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A Closer Look at FXCM
Since its inception in 1999, Forex Capital Markets, or FXCM, has established a reputation as a frontrunner in delivering online forex services tailored for individual traders. With roots firmly planted in London, FXCM has evolved to maintain an international presence, boasting several offices worldwide. FXCM EU LTD, registered under the Cyprus Department of Registrar of Companies (HE 405643), operates under the Cyprus Securities and Exchange Commission's regulation and authorization.
Having withdrawn from the U.S. market in 2017, FXCM no longer services U.S. clients. It presently functions under Jefferies Financial Group Inc (NYSE: JEF), once recognized as Leucadia. As of its 2022 annual report, Jefferies boasts a whopping $51 billion in total assets and a global workforce of 5,381.
FXCM extends an array of accounts to traders, including forex and CFD instruments, commodities, crypto, and more, along with leverage. Their collection of plugins and related applications is particularly impressive. Its key features include a rich variety of trading platforms, such as Trading Station, MetaTrader 4, ZuluTrade, NinjaTrader, and other plugins, which are readily available via FXCM's website. With reasonable fees and flexible trading conditions, FXCM presents a compelling proposition to frequent traders of varying strategic preferences.
Main Highlights of FXCM
Variety of Platforms
With an FXCM account, traders gain access to a diverse range of platform options, including the industry-standard MT4 for desktop, mobile, and web. FXCM's Trading Station platform offers a fresh interface coupled with innovative functionality, thanks to the website's available plugins. Traders can utilize ZuluTrade for copy-trading, while NinjaTrader supports automated strategies, among other features.
Array of Trading Apps
FXCM's website presents a variety of plugins and extensions for traders looking to enhance the Trading Station and MT4 platforms' functionality. These additions facilitate a broader range of strategies, including new indicators, Expert Advisors, and a range of reporting and charting tools.
Streamlined Customer Support
Reaching out to FXCM's representatives is straightforward and fast. There's a designated phone number for every region that FXCM services, with agents capable of speaking the local language. While live chat is an option, it may not always be available. An email form is also provided to expedite inquiries.
Active Trader Account
For seasoned traders seeking more advanced tools or the ability to customize their own using free APIs, the Active Trader account offers unique advantages. This includes elite pricing on spreads, discounted commissions, free institutional research, an unlocked Market Depth tool for Trading Station, and VPS hosting.
Low Commissions and Spreads
Traders can start trading with as little as $50 to open an account (€300 for EU accounts), offering competitive commission-and-spread models. Active Trader users will enjoy tighter spreads and a discounted commission of $25 per $1 million traded.
FXCM Commissions and Fees
FXCM’s forex trading pricing slightly surpasses the industry average. For example, all-in spreads on the EUR/USD, using data from April 1, 2020, to June 30, 2020, were 1.4 pips. FXCM's Active Trader Rebate Program offers a rebate ranging from $5 to $25 per million traded, depending on the tier. Although discounts are available for high-volume trading, certain requirements must be met, which may vary depending on the FXCM Group entity.
FXCM offers different execution methods via order types, providing more flexibility than some competitors. These include “At Market” orders, "Market Range" orders, and "Limit" or "Stop" orders. These are designed to give traders the control they need to execute their strategy as they wish.
Platforms and Tools
FXCM offers multiple trading platforms, each designed to cater to a specific set of trading needs. The proprietary Trading Station platform is designed for traders looking for a simple yet powerful trading platform. It offers advanced charting, a multitude of pre-loaded indicators, and a range of order types. This platform is available in three versions: web, desktop, and mobile.
MetaTrader 4 is offered to those who prefer this industry-standard platform. It offers a wide range of tools, including automated trading through the use of Expert Advisors (EAs). ZuluTrade and NinjaTrader are other platforms available to FXCM traders.
Additionally, FXCM offers API trading for those who want to create their own automated trading systems.
Research
FXCM provides a variety of research tools to help traders make informed decisions. This includes access to Trading Central, a leading provider of investment research and financial market commentary, which offers technical analysis and trade recommendations. FXCM also offers an economic calendar, news updates, and daily and weekly market commentary.
The FXCM App Store also offers a wide range of additional tools and plugins, many of which can be purchased and downloaded directly to the trading platform.
Education
FXCM offers an impressive range of educational resources suitable for traders of all experience levels. This includes a selection of articles and videos on various trading topics, from the basics of forex trading to advanced trading strategies.
FXCM's education section also includes free live webinars and seminars on a variety of topics, a glossary of forex terms, and a selection of trading guides and eBooks. A demo account is also available for those who want to practice trading in a risk-free environment before trading with real money.
Bottom Line
FXCM has proven itself as a leading provider in the online forex trading industry, offering a comprehensive trading offering with a variety of platforms, tools, and services that cater to traders of all skill levels. Although the company no longer services U.S. clients, it has a strong presence in many other international markets, thanks to its parent company, Jefferies Financial Group Inc.
FXCM's fees and commissions are competitive, particularly for high-volume traders. The firm's range of educational resources is impressive, helping traders develop their skills and knowledge. The variety of trading platforms, coupled with a robust collection of research tools, plugins, and APIs, makes FXCM a strong choice for many forex traders.
