FXCM – Forex Broker Review

By Published On: 07/15/2011 0 Comments Read More »

Leverage50:1 of the notional value of the currency
Minimum Deposit$2,000 (standard account)
$50 (micro account)
Minimum Lot Size0.01
Broker TypeSTP (No Dealing Desk)
Deposit methodsCredit/Debit Card, Bank Wire, Bank Checks
Spreads/CommissionVariable from 1 pip onwards
RegulationCFTC (U.S.), NFA Member (U.S.), FSA (UK), SFC (HK), ASIC (AUS),
FSA/ACP Registered (France), CONSOB (Italy)
Trading PlatformTrade Station II, Trade Station Gateway, Strategy Trader, MT4, Mirror Trader, Active Trader, Mobile Trade Station
LanguagesEnglish, Arabic, Chinese, Farsi, French, German, Hebrew, Italian, Japanese,
Korean, Portuguese, Russian, Spanish
CommissionsBid/Ask

FXCM is no stranger to the forex trading arena since its launch of retail forex operations since 1999; FXCM, also known as Forex Capital markets LLC is one of the biggest and most popular and well respected forex brokerage firms in the markets and is publicly traded on the New York Stock Exchange (NYSE:FXCM). FXCM is regulated by several financial regulatory bodies from across the globe which translates to a safe, secure and transparent trading environment for FXCM traders.

FXCM specializes in self-traded forex accounts with options available for all levels of trading experience. Micro accounts begin at only $50 and offer 1K lot sizes. Benefits of trading with FXCM include trading directly from charts, positive rolls at all margin levels, and free access to real-time proprietary trading signals. Non-USD denominated accounts are available.

At the heart of FXCM’s client offering is the now well known “No Dealing Desk” forex trading execution. Under the “No Dealing Desk” system, trades are executed back to back with one of many banks or financial institutions, which compete to provide FXCM with bid and ask prices, providing spreads as low as 1 pip on major currency pairs. This model eliminates any conflict of interest between the forex broker and trader by ensuring that there is no dealer intervention in trades. While an individual bank may try to skew its prices off the market, having multiple sources of liquidity can ensure that the bid/ask spread will remain competitive. This price competition decreases the potential for price manipulation by an individual bank, thereby providing competitive streaming prices to platforms offered by FXCM. At FXCM, prices are not subject to manipulation by a broker or a banks dealing desk.

FXCM Types of accounts

FXCM Micro, a division of FXCM offering self-service accounts that allows traders to experience the excitement of the forex market with as little as $50. This is an ideal account type to choose especially for beginners to forex trading FXCM’s top tier product, Active Trader, offers a level II type trading environment with up to ten levels of market depth for a liquidity view seen by market makers. Short-term traders have the advantage of seeing actual liquidity available at individual price levels.

Setting up your trading account with FXCM is relatively simple. FXCM traders need to fill out the trader application which is then reviewed and processed within one to three business days. Upon successful completion, traders will be sent an email to complete the rest of the registration process.

FXCM Trading platforms

FXCM offers some of the most popular trading platforms for traders to choose from. FXCM’s trading platform includes:

 
Trading Station II
Active Trader
Trading Station Gateway
MT4
Mirror Trader
Trading Instruments
Forex

CFD's

1k Micro Lots

Platform Type
Software Download

Web based

Mobile

Features
No Dealing Desk

Trading from Charts

One Click Trading

Alerts

Market Depths

Custom Indicators

Automated Trading

Advanced Backtesting

Pre-loaded Strategies

History/Analysis Tools

Some features of the FXCM Trading Station are available on the FXCM Mobile Trading Station application. The key differences include, but are not limited to, charting packages are limited to five minute charts, daily interest rolls do not appear, and the maintenance margin requirement per financial instrument is not available.

Also, FXCM Micro account holders will be charged and debited a service fee of $0.10 per 1,000 unit lot for each trade entered using the Mobile TS II. It is strongly recommended that clients familiarize themselves with the functionality of the FXCM Mobile Trading Station prior to managing a live account via portable device.

FXCM Trading Advantages

  • Euro/U.S. dollar spread is frequently 2.6 pips, British pound/dollar 3 pips
  • Trade on rates provided to FXCM by multiple liquidity providers
  • FXCM’s average monthly trading volume drives price competition
  • Fractional pip pricing facilitates the tightening of spreads even further
  • No conflict of interest between broker and trader
  • No dealer intervention in trades
  • Liquidity providers do not see your stops, limits, and entry orders
  • Competition reduces the potential for market manipulation by price providers
  • Trade during breaking news
  • Place entry orders anywhere—even inside the spread
  • Rollover transparency—all amounts are displayed in advance
  • Receive positive rolls at all margin levels

FXCM Ltd’s (FXCM UK) CFD product allows traders to trade gold, oil and stock indices, along with forex on one platform. CFD’s are not available to US residents. FXCM offers live support 24 hours a day, 7 days a week via phone, IM, and e-mail.

FXCM Customer Support and security

FXCM offers a comprehensive trader FAQ’s. However in the event that traders need to contact support, they can do so via their Live Chat, email or phone. Live chat also includes forex sales, customer services and questions related to the forex markets.

FXCM utilizes state-of-the-art encryption, authentication protocols, and one of the best firewall protections to ensure that every transaction and client record is completely authenticated and secure. FXCM employs backup systems and contingency plans to minimize the possibility of system failures. If there is a problem with the servers, all open trades, stop orders, and trading histories are saved on the backup files. All orders are GTC by default.

Why trade forex with FXCM

The simplicity of using the FX Trading Station software makes FXCM a great choice for both novice and expert traders. The No Dealing Desk trading execution policy from FXCM enhances traders’ opportunities to nail the best profits possible. Trading with FXCM brings the advantage of a forex broker with over ten years of forex market expertise. FXCM’s global presence ensures that traders are subjected to a balanced and fair trading. All told, FXCM is a reliable and reputable choice for any forex trader.

FXCM » Open Account

About the Author:

ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.

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