Forex Capital Markets Inc, or FXCM as it is commonly known across traders, belongs to the list of the first and most reputable brokers offering services in the forex markets. FXCM was founded in the USA in 1999 and is headquartered in New York City. The company currently maintains offices in London, Hong Kong, Sydney, Dubai, Paris where it serves its regional customers. Through the global network of offices it serves its worldwide clientele that reaches 175,000 tradable accounts at this point in time. It employees more that 550 people worldwide and since 2010 it is listed on the New York Stock Exchange.
The FXCM website is simple and navigation is user friendly, allowing you to find information and resources for educating yourself around forex trading. The website presents its offerings in 15 languages including all major global languages. Depending on which country the trader is physically located he/she is served from a different office of the worldwide network; for example traders from the UK are served from FXCM UK where traders from Australia are served from FXCM Australia. Depending on your location you should check with which company you would be trading and if it is regulated by which authority.
- Forex Capital Markets (FXCM) are regualted by the following Comissions and Associations
- National Futures Association (NFA), USA
- Commodity Futures Trading Commission (CFTC), USA
- Australian Securities and Investments Commission (ASIC), Australia
- Financial Services Authority (FSA), UK
- Securities and Futures Commission (SFC), Hong Kong
In addition you should check on the website of the regulator for any complains against the broker as some regulators (i.e. the FSA) post all cases online.
FXCM Trading Station
FXCM is one of the most technologically advanced brokers in the market, having developed its own powerful and award winning, Trading Station now running as FXCM Trading Station II, specifically designed for the FXCM NDD business model. FXCM Trading Station is one of the top in house developed trading softwares available across the industry. Streaming quotes, one-click trading, easy customization, extensive reporting and many other prime features make Trading Station a platform that can be used with by both the beginners and experienced traders alike. In addition to the trading platform of your choice, FXCM gives you the ability to automate your trades using Strategy Trader (on beta) and Forex System Selector. Note that the automated systems are only free depending on your account balance.
FXCM Metatrader
In addition to the FXCM Trading Station; clients can choose to use the FXCM Metatrader 4, depending on their trading strategies and their previous experience with the MT4. Forex Capital Markets has no restrictions in terms of how you can combine the use of the in house developed Trading Station with FXCM MT4 which means that you can select to use both and migrate or focus to the terminal you feel is more effective and efficient to your trading pattern.
FXCM Demo
A free practice demo account is available through FXCM and can be used for up to 30 days. This demo account can be used to get a feel of the FXCM Trading Station II and the general philosophy of Forex Capital Markets before you decide to sign up for a live trading account and start trading in the forex markets with real money. You will have $50,000 of practice funds to test the system in addition to trying out your strategies before you start trading with real funds.
FXCM Micro and Live Accounts
- There are three types of accounts including the popular FXCM Micro
- Micro – minimum deposit $50
- Standard – minimum deposit $2,000
- Active trader – minimum deposit $50,000
The FXCM Micro can be considered to be the wisest choise for rookies or beginner traders as you will have the opportunity to join the forex markets with a minimum risk and enjoy the majority of overall features through the FXCM Micro.
FXCM Accounts
Setting up a demo account is a hassle free process and can be dealt with in a matter of seconds. As a new user you will have to receive a username and password before you can start downloading the forex terminal of your choice. Live accounts require slightly more time as more details are requested for security reasons and avoidance of money laundering. Please note that in order for a real money account to be considered as active you will have to provide ID and address verification documents. Replies from FXCM take between one to three working days to be reviewed. Once an account is approved an email is sent to approved account holders to finalize the process of completing signup process.
No Dealing Desk
One of the key and most advertised characteristics of FXCM as a forex broker is that it offers a No Dealing Desk trading execution(NDD). Using NDD, FXCM eliminates any potential conflict of interest between itself and the clients and thus ensuring their client that it is to the benefit of the broker for the client to be winning. There is not a lot of brokers in the market offering this and this is one of the characteristics that make Forex Capital Markets stand out of the crowd in trustworthiness.
FCXM Spreads
FXCM Spreads depend in the pair traded but for the majors including EUR/USD it is as low as 1 pip, as well for certain other major pairs. In comparison with other players in the market, FXCM spreads are considered by many traders to be very much competitive and even some choose the specific broker because of this characteristic.
FXCM Leverage
FXCM is one of the brokers that promotes to its client to trade with as little leverage as possible. Usually brokers advertise that they provide traders with leverage of up to 200:1 or even 500:1 without specifically emphasising the huge risk of trading with high leverage. The maximum leverage for FXCM is 50:1 which is one of the lowest maximum in the market claiming that with limiting leverage it supports the traders of being on the winning side. The leverage is flexible though so you are able to choose up to the maximum the amount of leverage that you would like to use.
FXCM Trailing Stops
Trailing stops are available option for traders. When trading from the charts, stop orders can become trailing stops with the click of a button. Trailing stops is a very good form of risk management during forex trading that FXCM makes it easy to use.
Bonuses
There are no bonuses for opening an account with FXCM which even if some casual traders would be looking for it, in the eyes of the professional means that they are not lacking customers.
FXCM Managed accounts
FXCM offers managed accounts on request. We have not used their services in managed accounts and thus we cannot comment on it.
FXCM Mobile Trading Accounts
FXCM supports mobile trading from application downloaded to your mobile device. IPhone, blackberry and several other devices are supported.
Funds Deposit and Withdrawal
Depending on your country of residence and the FXCM site (USA, UK, Australia etc) that you will sign up there are various methods of funding your account the most common being major credit cards and bank wires. FXCM will not accept accounts to be funded by anyone other than the authorized trader. Withdrawals can be performed to the same medium as the account was funded.
FXCM Review
Choosing a foreign exchange broker these days is becoming quite daunting due to the large number of them worldwide and the different offers each one promotes. Depending of what kind of trader you are, you should be looking at different characteristics, but you will always be better off sticking with a well-known company that is established in the market its operating and regulated by authorities that you can complain to in case of any issue arising. As viewed in the overall FXCM review and breakdown we consider FXCM one of the top companies globally to trade with due to its trustworthiness in the market, the ease of use of its platform together with the ability to choose between an array of platforms, its cheap cost in the majors and last but not least its NDD business model that makes me trade more relaxed knowing that my support and advisor in trading is not profiting on my losses.
*FXCM offers various extensions of its website; fxcm.com and fxcm.co.uk are two different entities of the same company; fxcm.co.uk is licensed by the FSA and caters to European customers with higher leverage than fxcm.com which caters to US citizens under NFA license and therefore is limited to 50:1 leverage.