FXCM Review 2020 - Verified Customer Reviews

Fxverify Rating
4.1
User Rating
4.4
(10)
Fxverify is the first of it's kind and only publishes user reviews by verified customers with a real FXCM trading account. Learn how we verify.

FXCM Review

Updated November 05, 2020
4.1
Score breakdown
Pricing: 4
Regulation: 5
Popularity: 3
User Rating: 4.4 (10)

FXCM overall score rank: 8 out of 35

FXCM forex broker review
KEY TAKEAWAYS

  • Accepts Japanese & Canadian clients
  • Great choice of trading platforms
  • Regulated in the UK, Europe, Australia and South Africa
  • Low minimum deposit

Regulations and Money Protection

5.0  


Entity Name FXCM Markets Limited (BM) FXCM Australia Pty. Limited (AU) Forex Capital Markets Limited (UK) FXCM South Africa (PTY) Ltd
Licence & Regulation Bermuda Registration Australia ASIC Licence UK FCA Licence South Africa FSCA Licence
Client Money Protection ✔️ - segregated client money
Deposit Compensation Scheme ✔️
up to £85,000
Negative Balance Protection ✔️

Entity/Regulation

  • International customers: FXCM Markets Limited will be the counterparty for International customers. This entity, with registered address at Clarendon House, 2 Church Street, Hamilton, HM 11, Bermuda is incorporated in Bermuda as an operating subsidiary within the FXCM group of companies and is not required to hold any financial services licence or authorization in Bermuda to offer its products and services.

  • Australian customers: FXCM Australia Pty. Limited (ACN 112 193 4432), located at Level 13, 333 George Street Sydney, NSW 2000, Australia, is licensed by the Australian Securities & Investments Commission (ASIC) with licence number ASFL 309763. FXCM Australia Pty. Limited is registered to carry out financial services business in Australia, limited to the financial services covered by its AFSL licence.

  • UK customers: Forex Capital Markets Limited is a company registered in England and Wales under number 04072877. Registered office: 20 Gresham Street, Fourth Floor, London E, United Kingdom. Forex Capital Markets Limited is authorised and regulated by the Financial Conduct Authority (FCA) with registration number 217689.

  • South Africa customers: FXCM South Africa (PTY) Ltd, registered in South Africa with company number 2015/279499/07 and with registered address at 114 West Street, 6th Floor, Katherine & West Building, Sandton, is authorized and regulated by South Africa's Financial Sector Conduct Authority (FSCA) with a financial services provider licence number 46534.

Client Money Protection

  • FXCM complies with the highest safety standards for client's funds. For this reason, FXCM client's funds are kept in top-tier international banks, such as the Bank of America and the Barclays Bank, fully segregated from the company's funds.

  • FXCM also complies with the client money handling rules and employs strict policies and procedures regarding the maintenance and operation of these accounts. FXCM holds client's money separately to the company funds and does not use these funds for any operational expenses or purposes.

Deposit Compensation Scheme

Only the UK company (Forex Capital Markets Limited) offers a deposit compensation scheme. Forex Capital Markets Limited is a member of the Financial Services Compensation Scheme (FSCS), an independent compensation fund of last resort for customers of authorised UK financial services firms. If Forex Capital Markets Limited is unable to pay claims against it in the event the firm has stopped trading or has declared to be in default, clients might be entitled to compensation, up to the value of £85,000 per claim.

Negative Balance Protection

  • For accounts opened via FXCM Markets Limited (BM), FXCM Australia Pty Limited (AU) and FXCM South Africa (PTY) Ltd there is no negative balance protection to prevent clients from keeping their accounts balance below zero. This means that in extreme market volatility, and without an adequate stop loss in place, a losing trading position can cause a negative account balance.

  • For customers of Forex Capital Markets Limited (UK), negative balance protection is in place by default and according with ESMA directives.

Accounts, Instruments and Platforms

Accounts Instruments Platforms Social trading Maximum Leverage
✔️Standard
✔️Active Trader
❌PAMM
✔️Islamic Accounts
✔️Forex
✔️Indices
✔️Stocks
✔️Futures
❌ETFs
❌Bonds
✔️Commodities
✔️Cryptos
✔️MT 4
❌MT 5
❌cTrader
✔️Trading Station
✔️NinjaTrader
✔️TradingView
✔️Myfxbook
✔️ZuluTrade
30:1 UK

400:1 Rest of World

Account types and currencies

  • FXCM has two types of trading accounts; Standard and Active Trader. FXCM also offers swap-free accounts for traders of Islamic belief.

  • FXCM also allows for social trading, including copy trading, via Myfxbook and ZuluTrade.

  • FXCM does not have any PAMM accounts alternatives for private money managers.

  • FXCM maximum leverage is 30:1 for accounts opened within Europe and up to 400:1 for accounts opened in other countries around the world.

  • Currently, FXCM trading accounts are available in AUD, CAD, CHF, EUR, GBP, JPY, NZD and USD.

Financial instruments

Trading with FXCM can be done via the MetaTrader 4, NinjaTrader, TradingView and FXCM's own proprietary platform, the Trading Station. All the trading platforms are available for desktop and mobile trading. FXCM offers a limited selection of about 85 assets to trade, including Forex, indices, stocks, commodities (including 3 futures contracts) and cryptocurrencies.

  • FX market - 39 currency pairs (including Minor and Exotic crosses).

  • Indices - 13 world indices including SP 500m, UK 100 and NIKKEI 225.

  • Stocks - 15 shares from top American companies and banks, such as Amazon, Bank of America and Tesla.

  • Commodities - 11 commodities CFDs available for trading; 3 metals (including Gold and Silver), 5 energies including UK Oil, US Oil and Nat Gas and 3 soft commodities futures (Wheat, Corn and Soybean).

  • Cryptocurrencies - 7 CFDs crosses for trading, including BTC/USD, ETH/USD and XRP/USD.

Pricing

4.0  


Pricing/
Account
Standard Active Trader
Spread EUR/USD from 1.2 pip from 0.0 pip
Commissions (1 lot) from 5 USD
Minimum Deposit from 50 USD from 50 USD

Spreads

FXCM's trading fees are, in general terms, low. But there are two clear and independent fee structures, depending if the trading account type is a Standard or an Active Trader.

With a Standard trading account, there are no trading commissions, but the typical spread for the EUR/USD ranges from a minimum of 1.2 pip to an average of 1.5 pip. We consider this spread to be in line when compared with other top brokers.

On the other hand, the FXCM Active Trader account (restrictions apply when opening an account) is more competitive, with lower spreads. For the EUR/USD pair the spread starts at 0.0 pip, with a typical spread of 0.2 pip. To get the benefit of the lower spread, FXCM charges a commission. The standard lot commission for 1 lot (100,000 units) is 5.00 USD (2.50 USD per side, per lot), or the equivalent on your account currency. We consider this commission to be slightly lower, when compared with all the other top FX brokers. Plus, traders can earn rebates from their trading with an Active Trader account.

Rollover Rates

Regarding swap rates, FXCM does not publish or let any third-party publish the rates on their behalf. The only way to find out the current FXCM rollover rates is by opening a Demo Account, as stated on the broker's website: “you can see today's rollover rates by Opening a Demo Account”. FXCM should transparently declare it’s swap rate policy within the corporate website pages. In this case we can't compare if holding a long or short 1 lot EUR/USD with FXCM is cheaper or more expensive, compared with other brokers.

Deposits/Withdrawals and Other Fees

  • Deposit fees - Trading accounts can be opened in 8 different currencies and maintained via 7 different funding methods, including cards, bank wires and e-payments such as Neteller, Skrill and Union Pay. Deposited funds are available almost instantly. FXCM does not charge any fees for deposits.

  • Withdrawals fees - Same policy applies for withdrawals (processing times are typically 3-5 working days). FXCM does not charge any additional fees for withdrawals by cards. However, there is a $40 fee for all bank wire requests.

  • Inactivity fee - FXCM also charges a Trading Inactivity fee. A trader will be charged a dormancy account administrative fee every calendar year if there is no client-initiated activity in the 12 months preceding the charge date. The fee is up to 50 units of the account currency (JPY 5,000 for JPY denominated accounts) or the account balance, whichever is less, debited from the account.

Popularity

3.0  


Forex
Education
Deposit
Options
Deposit/Withdrawals Fees Non expiring demo account Customer
Support
Online Courses
Video Tutorials
Trading Guides
Trading Strategies
Fundamental & Technical Analysis
FXCM App Store
Cards
Bank Wire
E-payments
❌/✔️ - Bank Wires ✔️ Multi language
24/5 Support
Live Chat

With 20 years of supplying trading accounts and services to thousands of traders around the world, FXCM seems to have their fair market share. At the same time FXCM is failing to capture the attention of new traders and losing ground, as the fierce competition between brokers increases, to new market players with more attractive accounts costs and benefits.

Still, FXCM is a popular Forex broker with traders for the great variety of trading platforms on offer. Markets are available through the more traditional MT4, NinjaTrader, TradingView and FXCM's own proprietary platform, the Trading Station, available on web terminal version, PC, Mac, Android and iOS.

  • Trading accounts - The FXCM Active Trader account is a popular choice with traders looking to save on trading costs, with a lower spread and a competitive commission of $5.00 per lot traded.

  • Forex education - FXCM offers a great range of Forex educational tools to help traders succeed. On FXCM great Education center, traders can find an enroll on a free online live classroom, a video library, trading guides, educational and tutorial videos, trading strategies, daily market fundamental and technical analysis. Very originally, this broker has also created their own FXCM App Store where traders can find custom-made indicators, EAs, scripts and a lot more.

Funding Methods Bank Wire, Cards, China Union Pay, Neteller, Skrill, Klarna, Rapid Transfer
Support Languages English, Spanish, French, German, Arabic, Chinese-Mandarin, Italian, and Greek Limited support for Malay, Vietnamese, Chinese-Cantonese, Urdu, Tamil, Hindi, Farsi, Bulgarian, Slovak, Czech, Portuguese, Thai and Russian

  • Minimum deposit - Opening a trading account with FXCM can take some time. The whole process, from filling in the online forms to have the account approved, can take 1-3 business days. The minimum deposit requirement with FXCM is 50 currency units.

  • Customer support - FXCM's multi language customer support service is available 24 hours, 5 days a week, in 21 languages. FXCM's support is available via local phone call to regional offices (depending on jurisdiction), email and live chat directly from the broker's website.

Broker Profile

FXCM Inc. (NASDAQ : FXCM) is a global online provider of foreign exchange (Forex) trading and related services to retail and institutional customers worldwide. As a vocal advocate of regulation and increased investor protection, FXCM Inc. has companies registered and regulated by the most respected regulatory bodies in the world. FXCM Markets Limited ("FXCM Markets") is incorporated in Bermuda as an operating subsidiary within the FXCM group of companies (collectively, the "FXCM Group" or "FXCM"). FXCM Markets is not required to hold any financial services license or authorization in Bermuda to offer its products and services.

Forex Capital Markets Limited is regulated by the Financial Conduct Authority (FCA) in the UK. Additionally, FXCM is regulated in Germany, Italy, France, Australia, and Japan. At the heart of FXCM's client offering is No Dealing Desk trading. Clients benefit from FXCMs large network of liquidity providers enabling it to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts.

FXCM customers can take advantage of a diverse range of products, since the company offers trading not only in Forex, but also in precious metals, shares, indices and cryptocurrencies CFDs. FXTM offers trading via Metatrader 4, Trading Station, available for Mac, Android, iOS and web and also Social Trading via ZuluTrade, all tailored to the individual needs of their clients. With local offices in several countries, FXCM offers multilingual customer support which recognizes the individual needs of each customer and strives to be always available, prompt and coming up with the right solution to any problem.

Overall, on our FXCM review, the broker scores a great 4.1 out of 5 as it is a good choice for traders looking for a reputable broker with good and strong regulations in place and safety of funds. The exceptional offering of Forex educational materials is a must for new and seasoned traders. On the downside, the broker fails to capture the attention of new traders; perhaps FXCM is becoming more of a “corporate broker” than a retail broker.


Data supplied in partnership with CashBackForex - Forex Rebates places FXCM on the top 30 brokers for popularity with traders opening an account in 2020.


Was this review helpful? Share it with a friend!

FXCM User reviews

Account types:
Sort:
4.4
(10 reviews)

FXCM user rating score rank: 6 out of 35

FXCM Account types user rating

FXCM Products

Forex
Indices
Metals