Established in 1999, Forex Capital Markets LLC, or FXCM, has quickly risen to become one of the most reliable forex brokers in the world. FXCM’s New York headquarters serves as the counterpoint of a company that generates hundreds of millions of dollars of revenue per year, and employs over 600 people around the world.
With offices in London, Hong Kong, Sydney, Paris, Dubai and more, FXCM is the go-to American brokerage firm for retail traders. FXCM is regulated by the FCM, NFA, and ASIC.
But is trading with FXCM worth it? Let’s quickly go over a few of FXCM’s features, a well as the pro’s and con’s of using the firm to open up a forex account.
FXCM is compatible with a variety of trading platforms. This includes Trading Station, which offers web, desktop and even a mobile trading application. The popular Metatrader 4 and NinjaTrader are also available platform options. So whether you prefer the simplicity of MT4 or the professionalism of NinjaTrader, FXCM caters to all types of retail traders, big or small.
Minimum Account Deposits
FXCM offers three account types: Mini, Standard, and Active. The maximum amount of leverage allowed for all accounts is 50:1, while the minimum required lot size runs at 1,000 units of the base currency. Their mini account requires a $50 initial deposit, while the standard and active trader accounts require a $5,000 and $25,000 minimum deposit, respectively.
The only noticeable difference between the account features lies in the way trade executions are handled. While the larger account types use no dealing desk execution, the mini account uses a dealing desk to handle orders. No dealing desk execution is the preferred method of trading due to the fact that it eliminates any potential conflict of interest between the trader and broker. This is definitely something to keep in mind if you plan on trading with FXCM.
Trading Spreads and Commissions
The mini account runs strictly on spreads, so no extra commissions are taken apart from the spread, which, according to FXCM, the average is 1.4 pips.
The standard account takes off spreads and commissions, with an average spread of 0.4 pip in addition to $0.04 per 1,000 units traded.
The active trader account, FXCM’s largest account type, uses spreads and discounted commissions. The average spread remains 0.4 pips, with a commission amount that averages around $0.018 per 1,000 units for entering and exiting each trade.
FXCM has a reliable history, and is a great broker to use for any trader new to forex trading. Their spreads are average, and their allowed leverage is relatively low compared to other offshore brokers. The fact that FXCM uses a dealing desk for one of their account types will scare some traders away, but their attentive customer service team, combined with their platform options and trading services makes FXCM an excellent forex broker candidate.