February 28, 2021


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FXCM Experience » Forex Broker Review 2020

8 min read

Our FXCM Rating: 8 out of 10 points
FXCM is one of the largest forex brokers in the world and has been in the market since 1999. The company, headquartered in the US, was listed in the New York Stock Exchange (NYSE) on 15 September 2016 (now NASDAQ) and, according to our knowledge, has offices in numerous countries, including some European countries since 2010. In terms of Legitimacy and Scam, traders can be quite relaxed because of many years of experience and stock market listing of FXCM, there is no need to worry about that. The product range comprises more than 40 currency pairs as well as CFDs on stock indices and commodities (precious metals and energy.)

The broker offers a No Dealing Desk Order Execution (NDD) or STP (Straight Through Processing) Forex Trading. FXCM has a good reputation and has received several awards that continue to serve as a safety reminder. Particularly interesting for traders should be the complete exclusion of additional funding.

Table of Contents
FXCM: The most important data at a glance

  1. FXCM Trading Station, MT4, & NinjaTrader
  2. Deposits and Payouts at FXCM
  3. Order Execution Types: No Dealing Desk STP Forex
  4. Unlimited demo account with STP Broker FXCM
  5. Some Research
  6. The educational stuff
  7. Safety at FXCM

FXCM: The most important data at a glance
Account from: $0
Max lever: 400:1
Spreads: Variable from 0.3 pips (EUR/USD), from 1 point on index CFDs (DAX)
Commissions: FX trading from $0.03 per micro-lot, index CFDs commission-free
Merchandise: Over 40 currency pairs plus more than 20 CFDs on stock indices and commodities (precious metals and energy)
Bonus: No
Demo account: Yes, unlimited with $50,000 of virtual funds
Platforms: NinjaTrader, Meta Trader 4, Trading Station, Webtrader, and numerous apps for mobile devices

  1. FXCM Trading Station, MT4 & NinjaTrader
    Trading platform FXCM offers its clients forex trading and CFDs on numerous stock indices and commodities (precious metals and energy.) Customers can choose between the in-house trading platform Trading Station and the well-known Forex trading platform MetaTrader 4. In addition, the Mirror Trader can also be selected when opening an account, and as a special extra is the functional NinjaTrader software.

The FXCM Trading Station is also available as a browser-based trading platform as well as an application for numerous mobile devices (iPhone, iPad, Android smartphone, and tablet.) All FXCM trading platforms provide the charting and analysis features important to advanced traders and professionals. The MetaTrader also offers the possibility to trade with so-called Expert Advisors (EA.) With NinjaTrader, it is possible to test trading strategies as well as to create indicators and strategies via the NinjaScript.

At FXCM, clients expect a variety of different trading platforms: In addition to the popular MetaTrader 4, the company also has its own trading station, the Mirror Trader for successful social trading and the NinjaTrader. Each of these trading platforms has many advantages; Trading Station is also available as WebTrader and Mobile Trading Apps.

  1. Deposits and Payouts at FXCM
    To trade via FXCM, traders must first make a deposit, of course. This is done by US companies by bank transfer or by credit card – and absolutely free of charge. At the very least, the broker does not charge any additional fees – and by no means is the same for banks and credit card companies. So our tip # 1: Check with banks and credit card providers in advance to see if there’s a charge on FXCM’s trading account for a transaction – so you’re always on the safe side.

Please note that FXCM cannot accept cash or checks due to Money Laundering Act and that deposits from third parties cannot be accepted either. Payments by bank transfer usually takes one day – transactions by credit card usually are completed immediately. Let’s get straight to our tip number 2: Note the maximum limit! By credit card, only a maximum of $10,000 may be transferred within one month at FXCM – if customers pay more, the surplus capital will be refunded by the broker.

Finally, if the first withdrawal is to be requested, traders must pay attention to our third tip: Make sure you are already verified! If this is not the case, the broker cannot process your withdrawal/payout – so please send the company a copy of your ID card and an up-to-date consumer invoice as a verification document at the latest before your first payout.

  1. Order Execution Types: No Dealing Desk STP Forex
    FXCM offers a No Dealing Desk (NDD) or Straight Through Processing (STP) Forex trading as an order execution type. The chosen implementation has an impact on spread and order execution. In trading in index CFDs, FXCM acts as a market maker and would benefit not only from the spread but also from losses suffered by the client in trading. However, this has nothing to do with FXCM being a fraud or scam, rather this procedure is the absolute industry-standard and FXCM expressly points out this conflict of interest in the dealing desk trade on its website. FXCM can see the orders of customers and their stops in this embodiment.

All this is not the case with No Dealing Desk (NDD) order execution or STP Forex trading. Client orders are forwarded directly to a pool of well-known major banks, which act as liquidity providers here. FXCM passes on the best spread to the trader and earns money from the commission or fee for forwarding the order, which is from ~$0.03 per micro-lot. This order model promises fast and very fair order execution. FXCM recommends NDD execution because it offers the best overall trading experience.

Due to this model, the spread is variable for FXCM and dependent on the respective currency pair in Forex trading and, if necessary, on the market situation. On average, the spread is only 0.3 pips for EUR/USD, and only 1 point for DAX index CFDs. This makes FXCM experiences particularly convenient for traders.

At FXCM, clients can either trade through a no-dealing-desk market model or let the broker act as a market maker instead. The company itself recommends trading via NDD or STP, since the trader can benefit from many more advantages. However, being a market maker is typical for most brokers and does not mean the company is fraudulent – even though the market maker principle is overshadowed by a conflict of interest with the client.

  1. Unlimited demo account with the STP broker FXCM
    When opening an account, customers must choose between the trading platform Trading Station, MetaTrader 4, Mirror Trader, or NinjaTrader. Trading at FXCM can be tested with a free demo account. The special feature of the FXCM demo account is that it is valid indefinitely, but must be used at least once within 30 days to prevent deletion. But this is unlikely to happen, because as you know, opening an account does this to quickly make your first trading experience.

An FXCM deposit is possible by credit card (including VISA and MasterCard) and by bank transfer. An FXCM withdrawal can be made via the online portal “MyFXCM,” which is accessible to all FXCM customers.
The head office of the FXCM group of companies is located in USA in New York. European customers trade with its UK subsidiary FXCM Ltd, based in London (FXCM UK.) This is approved and regulated by the British regulator FCA. Client funds are 100 per cent protected by the British deposit insurance FSCS up to GBP 50,000. FXCM UK is a subsidiary of Forex Capital Markets Ltd. All this makes a FXCM scam claim basically unthinkable.

FXCM clients benefit from the company’s credibility: The European subsidiary is headquartered in the UK, with regulation by the FCA and deposit protection of up to £50,000. Finally, customers benefit from the use of a demo account, which is available indefinitely at FXCM.

  1. Research
    Research materials are offered by FXCM through its research service “DailyFX.” Customers receive information about forex and CFD trading there. In addition, DailyFX offers market news and currency views, an interactive economic data calendar and free forex charts. There is also a DailyFX forum, through which FXCM customers can exchange views about the market. As a further training opportunity, FXCM offers webinars and seminars. The English-speaking customer service is available Monday to Friday from 9 to 18 clock by phone, of course, also by fax or e-mail.
  2. The educational offer of FXCM in detail
    As our forex broker comparison shows, it is no longer enough for customer-friendly online brokers to simply provide their customers with a trading platform – traders today expect a comprehensive range of services and education. This can be used by beginners as well as advanced and professionals to gain initial experience in stock exchange trading, to examine new trading platforms, and to put different trading strategies to the test.

At FXCM, traders can not only use the company’s free and non-binding demo account, but they can also take advantage of the Broker’s educational offerings. Here, education is combined with analysis, such as access to DailyFX, which also gives trading signals and charts found in the vendor’s “knowledge” area. In addition, customers will also find informative instructional videos and written guides to better explain Forex and CFD trading. All in all, traders can then gain experience with FXCM’s educational offerings that can be of use to them in daily trading – even though there are no webinars, seminars, or eBooks available.

With brokers now having to do more than provide their clients with a trading platform, FXCM has a small educational offering that is rounded off by some analysis capabilities. For training, traders can take advantage of interesting video courses and written guides, while access to DailyFX promises a comprehensive analysis.

  1. Safety at FXCM
    There is no doubt that FXCM is a reputable and well respected company. The provider is registered in NASDAQ. In London, the Financial Conduct Authority (FCA) is also home to one of the toughest financial regulators in the world and thus responsible for the broker.

Of course, FXCM LTD must regularly submit financial reports that are reviewed by the FCA. In addition to own funds requirements, the FXCM must also meet special requirements for the protection of customer deposits. The customer funds are therefore kept separately from the company funds. In addition, the FXCM is part of the Financial Services Compensation Scheme (FSCS,) so that up to £50,000 per customer is protected by additional deposit insurance.

Since the broker is listed in the stock market, it must also give regular information about its finances and account for it. Currently, the provider is financially very good. Should the situation worsen, customers can be informed about it in a timely manner and select another broker in case of emergency. At present, however, this is not to be feared.

FXCM is one of the largest forex brokers in USA and Europe. Trustworthiness and professionalism are guaranteed!

Conclusion: Our FXCM experiences
FXCM is one of the largest and most well-known forex brokers, which has been active in the market for many years and has a good reputation in the industry. So, FXCM emerges as an absolutely great broker in our review. The No Dealing Desk order execution with the direct transfer of client orders to a pool of large banks (STP Forex) ensures an absolutely fast and fair order execution, so that at FXCM scams and fraud worries are hardly to be expected. FXCM has won multiple awards, most recently the FX Traders’ Choice Awards with the Eagle Award for Best FX Broker.
Overall, we can absolutely recommend Forex Broker FXCM!

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