FXCM Forex Trading Broker Review | Superchoice Forex
In the box
Cost of the box
Opening account speed
Deposit & Withdrawal
Speed of execution
Total Score: 8 / 12
FXCM Broker Review Summary
Our ‘Mystery Broker’ provides a review of an anonymous forex broker, so you can compare our selected top brokers to another broker in the industry. The broker we selected as our mystery broker is an industry powerhouse, FXCM. They were established in 1999, however were only issued an ASF licence in 2007, an 8 year gap. FXCM’s key selling point is zero commissions. Whilst that sounds good on paper, I will be breaking that down to see how it works later in the review. So without any further ado, read on to see how they stack up against the SuperChoice top brokers.
Unboxing – Opening an account with FXCM
Opening an account with FXCM is seamless; their same day verification process allows clients to get trading on the same day. I was verified with them within 3 hours at most. They only offer leverage up to 400:1, which is below the industry standard of 500:1, losing them a point here. They do offer no minimum deposit, which is great as it allows traders to get started with however small or large an account as they see fit.
Score = 2/3
With same day verification and no minimum deposit, FXCM has been awarded two points here. They have lost a point for leveraging as they do not keep up with the industry standard, however 400:1 is adequate leverage for most traders.
What’s in the box? FXCM Broker Review
FXCM has a range of funding methods but are limited in their base currencies, offering only AUD, NZD or USD. Popular funding methods include POLi, credit card and bank wire. I was able to fund the account easily enough, but I’d imagine foreign clients may have issues with the limited base currencies.
FXCM has Industry standard 24/5 support. It wouldn’t be a SuperChoice review if I didn’t put this to the test! The live chat took over an hour to get back to me, pretty slow, so I’m not very impressed there. They do offer their email, phone numbers and even a SMS support service, which I haven’t seen anywhere else, so props there.
Being a powerhouse broker, FXCM offers some great educational content and market analysis. They cover Forex basic courses, traits of successful traders and run webinars every day on DAX, London and US open. They also feature a Cryptocurrency webinar every Wednesday. These webinars are of reasonable quality and a great touch by FXCM in supporting their clients trading success. FXCM has an analysis section on their website, keeping traders updated with fundamental and technical news and opportunities.
They also provide a set of trading tools to integrate with MT4 as brokers typically do. Something quite appealing with FXCM is that they integrate with the Tradingview.com charting software and enable traders to trade entirely from Tradingview. They also give clients access for 1 year to the Tradingview Pro Plan for free.
Their range of tradable products is quite small, limited to 39 currency pairs and a few indexes, indices, cryptocurrencies and commodities. This could certainly be improved as it is not competitive at all with the industry.
FXCM boasts their low slippage rates, with 70% of their orders not receiving slippage. They also state that 69% of the limit orders that experience slippage have positive slippage. Trading with them I found the slippage quite low and generally favourable, but due to their spread pricing options it is quite difficult to place limit/stop orders accurately. Order execution was not an issue for me and they boast an average of 0.02 seconds (20 milliseconds) order fill, which is quite competitive considering IC Markets averages under 40 milliseconds for execution.
Score = 5/6
FXCM offers customer service, however they run too slow, come on FXCM! They have okay trading conditions, quality trading tools and support for their clients, nevertheless could definitely enhance their range of tradable products.
Cost of the box – FXCM Fees, Spreads and Commission
FXCM has spread based commission, meaning that you pay $0 a trade, but in return trade on wider spreads. The spreads offered by FXCM are not at all market competitive. Their average EURUSD spread is 1.2. Whilst no commissions sound good, a spread of 1.2 on one standard lot equates to $12, nearly double the $7 round trip commission you would pay at IC Markets! In addition to paying the spread, it is considerably more difficult trading wide spreads as traders have to factor the spread in when setting stop losses, pending orders and target prices. The pricing with FXCM is honestly atrocious, with the EURUSD being the lowest average spread of all their offered pairs. They do not charge any additional fees or charges.
FXCM has terrible product pricing that is not at all market competitive, however they are transparent on their pricing structure and do not charge any non-trading fees.
My experience trading forex with FXCM
My experience with FXCM is quite disappointing. As a powerhouse broker they offer the glitz and glam that bigger brokers have such as education and market analysis, and the ability to link to Tradingview is some good value, however their range of tradable products is minimal, their leverage does not meet industry standards and their pricing alone is enough to turn any trader away.
Total Score = 8/12