FXCM Review

Forex Capital Markets, FXCM as it is more commonly known, is one of the larger Forex brokers around the world. It has been around since 1999, originally starting in the United States. It has been a leading provider of foreign-exchange, CFD trading, spread betting, and related services for years. This gives traders access to some of the most liquid markets in the world. FXCM was once the largest leader of the US retail Forex trading market, but in February 2017 Forex Capital Markets LLC, the brokers US branch got renamed to Global Brokerage. This was because the branch was banned by the US National Futures Association, or NFA, and has agreed to withdraw from registration with the United States Commodity Futures Trading Commission, or the CFTC. (More on this later, in the company section as they have been purchased by others since then.)

One of the Most Reliable Forex Brokers

After violations in the US, FXCM was sold to Leucadia, a financial services company. So as such, what was left of the US brokerage client base was sold off to other Forex brokers as they are not allowed to do business with Americans. Most of the client base either went to Forex.com or Oanda. The brokerages now split up between several companies, including Forex Capital Markets Limited, FXCM Australia Pty. Limited, FXCM Israel Limited (IB), and FXCM South Africa (Pty) Ltd (IB) as well. This can cause some confusion, but at this point most transactions and customer base can be found at either the UK branch or the Australian one.

The new owners of course have been much more diligent about some of the financial dealings in the company, and they do have good standing with the various regulators in these countries. However, they have a permit staying on their name in the United States, and it’s very unlikely they will ever return. In the United Kingdom, they of course are regulated by the FCA, while Australia is regulated by the ASIC. There have been no problems in either of these brokerage houses that I am aware of.

Trading accounts

FXCM offers three different trading accounts, the Mini, the Standard, and the Active Trader. The broker offers leverage up to 1:400 for the Mini account, while it offers 1:100 for the other two. It should be noted that the Mini account features a dealing desk for those who would be concerned about it. It should be noted that indices, Forex, and commodities are all available with this broker.

Trading conditions

Initial deposit

The initial deposit needed to open an account depends on which type of account you are applying for. If you are going to get a Mini account, a minimum deposit of $50 is required. A Standard account requires a minimum deposit of $2000, while an Active Trader account requires an initial deposit of $25,000. The fee structure and spreads which are discussed in the next section very depending on the account.

Spreads and conditions

Depending on the account size, you may have either a straight spread, or a small spread in commission. For example, if you are trading a Mini account, your average spread is going to be 1.4 pips on the most liquid pairs. (It is variable) However, if you are using a Standard account, your average spread will be 0.4 pips, with a commission of $4.00 added per standard lot, per side. The commission is 3 GBP in the United Kingdom. If you are trading an Active Trader account, the spread is 0.4 pips on average, plus a commission that is anywhere from $1.80 to $4.00. This changes depending on volume. It should also be noted that there is no dealing desk for both Standard and Active Trader accounts.

It should be noted that micro lots are available on all accounts, so granularity on risk management is possible through the broker.

Leverage

The Mini account offers 1:400 leverage, which of course is plenty. In fact, it’s probably too much. The Standard account offers 1:100, as does the Active Trader account.

Trading platforms

FXCM offers MetaTrader 4, Trading Station, and NinjaTrader. Through some of the more advanced platforms like ZuluTrade and Mirror Trader. The Trading Station platform is the in house platform has plenty of accolades and has a long list of awards. It has excellent charting possibilities and has been trusted by traders for years.

Payment methods

Clients can use a debit/credit card to fund and withdraw, as well as bank wire transfer, check, and ACH.

Extras

FXCM has plenty of videos and trading guides to teach you how to trade if you are a beginner. There are plenty of webinars and there is even a live classroom. Beyond that, they have the ability to provide strong research, and that of course can help those needing an extra hand. Algorithmic trading is also possible, if you are looking to do so. Overall, this is a brokerage that offers a lot to traders, and even has a market scanner guide. The educational section is one of the strongest suits when it comes to the company.