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FXCM Broker Review

FX Scouts By Jeffrey Cammack Updated: October 14, 2019
Average Score
4 / 5
Min. Deposit USD 50
Max. Leverage 400:1
Min. Spread Variable pips
Regulators FCA,ASIC,FSCA
Regulator Origin FCA ASIC FSCA
Broker Type Market Maker/STP

Summary

FXCM is a leading provider of online Forex trading and CFD trading. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, traders have the choice between FXCM’s award-winning Trading Station platform, MetaTrader 4, NinjaTrader or a variety of speciality platforms for more advanced users.

Reviews

Trust Rating
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Bonuses $20 Welcome Bonus
Beginner Friendly Excellent
About our review process

Trading Conditions

Minimum Deposit USD 50
Base currencies AUD,USD
Number of FX Pairs 39
Hedging Allowed
Scalping
Swap-Free Accounts

Average Spreads

EUR / USD 1.3
GBP / USD 1.8
USD / JPY 1.4

Company Details

Company name Forex Capital Markets Limited
Founded 2015
Website Visit Website
Type Market Maker/STP
Regulators FCA,ASIC,FSCA
Office locations Australia,South Africa,UK

Deposit & Withdrawal Methods

Supported Platforms for FXCM

FXCM Broker Detailed Review

Is FXCM Safe?

FXCM is a global provider of FX and CFD services and has been operating worldwide since 1999. The FXCM Group has subsidiaries that are regulated by some of the major regulators around the world. FXCM Ltd has been regulated in the United Kingdom by the FCA (license: 217689) since 2003 and FXCM Australia has been regulated by ASIC (license: 309763) since 2007. The company has won many industry awards over the years – some of the more recent awards include Best Customer Support by FX Empire in 2017, and Best Technical Tools by BROKERCHOOSER in 2019.

FXCM For Beginners

The major advantage of FXCM for new traders is the quality and quantity of educational material on offer. This broker has won the Best Educational Materials Award from Investment Trends, a sign of the high standard of educational support offered.

The analytical services available, while not as uniquely excellent as the education section, are also very good and will be useful to the beginner and experienced traders alike.

Education Material

The education section at FXCM is exceptional when compared to its peers. It is split into five sections:

  1. New to Forex – This is a detailed, yet easy to read, breakdown of how Forex trading works and the tour of the major aspects to be aware of when trading. This covers Quotes, Pips, Spread, Leverage and Margins – not in detail, but enough for real beginners to understand the terms.
  2. Traits of Successful Traders – This is a list of best practices used by successful traders and is essential reading for new traders. This covers the importance of a Stop Loss, the effective use of Leverage and Trading Hours.
  3. Webinars – This one should be obvious from the title. Here you can catch the live webinars (every weekday at 18.00 AEST for the London Open, 23.30 AEST for the US Open and every Wednesday at 17.00 AEST for a look at the Crypto week ahead) as well look through the library of past webinars on subjects such as Learn NinjaTrader, Algo Trading, Using Fibonacci’s in Your Trading and Automated Trading.
  4. Video Library – This is the full library of FXCM’s videos. Many of these cover more prosaic topics such as Deposits and Withdrawals, or how to use the Accounts Window but this is also an excellent resource for almost any aspect of Forex trading. Some of the more useful videos are Trading from the Charts, Complex OCO Orders, Low-Volatility Trading and Price Action. I cannot overstate how important this section is for new traders. Additionally, you don’t even have to be an FXCM customer to take advantage of the video library.

In addition to the above, all live accounts have access to FXCM’s proprietary Trading Analytics tool. This tool is the result of a survey of millions of trades over the course of 2014, it is designed to highlight the areas in which you can improve your trading.

This tool can help you:

  • Visually find mistakes in your trading
  • Recognize your best trading habits
  • Improve your trading performance
  • Find out what time of day you are most successful
  • How good you are at managing your trading risk.

Analysis Material

In terms of analysis, FXCM has an Economic Calendar, Live Customisable Forex Charts, Global Market News – which offers brief analytical reports – and a free daily newsletter called Before the Bell.

However, FXCM takes their analytical offering one step further with two products called Market Data Signals and Market Scanner. These analytical tools are aimed at assisting traders uncover new potential trading opportunities.

The Market Data Signals, which are also posted to the FXCM Markets Data twitter account, are a collection of technical signals including latest prices, volume trends, trading sentiment trends and the historical trends of many instruments. With Market Data Signals you also get a quick snapshot of the market through the proprietary Speculative Sentiment Index (SSI).

The Market Scanner helps traders uncover potential trading opportunities across all FXCM’s CFDs based on your preferred indicators and time frame. The Market Scanner is a great tool for technical traders.

Please note that both the Market Data Signals and the Market Scanner do not consider a trader`s objectives, therefore do not constitute and should not be considered as investment advice. As always, be aware that past performance is not indicative of future results.

Customer Support

Support is available 24/5 via live chat, phone, email and drop-in. FXCM’s Australian office is located at Level 13, 333 George Street Sydney, NSW 2000, Australia

Trading Conditions

FXCM offers commission-free trading and a simple account structure for retail traders. The minimum deposit for a live account is 50. This 50 AUD deposit also gives you access to FXCM Plus and a host of trading tools, which we will look at it in further details in the Trading Tools overview.

FXCM is also currently running a Friends and Family Referral Promotion in Australia, China, Taiwan and Malaysia. If you meet the criteria you and your referred party can both receive up to 300 CCY (units of your account currency) once the referred party has signed up and started trading.

Account Types

FXCM has the standard demo account and a single live account offering. FXCM can also offer different trading conditions for traders with higher monthly trading volumes.

Demo Account – The Trading Station Demo has 5000 AUD virtual money and expires after 30 days of inactivity.

Standard Account – A commission-free account with a minimum deposit of 50 AUD with FX leverage up to 400:1 and CFD leverage up to 200:1.

Active Trader Account – Not technically an account type, Active Trader is an account status achieved through maintaining a minimum account balance of 25,000 AUD and a monthly trading volume minimum. Active Traders get tighter spreads, market depth functionality, a dedicated relationship manager and free access to eFXplus (Tactical FX picks and trade ideas for every trading week from a selection of major banks) in exchange for a small commission depending on volume traded for major currency pairs.

Active Traders can develop trading programs for API trading and get free access to multiple APIs, each connecting directly to FXCM’s trading server. If you are interested in becoming an Active Trader, you will need to contact your account manager once you have set up your live account.

Spreads and Commissions

Standard accounts are commission-free and only charge the spread – with the average spread for EURUSD at 1.3 pips*. For those traders who qualify for Active Trader status, a tighter spread can be offered by adding a commission depending on the volume traded for major currency pairs.

* Average Spreads: Time-weighted average spreads are derived from tradeable prices at FXCM from January 1, 2019 to March 31, 2019. Spreads are variable and are subject to delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays or for actions relying on this information.

Deposit and Withdrawal Fees

FXCM does not charge administration fees for deposits via credit card, debit card and bank transfer. There are no withdrawal fees for credit or debit card transfers, but bank wire withdrawals may have an administration charge. For further information, you can review FXCM AU’s official rate card.

Inactivity Fee

There is an inactivity fee of 50.00  units of the currency in which your account is denominated in after no trading activity for 12 months. Please review FXCM AU’s official rate card for more details.

Trading Platforms

FXCM supports a wide range of trading platforms including MetaTrader 4, Trading Station (FXCM’s award-winning proprietary platform), Ninja Trader and other speciality platforms for more experienced traders.

Trading Station – Trading Station shares many features with MT4, such as EA integration, micro-lot trading, custom indicators, strategy optimisation, strategy backtesting, and advanced charting. But in contrast to MT4, Trading Station is easy to use and requires less setup.

That said, MT4 is used by many other brokers so traders who may switch brokers in the future might prefer to use the industry-standard software.

MetaTrader 4 – MetaTrader 4 is still the industry standard – even though its successor, MetaTrader 5, has been available for some time – and most ECN and STP brokers still support it.

There are many advantages to using MT4, but most centre around the community support and its large user base. Support is available for MT4 from FXCM customer support, but you will also find a huge repository of assistance online.

Setting up MT4 is a more complicated process than with Trading Station, but should you wish to change broker or operate multiple accounts at different brokers simultaneously, MT4 is a better platform choice.

NinjaTrader – NinjaTrader is aimed at more experienced traders. NinjaTrader has a cleaner user interface than many of the other more advanced software packages and is a favourite for traders who want to engage in auto trading.

Speciality Platforms

FXCM supports a number of speciality platforms for experienced traders.

  • QuantConnect – An algorithmic trading platform with API integration.
  • MotiveWave – A platform for technical traders with advanced tools.
  • AlgoTerminal – The ultimate solution for back-testing and executing a portfolio of algorithmic trading strategies
  • AgenaTrader – A powerful platform for professional traders.
  • Sierra Chart – A professional platform with numerous 3rd party tool connections.
  • SeerTrading – An algorithmic trading platform with strong back-testing capabilities.
  • NeuroShell Trader – A technical trading platform for building custom strategies for manual and automated trading.
  • StrategyQuant – A machine learning automated trading platform.

Trading Tools

FXCM is unique in the number of algorithmic trading tools available, as well as a strong set of premium signals, a Technical Analyzer and Trading Analytics. Additional major toolsets at FXCM are apps and API tools to build custom applications for algorithmic trading.

FXCM Plus

With a minimum deposit of 50 AUD traders get access to FXCM Plus, which has all the trading tools you need to enhance your trading experience:

  • Trading Signals – These easy to follow trading signals can help you decide when to buy, when to sell, and where to set your stops and limits. Signals are generated and updated in real-time 24 hours a day, 5 days a week.
  • Technical Analyzer – Discover critical technical levels on charts (three levels of support, three levels of resistance). Stay informed of important indicator crossovers like moving averages, MACD and RSI. And view significant candlestick patterns on charts.
  • Trading Analytics – How good are you at managing your trading risk? What time of day are you most successful? FXCM’s Trading Analytics can help you answer these questions. Trading Analytics offers a simple but powerful way to visually find mistakes in your trading, recognize your best trading habits, and improve your overall trading performance.

FXCM Apps – FXCM Apps include different expert advisors, apps and indicators, some of which are free. The FXCM App Store has add-ons for all the supported platforms and are broken down into the following areas.

  • MT4 Expert Advisors and Automated Strategies
  • Indicators
  • Scripts and Add-ons
  • Standalone Apps

API Trading – The API trading toolset is a way for traders to build their own applications, and then use the APIs offered by FXCM to connect those applications to each other and different data sources. These connections are required to build smarter algorithmic trading applications.

fxcmpy Python Package – The fxcmpy Python Package enables application builders to use a REST API in their applications, which is helpful for creating algorithmic trading strategies.

Mobile Apps

FXCM offers traders easy access to the Forex market with the Trading Station Mobile platform where trades can be placed and managed on the go through its simple, intuitive interface. MT4 and NinjaTrader are also available on mobile devices.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the FXCM offer. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

FXCM Risk Statement

Trading Forex is risky, and FXCM Australia Pty Limited would like you to know that: “Trading FX/CFDs on margin carries a high level of risk, and may not be suitable for all investors. Leverage can work against you. Before deciding to trade FX/CFDs offered by FXCM Australia Pty. Limited (“FXCM AU” or “FXCM Australia”) you should carefully consider your objectives, financial situation, needs, and level of experience.

By trading, you could sustain a loss in excess of your deposited funds. Before trading FX/CFDs you should be aware of all the risks associated with trading FXCM products and read and consider the Financial Services GuideProduct Disclosure Statement, and Terms of Business issued by FXCM AU. FX/CFDs products are only suitable for those customers who fully understand the market risk. FXCM provides general advice that does not take into account your objectives, financial situation or needs. FXCM recommends you seek advice from a separate financial advisor. For any questions or to obtain a copy of any documents, contact FXCM at [email protected].

The information provided by FXCM AU is intended for residents of Australia and is not directed at any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Please read the full Terms and Conditions.

Overview

Widely respected as one of the biggest names in the Forex CFD businesses, FXCM is a leading ASIC regulated broker. In comparison with other brokers, FXCM excels in platform choice, quality of educational material, and customer support. A reasonable minimum deposit of 50 AUD will open up FXCM plus and with that, a large selection of the trading tools. For traders looking for a globally respected broker with ASIC regulation and best-in-class educational resources, FXCM is your choice in a broker.

Most retail CFD accounts lose money. Your capital is at risk.

Compare Brokers

Overall Rating 4/5 5/5 3/5 3/5
Minimum Deposit USD 50 USD 100 USD 100 USD 50
Regulation
Broker Type Market Maker/STP Market Maker ECN/STP Market Maker
Read Full Review Read Full Review Read Full Review
Trading Conditions 4 / 5 4 / 5 2 / 5 3 / 5
Trading Platforms 4 / 5 3.5 / 5 4 / 5 3 / 5
Deposit & Withdrawal 4 / 5 4 / 5 4 / 5 4 / 5
% Lose with this broker 76.88% of retail investor accounts lose money when trading CFDs with this provider 71% of retail investor accounts lose money when trading CFDs with this provider 85% of retail investor accounts lose money when trading CFDs with this provider 76% of retail investor accounts lose money when trading CFDs with this provider
Leverage 400:1 400:1 500:1 400:1
Spread Variable pips 0.7 pips 0.1 pips 1.0 pips
Hedging
Scalping
Account Types
  • Vip,Mini
  • Standard
  • Standard
  • Standard
Trading Platforms MetaTrader4, WebTrader, NinjaTrader MetaTrader4, WebTrader MetaTrader4, MetaTrader5, WebTrader, MetaTraderSupremeEdition Proprietary
Funding Methods Skrill, Neteller POLi, Visa, Mastercard, Skrill, Neteller, Paypal, Bank Transfer Bank Transfer, Visa, Mastercard, Skrill, Neteller Bank Transfer, Skrill, Paypal
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Overall Rating 4 / 5 4 / 5 4 / 5 4 / 5
Min. Deposit USD 50 USD 100 USD 100 USD 50
Regulation
Broker Type Market Maker/STP Market Maker ECN/STP Market Maker
Read Full Review Read Full Review Read Full Review Read Full Review
Trading Conditions 4 / 5 4 / 5 2 / 5 3 / 5
Trading Platforms 4 / 5 3.5 / 5 4 / 5 3 / 5
Deposit & Withdrawal 4 / 5 4 / 5 4 / 5 4 / 5
Risk Disclaimer 76.88% of retail investor accounts lose money when trading CFDs with this provider 71% of retail investor accounts lose money when trading CFDs with this provider 85% of retail investor accounts lose money when trading CFDs with this provider 76% of retail investor accounts lose money when trading CFDs with this provider
Leverage 400:1 400:1 500:1 400:1
Spread Variable pips 0.7 pips 0.1 pips 1.0 pips
Hedging Allowed Yes Yes Yes Yes
Scalping Allowed Yes Yes Yes No
Platforms MetaTrader4, WebTrader, NinjaTrader MetaTrader4, WebTrader MetaTrader4, MetaTrader5, WebTrader, MetaTraderSupremeEdition Proprietary
Funding Skrill, Neteller POLi, Visa, Mastercard, Skrill, Neteller, Paypal, Bank Transfer Bank Transfer, Visa, Mastercard, Skrill, Neteller Bank Transfer, Skrill, Paypal

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. 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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Most retail CFD accounts lose money. Your capital is at risk.