FXCM: Review, Analysis and Complete Guide
FXCM (Forex Capital Markets) is a secure broker regulated by various authorities such as the FCA (UK financial market regulator) and specializes in investing in the Forex and CFD market for Indices, commodities and Crypto (such as Bitcoin).
FXCM was fined in 2014 by the FCA and rescued by Leucadia of Jefferies Financial Group (JEF) who has been cleaning up its image by providing a quality and very secure service with the addition of transparency measures.
Specializing in contracts for difference and forex FXCM brings its users a variety of software tools of varying complexity to attract a mixed audience.
Next we will analyze in detail all the main characteristics of this broker and the opinions of users in order to decide if it fits your needs.
FXCM Pros and Cons
- Safe and regulated broker
- Excellent user feedback
- Transparency in negotiation
- Patented technology
- Variety of available platforms
- Opera Bitcoin and Bitcoin Cash
- Does not offer 24/7 customer service
- Stained history prior to controller change
FXCM Financial Products
As we said, the FXCM broker specializes in CFD and Forex trading. With a catalog of nearly 100 products and instruments, users can choose from a variety of currency pairs, indices, commodities, or crypto-currencies such as Bitcoin or Bitcoin Cash.
Stocks and Financial Products
Forex: The most developed market by FXCM offers a respectable amount of currency pairs to trade. The offer includes 45 pairs where you will find the main ones and also some minor ones.
CFDs: CFDs or Contracts for Difference with (or without) leverage, facilitate trading on the price difference of an underlying asset at the time of opening and closing the position (long or short).
Nowadays, investing in the fluctuations of the value of underlying assets (for example Bitcoin) without the need to be a holder of them is a popularized practice that allows to reduce costs and globalize markets by maximizing trading possibilities.
Actions: Through CFDs, FXCM allows its users to invest in shares of the world’s largest companies such as Amazon, Google or Facebook. This modality does not involve the acquisition of ownership of stock positions over their value and a prediction of increase or decrease.
This form of investing in stocks is very popular today because it allows trading in smaller amounts, enabling all types of investors to participate.
Commodities and metals: Users can trade CFDs on Brent oil, crude oil and futures, natural gas, corn, soybean, wheat or silver, gold and copper futures.
Indices: FXCM clients can trade CFDs on a selection of 13 popular indices from around the world including the US, Germany, Australia, Japan and the UK.
Crypto Currencies: At FXCM users can trade crypto currencies through CFDs on the most liquid cryptographic assets: Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.
Leverage: FXCM offers its clients the ability to trade Forex and CFDs with leverage. This means that trades can be made above equity, funded by the broker.
Taking advantage of this funding is up to the investor. It can be a real advantage to multiply the gains, but it also multiplies the losses in addition to the payment of commissions. Brokers who offer leverage include a clarification of the risks of their use.
FXCM brings to its users a variety of unique tools and programs primarily related to interface programming solutions. First, you can access the FXCM Python package to automate algorithmic CFD and Forex trading.
In the Applications and Add-ons Store, users can find a huge catalog of tools that are compatible with the various platforms available for trading with FXCM. Some are free and others must be purchased for use.
We have noticed the absence of the Mirror Trading program that enjoyed great popularity in the past.
How to Open an FXCM Account
In keeping with the views of most of its users, opening a Forex account with FXCM is a simple and safe process. It consists of completing a form with personal information and sending documentation for verification.
In terms of the account types that can be opened for trading at FXCM you have three possibilities: the CFD trading account is the most basic option primarily geared towards those who make trading a hobby.
For frequent high volume traders, interested in accessing personalized advice, with advanced services and solutions, the Trading Activa account provides additional advantages and trading differentials.
Finally, the FXCM Pro Account is available to experienced, professional, and institutional traders, specially developed for investing larger amounts of money than an individual investor.
Requirements and verification
After selecting the account type for trading on FXCM and completing the Personal and Bank Information form, it is necessary to verify identity by scanning the appropriate documentation: ID card, passport, or driver’s license.
FXCM also requests an address confirmation document which it will provide upon registration and must be within the area in which the broker offers its services.
With a demo account at FXCM, the user can test the broker’s performance and the effectiveness of trading strategies in a safe manner, without risking his capital.
In addition, FXCM will allow you to test your trading and research/analysis platforms to form a final idea to decide if the service is right for you.
FXCM has trading offices in Greece, the United Kingdom, Germany, Australia, France, Italy, Hong Kong and South Africa, as well as partner offices in Canada and Israel. However, its services are available in over 150 countries.
How to Use FXCM
FXCM has four different trading platforms available to its users, which makes this broker one of the most versatile in this regard and has earned it many positive reviews.
First, we must highlight FXCM Trading Station, which was developed and patented by us. With customizable commands, advanced charting applications, and pre-installed indicators, it offers users a variety of options for designing automated trading strategies.
In addition, users can choose the popular Metatrader 4 which stands out for its interactive graphics, command variety and advanced analysis. With 30 integrated indicators available, plus 2,000 free customizable ones gives the variety of high standard technical tools.
Another available platform is NinjaTrader, which allows access to the foreign exchange, futures and stock markets, specializing in the development of customized systems through Strategy Builder. With Market Analyzer you can do real time price analysis.
Finally, it provides ZuluTrade, a platform that allows for an automated approach. It allows you to copy custom strategies creating other traders with proven and comparable results.
All these platforms allow you to invest from a web version or download applications developed for computers with higher performance and higher speed of execution.
The various platforms offered by FXCM are available for download on both Android and iOS-based phones.
It is remarkable and in this there is agreement with the opinions of users, the high quality of the portable version of Trading Station. It is a powerful tool, which allows you to invest quickly and access the main functions needed to make the best decisions.
Research and Visualization Tools
FXCM demonstrates a keen awareness of its users’ need for education, research, and matching visualization resources to invest consciously and fully informed.
It offers free trading guides and courses for learning and improving your forex skills. Seminars and webinars organized by specialists, quality written content and an Insights section extend the offer.
As far as research and actual visualization tools are concerned, users’ opinions highlight the detail and accuracy of the economic calendar and live Forex news and charts.
FXCM users who so desire receive a daily newsletter from Trading Central. Also highlighted is the Market Scanner which allows you to customize the markers of interest to receive buy and sell recommendations according to your pre-configured parameters.
Finally, with FXCM Plus, traders have access to detailed trading signals and technical analysis of interest to them.
FXCM Deposits, Withdrawals, Fees & Limits
The way in which deposits and withdrawals are made is always a determining factor when choosing a broker to trade Forex and CFDs on shares or crypto-currencies such as Bitcoin.
FXCM offers its users a variety of methods to add or withdraw funds to an account quickly and securely.
Deposit Methods and Minimum Deposit
When depositing, FXCM offers users a wide range of options including the most common credit and debit cards such as Visa, MasterCard, Discover, and wire transfers.
For those who prefer the versatility offered by electronic purses, Skrill and Neteller are available. With these means and the cards, accreditation usually takes a maximum of one working day.
The minimum deposit at FXCM that allows you to trade Forex and CFDs on most financial products offered is $50.
For withdrawals, FXCM provides the same means as for deposits, restricting the possibility of withdrawals only to those methods already used for deposits.
Fees and Commissions
First, FXCM does not charge commissions on deposits or withdrawals by card or e-wallet. Withdrawals by wire transfer are subject to a variable fee of approximately $30.
Reduced rates and spreads are one of the main advantages of trading an FXCM Active Trader account (0.2 pips+commissions per traded volume). In addition, the average spread of 1.3 pips for EUR/USD seems a little higher than the competition.
As for the limits for deposits and withdrawals we found the minimum deposit of $50 to start trading with a CFD account, without a maximum limitation when depositing money, which we remember, is not subject to commissions.
As far as withdrawals are concerned, there is no minimum or maximum stipulated more than what is necessary to cover the commissions, but we must remember that you must always withdraw by some means already used to make a deposit.
Is FXCM Safe?
FXCM has become, since its incorporation to Leucadia, a safe and reliable broker, leaving behind the crisis that led it back in 2014 to be fined by the FCA for the fraudulent management of its users’ funds.
We affirm that since that time it has become a secure broker due to the responsibility of the new management, which has adopted measures of transparency and preservation of its clients’ funds and information.
In addition, the firm has undergone an expansion and transformation that allows it to invest in a brokerage authorized and regulated by the most important authorities of the jurisdictions in which it operates.
FXCM is regulated by four authorities in different countries, most notably the FCA (Financial Conduct Authority), which is the UK body responsible for controlling and supervising financial activities.
It is also regulated by the AMF in France, ASIC in Australia and FSCA in South Africa, to avoid any doubt about how safe this broker can be.
In the event that FXCM is unable to meet its obligations, such as in the event of bankruptcy or other event resulting in its insolvency, the company is subject to various compensation schemes.
Investors’ funds are protected by the UK’s Financial Services Compensation Scheme (FSCS) up to £85,000 and by the Fonds De Garantie Des Dépôts Et De Résolution (FGDR) up to a maximum of £70,000, according to the provisions implemented by the European Union.
FXCM has outstanding customer service. Through its live chat available 24 hours a day, Monday through Friday, it answers questions and provides support to its users.
In addition, during the same hours clients can access the telephone attention for consultations, support, claims or professional advice on operations to invest safely.
In addition, user feedback highlights the email service through which you receive queries, complaints and requests with an efficient response time.
To make a good choice of the broker in which we are going to invest our money, it is always advisable to analyze the opinions of its users. In this case there are great differences between those made before and after the acquisition by Jefferies.
By way of illustration we find this opinion like the one from 5 years ago: “It’s a scam, they took my money”. We say by way of illustration because many users have complained with similar opinions.
Currently this image has been reversed and it is possible to find “The platform to invest is excellent, good speed of execution and great design” which accounts for the change in focus when it comes to valuation.
About the customer service: “Excellent service, very kindly they have solved my doubts” or “the advice given by FXCM experts has been very useful for my investments”.
Also, “the advice I received on my Bitcoin investments was critical to my current earnings,” says FXCM’s advisors.
Among the negative opinions we find those who criticize that the attention does not work every day “I tried to communicate and the live chat was not enabled, the answer to my mail was only on Monday at noon”.
FXCM Alternatives and Competitors
FXCM is now a secure broker offering outstanding service to a variety of clients. However, it is always convenient to get feedback on as many options as possible.
For this reason we recommend that you consult the following list with some opinions about the rest of the brokers listed on the site in order to evaluate and compare characteristics:
FXCM is definitely marked by past mistakes. It is inevitable to talk about the financial mishaps that led to her being fined in 2014 by the FCA and having to compensate users.
Today with the addition of Leucadia and the control of Jefferies FXCM has paid its debts and is back in the race to regain the prestige and place in the market lost by past mistakes.
We venture to say that today FXCM is a safe and transparent broker, accustomed to being under the magnifying glass in the face of a possible error and have taken the only possible remedy, to offer a better service every day.
Although it is aimed at a heterogeneous audience with a variety of accounts available for operations of greater or lesser complexity, the opinions of users and our review find very interesting the amount of software and programming tools it makes available.
When it comes to making a final review, as we said, the pending account is to expand their customer service hours, even if it is in their live chat, in order to cover the demand of users.
However, we found FXCM after its renewal to be an interesting broker that can be a good option for those who are looking for a CFD specialist with a variety of assets and the ability to invest in cryptosystems such as Bitcoin.
FXCM Data Sheet and Features
|Country of regulation||Countries where it is regulated|
|Time to open account||1 day|
|Bank card deposit|
|Deposit with electronic wallet|
|Demo account available?|
|Easy to use platform?|
Frequently Asked Questions about FXCM:
FXCM is a broker owned by Leucadia Investments, part of the commercial banking division of Jefferies Financial. It specializes in trading Forex and financial products through CFDs (contracts for difference).
At FXCM, users can invest in a variety of instruments (such as Bitcoin) with leverage in a safe and regulated manner.
Opening an account at FXCM is a quick and easy procedure. Once created, it offers different trading platforms to choose the software that best suits the user’s needs and optimize the results of their investment decision.
When depositing at FXCM we have several options including Visa, Mastercard, and Discover credit or debit cards or bank transfers and e-wallets are enabled by Skrill and Neteller.
The minimum deposit at FXCM that allows you to invest in CFDs on most financial products offered is $50.
In order to make money by investing in FXCM it is important to develop an effective strategy. Among the nearly 100 instruments available to you, you will find many opportunities and winning combinations.
Taking advantage of leverage correctly is not only a good way to increase profits, its misuse can lead to major losses for the user and see their funds disappear from their account.
We know that FXCM was fined and disqualified in 2014 by the FCA. We understand that since it was acquired by JEF the image of this broker has been recovering the prestige that it should never have lost with inappropriate maneuvers.
Surely time will ultimately confirm that this change really did mean the return of seriousness to allow users to safely trade their wide range of Forex and all types of CFDs.
FXTM is regulated by the most important authorities in the regions where it operates. Among them is the license and regulation of the FCA (Financial Conduct Authority), which guarantees a safe service according to its high standards.
We hope you found this article useful. If you have come this far, you can decide if FXCM is the right broker for you.
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