FXCM Review Of A Well-Known International Forex Broker
FXCM is one of the very first Forex brokers to be listed on the NYSE after the company initiated its Forex trading business as early as 2001. The turn of the century witnessed a massive revolution in terms of trading and investments, which paved the way for creating a retail trading market that continues to grow at a staggering rate, even to this date. FXCM is one of the early birds in the industry that started offering an exciting FX trading platform to capitalize on the new-found popularity of currency trading among small-time investors. FXCM is now one of the most popular Forex brokers in the industry, and are known to transact billions of dollars’ worth of trading volume on a monthly basis. FXCM has made its presence felt in different parts of the world, which should be one of the reasons why FXCM has managed to capture a sizeable share of the market. The broker is also one of the very few companies that have taken the time and effort to be regulated by independent regulatory authorities in most of the major financial markets across the world. FXCM has spread its brokerage services to all over the US, Europe, Africa, and the Asia-Pacific. FXCM regulation is overseen by regulatory bigwigs that include the CFTS & the NFA (US), the FCA (UK), the IIROC (Canada), the BaFin (German), the ACP (France), the CONSOB (Italy), the FSB (South Africa, the SFC (Hong Kong), and the ASIC (Australia).
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Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
Type of Brokers
Platform for trading Forex, analysing financial markets and using expert advisors.
Although FXCM has the privilege of being a familiar name in the industry, FXCM is not free from any of the financial scams and penalties that are part and parcel of the Forex trading market. FXCM has found itself at the wrong end of the law by being penalized for several financial malpractices. The regulatory authorities from the US and the UK have time and again imposed several sanctions as well as hefty penalties due to the company’s wrongdoings against their investors. Several traders have also felt the negative impacts of the company’s trading policies, which have created a certain amount of distrust among global investors. Nevertheless, FXCM looks as if it has learned from its past mistakes, and have started offering reliable services that aim to work towards the best interests of the trader. New FXCM clients are more or less satisfied with the Forex trading products on offer, but the company still has a long way to go to live up to its reputation of being a mainstream Forex broker. On the contrary, several new companies have come into the fray by providing excellent Forex brokerage services that are guaranteed to give FXCM a run for their money. In fact, a majority of new brokers have quickly expanded their services to major financial markets by correctly understanding the requirements of modern day traders, and by living up to their promise of providing a fuss-free trading environment.
Opening & Trading The FX Markets With An FXCM Account
FXCM offers different FX products according to the geographic location. FXCM in the US offers Forex products according to the guidelines implemented by the CFTC and NFA, which include a maximum leverage of 1:50, no hedging capabilities, and utilizing the First In First Out rule. FXCM is required to integrate all trading conditions into the platform so as to ensure that all traders are offered a stable trading environment to satisfy the stringent CFTC trading restrictions. The UK arm of FXCM, on the other hand, does not have to impose any trading restrictions on their traders, which allows the broker to offer several innovative trading products such as spread betting and binary options trading. The maximum FXCM leverage for most traders out of the US is increased to 1:400, albeit, the leverage is reduced as the account equity builds. There are three different types of FXCM Forex accounts, the Mini, the Standard, and the VIP account. The Mini account is a market maker account that has spreads starting from 1.5 pips. The Mini account has the maximum leverage of all accounts, and traders get to use the full 1:200 leverage until the account reaches a maximum equity of £5,000. The Standard account is an ECN affair that reduces the FXCM spreads to 0 pips and a commission of $0.05 minimum per trade, which increases according to the lot size. The Standard account is only available to traders that deposit at least £5,000. The VIP account, or the Active Trader account, is at the top of the pile with a minimum deposit requirement of £25,000, which provides the best ECN conditions along with access to an account manager, a free VPS, and even tighter spreads and commissions per trade. FXCM does have one of the costliest trading accounts in the industry, and the broker seems to be taking advantage of its brand image and exposure to make a considerable profit. If you are concerned about lowering the costs of Forex trading, there are simply better alternatives in the industry that provide comparatively better terms and conditions. FXCM has one of the most varied trading platforms in its arsenal, which indeed deserves huge credit. Traders get to choose from different FXCM platforms such as MT4, NinjaTrader, and FXCM’s own TradingStation platform. Each trading platform has their mobile versions available in the iOS and Android stores, which is ideally suited for trading the FX markets on smartphones and tablets. FXCM mobile traders can also make use of a web trader if they don’t have access to a dedicated trading terminal, which increases flexibility for traders on the move. At times, traders are treated to FXCM bonuses and promotions, which are also sometimes substituted by contests or other seasonal advertisements. Payment options include card payments, online e-payment processors, and bank wires, which ensures that traders can deposit and withdraw money with ease. Regardless of some of the advantages and drawbacks of FXCM as a leading Forex company, traders often find some faults that may hinder their overall trading performance. Make sure to trade with FXCM on a demo account before moving on to a live account.