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FXCM Review 2018

Our 2018 FXCM review has investigated several key areas that we consider important to those looking to enter the wonderful world of forex trading and searching for the most suitable forex brokerage to meet their needs.

What is FXCM?

One of the pioneers of forex trading, FXCM was founded in 1999 in the USA and expanded their services to cater to UK clients in 2003. Since inception, FXCM has been a major player in the global marketplace and was long considered one of the best forex brokers in the world. Having exceeded 100,000 clients in 2007, they were recipients of numerous awards that illustrated their innovative trading practices and focus on quality customer service. However, recently FXCM has encountered problems that led to a ban from operations within the US.

FXCM US

Our FXCM broker review has some unfortunate news for American citizens. While fxcm us clients were welcomed up until 2017, this broker firm no longer services American traders. This is because FXCM was banned by US regulators for misleading practices. They were found to have engaged in fraudulent activities by misleading their clientele by telling them they used a ‘no dealing desk’ execution model when in fact this was not the case, as they were routing orders to market marker Effex in exchange for kickbacks.

Despite being banned from the US marketplace, FXCM still operates in many jurisdictions around the world including Australia, Japan, South Africa and throughout Europe.

Regulatory Agencies

Despite there issues in the USA marketplace, FXCM is regulated by several regulatory bodies from around the world:

FXCM is regulated mainly by the Financial Conduct Authority (FCA) under license number 217689. Because of its FCA regulation, FXCM possesses the capability to operate in EU member states under other regulatory agencies including:

  • France with the Autorite de Controle Prudential (ACP) under registration number: 19843
  • Greece with Hellenic Capital Markets Commission
  • Germany with BaFin under registration number: 122556
  • Italy with Nazionale per le Societa e la Borsa (CONSOB)

FXCM is also regulated through its subsidiaries in the following regions:

  • In Australia through FXCM Australia Pty Ltd with the Australian Securities and Investments Commission (ASIC) under license number 30973
  • In Japan through FXCM Global Services LLC, Tokyo
  • In Hong Kong through FXCM Bullion Ltd
  • In Israel through FXCM Israel Limited
  • In South Africa through FXCM South Africa (Pty) Ltd regulated by the Financial Services Board (FSB) under license number 46534.

Reliability and Security

Our FXCM forex broker review found that historically this company has an outstanding record of reliability and success.  Over the past decade they have been recipients of the “Best Forex Platform” award on numerous occasions, the “Top US Forex Brokerage” award, the “Best Online FX Provider” award and many others.

However, due to recent issues with fraudulent activity that led to their removal from trading in the United States, it is fair to say that potential traders should tread carefully where this broker is concerned and not rely on past successes as any kind of indicator of future success.

In terms of security, FXCM uses Secure Socket Layer (SSL) encryption to protect client information and data. SSL protects the client from having their information stolen by anyone while that data is in the possession of the company.

FXCM Trading Platform

The major benefit we uncovered in our FXCM.com review was the wide range of trading platform choices that they offer to their clientele. The award-winning and major platform that they provide is FXCM Trading Station, but they also provide their clients with access to the hugely popular MetaTrader 4 and Zulu Trade.

  • FXCM Trading Station – With over 10 years of development, FXCM has provided their clients with a highly innovative, easy-to-navigate trading platform that is the envy of their competitors. Clients will find that when using this platform, they can explore multiple order types, view prices in real time, receive email alerts and have access to exclusive tools such as streaming news services and real volume indicators.
  • MetaTrader 4 – Hugely popular and highly customizable, the MT4 platform comes complete with comprehensive charting, and many popular technical indicators while offering access to expert advisors.
  • ZuluTrade – Ideal for beginners who do not have a high level of trading experience, ZuluTrade is a peer to peer social trading platform that allows novice traders to subscribe to signals provided by those more experienced in forex.

Mobile Trading Capability

The team at FXCM also provide mobile trading capability to their clientele through, what is effectively, the MetaTrader 4 platform optimized for mobile. This way traders can access the trade market conveniently from their smartphones and mobile devices at any time of day and from anywhere. The app is available for download for both Android and iOS devices.

Types of Trading

Trade instruments offered by FXCM include over 40 types of currency pairs, 18 commodity CFDS, 12 market indices and numerous stock indices. At the current time, FXCM does not endorse cryptocurrency trading so those looking to trade cryptocurrencies will need to look at another forex brokerage firm.

Check out our list of the best cryptocurrency exchanges 2018 here!

Account Types

Our FXCM review in 2018 has found that FXCM currently offers five different trading accounts:

FXCM Demo Accounts: There are two types of demo accounts offered by FXCM for traders looking to try out the brokerage firm without using real currency;  a mini demo account and a standard demo account. Our fxcm mini account review found that users can top it up with $2000 of virtual currency while the standard demo account is topped with $50,000 of virtual currency. Both demo accounts can only be used for 30 days before they expire.

Standard Account: For those ready to trade with real money, fxcm offers a standard trading account that requires a minimum deposit of $50 and provides 1:200 leverage for CFDS and 1:400 leverage for forex.

Premium Account: Requiring a minimum deposit of $20,000, the premium account is for the more experienced trader and provides access to 39 currency pairs and offers 1:100 leverage for forex and 1:200 leverage for CFDs.

PAMM Trading Account: This option is only available to money managers who oversee several simultaneous accounts.

Spreads and Commissions

FXCM does not charge commissions. Instead traders must pay a spread on all assets that they are trading. The minimum spread at FXCM starts from 1.4 pips for the most popular forex currency pairs but there are lower spreads for indices.

Payment Options

Our FXCM broker review found clients can make deposits and withdrawals by using a range of methods including:

  • Bank transfer
  • Credit Cards
  • Checks
  • PayPal

For withdrawals through credit cards, there is no withdrawal fee and withdrawals are usually completed with a few business days.

Promotions and bonuses

FXCM does not offer their client base any bonuses for joining or depositing a certain amount of money. Promotions are rarely offered, although they do on occasion run contests that offer prize money winnings.

Customer Support

Our FXCM review found that the company provides customer support to clients on a 24/7 basis via live chat and email. While it is advantageous that they offer weekend support, it is unfortunate that they do not provide support via telephone. Their customer support team can answer and respond to questions via 14 of the most popular languages used around the world.

Positive Attributes

  • 24/7 Customer Support
  • FXCM demo accounts offered
  • A choice of three popular trading platforms
  • Access to social trading platform ZuluTrade
  • Low minimum deposit required to open account

Negative Attributes

  • Recent legal issues relating to fraudulent activity
  • No telephone support service
  • No cryptocurrency options
  • Very little in the way of promotions and bonuses
  • No longer caters to US clients

Conclusion

Our FXCM review 2018 identified that while historically reliable, recent events in relation to their exit from the USA trading market has caused concern for aspiring traders. However, because they are still regulated by respected agencies throughout the world, and with access to three wonderful trading platforms, this may be a forex broker worth investigating further by creating a demo account and testing whether your experience on their trading platform is a pleasant and enjoyable one.

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