FXCM
FXCM Review 2024
Secure, regulated, and tested by TradingCraft
Top Rated Broker at TradingCraft
Recommended for Forex Traders
Quick summary of FXCM
FXCM is an excellent choice for traders of all levels, especially for those interested in Forex and CFD trading. The platform offers a user-friendly interface with advanced charting tools and competitive pricing, making it suitable for both beginner and experienced traders.
FXCM stands out for its low spreads and no commission on standard accounts, providing a cost-effective trading environment. Traders also benefit from various educational resources, making it easier for beginners to learn and adapt.
One unique feature of FXCM is its access to Algorithmic Trading and API Trading options, which are ideal for more advanced users who want to automate their strategies.
FXCM
4.2
/5
Overall score
Regulation and Safety
Safe
Stock fee
Low
CFD Trading Charge (indices)
Average
Withdrawal fee
$5
Trading Platforms
Web and Mobile
73% of retail CFD accounts lose money
Pros
Wide range of trading tools
No commission on standard accounts
Access to algorithmic and API trading
Cons
Fewer stock CFDs compared to others
No access to MetaTrader 5
Some fees are high
Account opening
Score: 5/5
Opening an account with FXCM is a straightforward and hassle-free process, designed to accommodate both beginner and advanced traders. The platform offers a seamless onboarding experience, and the minimum deposit requirement is relatively low, making it accessible to a wide range of users across different countries.
Pros
Easy Process
Seamless Onboarding
Low minimum deposit
Cons
Somewhat longer account verification process
What is the minimum deposit required to start trading with FXCM?
The minimum deposit at FXCM is $50.
The minimum deposit required to open an account with FXCM varies depending on the region and payment method. For most regions, the standard minimum deposit is $50. However, for certain accounts and payment methods, the minimum deposit can range higher.
• Standard minimum deposit: $50
• Bank Transfer deposits: Minimum of $300
The minimum deposit amounts apply to retail accounts only. The exact amount may vary based on the country and regulatory conditions. Ensure that you verify the specific deposit requirements for your region before opening an account.
Account types
FXCM offers a range of account types to accommodate different kinds of traders, from beginners to more advanced and professional traders. Here’s a breakdown of the main account types available at FXCM:
Standard Account
This is FXCM’s most popular account type, suitable for both beginners and intermediate traders.
• Minimum Deposit: $50
Features:
• Access to all major asset classes: Forex, CFDs on indices, commodities, and cryptocurrencies.
• No commissions on most trades – FXCM earns from the spreads.
• Leverage: Up to 30:1 for retail traders (depending on the jurisdiction).
Available on multiple platforms, including Trading Station, MetaTrader 4 (MT4), and NinjaTrader.
Best for: Beginner and intermediate traders who are primarily interested in Forex and CFD trading.
Active Trader Account
Designed for high-volume and more experienced traders, the Active Trader Account offers reduced costs and additional benefits.
• Minimum Deposit: $25,000
Features:
• Reduced spreads and lower trading costs compared to the Standard Account.
• Dedicated account manager to provide personalized support.
• Exclusive market insights and news from FXCM’s market research team.
• Access to premium features like API trading and advanced charting tools.
Available on platforms like MetaTrader 4 (MT4) and Trading Station.
Best for: High-volume traders looking for tighter spreads and premium support.
Demo Account
For traders who want to practice without risking real money, FXCM offers a Demo Account.
Features:
• Virtual funds: Typically starts with $50,000 in virtual money to practice trading in real market conditions.
• Same access to platforms as real-money accounts, including MT4, Trading Station, and NinjaTrader.
• Full access to educational resources, tools, and market data.
Best for: Beginners or traders who want to test strategies without risking actual capital.
Other Account Options at FXCM
FXCM also offers other account options beyond the standard, active trader, and demo accounts. Traders who need to comply with Sharia law can choose an Islamic (Interest-Free) Account, which removes rollover interest fees on overnight trades. For those who meet eligibility criteria, the Professional Account provides access to higher leverage but comes without negative balance protection, designed for experienced traders. Additionally, businesses can open Corporate Accounts, which offer customized solutions for institutional clients.
For more detailed information on these accounts, you can visit FXCM’s official page: FXCM Account Types
How to open an account with FXCM
1 - Go to FXCM’s official website and select your region to ensure you see the correct offerings and regulations for your country.
2 - On the homepage, click on “Open an Account” and select the account type that suits your needs (e.g., Standard Account, Active Trader, or Islamic Account). If you’re unsure, you can start with a demo account to practice trading without risk.
3 - Fill in the required personal details, including your name, email address, phone number, and country of residence. You will also be asked for your employment information and trading experience to comply with regulatory requirements.
4 - Choose the trading platform you wish to use (Trading Station, MetaTrader 4, etc.) and select the base currency for your account (USD, GBP, EUR, etc.).
5 - After submitting the registration form, you will need to verify your identity by uploading documents such as:
• A valid passport or government-issued ID.
• A proof of address (utility bill, bank statement) that’s not older than 3 months.
6 -Once your account is verified, you can deposit funds. FXCM offers multiple funding options, including:
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Credit/Debit cards
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Bank transfers
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e-Wallets (PayPal, Skrill)
FXCM; open account
73% of retail CFD accounts lose money
Fees
Score: 4/5
FXCM’s fee structure is designed to be relatively straightforward, with the aim of transparency for all traders. However, it is important to understand the various types of fees that can be incurred to avoid any surprises. Here’s a breakdown of the key fees to be aware of:
Pros
No Deposit Fees
Competitive Spreads
Commission-Free Trading
Cons
Inactivity Fees
Currency conversion fees
Commission on Trading
FXCM offers commission-free trading on most of its products, with fees integrated into the spread. However, for specific Active Trader Accounts, traders can opt for raw spreads and pay commissions on trades. This is especially beneficial for high-volume traders seeking lower spreads.
• Forex: FXCM offers commission-free trading on Forex pairs, but spreads may vary depending on market conditions and the specific currency pairs.
• Commodities and Indices: Similar to Forex, there are no commission fees, with spreads included in the cost.
Summary of Fees On FXCM
Inactivity Fee
If your account remains inactive for 12 months, FXCM charges an inactivity fee of $50. This fee can be avoided by either placing a trade or withdrawing your funds if you do not plan to use the account for a while.
Withdrawal Fee
Bank Wire: International withdrawals through bank wire incur a fee of $40. Domestic wire transfers may be free, depending on your region and account type.
Credit/Debit Cards and e-Wallets: FXCM does not charge fees for withdrawals made via credit/debit cards or e-wallets (such as Skrill or PayPal). However, it’s essential to check whether your payment provider might apply fees.
Spreads
For most standard accounts, spreads are the main cost of trading. Spreads can vary depending on the market conditions, asset class, and trading volume. FXCM aims to keep spreads competitive, with typical spreads on major currency pairs like EUR/USD averaging around 1.3 to 1.4 pips during regular trading hours.
Other Possible Fees
Overnight Fees (Swap/Rollover): For positions held overnight, FXCM may charge swap fees, depending on the instrument and the account type. Islamic (interest-free) accounts are exempt from swap charges.
For more detailed information, you can visit FXCM official fees page.
73% of retail CFD accounts lose money
Safety
Score: 4/5
When it comes to safety, FXCM is a solid choice. With strict regulation and multiple layers of protection, it provides peace of mind for traders. Let’s break down why FXCM is considered secure and what you should be aware of.
Pros
Strong regulation
Negative Balance Protection
Two-Factor Authentication
Cons
Limited Protection for Professional Clients
No Guaranteed Stop Losses
FXCM’s Regulatory Status
FXCM is regulated in multiple regions, meaning they’re watched closely by financial watchdogs to ensure fair practices:
• In the UK: FXCM is regulated by the FCA, one of the top regulatory bodies globally, which means they must meet high standards for client protection and fund security.
• In Australia: FXCM operates under ASIC, which keeps a close eye on how brokers handle client funds and trading practices.
• In South Africa: FXCM is also regulated by the FSCA, ensuring compliance with local rules and regulations.
So, is FXCM Safe to Trade With?
To ensure a brokerage is secure, we recommend verifying some key factors:
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Investor Protection: FXCM offers protection schemes such as FSCS in the UK, which compensates traders if the broker faces insolvency.
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Regulation: The platform is regulated by major financial authorities, including the FCA, ASIC, and FSCA, providing strong oversight.
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Established Reputation: FXCM has been in operation since 1999 and is trusted by traders globally, with a strong track record in the financial markets.
Two-Factor Authentication (2FA)
FXCM takes account security seriously and offers Two-Factor Authentication (2FA) to help protect your trading account from unauthorized access. 2FA adds an extra layer of security by requiring not just a password but also a second form of verification—usually a code sent to your phone or email. This ensures that even if someone manages to get your password, they still can’t access your account without the second verification step.
In addition to 2FA, FXCM employs secure login protocols and continuously monitors account activity for any suspicious behavior. This proactive approach ensures that any unauthorized activity is flagged and action is taken swiftly to protect your account.
Encryption and Data Protection
To safeguard client data, FXCM uses high-level encryption technology to protect both personal information and trading data. The platform uses SSL (Secure Socket Layer) encryption to ensure that any data transmitted between the user and FXCM’s servers is secure from interception by third parties.
This level of encryption extends to personal details, financial transactions, and trading activities, ensuring that client information remains confidential and secure. Additionally, all client funds are held in segregated accounts in top-tier banks, providing an extra layer of protection for your money.
Safety Considerations for FXCM Users
Negative Balance Protection: While retail clients benefit from strong safety measures, including negative balance protection, professional clients are not afforded the same safeguards. This means that during periods of extreme market volatility, professional traders could face losses that exceed their account balance.
No Guaranteed Stop Losses: FXCM does not offer guaranteed stop-loss orders, which means your stop loss may not always be executed at the price you set, especially in fast-moving markets. In highly volatile conditions, the risk of slippage could result in a larger-than-anticipated loss. This lack of guaranteed stop loss may raise concerns for traders seeking to minimize risk in unpredictable markets.
Leverage Risks: While FXCM follows regulatory guidelines to limit leverage for retail traders (up to 30:1), higher leverage options are available for professional clients. This increases risk exposure, especially for less experienced traders or during volatile market conditions. High leverage can result in significant losses, which is why it’s important for traders to understand the risks associated with trading on margin.
No Investor Compensation for Non-UK Clients: For clients outside of the UK, protections like the Financial Services Compensation Scheme (FSCS) do not apply. While FXCM is regulated in multiple jurisdictions, compensation schemes vary by country. Clients in certain regions may not have access to the same level of compensation if the broker faces insolvency.
For more detailed information on FXCM’s safety features, visit their Regulation and Safety page.
73% of retail CFD accounts lose money
Deposit and withdrawal
Score: 3.9/5
Depositing and withdrawing funds on FXCM is straightforward, with several payment methods available, including bank transfers, credit/debit cards, and e-wallets like Skrill and Neteller. FXCM does not charge fees for deposits, making it easier for traders to fund their accounts. However, there are some costs associated with withdrawals depending on the method you choose.
Pros
No deposit fees
Multiple deposit options
Simple withdrawal process
Cons
Currency conversion fees
Withdrawal fees
Currency Options and Conversion
FXCM accounts are primarily available in USD, EUR, and GBP, which means that deposits and withdrawals in other currencies may incur conversion fees. For traders based in the UK and Europe, holding accounts in EUR or GBP can help avoid these additional conversion costs.
Alternatives to Avoid Currency Conversion Fees
Consider using a multi-currency bank account with services like Wise or Revolut, which allow you to hold multiple currencies at competitive exchange rates.
You can also opt for e-wallets that support multiple currencies, helping you manage your funds without unnecessary conversion fees.
FXCM Deposits
Depositing funds with FXCM is a smooth and efficient process, offering several options to fit your preferences. Whether you want to transfer through a bank, use your credit card, or rely on e-wallets, FXCM provides a range of methods to make your deposit easy and quick.
FXCM supports bank transfers, credit/debit cards, and e-wallets like Skrill and Neteller. For those depositing through bank transfer, you can expect processing times between 1-3 business days, making it ideal for larger sums. However, if you’re looking for speed, credit/debit card and e-wallet deposits are processed instantly, allowing you to start trading without delay. FXCM does not charge any deposit fees across all these methods, making it a cost-effective option.
Currencies and Conversion
When it comes to currencies, FXCM accounts are available in USD, EUR, GBP, and AUD. Deposits in these currencies are straightforward with no additional conversion fees. However, if you deposit in a different currency, conversion fees might apply. To avoid these charges, you can set your account to one of the supported base currencies or use a service like Wise or Revolut to convert your currency at favorable rates before depositing.
Deposit Limits and Processing Times
FXCM typically requires a minimum deposit of $50, though this may vary depending on your region or the payment method you choose. Bank transfers can take up to 3 business days to reflect in your account, but deposits via credit/debit cards and e-wallets are processed instantly, allowing you immediate access to your funds.
Benefits and Drawbacks
FXCM’s deposit process comes with several advantages, such as the lack of deposit fees across all methods and the instant processing for cards and e-wallets. However, there are a few drawbacks, like the potential delay with bank transfers, which can take a few days, and currency conversion fees if you’re depositing in a currency different from your account’s base currency.
FXCM withdrawals
Withdrawing funds from your FXCM account is designed to be simple, with several withdrawal options available depending on your needs. FXCM supports withdrawals via bank transfer, credit/debit cards, and e-wallets like Skrill and Neteller, offering flexibility based on your preferences.
Withdrawal fees
The most commonly used method for withdrawals is bank transfer, particularly for larger sums. However, this method can incur a fee, particularly for international transfers, where FXCM may charge up to $40. In contrast, withdrawals made through credit/debit cards and e-wallets are typically free of charge, though limits may apply based on your funding source.
In the section below, you can easily check the withdrawal fees for your country by selecting it from the dropdown menu.
Currencies and Conversion Fees
Similar to deposits, FXCM accounts are available in USD, EUR, GBP, and AUD. If you’re withdrawing in the same currency as your account’s base currency, no conversion fees will apply. However, if you’re withdrawing funds in a different currency, conversion fees may be charged.
To minimize conversion fees, it’s recommended to set your FXCM account to your preferred base currency or use a service like Wise or Revolut, which allows you to convert funds at competitive rates before withdrawing.
Processing Times and Minimum Withdrawal
FXCM offers different processing times depending on the withdrawal method. Bank transfers typically take 3-5 business days to process, whereas withdrawals made via credit/debit cards or e-wallets are usually processed much faster, often within 1-2 business days.
There is generally no minimum withdrawal amount for credit card and e-wallet withdrawals. However, for bank transfers, the minimum withdrawal limit can vary depending on your location and currency. Be sure to check FXCM’s terms or your account dashboard for specific details.
Pros and Cons of FXCM Withdrawals
One of the significant benefits of FXCM’s withdrawal system is the variety of options available and the lack of fees for credit card and e-wallet withdrawals. Additionally, the speed of withdrawals for e-wallets and cards ensures traders can access their funds quickly.
On the downside, international bank transfers can be costly, with fees of up to $40, and processing times for bank transfers may take several days, which could be a disadvantage for those needing faster access to their funds.
73% of retail CFD accounts lose money
FXCM Mobile app
Score: 4.5/5
The FXCM mobile app is available on both iOS and Android, offering a seamless and intuitive trading experience. The app allows users to trade multiple asset classes, including forex, commodities, and indices, while also providing access to real-time market data and charting tools. Features like price alerts and push notifications make it suitable for both beginners and experienced traders looking to stay updated on market changes.
Pros
User Friendly
Customizable Notifications:
Cons
No Two-Factor Authentication
Our test was conducted on an iPhone 15 running iOS, and we tested the app in English language.
The FXCM mobile app is accessible in several languages to enhance user experience. Available languages include English, Chinese (Simplified), French, German, Italian, Spanish, Dutch, and Arabic.
Design and experience
The FXCM mobile app’s interface is user-friendly, with a clean layout that makes it easy to monitor trades and market movements. It offers essential trading tools like real-time charts, indicators, and a simple order execution process. For beginners, the app’s layout and design make it easy to get started, while more experienced traders can make use of charting tools and price alerts.
The app’s design ensures smooth navigation, even for users who may be new to mobile trading. Features are well-organized, and the real-time charting feature provides useful data for on-the-go analysis. Overall, the platform enhances the trading experience by combining ease of use with powerful tools for traders at every level.
FXCM - Mobile trading platform English
Security
The FXCM mobile app is designed with industry-standard security measures, including encryption to protect sensitive data and secure transactions. However, the app does not currently offer two-factor authentication (2FA), a feature many users might expect for enhanced protection. Despite this, FXCM’s regulation by financial authorities such as the FCA and ASIC helps ensure account safety by enforcing stringent operational standards.
Additionally, the app uses SSL encryption to safeguard all personal and financial information during transactions. eToro adheres to strict compliance with international financial regulations, ensuring that user accounts remain protected from fraud and unauthorized access.
Functionality
The app provides essential trading features such as real-time chart analysis, market updates, and the ability to execute trades on the go. FXCM’s mobile platform integrates tools for managing stop-loss orders, tracking portfolios, and receiving trading signals, making it convenient for both beginners and advanced traders.
While the FXCM app covers most essential trading features, it lacks the ability to integrate with some advanced third-party tools that might appeal to professional traders. Nevertheless, it still provides adequate functionality for day-to-day trading operations.
Account Management
FXCM’s mobile app offers comprehensive account management capabilities, allowing users to fund their accounts, withdraw funds, and manage their trading positions directly from their smartphones. Users can also view their trading history, set preferences, and monitor performance with ease.
73% of retail CFD accounts lose money
FXCM Web trading platform
Score: 4.2/5
The FXCM web trading platform is designed to be accessible and intuitive for all types of traders, from beginners to professionals. It provides access to various financial instruments such as forex, CFDs, indices, and commodities, with real-time market updates and advanced charting tools. The interface is customizable, allowing traders to personalize their dashboards, set up watchlists, and adjust chart settings. While the platform is comprehensive, customization options are limited compared to more advanced platforms.
Pros
User-friendly design
Reliable security
Access to advanced trading tools
Cons
Limited Customization
No Two-Factor Authentication
Available languages include English, French, German, Italian, Spanish, Chinese (Simplified), Japanese, and Arabic.
Design and experience
The FXCM web trading platform offers a modern, intuitive design that balances functionality and simplicity, making it appealing to traders of all levels. The clean layout allows users to seamlessly navigate through various trading tools, such as charting, watchlists, and order management. With real-time updates, traders can easily track their portfolios and execute trades swiftly. The platform is designed for efficient trading, with minimal distractions, while still offering the essential tools needed for market analysis and trade execution.
For more experienced traders, while the platform delivers most of the core trading functionalities, it lacks some of the in-depth customization options found on other platforms. However, FXCM’s web platform remains a solid choice due to its reliability, fast execution, and smooth user experience.
FXCM - Web trading platform
Security
The FXCM web platform ensures strong security measures to protect user data and funds. While the platform follows standard security protocols, such as SSL encryption and strict regulatory compliance (including oversight by the FCA and ASIC), it does not currently offer two-factor authentication (2FA). However, FXCM’s global regulatory compliance helps ensure that user information and trading activities are safeguarded by stringent guidelines.
Functionality
FXCM’s web platform provides essential trading functions such as real-time charting, advanced technical analysis tools, and market updates. Traders can easily monitor portfolios, manage orders, and execute trades from one interface. Additionally, the platform integrates economic news, a calendar, and market insights to help traders make informed decisions. It also supports risk management tools like stop-loss and take-profit orders, which are essential for maintaining control over trades.
Customization and Advanced Trading Tools
While FXCM’s web platform is relatively easy to use, its customization options are somewhat limited compared to platforms built specifically for advanced traders. Traders can modify watchlists and adjust basic chart settings, but deeper customizations, such as creating custom indicators or integrating third-party plugins, are not available. For advanced traders looking for comprehensive trading tools, the platform offers access to MetaTrader 4 (MT4), which provides more robust features for algorithmic trading and deeper customization.
73% of retail CFD accounts lose money
Product Selection on FXCM
Score: 3.5/5
FXCM offers a broad selection of financial instruments, primarily focused on forex and CFDs (Contracts for Difference). Traders can access a range of major, minor, and exotic currency pairs, along with CFDs on commodities like gold, silver, and oil, indices, and cryptocurrencies. The product lineup also includes shares and ETFs in select regions, giving traders the ability to diversify their portfolios. While FXCM’s focus is on forex trading, the additional asset classes provide flexibility for traders looking for broader market exposure.
Forex
FXCM excels in providing a wide variety of forex pairs, including majors like EUR/USD, GBP/USD, and USD/JPY, as well as minors and exotic pairs such as EUR/TRY and USD/ZAR. Traders benefit from tight spreads, competitive leverage, and advanced trading tools for analysis and execution. FXCM’s forex platform supports different trading strategies, from short-term scalping to long-term position trading, making it appealing for both beginner and experienced traders. With 24-hour trading and market liquidity, forex is FXCM’s primary offering.
CFDs on Commodities
FXCM offers CFDs on popular commodities such as gold, silver, and crude oil. This allows traders to take advantage of price movements in key global markets without owning the underlying assets.
Indices
Traders can also speculate on global indices like the S&P 500, NASDAQ, and FTSE 100, providing opportunities to trade the performance of broad market segments.
Cryptocurrencies
While not as extensive as its forex offerings, FXCM allows trading in major cryptocurrencies such as Bitcoin, Ethereum, and Litecoin via CFDs. This enables traders to gain exposure to the volatile crypto market without holding the assets directly.
Shares and ETFs
In select regions, FXCM also provides CFDs on shares and ETFs, giving traders the opportunity to access equities without the need to own the underlying stocks. This feature is beneficial for those looking to diversify into stock markets globally.
Leverage on FXCM:
How It Works and What to Know
Leverage allows traders to control larger positions with a smaller initial investment. On FXCM, leverage can go up to 30:1 for retail traders on major forex pairs, depending on the region and regulations. This means for every $1 you have, you can trade up to $30. While leverage can magnify potential profits, it also increases the risk of larger losses. Retail traders have leverage limits due to regulatory protections, while professional clients may access higher leverage but with reduced safety nets like negative balance protection.
Key points to consider:
• Higher leverage increases both potential profits and risks.
• Use leverage cautiously and implement risk management strategies.
73% of retail CFD accounts lose money
Some of this content has been translated and may not be suitable for all recipients. Additionally, certain products may be restricted in your region. Please note that some information might have changed or could be inaccurate. Updates may have occurred since the review was written. Always verify the latest details before making decisions.
FAQ
Is FXCM regulated?
Yes, FXCM is regulated by several top-tier authorities, including the Financial Conduct Authority (FCA) in the UK, ASIC in Australia, and FSCA in South Africa. This ensures that FXCM operates under strict guidelines to protect traders’ interests.
What is the minimum deposit on FXCM?
The minimum deposit required to open an account on FXCM is $50, though this may vary by region and account type.
Does FXCM offer negative balance protection?
Yes, FXCM offers negative balance protection for retail clients, meaning you can’t lose more than your deposited funds. However, this does not apply to professional clients.
What trading platforms does FXCM support?
FXCM offers access to Trading Station, its proprietary platform, as well as MetaTrader 4 (MT4) and third-party tools like TradingView. These platforms cater to both beginners and advanced traders.
Can you trade cryptocurrencies on FXCM?
Yes, FXCM allows traders to access cryptocurrencies like Bitcoin, Ethereum, and Litecoin via CFDs. This enables traders to speculate on price movements without owning the underlying assets.
Does FXCM charge withdrawal fees?
FXCM charges withdrawal fees depending on the method and region. For example, international bank transfers can cost up to $40, while withdrawals via credit/debit cards and e-wallets are often free.