Forex Capital Markets, better known as FXCM, is an online Foreign exchange market broker based in the USA. Forex Capital Markets was founded in 1999 in New York, and was one of the early developers of online forex trading.
FXCM provides a wide range of options and tools which can satisfy the needs of any broker, supporting various forex trading strategies and experience levels. The company provides services through its own online trading platforms and through third party platforms such as MetaTrader4. FXCM allows retail and institutional clients to speculate on global foreign exchange markets in what is known as “margin forex trading”. Outside the US, FXCM also provides trading in contract for difference (CFDs) on major indices and commodities such as gold and crude oil.
FXCM Trading Accounts
FXCM provides several account types designed for experienced traders as well as for those who are new to the Forex market. FXCM offers three account types: Mini, Standard and Active Trader. The Mini Account is the only account that provides dealing desk execution and which involves no commission fee.
The Standard Account at FXCM requires a minimum deposit of $5,000. This account offers low commission pricing similar to stocks. The Mini Account is ideal for new traders with trading costs all within the spread, and it requires a minimum deposit of $50.
FXCM also offers a training account, which is available for 30 days and loaded with $50,000 demo money. Platforms for all account types are identical, however, a separate username and password needs to be used for each type of account.
FXCM uses several different platforms. These include Trading Station (a feature-rich proprietary platform), a mobile trading app version of their proprietary Trading Station, MT4, the third party NinjaTrader platform, a Mirror Trading platform and ZuluTrade.
MetaTrader 4 is a trading platform developed by MetaQuotes Software for online trading in the forex, contract for differences (CFDs) and futures markets. MT4, as it is commonly known, can be downloaded at no charge directly from the MetaQuotes website or through dozens of online forex brokers. MT4 provides tools and resources that allow traders to analyze price, place and manage trades, and employ automated trading techniques.
Spreads and leverages
This broker provides variable/floating spreads, which means that spreads can change depending on market conditions. Spreads can widen without warning. In the case of FXCM, not all of their spreads are competitive and their spreads can expand widely depending on which markets are open and which currency pairs you are trading. Spreads can be as low as 0.2 pips in the more liquid trading pairs such as the EUR/USD, USD/CHF, and the USD/JPY.
The maximum leverage level offered by FXCM is up to 1:400, which is considered a high ratio. Considering US-based clients, the maximum leverage level is 1:50.
A wide range of currency options – FXCM delivers the most currency options with over 50 different currency pairs. Additionally, FXCM gives traders the opportunity to open accounts in U.S. Dollars, Euros, Yen, British Pounds, Canadian Dollars, New Zealand Dollars, or Australian Dollars
Variable spreads – This keeps the spread tight, which is one of your biggest expenses as a trader
The Trading Station II platform – Well known and reliable platform, which has been used for years
The deposit process – Since you can use a paper check, ACH deposit, credit and debit cards to fund your account, the deposit process is simple and quick.
Quality Trader Education – Top videos and guides on the forex markets, technical trading topics, and FXCM’s platforms. Introductory and advanced trading concepts are covered in on-demand video lessons and live trading sessions by partner DailyFX.
No ability to trade other investment products – Part of what makes FXCM a superb forex broker is their focus on forex clients, but do note that they do not offer stocks, options, or futures trading. This is limited only to client from US, since their international clients do have some access to CFD products
Somewhat higher spread pricing – FXCM’s Straight Through Processing (STP) system comes out on the higher end of price comparisons. However, they do offer elite pricing for high-volume traders.
FXCM has long been known as one of the most reliable dealers on the planet as they are one of the biggest. With a well-known and tested platform selection, trade execution is virtually flawless as there have been millions upon millions of trades executed through it.
FXCM is a large and strong company, with a large world-wide user base, high liquidity and large financial assets. This enables them to offer attractive rates, innovative tools and features, and high standards of customer support.
All FXCM characteristics numbered above make this broker an excellent choice for Forex traders at all levels, no matter where they reside.