FXCM Broker Review

Review By: Alan Little

Review Updated: 2021-02-10

4

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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.

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FXCM broker features

FXCM pros and cons

Pros

• Choose from the best trading platforms on the market
• System upgrades and institutional grade quality of execution
• Excellent client support in terms of research, analysis and customer services
• Strong regulatory framework
• High-spec mobile trading functionality

Cons

• Limited number of markets to trade

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Review Sections:

Who are FXTM?

Our FXCM Broker Review 2020 has found FXCM to be an established and powerful trading platform. Over its 20-years in operation it has found success by keeping up with the latest trends and shifts in customer appetite. In line with this, the firm is now offers one of the strongest regulatory and compliance frameworks and considerable substance in the form of a range of global bricks-and-mortar offices, not to mention an owner with deep pockets.

This hasn’t distracted them from focusing on the trading experience. An eyebrow-raising number of top-class platforms are on offer. These offer self-trading and systematic trading in all shapes and sizes with the underlying focus on tight spreads and quality execution.

Some of the magic is due to technology which is by its nature hidden in the background. Scratch the surface and its possible to see the infrastructure FXCM operate is institutional grade. In fact, the platform caters to the wholesale market as well as the retail one. Getting a better understanding of what is on offer offers traders a chance to see what is possible. Our FXCM Broker Review Panel checked the awards below and they are all current.

FXCM Fees

4

Clients of FXCM can take a lot of comfort from the low level of commissions, fees and other charges applied by the broker. They aren’t necessarily the lowest around but FXCM does not compete on price alone. The robust nature of the execution service is in terms of trader confidence worth a few pips.

Different account types trade on different price tariffs and those which move up to an Active Trader account ($25,000 minimum) see a market improvement in terms. UK and Ireland clients might also want to check out the spread betting function as spreads on there are sometimes tighter.

This competitive pricing should come as too much of a surprise. FXCM group after all supports wholesale trading by institutional investors, but it’s nice to see the benefits of that trickle down to the retail accounts as well.

The firm is set up to accommodate high volume trading. Technical services such as ECN, various free API’s and VPS are all offered, and all go towards building the ‘flow’ that the broker sees.  With bid-offer pricing bigger tends to be better, and with FXCM this is definitely the case.

Trading Platforms

4

The broker space is hypercompetitive and FXCM’s response has been to offer its clients the choice of four state-of-the-art platforms. Trading Station, NinjaTrader, MetaTrader and ZuluTrade are all top-tier means of trading the markets. Each one has a different ‘feel’ and might be favoured for trading particular markets or strategies. The good news is that FXCM clients can move between the different platforms as they please and trade through them using just one account.

Trading station offers a comprehensive range of tools which equip traders to research and trade the markets with ease. It comes with custom indicators, strategy optimization tools, back-testing, and robust charting. It has an attractive aesthetic and intuitive feel but still has the advanced tools needed to support the needs of serious traders. The special add-ons include the Real Volume and Trader Sentiment services. These give an insight into the inner-workings of the market. The valuable metrics are pre-loaded on Trading Station and directly help traders P&L by giving a real-time insight into the nature and direction of market sentiment.

NinjaTrader offers users a professional-grade charting package and the dashboard and monitors can be extensively personalised to ensure traders set up their screens just the way they want them. Neat features of NinjaTrader include being able to load multiple time-frames and markets on a single chart, which makes it easier to spot evolving patterns. Bid and ask prices are streamed simultaneously and there are hundreds of indicators and screen formats available.

The Meta Trader MT4 platform is for very good reasons the most popular retail trading platform in the world. It is exceptionally intuitive and comes with crystal clear charting graphics. The execution interface has a reassuringly industrial feel to it which allows traders to ensure their execution is error-free. Designed and developed to support technical analysis means MT4 is packed with indicators and signals. The default offering includes all the major aids for determining trade entry and exit points. There are hundreds more which can also be brought in to complement a particular approach or strategy. Some of these add-ons command a fee but most are free and developed or influenced by other traders.

MT4’s position in the trading community is well established and a lot of brokers offer it. FXCM, however, offer a few extra upgrades to encourage traders to run their Meta trades on the FXCM platform. Most notably is the offering of a Virtual Private Server (VPS) service. These are provided by third-parties rather than FXCM but it’s to their credit that FXCM has gone to the trouble of making them available. Using servers which are located in proximity to specific markets can bring about a considerable boost to trading returns.  are provided by third parties. These third parties are not owned, controlled or operated by FXCM. It is also possible to access the services of expert programmers to help automate strategies.

Mobile Trading App

4

FXCM’s mobile trading platform ranks very highly. The default platform is ‘Trading Station Mobile’ and this offers such a comprehensive approach that many users may not get around to trying out the other mobile platforms. Navigation is smooth and fast. Its possible to swipe across different screens as well as go forwards or back and it has an attractive aesthetic.

The mobile charting package is one of the best available. The range of indicators which transfer over from the desktop version is particularly impressive and applying them to the monitors is made easier by magnification functions that allow point-point charting even on a small screen.

Mobile execution is of the same high standard as the desktop version. Complex instructions such as trailing stops can be built into orders.

Market Research

4

The Research package on offer is comprehensive and well thought out. Broken down into two sections ‘Knowledge’ and ‘Insights’.

The ‘Knowledge’ section offers resources for clients to use to develop their trading skills. The material comes in a range of formats and the ‘online classroom’ is particularly impressive. There are lots of ways for clients to work on becoming better, more successful traders.

The ‘Insights’ section leans more towards current market events. There are guides on ‘drivers’ of the markets such as OPEC and central banks and ‘how-to’ sections covering popular trading strategies. Countless other features such as risk management, pivot points and Bollinger Bands are all covered and represent the final piece of an impressive and comprehensive package.

There is also a hook up with Trading View. This third-party site offers a social network for traders and investors. It offers live quotes, stock charts and expert trading ideas which FXCM clients can utilise through their own Demo and Live trading accounts.

Customer Service

4

FXCM score very highly in terms of customer service. It’s one of the aspects of their offering where they are firmly in the ‘market-leader’ category.

Demonstrating confidence in their ability to cater to client needs the firm offers free-phone support hotlines in 42 countries. In nine of these countries they also have a physical office. Our reviewers found email and Live Chat response times were extremely good. In all instances the staff were proficient, professional, and resolved our queries in one session. Another nice-to-have feature is that support is also offered via SMS/text messages.

Having support so readily to hand and offered in a format to suit each individual saves time. It can also save money. This is because being able to contact the trading desk directly is very positive from an operational risk point of view. There are times when system glitches create uncertainty and being able to call someone and establish portfolio positions and trade them can be crucial. System problems are of course rare occurrences, usually due to an issue at the client’s end, and often when markets are moving around dramatically. Having a direct line to a trading desk, which is on hand to step in and help manage your account is not to be underestimated.

Levels of customer support are exceptional. A nice reflection on the firms’ approach to helping their clients is that the FAQ section comes up as a secondary item on their site. Many brokers are over-reliant on FAQ’s to help resolve queries. FXCM clients are instead guided to the direct one-to-one support offered by their staff. This is a positive in terms of both time and money.

Are you finding our FXCM Broker Review 2020 Useful?  We would love to hear from you.  Please help us help other traders make good choices with broker selection. Let us have any comments on FXCM as a Broker.

Address: 20 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom.DOMS Assets Business Centre, 33 Neas Engomis Street, 2409 Engomi, Nicosia, Cyprus Suite 214, 480 Collins Street, Melbourne VIC 3000, Australia220 Bay Street, Suite 600, Toronto, Ontario, M5J 2W4, Canada 3 Kiriyat Hamada Street, Building C, 3rd floor, Jerusalem, Israel 97776 114 West Street, 6th Floor, Katherine & West Building, Sandton, 2196, Johannesburg, South Africa.

Phone: +44 7537 432259
+1 646 253 1401

Email: info@fxcmmarkets.com

Risk Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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.