Regulators: FCA, ASIC, FBS, ISA

Available Major Cryptocurrencies: No

Minimum Deposit: $50

Maximum Leverage: 1:400

Spreads: Medium

My Score: 5.6

FXCM is a broker in the capital markets since 1999.  With its headquarters in New York, FXCM has been providing forex trading to US investors for many years. In this process, the company continued to grow internationally. The company is licensed from International reputed regulators such as FCA, ASIC. However, in 2017, the company exited the US markets and no longer accepts US clients. At that time I searched this decision.

The fact is that FXCM is banned in the US. Because FXCM indicated that they did not act as “no dealing desk” to their investors. They told investors to their trading orders directly executed in the forex market, there is no using market maker or liquidity provider. However, it turned out that they worked as a dealing desk through Effex Capital LLC. So the company was banned in the US.

It is normal for a forex broker to use a dealing desk model. Many brokers are doing this. But the abnormal situation is misleading customers. This incident hurt the trust of the customers. For this reason I write cons point to the FXCM.

In the meantime, FXCM has tried to reduce the impact of this damage. Is FXCM a good broker now? FXCM’s in-house platform – How is Trading Station? Is FXCM minimum deposit and spreads advantageous? How is the maximum leverage and the account types? Let’s do the FXCM review together.

FXCM Regulation 

The FXCM is regulated by 4 different watchdogs. Two of them, FCA and ASIC, are highly reputable and reliable regulatlors in all over the world. The other two are FBS for FXCM South Africa and ISA for FXCM Israel.

Both FCA and ASIC are reliable and well controlled regulators. They also have compensation funds in their jurisdiction. The control mechanisms of these regulators are based on a safe system. For example; In companies under FCA regulation, clients’ funds are kept in segregated bank accounts separated from the company’s operational funds. So even if the company goes bankrupt, clients’ funds will not be hurt. In addition, clients’ funds are guaranteed up to £50,000  by the Financial Services Compensation Scheme.

In 2016, FXCM expanded to the Israeli and South African markets. The company is licensed for FSB (Financial Services Board) in South Africa and ISA (Israel Securities Authority) in Israel. FXCM does not accept US clients.

FXCM Spreads and Account Types

Account typeMinimum deposit Maximum leverageAverage SpreadsExecution
Standard$50 1:4001.4 pips DD
Premium$2 000 1:1000.4 pips + commission $8 per lot -round turn - (£6 in the UK) NDD
 AciveTrader $25 0001:1000.4 pips USD + commission per lot -round turn - $3.6 – $8 (£3.6 – £6 in the UK) **NDD

FXCM offers 3 different account types. When we look at account types, we can see that FXCM is trying to create account types that are compatible with the 3 basic investor types.

The minimum deposit in the standard account type is $ 50. When we make FXCM vs Pepperstone, we see that there is less minimum deposit than FXPro. But when compared to brokers like XM or FXTM, we see that the minimum deposit is high.

We can also see that spreads and commissions are slightly higher in all account types compared to their competitors. The other negative feature is that the dealing desk model is used in the standard account type.

In the premium account, the minimum deposit is 2000 dollars. This account type is similar to the ECN account. But I see it is disadvantageous when compared to ECN account types in other brokers like Pepperstone or IC Markets. Both spreads and minimum deposit conditions are more advantageous with these brokers.

The Active Traders account is preferred by investors with higher trading volumes.

In summary, FXCM account types are inadequate. There is no variety of account types in accordance with each investor type. In addition, both spreads and minimum deposits are disadvantageous compared to competitors. In addition to this, the maximum leverage is lower.

FXCM Withdrawal and Deposit Methods

One of the most common complaints for investors at FXCM is payment methods. The deposit and withdrawal methods really seem very limited. Investors can use technological payment methods such as neteller, webmoney, fasapay or qiwi wallet in many brokers. However, in FXCM only Skrill can be reached from among these methods. Also FXCM does not offer deposit method with BitCoin and does not offer bitcoin trading either. Major cyrptocurrencies are not available in FXCM.

MethodsProcessing TimesCurrencies

InstantUSD, EUR, GBP,
1-2 days (domestic)
3-5 days (international
USD, EUR, GBP
24 hoursUSD, EUR, GBP
24-48 hoursUSD, RMB

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FXCM

5.6

Trust

6.0/10

Commissions and fees

6.0/10

Customer Service

5.0/10

Platform & Tools

7.0/10

Product Portfolio

4.0/10

Pros

  • Regulated by FCA and ASIC

Cons

  • Not avaliable cryptocurrencies
  • Payment methods are limited
  • Banned in US
  • Account types and trading conditions are limited.

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Deposits via Visa and Mastercard are instant however withdrawals take 2-4 days.