Expert Review: Analyzing the Pros and Cons of FXCM Broker for Forex Trading

Expert Review: Analyzing the Pros and Cons of FXCM Broker for Forex Trading

FXCM is a popular and well-established forex broker with over 20 years of experience in the market. The company has earned a good reputation for its high-quality services, innovative trading tools, and excellent customer support. In this review, we will analyze the pros and cons of FXCM broker based on various criteria like broker fees, account opening, deposit and withdrawal methods, web trading platform, mobile trading platform and desktop trading platform, markets and products, research tools, customer service, education, and demo account.

Broker Fees

FXCM offers competitive spreads for currency pairs, which start from as low as 0.2 pips for major pairs like EUR/USD, GBP/USD, and USD/JPY. However, the broker charges a commission on some types of accounts, which can add to the overall trading costs. The commission for the Active Trader account type is $25 per $1 million traded, while for the Professional account, it reduces to $6 per $1 million. Furthermore, FXCM charges rollover fees for maintaining overnight positions, which may vary depending on the currency pair and the interest rate differential.

Account opening

Opening an account with FXCM is a simple and straightforward process that can be completed online in a few minutes. Traders can choose from three types of accounts, namely Standard, Active Trader, and Professional, depending on their trading style, volume, and strategy. Each account type has different trading conditions, fees, and features, so traders should carefully evaluate their options before deciding which one to choose. Moreover, FXCM requires new clients to provide a valid ID and a proof of address to verify their identity and comply with the regulatory requirements.

Deposit and withdrawal

FXCM supports various methods for depositing and withdrawing funds, including credit/debit cards, bank transfers, and e-wallets. The minimum deposit requirement is $50 for a Standard account, $25,000 for an Active Trader account, and $50,000 for a Professional account. However, the broker does not charge any fees for deposits or withdrawals, except for wire transfers, which might incur some third-party fees. Additionally, FXCM processes withdrawal requests within 1-2 business days, depending on the payment method and the client’s account status.

Web trading platform

FXCM’s web trading platform, Trading Station, is a sophisticated and user-friendly platform that enables traders to analyze the markets, execute trades, and manage their positions with ease. The platform offers various charting tools, indicators, and drawing tools to help traders make informed decisions and customize their trading strategies. It also allows traders to access the latest news and insights from leading financial publications and social trading features like mirroring other traders’ positions. However, one of the main drawbacks of the web trading platform is that it requires a minimum deposit of $50 to access it, which might deter some beginner traders.

Mobile trading platform

FXCM’s mobile app is a powerful and intuitive platform that enables traders to trade on the go from their smartphones or tablets. The app offers all the essential features of the web platform, such as real-time quotes, charting tools, news feed, and order management, as well as some exclusive features like push notifications, customized watchlists, and price alerts. The app is compatible with iOS and Android devices and can be downloaded for free from the App Store or Google Play. However, some users have reported occasional glitches and slow loading times on the app, which can be frustrating during high volatility periods.

Desktop trading platform

FXCM’s desktop trading platform, Trading Station Desktop, is a comprehensive and advanced platform that caters to the needs of professional traders and active investors. The platform offers a vast range of features and tools, such as advanced charting, automated trading strategies, backtesting, and custom indicators. It also allows traders to trade directly from the charts, monitor multiple markets simultaneously, and use multiple order types. However, the platform has a steep learning curve, and some traders may find it overwhelming or complex to use compared to other platforms.

Markets and products

FXCM offers a wide range of markets and products for trading, including over 40 currency pairs, commodities, indices, and cryptocurrencies. The broker also provides access to the US stock market through shares derived from exchange-traded funds (ETFs). However, FXCM does not offer some popular markets like futures or options, which might be a limitation for traders who seek more diversification or risk management tools.

Research tools

FXCM provides a range of research tools and resources to help traders stay informed about the markets and make better trading decisions. The broker offers daily technical and fundamental analysis, market news updates, economic calendars, and trading signals. It also provides a free educational platform, DailyFX, which offers webinars, articles, courses, and trading tools to help traders enhance their skills and knowledge. However, some traders may find the research tools or market analysis lacking in depth or accuracy, and may need to supplement their research with external sources.

Customer service

FXCM has a dedicated customer support team available 24/5 via phone, email, or live chat to assist traders with any issues or inquiries they may have. The broker also provides multilingual support in several languages, including English, Spanish, French, and German, to cater to its global client base. Moreover, FXCM has an extensive FAQ section, a knowledge base, and an active community forum where traders can exchange ideas, share strategies, and seek advice. However, some users have reported slow response times or unhelpful answers from the customer support team, which could be improved.

Education

FXCM offers a wide range of educational resources and tools to help traders improve their skills and knowledge about forex and CFD trading. The broker provides free webinars, online courses, trading guides, and ebooks, as well as access to the DailyFX educational platform. Furthermore, FXCM offers a Trading University program, which provides a structured introduction to trading for beginner traders, as well as more advanced courses for experienced traders. However, some users may find the educational resources lacking in depth or interactivity, and may need to supplement their learning with external sources.

Demo Account

FXCM offers a free and unlimited demo account to all clients, which allows traders to test their strategies and practice trading without risking real money. The demo account provides access to all the features and tools of the live account, including the web, mobile, and desktop platforms. It also allows traders to experiment with different markets, products, and trading styles, and to familiarize themselves with the broker’s services and trading conditions. However, some traders may find the demo account less compelling or motivating than a real account, as there is no real profit or loss involved.

Summary

FXCM is a reputable and reliable forex broker that offers competitive pricing, a wide range of products and markets, and innovative trading tools and features. The broker provides excellent customer support, educational resources, and a free demo account to help traders enhance their skills and experience. However, FXCM charges a commission on some accounts, requires a minimum deposit to access the web platform, and does not offer some popular markets like futures or options. Overall, FXCM is a good choice for forex and CFD traders who prioritize high-quality services, low spreads, and advanced trading tools.