FXCM Forex Broker Review 2012 - Ratings, Likes, Dislikes, Comparison, Demo, Open Account
Review and ratings of FXCM Forex broker - Forex Capital Markets is available on this page. Compare it with other FX brokers or share your experience.
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|Research & Analysis:|
Last review date: 2/14/2012
|Active Private Traders:|
Recommendation is based purely on our own opinion, but we try to be objective as possible!
|Forex Trades Fee:||
Displayed 'Forex Trade Fee' is spread based. Commission for Forex trades is an estimation of fees charged per round turn of $100,000 major pair units. The cost of no-commission brokers is calculated as average spread markup on majors.
DD - Dealing Desk, STP(MM) - Straight Through Processing/Instant Execution, STP(DMA) - Straight Through Processing/Direct Market Access, ECN - Electronic Clearing Network
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USD, EUR, GBP, CAD, NZD, AUD, YEN
FXCM is compensated by a mark-up, however, commission charges may apply for certain classes of non-standard accounts such as Active Trader. Minimum deposit for standard account is $2,000 and for Active Trader $50,000.
The combined transaction costs of the Active Trader platform (spreads + commissions) should be substantially lower than the transaction costs (spreads) available to the typical FXCM Standard account.
|Islamic (Swap-Free) Acc.:|
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|U.S. Citizens Allowed:|
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|Time To Open Account:||
For quicker processing, FXCM offers non-US residents to upload supporting documents directly from the online application interface. Supporting documents include one government issued photo ID, such as a passport or driver's license, and a proof of residence, such as a gas bill, electric bill, or bank statement.
USD, EUR, GBP, CAD, NZD, AUD, YEN
There are no fees for withdrawals by credit card, debit card, or paper check. FXCM has family and friend referral program in place for FXCM LTD. or FXCM Australia Limited.
|1st Deposit Bonus:|
|Refer a Friend Bonus:|
|Automated Trading App:|
Market depth (Level II) is available in Active Trader platform.
|Oil & Gas:|
|No. of Currency Pairs:||
With FXCM UK clients can trade CFDs and spread bet as well, but these services are not available to residents of the US or its territories.
|Market If Touched (MIT):|
|Trailing (Server Side):|
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|Bid/Offer (Inside Spread):|
FXCM offers NDD Execution with price improvements - all orders can receive positive slippage.
Trading features are related to platform selection.
|Free Data Feed:|
Clients who open a Live FXCM Account get Unlimited Access to Trading Signals provided by DailyFX.com.
|Live Chat Support:|
All FXCM Micro service is based online, without live phone or chat support.
FXCM Forex Brokere Review
Forex Capital Markets - FXCM is a first class No-Dealing Desk Forex broker, with large network of liquidity providers offering competitive trading conditions suitable for active private and institutional traders.
Very Positive - Full coverage of trading platforms and good support with strategies and trading signals provided.
Could do Better - They should put more effort in building an investment community and maybe develop social trading module, where beginners can follow real trades of successful and experienced traders.
Ever since its inception in 1999, Forex Capital Markets Limited, or FXCM, has provided Forex traders all over the world with an online platform which not only facilitates trading on an international scale but also provides complementary services like trading tips. The success of this company can be gauged from its spread across continents - being based in New York, NY, its network of subsidiaries encompasses a number of countries in Europe and Asia. Even the far flung continent of Australia is a part of its global reach.
Listed with the New York Stock Exchange under its ticker symbol 'FXCM', this firm enjoys the advantage of a vast network of liquidity providers courtesy of which it is in a position to offer its clients competitive spreads in major currency pairs. Registering with FXCM enables the trader to enjoy the flexibility of trading from his mobile and real-time charts for taking smart decisions. Not to mention the privilege extended to UK traders to trade in CFD products, oil, gold, silver and equity stocks.
What Makes FXCM Different?
Choosing FXCM for Forex trading makes a lot of difference because not only are the spreads lower but the execution is also faster due to lack of dealer intervention. In addition trading restrictions are few and far between wherein the client can place entry orders anywhere he likes, there is transparency in case of a roll-over and there is a positive roll at every margin level.
Every time a new client decides to register with FXCM, he/she is required to fill in an application form and depending on the information provided it is the company which decides the type of trading that he should indulge in. Some of the alternatives in this regard are an online trading account, dealing in stock indices, dollar index and CFDs, indulging in spread betting and 'No Dealing Desk' Forex trading.
As far as Forex trading is concerned there are various options like online, desktop, mobile as also automated trading platforms and if the client wishes to trade himself, then it is the 'Active Trader' mode which would be perfect for his style. For traders who are just starting out there is a comparison chart on the website and going through it would help decide which alternative to choose.
In case of any change in the nature of information provided on the application, it is the client's responsibility to intimate the company immediately. Likewise, prior to opening an account, the company advises all its visitors to go through its terms, conditions and code of ethics and then proceed only if agreed upon.
Types of Accounts
With FXCM, the trader has the option of choosing between two types of accounts namely basic and advanced, wherein each has its individual features, pros and cons. While a basic account is characterized by streaming quotes, order types and reporting, tactics like hedging, one-click trading and customization could be attempted in an advanced account. The latter also facilitates trading from charts, a practice which is not permitted in case of a basic account.
If you are an aspiring trader who is yet to acquire his first taste of the Forex market, then the right option for you would be the 'Free practice account'. Apart from providing you with the initial $50,000 of virtual money, it would enable you to read the charts, interpret them and also ask for assistance from the 24-hour desk in case you are completely lost.
There is also an option of a 'Micro Account' which facilitates trading with a minimal amount of $50 and provision of buy-and-sell trading signals. Since it is taken for granted that the individual opening this account is probably an amateur, Forex education is a part of the package as also small sizes of trade.
Opening an Account
To open a live FXCM account, this company first requires the trader to specify his country of residence, the underlying intention being that services vary from one nation to another. Hence while a UK resident has at least 5 trading options at his disposal, someone from India or South Africa would have to make do with four options. Likewise a resident of Germany would be directed to a branch named FXCM.DE and one from New Zealand would be qualified to trade through the Australian representation.
At the time of registration, the organization requires the client to deposit funds with the company. The amount depends on the type of account and the services asked for.
Some of the automated trading platforms which the client can choose are Strategy Trader, Mirror Trader and MetaTrader 4 all of which are characterized by their own unique features. There is an option of opening a Live Active Trading Account as well, for which the minimum technical specifications have been provided.
FXCM also provides programming services wherein the program can either be modified to suit an automated trader or customized as per the experience and expertise of the traders.
Trading Tools and Research
Because trading without tools is impractical as also impossible it is in cognizance of this fact that this company provides its clients with a variety of trading tools. Traders can choose from amidst signals, charts, latest news and graphs either one or all and then accordingly devise a trading strategy. While some of these may be charged, free trading signals are also provided.
Being highly volatile that it is, receiving frequent alerts pertaining to the latest trends in the Forex market could prove to be the make-or-break decision for the trader. Timely receipt of these signals enables the trader to maximize his profits or minimize his losses, as the situation demands. Likewise, charts provided by FXCM to its clients are titled as 'Marketscope Charts' and by relying on this the trader can not only create orders manually but also monitor and manage them and even close/cancel if the situation so demands.
Education is provided with regards to spread betting through seminars, webinars and daily trading courses.
Acquiring a free Forex trading guide is also a good way of acquiring education as not only does it provide a deep insight into the Forex market but also justifies the decision to jump on to the bandwagon and commence trading in it. People are often not aware of the difference between equity stocks and Forex, an ignorance which could prove costly in the highly liquid and volatile Forex market. Going through this guide would clarify the difference as also provide innumerable reasons for choosing Forex over all the other methods of trading.
While commencing trade every aspiring trader would like to take off on a positive note and this first good experience is provided through the four beginner's guidelines which should be applied while breaking ice. Also mentioned are imperative requisites for being a successful Forex trader which if not already present in the arsenal can be cultivated and acquired over a period of time.
FX Pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, EUR/JPY, EUR/GBP, USD/CAD, EUR/CHF, NZD/USD, CHF/JPY, NZD/JPY, AUD/JPY, AUD/CHF, AUD/NZD, GBP/JPY, CAD/JPY, AUD/CAD, EUR/AUD, GBP/CHF, USD/DKK, USD/SGD, EUR/CAD, GBP/AUD, GBP/CAD, USD/TRY, EUR/NZD, EUR/TRY, GBP/NZD, USD/HKD, USD/ZAR, USD/MXN.
Trading on MT4 platform offers additional exotic Currency pairs such as: USD/ZAR, USD/SGD, USD/HKD, SGD/JPY, USD/TRY, EUR/TRY, USD/RUB, EUR/HUF, USD/HUF.
During its last decade of operation, FXCM has won many awards, some of the noteworthy felicitations being the Eagles Award for the best forex broker in Europe, Falcon Award for the high broker satisfaction in regions like Africa, America and Oceania and the best Global FX Broker overall. The list of awards also includes Star Awards, Global finance and Inc 500 and in the list of 100 fastest growing businesses in the USA the company was honored with the 30th spot by Entrepreneur magazine in the year 2008.
Promotions, Challenges and Bonuses
An FXCM client is entitled to a bonus every time he refers this trading firm to a friend. Titled as the referral program it is a way in which the company rewards the client after the person whom he referred to has crossed 100K in trading volume.
Support to the customer is extended in form of a Live Chat facility which is always available and 24x7 help desk. Clients in need of technical support can avail the email and there is a Fax number also which is different for UK residents and international customers. Then there is a self help portal which is inclusive of FAQs' and account forms and can be resorted to gain an insight into the company.
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Written by: Goran Dolenc