FXCM Review

Overview

When you’re looking for a trading platform to use, you will come across a plethora of brokerage firms. They all promise you the world, and it is very tempting to try one of them out. But in reality, not all those promises are honest, and if you’re aware of that, you’re probably worried about trying out any of the platforms you come across. One of these platforms is FXCM, a broker that has been around for over two decades.

What exactly does this broker have to offer? Moreover, is it a trustworthy platform? These are important questions to ask before you start investing time and money in FXCM or any similar service. That being said, this review is here to tell you important information about FXCM and establish whether it is a trustworthy trading platform or not.

Who Is FXCM for?

FXCM is a good broker for anyone who wants to try a trading service to gain experience. It’s also a platform that is not difficult to get started with. Anyone looking to diversify their portfolio will love FXCM, and it is also great for those who want good and easy-to-use tools. The platform has support in different languages, so if you’re not an English speaker and still want to trade, this may be the trading platform you should consider.

FXCM is also amazing for beginners in trading, and this is thanks to the number of educational resources it has. The educational content is of high quality and has the potential to turn a newbie into a professional trader.

Things We Like

We have found many things that we like about FXCM. One of them is the fact that it has low tight spreads, and also the fact that the minimum deposit is very low. The money is kept in segregated accounts, and this is a measure we like to see with every trader. Keeping the money in segregated accounts can be very good for situations when the company fails.

Then, we were also very pleased to see that there are many good technical research tools. The account opening process is also very easy. This way, people do not have to spend ages trying to register. Then, we appreciated the high amount of educational content available, but also the fact that the material is so great. It can help a lot of new traders get started.

Things We Don’t Like

Of course, we have found a few things that were not so great as well. For example, the bank withdrawal fees are pretty high. When someone is just looking to get started, this is not great, especially if they are on a budget. For USD, for instance, the withdrawal fee is $40 through bank transfer. The ones with an advantage are the accounts with SEPA working with EUR currency, as the fee is $0 for them.

Then, although there are many products that can help diversify one’s portfolio, the number of products is still limited. Other services have more products available, so if someone is looking for a particular one that FXCM doesn’t have, they’ll be tempted to go to another platform. Lastly, we were disappointed to see that trading platforms do not feature two-step authentication.

Safety and Regulation

Whether you like the benefits presented so far or not, you still need to find out more details about FXCM before being able to use it. After all, you need to ensure that a trading platform is safe before signing up. So, here are some things you may want to know:

Who Is FXCM?

FXCM is a broker based in the UK. Forex Capital Markets is known to offer CFDs and Forex trading, and it has been around since 1999. What’s more, Jefferies Financial Group is the one owning the company. FXCM has headquarters in London, and there are also some more offices found in Italy, France, Australia, and Germany.

Believe it or not, but as it’s been around for such a long time, FXCM is actually one of the pioneers in online trading, Forex trading, and CFDs betting. The company was established in order to allow people to access the largest liquid market in the world.

Also, thanks to the expansion and potential from January 2015, the majority economic owner of FXCM became Leucadia. Leucadia National Corporation is a holding company, and it can invest in different business areas while having a very good reputation.

Is FXCM Regulated?

The good news is that FXCM is regulated and not by just any authority, but by two of the top-tier ones. The two authorities regulating FXCM are the Australian Securities and Investments Commission and the UK’s Financial Conduct Authority.

Is FXCM Safe?

FXCM is considered a safe trading platform, for the most part, thanks to the fact that it has been on the market for such a long time. Besides, it also has negative balance protection in the EU, which is great for all members. The parent company is listed on the stock exchange too, and most of the clients belong to a top-tier financial authority. So, things are looking good for the most part.

The only downside is that people who are not from the EU will not have investor protection or negative balance protection. Therefore, if this is an issue, you will have to look for another platform.

Also, the apps do not have 2-step login, which is a shame. 2-factor authentication would actually add another layer of security to people’s accounts.

Countries It Accepts Clients from

Most places in the world will be able to use FXCM. However, there are a few exceptions, so if you happen to live in one of these countries, you should look for another similar service. The countries that FXCM doesn’t accept clients from include New Zealand, the USA, Turkey, Cuba, Iran, Syria, Japan, Hong Kong, Brazil, South Korea, and Russia.

Awards

FXCM has been around for a long time now, so with 20 years of experience, it would only make sense for it to receive awards. Over the years it has been operating, the platform managed to be nominated by some leading financial institutions. Some achievements it won include the Best Sell-Side Analysis Contributor DailyFX, Best Proprietary FX Platform, Best FX Provider, and Best Technical Tools.

Range of Offerings and Products

One of the great things about FXCM is the fact that it has several products to offer, but only when it comes to Forex and CFDs. They offer stock indices, cryptos, commodities, and stocks. So, if you are looking for something like this, FXCM might be the right service for you.

Still, FXCM is limited and doesn’t offer anything else other than CFDs and Forex. So, things like real stocks, bonds, and others are not available for trading.

Trading Platforms

For trading, you’ll find that FXCM has a web, desktop, and mobile platform, all of them being useful in their own ways.

When it comes to the web platform, we love the fact that it has good customizability and a large variety of order types. The search function is great as well, which is another plus. But the downside is that there are no price alerts and that there is no 2-step authentication, which might lead to security problems.

The mobile platform also has a large variety of order types, and it also has order confirmation and is user-friendly. Just like the web and desktop versions, though, there is no 2-step login. Even more, there are no price alerts, and the search functions are not the best.

Account Types

There are four account types offered by FXCM, respectively joint, corporate, standard individual, and active trader individual. You can choose between them depending on what you want from this experience.

Deposit Methods

Depositing money can be done using various methods, including credit/debit cards, bank transfers, and electronic wallets like Neteller, Skrill, and UnionPay.

Minimum Deposit

FXCM has a minimum deposit of $/€/£300 in the EU. Meanwhile, standard accounts outside the EU will only have a $50 minimum deposit. Active trader ones will need a $25,000 deposit, though.

Withdrawals

You can do withdrawals using the same methods you used for the deposit, so credit/debit cards, e-wallets, and bank transfers.

Demo Account

FXCM also offers demo accounts, which is great. The only drawback is that they are only available for certain countries.

FXCM Promotions

At the moment, FXCM has no available promotions. Keep an eye on their website if you are interested in any offers.

Client Support and Education

A lot of educational tools are available for users. There’s a demo account, as well as a plethora of educational videos and a trading platform tutorial that newbies can use.

Verdict – Overall Rating

FXCM can be a great platform for people outside the US and for those who want to learn a lot about CFDs and Forex trading. But keep in mind that trading anything other than CFDs and Forex will not be possible, and the withdrawal fees are high. If you plan to use the platform regardless, be wary of these aspects.

Methodology

All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.

The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.

What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.

Risk Disclaimer

There is a very high degree of risk involved in trading securities.

With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.

All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.

There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.

Looking for more information on brokers and trading? Have a look at our trading guides:

• Best Forex Brokers for 2021
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• Best Online Stock Brokers for 2021
• Best Trading Apps for 2021

Review Sources

1. https://www.fxcm.com

FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, spread betting and related services.

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