail. We’ll even reveal whether allegations of FXCM being a scam are fact or fiction.
So saddle up and get ready to ride through the Wild West of forex with our FXCM review as your guide!
Company
FXCM, also known as Forex Capital Markets, is perhaps the best known forex broker in the world and one of the most important, having been founded back in 1999.
In 2010 FXCM was able to acquire the UK group ODL. The acquisition resulted in an increase in assets to $800 million; in addition, over 200,000 customers have been “transferred”. This was also the reason why FXCM could suddenly become one of the largest retail forex brokers in the world. In 2012, the broker acquired the majority stake in Lucid Markets. A London-based trading group specializing in foreign exchange trading.
On January 15, 2015, however, FXCM lost approximately $225 million due to very large fluctuations in the Swiss franc exchange rate. Subsequently, the broker was granted a $300 million loan from Leucadia, a large financial group to which the Jefferies group belongs,
in order to meet the capital requirements – as a result, the acquisition took place.
Due to losses suffered, FXCM had to restructure its operations and move to the UK. FXCM is now based in the UK. Its headquarters are at 20 Gresham Street 4th Floor, London EC2V 7JE, UK.
In addition to the UK office, FXCM has offices in Canada, South Africa, Australia, France, Germany, Italy, Greece, Israel and Hong Kong.
Before January 15, FXCM was the world’s third largest forex broker, behind only the Japanese behemoths GMO and DMM.
FXCM is one of the first forex brokers to hit the market in the United States, in 1999, and one of the few that managed to survive independently and eventually achieve world leadership.
Pros
- Well regulated
- FXCM app store provides several third-party platforms
- Mobile app is user-friendly
- Videos, courses, and market strategies are available
- Several accounts to choose from
- Homegrown and MetaTrader trading station
Cons
- They faced financial problems in 2015
- CFDs only
- A limited number of shares
Trust
Is FXCM a safe platform? Suffice to say that our FXCM review found several reasons that made FXCM one of the safest forex brokers. This brokerage firm has been in existence for over 20 years. Although the broker has suffered some setbacks in 2015 only a small number of accounts were affected and all client funds were refunded. What is more, FXCM also forms part of investor compensation schemes in Europe, guaranteeing balances of up to £85,000 in case of insolvency.
FXCM also protects against negative balance for Forex spot and CFD trading. This feature is currently only available to retail accounts registered in the UK and EU, although the platform also provides up to $50,000 per account registered in Australia and South Africa.
Another reason why we consider FXCM safe is the sheer number of awards it has won over the years. Some of the top awards include Best CFD Platform Features, Best Customer Care, and Best Value for Money, amongst many others. Had FXCM not been a safe platform it would not have amassed such a collection of trophies, which continue to increase every year.
Trading Platform
Is FXCM good for you? FXCM offers five types of trading platforms that are user-friendly and they are:
- Trading Station
- Metatrader 4
- TradingView Pro
- ZuluTrade
- Capitalise AI
As we can see, it is a good selection of platforms, much more than most brokers in the CFD sector, which have a smaller offer.
Trading Station
The Trading Station is designed to provide traders with the tools and features needed to engage in online trading in the forex and CFD markets.
Key features and aspects of the FXCM Trading Station include:
- User-Friendly Interface: The platform typically offers a user-friendly and intuitive interface, making it accessible to both beginner and experienced traders.
- Charting and Analysis Tools: It provides various technical analysis tools, charting capabilities, and indicators to help traders analyze price movements and make informed trading decisions.
- Execution and Order Types: Traders can execute market orders, limit orders, stop orders, and other order types to manage their positions effectively.
- Risk Management Tools: The platform includes risk management features, allowing traders to set stop-loss and take-profit orders to manage potential losses and gains.
- Access to Multiple Markets: While initially designed for forex trading, the FXCM Trading Station may also provide access to other financial markets, such as stock indices, commodities, and cryptocurrencies, through CFDs.
- News and Analysis: It often offers real-time news feeds, economic calendars, and market analysis to keep traders informed about relevant events and economic data releases that can impact the markets.
- Customization: Traders can customize the platform to suit their preferences and trading strategies.
- Mobile and Web Versions: It usually offers both desktop and mobile versions, enabling traders to access their accounts and trade on the go.
- Education and Support: FXCM may provide educational resources and customer support to assist traders in using the platform effectively and understanding the forex and CFD markets.
Metatrader 4
At FXCM we can use the famous Metatrader 4 with all its features, including the possibility of automatic trading.
On this platform there is no limit whatsoever to scalping, and it can also be used both on the PC and on the web or on the mobile/cell phone.
TradingView Pro
TradingView Pro is an advanced charting and analysis platform offered by FXCM to its clients.
Key features of FXCM’s TradingView Pro include:
- Advanced charting functionality – includes a wide range of customizable charts, drawing tools and indicators to analyze the markets
- Server-side alerts – set up alerts on the chart that get triggered on the server-side even when the chart/computer is turned off
- Pre-installed FXCM data and scripts – platform comes preloaded with FXCM pricing data spanning different asset classes and timeframes
- One-click trading integration – enables one-click execution for trades from the TradingView chart itself
- Server-side scanning – scan securities based on technical and fundamental criteria without needing a computer/chart open all the time
- Multi-device support – cloud-synced charts and workspaces enabling use from desktop, mobiles and tablets
ZuluTrade integration
In addition to the above platforms, there is also the possibility to connect with the ZuluTrade platform and participate in the social trading program of this well-known group.
To practice Forex, CFDs, Commodities and Bitcoin, FXCM provides its clients with a free Demo account, when registering with their personal data.
UK resident traders have the opportunity to use a Spread Betting account, allowing them to trade without additional fees. High volume investors can open an Active Trader account, with tight spreads and a commission of $30 per $1 million traded.
Capitalise AI
Capitalise AI is an AI-powered trading platform offered by FXCM that allows users to automate their trading strategies without needing to code. Here is a brief explanation of its key features:
- It enables traders to define trading strategies using plain English instead of code. The AI technology then automates the execution of those trading strategies.
- It is free for FXCM traders.
- It monitors market data, technical indicators, and macroeconomics continuously to detect opportunities and trigger trades based on the user’s predefined strategies.
- It optimizes buying power so that only strategies that are triggered will use the trader’s capital.
- Traders get real-time notifications of their trades on mobile or email.
- The mobile app allows traders to manage existing trades, stop/start strategies, and set up new automated strategies on the go.
Tradable assets
We went straight to the source for our FXCM review and found that the list of tradable assets on FXCM is quite extensive, with the major world markets. This brokerage offers trading in CFDs on currencies, stock indices, stocks, commodities and cryptocurrencies.
FXCM offers market maker trading for your retail accounts in the form of no brokerage money table. This guarantees us that FXCM will not manipulate prices in any way.
For this to be the case, the American NFA strictly monitors the brokers that are under its regulation, including FXCM.
Account Types
Our FXCM review research found that the broker offers six types of trading accounts to cater to the diverse needs of traders. The account types offered by FXTM include:
- Cent Account:
- Minimum Deposit: $10
- This account is designed for beginner traders who want to practice trading with smaller amounts.
- Standard Account:
- Minimum Deposit: $100
- The Standard account is suitable for more experienced traders looking for competitive spreads.
- Shares Account:
- Minimum Deposit: $100
- This account is for traders interested in trading shares and offers direct market access (DMA).
- ECN Account:
- Minimum Deposit: $500
- The ECN account is designed for traders who prefer low spreads and faster execution through ECN technology.
- ECN Zero Account:
- Minimum Deposit: $200
- This account offers zero spreads but involves a commission on trades.
- FXTM Pro Account:
- Minimum Deposit: $25,000
- The Pro account is designed for professional and institutional traders, offering deep liquidity and low spreads.
Deposit and Withdrawal Methods
During our FP Markets review, we looked at the deposit and withdrawal methods and found that they are very convenient and there are no transaction commissions whatsoever.
Deposit Methods:
- Bank Wire Transfer: You can fund your FXCM trading account by transferring funds directly from your bank account to FXCM’s bank account. This method is known for its reliability but may take some time for the funds to reflect in your trading account.
- Debit/Credit Cards: FXCM usually accepts major credit and debit cards like Visa and MasterCard. Deposits via cards are often processed quickly.
- Online Payment Services: Some online payment services like PayPal, Skrill, and Neteller might be accepted for depositing funds. These options are known for their convenience and speed.
- Checks: In some cases, you may be able to fund your FXCM account using checks. However, this method can take time for processing.
Withdrawal Methods:
- Bank Wire Transfer: You can withdraw funds from your FXCM account to your bank account via wire transfer. This is a common method for withdrawing larger amounts.
- Debit/Credit Cards: Withdrawals to the same card used for depositing funds are often allowed, up to the deposited amount. Any additional funds are usually withdrawn via other methods.
- Online Payment Services: If you deposited funds via services like PayPal, Skrill, or Neteller, you can typically withdraw funds back to the same account.
- Checks: FXCM may provide the option to send you a check for your withdrawal. This method may take longer due to postal delivery and processing times.
- ACH (Automated Clearing House) Transfer: If you’re in the United States, you may have the option to withdraw funds via ACH transfer.
Cryptocurrency
Our FXCM review finds that they offer clients the opportunity to trade cryptocurrencies. Due to the fact that crypto currencies are attracting more and more investors and traders, FXCM has decided to include digital currencies to its list of tradable assets
In addition to Bitcoin, the mother of all cryptocurrencies, Ethereum, Bitcoin Cash, Ripple, and Litecoin are also available. Also, you can try the CryptoMajors Basket, where Bitcoins, Ether, LItecoin, Bitcoin Cash and Ripple are combined in one trading tool.
Fees
During our FXCM broker review, we looked at the fees of trading at FXCM. The broker claims to be fair in their trading fees, but is that correct? Yes. In the forex area, the spread for EUR/USD is 1.3 pips. For the GBP/USD currency pair, the spread is 1.8 pips. Anyone interested in indices trading should be aware that there are variable spreads.
The spread for the $30 is 1.57 and for the SPX500 around 0.38. On the other hand, if you are interested in the CHN50, the spread here is 9.44.
Anyone who trades in commodities must also take into account spreads, so at this point it should be mentioned that these are relatively cheap on FXCM compared to other brokers. The spread for USOIL is 0.03, UKOIL 0.04 and copper 0.003.
The broker does not charge any platform fees, transfer fees or credit cards, plus there are no fees for services and advice, and FXCM waives any fees. Furthermore, the trader must also fear hidden costs and/or fees.
Ultimately, it is this fee and cost model that makes FXCM one of the best brokers on the market.
Customer support
Is FXCM good when it comes to customer service? When it comes to communicating with the broker and getting the information you need, FXCM offers email, phone, and live chat support.
These platforms are all very helpful in their own way, as our FXCM broker review shows. If you want an immediate response to your questions or concerns, you should definitely use the live chat or phone support. However, if your goal is a more official interaction, then you can use email or in-person support. Either way, the FXCM customer support is exceptionally friendly and they are available 24 hours a day, 5 days a week. Customer support is available in several languages: English, German, French, Spanish, Italian, Malay, Mandarin, Tagalog, Bahasa.
In addition, the institution publishes educational and instructive articles about forex and the market on its website. These articles contain very useful information for both forex newbie traders and experienced traders who have been trading in this market for years.
Regulation
Is FXCM a safe platform? In researching the FXCM review, we found that the FXCM group, due to its structure, has companies registered and regulated by various supervisory bodies around the world.
FXCM EU LTD, registered with the Cyprus Company Registration Department, holds authorization from CySEC under license number 392/20. The company’s registered office is located in Nicosia, Cyprus, and it freely offers its services to the states within the European Economic Area (EEA), which notably includes Spain.
On the other hand, the FXCM Group, headquartered in London, United Kingdom, oversees Forex Capital Markets Limited, which operates under the regulatory oversight of the FCA, with registration number 217689.
Additionally, FXCM Australia Pty. Limited operates under the supervision of the Australian Securities and Investments Commission, bearing AFSL number 309763. FXCM South Africa, on the other hand, holds a license from the Financial Sector Conduct Authority, identified by number FSP 46534.
To enhance security, client accounts are maintained in globally recognized banks. This measure ensures that, in the unfortunate event of a company default, client funds remain safeguarded and cannot be used to settle debts with other creditors.
FXCM is also a part of the Investor Compensation Fund (ICF), a program that extends compensation to clients of licensed investment firms in Cyprus. This participation reinforces protection measures and ensures that companies are capable of providing compensation when necessary.
So, is FXCM safe? With all the facts mentioned above, we can say a resounding yes to the fact that FXCM is legit and not a scam.
Conclusion
So what’s our FXCM review conclusion? Put simply, we believe FXCM is legit and is a good Forex broker, and that they offer quality services. In addition, the funds deposited by the customer are kept in separate (segregated) bank accounts. In this way, investors’ money is secured even if the company goes bankrupt.
Although they faced financial problems in 2015, FXCM has paid its debts and is back in the race to regain the prestige and place in the market lost by past mistakes.
By and large, FXCM is a good brokerage choice for an average active trader and anyone looking for FX trading without a conflict of interests should be sure to give FXCM a try.