FXCM Review

IG Markets Review - The Platform
fxcm-review

FXCM Review

Best brokers review 2021

(4.2)

FXCM is one of the top brokers we have tested in 2021. They provide the multiple trading platforms including MT4, a great mobile trading app, easy and smooth deposit & withdrawal options, the best education and some of the most detailed research data. Copy trading is also a great feature from this broker where you can simply invest your chosen amount and choose to copy a trader that has a strategy and performance that suits your expectations. Their tradeable assets are extensive. The fees are good at zero commissions and customer service ranked very helpful.

General Overview

  • Founded in 1999, FXCM Group is a Leucadia Company, which falls under Jefferies Financial (NYSE: JEF). FXCM is regulated in three tier-1 jurisdictions, making it a very safe and secure broker for trading forex and CFD’s.
  • FXCM won Best in Class for its Platforms and Tools, Mobile Trading, and Ease of Use. No doubt, FXCM delivers in all the areas most important to traders.
  • FXCM offers a selection of CFDs, while its extensive access to exchange-traded securities is segmented away in a different account and platform.

FXCM, a Leucadia Company where the client comes first, They do what is best for the customer, partners, employees, and their stakeholders. 

FXCM has been a Forex and CFD Broker since 1999

FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, spread betting and related services. Founded in 1999, the company's mission is to provide global traders with access to the world's largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market.

What it means to be a Leucadia Company

Beginning in January 2015, through a series of transactions, Leucadia Investments has become the majority economic owner of FXCM. Leucadia Investments is part of the merchant banking arm of Jefferies Financial Group. FXCM has benefited from the scale and breadth of the Jefferies family of companies. Firmly committed to FXCM's success, Leucadia/Jefferies Managing Director, Jimmy Hallac, is the Chairman of FXCM Group, while Rich Handler and Brian Friedman, Jefferies' CEO and President respectively, both sit on the FXCM Board of Directors. Our customers, employees and stakeholders benefit greatly from the Leucadia/Jefferies affiliation.

FXCM Boker Review & Rating 2021

Name: FXCM

  • Safety
    (4.61)
  • Comissions & Fees
    (3.8)
  • Investment Products
    (3.83)
  • Trading Platform(s)
    (4.42)
  • Mobile Trading
    (3.9)
  • Customer Service
    (4.7)
  • Account Opening
    (4.2)
  • Deposit & Withdrawals
    (5)
  • Research
    (3.7)
  • Education
    (4.5)
  • User Reviews
    (3)

Summary

FXCM is an excellent choice for algorithmic forex traders thanks to its wide array of related platform options that support traders seeking to use automated trading strategies. All of FXCM’s platforms offer traders the ability to run algorithmic trading and access advanced charting tools.

FXCM also caters well to beginners, thanks to its range of educational materials and easy to use platforms.

Overall
4.2

Pros

  • No minimum balance requirement
  • Excellent educational content
  • Extensive experience with forex

Cons

  • No single-stock CFDs or cryptocurrencies available
  • No emergency stop loss
  • No customization options

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% 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.

Safety

(4.61)

FXCM is low-risk. FXCM's parent company is publicly-traded, they do not operate a bank, and they are authorised by three tier-1 regulators (high trust), three tier-2 regulators (average trust), and zero tier-3 regulators (low trust). FXCM is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC), Financial Conduct Authority (FCA), and via Friedberg Direct, with the Investment Industry Regulatory Organization of Canada (IIROC)

Comissions & fees

(3.8)

FXCM’s trading costs are a little higher than industry averages when it comes to forex however this is a small sacrifice for security, safety of funds and peace of mind.

Standard account spreads: Using the time-weighted average tradeable prices from April 1, 2020, to June 30, 2020, all-in spreads on EUR/USD at FXCM was 1.4 pips, which is higher than the industry average (although it is worth noting that Q2 2020 saw increased volatility due to Coronavirus’ impact on markets) but this was the case with many other brokers and investment houses and banks across the industry. 

Pricing discounts: FXCM’s Active Trader program has five tiers, where traders can get a rebate which varies from $5 per million(volume traded 5 Lots) for level one to as much as $25 per million traded for level five. It’s a good way to offset potential losses and earn a rebate for your trading volume. FXCM’s commission-based pricing has low underlying spreads of 0.2 pips during peak hours using Q2 2020 data for the EUR/USD.

Active Trader program: The requirements for each tier may vary depending on which FXCM Group entity you use. For example, in the UK, a $25k account balance with at least $50M or 500 lots of monthly volume will see the commission per side drop to $3 ($6 round-turn). This brings the effective spread to 0.8 pips, based on an average core price of 0.2 pips, using Q2 2020 data for the EUR/USD. Above $150M in monthly volume commissions drop slightly to $5 per round turn, which would bring the effective spread to 0.7 pips in the above example.

Execution methods via order type: FXCM offers “At Market” orders, which have the potential for slippage, and “Market Range” orders, which can be rejected if the requested price or price range is no longer available. I found this option more favorable than having the execution method separated by account type like FxPro does.

Other notes: FXCM publishes its execution statistics, showing the percentage of orders filled with positive or negative slippage, across its offered order types. Overall, the broker had over 88% of orders with zero or positive slippage in 2020. According to its spread widget, the effective spreads at FXCM on the EUR/USD in August 2020 is closer to 1 pip than the displayed price. This effective spread is due to the likelihood of price improvements (primarily on its limit orders).

Market Min Spread Avg Spread
EUR/USD 0.2 1.4
GBP/USD 0.54 2.0
GBP/EUR 0.28 2.5
USD/JPY 0.34 1.5
AUD/USD 0.42 1.9

Trading Platform(s)

(4.42)

FXCM’s available platforms and tools are among the best in the industry.

Platform options: FXCM’s platforms include MetaTrader4 (MT4), TradingView, and NinjaTrader 8, which all allow algorithmic trading. FXCM also offers ZuluTrade for “social/copy trading” and Trader Workstation (TWS), powered by Interactive Brokers (IBKR) for stocks.

Trading Station desktop: FXCM’s flagship trading platform, Trading Station, suited for forex traders of all skill levels. One highlight is the Marketscope 2.0 charting tool within the platform, which is a powerful charting package. 

Trading Station web: The web version of Trading Station comes with an array of features wrapped in a responsive and modern design. From news headlines, videos, research, signals, and analysis from Trading Central. Charts pack close to the same amount of indicators as the desktop version, with 52 available. There are also seven preset layouts to choose from, e.g. the News Trader theme.

NinjaTrader: The latest version (version 8.0) of NinjaTrader for is available at FXCM. The platform features numerous trading tools, as well as automated trading capabilities, e.g. trading strategies and indicators can be created using NinjaScripts. Users can either develop their own or choose from over 1000 NinjaScripts created by third-parties. The platform has a market replay and analysis tool, with over 150 preset indicators.

Algorithmic Trading: The FXCM App store provides an array of add-ons, indicators, and automated trading robots. FXCM provides a wide wide selection of specialty platforms, such as QuantConnect, MotiveWave, AlgoTerminal, AgendaTrader, Sierra Chart, NeuroShell Trader, StrategyQuant, Capitalise, and the Seer Trading Platform for algorithmic trading. A dedicated technical support team is also available to assist traders in developing their MT4 Expert Advisors (EAs).

Source: FXCM YouTube channel

User-friendly platform

Transparent fee report

Two-Factor authentification (2FA)

Nothing

Mobile trading

(3.9)

Thanks to the combination of Trading Station and MetaTrader4 (MT4), FXCM delivers a reliable, feature-rich mobile offering for forex traders.

MetaTrader mobile: While FXCM doesn’t offer the MetaTrader 5 (MT5) platform, the broker’s wide support for third-party algorithmic trading platforms makes up for that difference, including on its flagship Trading Station platform.

Trading Station app charting: With nearly 60 indicators and multiple drawing tools, charting in the FXCM mobile app is a pleasure. Trendlines can be drawn with precision thanks to a magnifying glass that auto zooms while dragging the trendline into position.

Trading Station app features: While the Trading Station mobile app may appear to lack a watch list, it is worth noting that any instruments selected to be shown will, in fact, sync across devices. Also, the app includes a comprehensive trade ticket, which offers advanced order types, including one-cancels-other (OCO) orders.

IG Mobile Trading App awards

Source: FXCM YouTube channel

User-friendly Platform

Many features & order types

No secure login (2FA, TouchID, FaceID)

Customer service

(4.7)

Connection time

Calls <2-3 Minute

Email responses

< few hours

Service availability

Almost 24h (8am Saturday - to 10pm Friday)

Live Chat

< 3 Minutes

FXCM's customer support is definitely one of the better ones we have tested. But phone support would need improvement, especially in reaction time - compared to the other channels. Email support was great and reacted very quick, Live chat is good too.

Account opening

(4.2)

FXCM's account opening contains 4 easy steps to sign up, which can be finished within a few minutes.

After the initial registration, you will need to verify your ID and residency. You must upload a national ID, passport, or driver's license in order to verify your ID. 

After your initial data follows questions about your financial background and at the end of the Sign-Up, there is a very simple questionnaire to evaluate your trading knowledge.

You will most likely receive a mail/call within a few minutes after your registration, to make sure you know how to finish your setup.

Your account will be ready within a day.

Deposit & withdrawals

(5.0)

As with the platforms, the width of trading possibilities and all the other features that are available at FXCM, the deposit and withdrawal options are among the most complete that we have seen. Customers can deposit (and also withdraw) money by DBS / POSB (Bill payment) through iBanking (only UK residents), Standard Chartered Bill payment, Internet Bank transfer, Telegraphic Transfer (T.T.), Credit/Debit Card, Cheque or NETS. Some of these payment options are not available in certain countries and some will also cost certain fees. FXCM charges 2,3% of the transaction amount for credit/debit card transactions. This is due to the levy, that will be charged by the credit card company. Withdrawals with certain methods are also subject to costs and fees. Clients should definitely watch this closely and inform themselves about the cost structure for transactions.

The minimum deposit amount is 200,00 Pounds/Euros/Dollars. Since FXCM is closely watched by financial regulatory bodies, they take money laundering laws very seriously and sometimes the deposit or withdrawal process can be quite frustrating and slow. This is due to the severe laws and IG is obliged to follow all the rules.

Research

(3.7)

FXCM provides very useful market research tools using a combination of in-house content and third-party content. FXCM’s research is above the industry average and will be very useful for most forex traders.

Research tools: FXCM’s research includes content from Trading Central, fundamental analysis from Investing.com, and FxStreet. A market screener tool is also available on FXCM’s website. Premium content from eFX Data, providing high-quality market analysis. Last but not least, FXCM Plus provides signals and trading ideas generated by Trading Central.

In-house content: FXCM produces Daily Snapshot videos featuring market analysis, available on YouTube. The Insights section is rich in content and is also very focused on trading education.

If you reside in the EU: Some of FXCM’s research is not available to EU residents, such as the in-house research

Daily Snapshot videos featuring market analysis, available on YouTube

Education

(4.5)

FXCM provides education primarily in the form of in-house articles and videos, including content produced on its YouTube Channel, which I found are above average in terms of quality when compared to the industry average.

Written materials: There are primarily two comprehensive trading guide articles, including forex trading for beginners and traits of successful traders. Both are well referenced with some unique insights using the company’s historical data. There are an additional 20 articles dedicated to charting, 17 about indicators, 13 about trading tips, over 70 articles in the beginner section, and 10 for advanced traders.

Video content: FXCM’s video library has dozens of videos. However, beyond platform tutorials, I was unable to view them due to the reliance of Adobe Flash not being supported by major browsers anymore. Luckily, FXCM has a YouTube channel with organized playlists covering its educational videos and archived webinars. Beyond platform tutorials, FXCM should expand its variety of educational videos for forex to help offset its unviewable Flash videos.

 

 

FXCM Youtube Education Playlist

User reviews

(3.0)

Finding unbiased user reviews is difficult in the forex or generally brokers market. While our research on Platforms like ForexPeaceArmy or TrustPilot we found a huge range of reviews from terrible to great. While reviews on FPA tend to be very negative and most likely biased as well, other Platforms like TrustPilot show a different picture. When looking into bad reviews, we often found similar phrases "lost all my money" as a reason. This is not the brokers fault, but usually shows the lack of knowledge of such traders. More serious are reviews about withdrawal issues, platform problems, hidden fees, etc. Those reviews we are looking more closely into.
FXTM is performing in the middle range of the reviewed brokers, neither very good nor very bad.

Trustpilot

Final Observations and Comments about FXCM

FXCM is definitely “up there”. If a trader – experienced or not – is looking for a firm with experience, a solid financial basis, international support and the backup of big investors, then FXCM is definitely among the list of brokers, that should be considered. FXCM is definitely solid and the Customer Support is top-notch.

Definitely recommended.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% 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.

FXCM Boker Review & Rating 2021

Name: FXCM

  • Safety
    (4.61)
  • Comissions & Fees
    (3.8)
  • Investment Products
    (3.83)
  • Trading Platform(s)
    (4.42)
  • Mobile Trading
    (3.9)
  • Customer Service
    (4.7)
  • Account Opening
    (4.2)
  • Deposit & Withdrawals
    (5)
  • Research
    (3.7)
  • Education
    (4.5)
  • User Reviews
    (3)

Summary

FXCM is an excellent choice for algorithmic forex traders thanks to its wide array of related platform options that support traders seeking to use automated trading strategies. All of FXCM’s platforms offer traders the ability to run algorithmic trading and access advanced charting tools.

FXCM also caters well to beginners, thanks to its range of educational materials and easy to use platforms.

Overall
4.2

Pros

  • No minimum balance requirement
  • Excellent educational content
  • Extensive experience with forex

Cons

  • No single-stock CFDs or cryptocurrencies available
  • No emergency stop loss
  • No customization options

Disclaimer: In order to get the most comprehensive, objective and unbiased  reviews, some of the above ratings have been accumulated with the data from third-party platforms. Ratings and user reviews have been consolidated only from relaible and trusted sources such as ForexBroker.com, Investopedia.com, Brokerchooser.com, TrustPilot.com and ForexPeaceArmy.com

smoothtrading-logo-small

Risk warning: Foreign Exchange and CFDs are complex and leveraged instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading Forex and CFDs. You should consider whether you understand how Forex and CFDs work and whether you can afford to take the high risk of losing your money.

Affiliate disclaimer: SmoothTrading.com's primary mission is to provide broker reviews, comments, and analysis that are highly objective and unbiased. Because SmoothTrading.com uses also data from industry participants, some customer reviews can sometimes be inaccurate. Operating as an online platform, this website may be compensated by third party advertisers, if visitors follow links and sign up. Regardless of such relation, we are highly committed to be neutral, handle recommendations fair and do not influence the rank of brokers due any compensation.  Please see our Affiliate Disclosure for more information.

Copyright © 2013 - 2020 SmoothTrading.com
Forex Broker Reviews and Ratings.

Theme: Zakra By ThemeGrill.
Icons made by Vectors Market from www.flaticon.com
Scroll to top