Broker Review Contents
FXCM is a provider of forex trading services. Traders can access a wide range of products in a variety of markets, including currencies, indices, commodities and bonds. They operate the following licenses:
Forex Capital Markets Limited: FCA registration number 217689.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% 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.
FXCM EU LTD: CySEC license number 392/20.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Comparebroker.io (Compare Broker LTD) is acting in a capacity of a marketing affiliate of FXCM EU LTD.
All references in this review to “FXCM” refer to the FXCM Group.
- Segregates client funds
- Established in 1999
- Regulated by Financial Conduct Authority
- Min. deposit from $1
- Limited range of instruments
A minimum deposit of $50 is required for a live account. This minimum deposit amount also depends on the funding method. FXCM, on the other hand, provides a free demo account that you may utilize to experiment and familiarize yourself with their platform.
Regulated by the Financial Conduct Authority in the UK (FRN: 217689), Australia Securities Investment Commission in Australia (ASIC AFSL #309763), the Cyprus Securities and Exchange Commission (CySEC #392/20) in Cyprus and Financial Sector Conduct Authority (FSCA FSP #46534) in South Africa. FXCM puts all client funds in a segregated bank account and uses tier-1 banks for this. FXCM was established in 1999.
Before we get into the specifics of FXCM’s spreads, fees, platforms, and trading tools, you might want to open the FXCM website in a new tab by clicking the button below to get the most up-to-date information directly from the company.
Disclosure: If you sign up with a broker through one of our links, we may receive a commission.
What are FXCM’s spreads & fees?
FXCM like most brokers, charges a fee based on the spread, or the difference between the bid and ask price of an instrument.
The commissions and minimum spreads shown here are taken from FXCM’s website.
|EUR/USD(Average: 0.7 pips)||1.3 pips||0.7 pips||0.1 pips|
|GBP/USD(Average: 1.1 pips)||1.2 pips||1.7 pips||0.1 pips|
|USD/JPY(Average: 1.1 pips)||1.6 pips||0.6 pips||0.1 pips|
|AUD/USD(Average: 0.8 pips)||0.8 pips||0.6 pips||0.2 pips|
|USD/CHF(Average: 2.3 pips)||1.9 pips||2.3 pips||0.2 pips|
|USD/CAD(Average: 2.9 pips)||2.2 pips||0.5 pips||0.3 pips|
|NZD/USD(Average: 3.6 pips)||2.1 pips||2.8 pips||0.3 pips|
|EUR/GBP(Average: 2.4 pips)||2.4 pips||0.5 pips||0.1 pips|
The spreads are variable and are displayed for information purposes.
As you can see, FXCM’s average EUR/USD spread is 1.30 pips, which is high when compared to the average EUR/USD spread of 0.70 pips among the brokers on comparebroker.io.
FXCM also has an active trader account where, subject to meeting some trading conditions, you can get lower spreads. The average discount among FX major pairs is 62.4%.
The table below compares the costs of trading one lot of EUR/USD with FXCM vs. similar brokers.
How much does FXCM charge to trade 1 lot of EUR/USD?
You would likely spend $3 if you bought one standard lot of EUR/USD (100k units) with FXCM at an exchange rate of 1.1719 and then sold it the next day at the same rate.Here’s a quick rundown of the fees and how they compare to IG and XTB.
|Spread from:||$ 13.00||$ 6.00||$ 2.00|
|Total cost of a 100k trade:||$ 13.00||$ 6.00||$ 2.00|
|$7 less||$11 less|
|VISIT FXCM||VISIT IG||VISIT XTB|
Fees and quotes are displayed for information purposes and could change.
What can you trade with FXCM?
Over 90 different instruments, including over 39 currency pairs, are available to trade at FXCM. Below, we’ve summarized all of FXCM’s several types of instruments, as well as the instruments given by IG and XTB for comparison.
|FX / Currencies||FXCM||IG||XTB|
|# of forex pairs offered||39||90||48|
|Major forex pairs||Yes||Yes||Yes|
|Minor forex pairs||Yes||Yes||Yes|
|Exotic forex pairs||Yes||Yes||Yes|
|# of commodities offered||6||34||21|
|Index & Stock CFDs||FXCM||IG||XTB|
|# of stocks offered||20+||8000||1606|
|SEE FXCM’S INSTRUMENTS||SEE IG’S INSTRUMENTS||SEE XTB’S INSTRUMENTS|
What’s the FXCM trading experience like?
1) Platforms and apps
The popular MT4 forex trading software is available from FXCM. See our MT4 broker comparison for a list of the best MT4 brokers.
FXCM also offers their Trading Station platform, which is unique to them. Traders can trade on their preferred device thanks to a combination of downloadable programs for Mac and Windows. They also offer integration and trading via TradingView, ZuluTrade and Capitalise.ai.
FXCM offers Android and iOS mobile apps, making it easy to keep track of and execute deals while on the go.
Still not sure?
Open a demo account and learn how to trade.
2) Executing Trades
Minimum and maximum trade size depends on the instrument and trader with FXCM. You can expect tighter spreads and more transparency over the amount you pay to execute your trades because FXCM offers STP execution.
FXCM, as a market maker, may have lower entrance criteria than an ECN broker, which benefits from the bigger number of trades and often has higher capital and minimum trading requirements.
Market makers usually offer a lower minimum deposit, fewer minimum trade requirements, and zero commission trading.
Margin requirements vary by trader, account, and instrument, as they do with most brokers. On their website, you may see the most recent margin and leverage details.
FXCM is one of the few brokers who claim to have no requotes, which means you won’t have to worry about slippage (your trades being ordered at a different price to what you executed them at).
We have included a list of some of the most common funding options that FXCM provides to its traders.
- Allows scalping
- Allows hedging
- Offers STP
- Low min deposit
- Demo account
- Mini account
- Standard account
- Credit cards
- Bank Transfer
3) Client support
FXCM offers support in many languages like English, Italian, Spanish, German, Russian, French, Portuguese, Hebrew, Arabic, Chinese, Japanese, and Urdu.
To begin the onboarding process with FXCM, you can go to their website.
1) As per FXCM’s Spread Report (Q1 2021)
2)This is the average discount across FXCM’s major pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, EUR/JPY and GBP/JPY.
3) Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
63% of retail investor accounts lose money when trading spread bets and CFDs with this provider.