Is FXCM legit? Should you trust it to deliver the services that it has promised to deliver to its customers? Is it one that you can recommend to your friends and family? let us find out about that and more in today’s comprehensive review about FXCM. Here are the main elements of the review:
- Is FXCM legit? (What is it about?)
- Where is FXCM located?
- Is FXCM regulated or not?
- The Account Types offered by FXCM
- Which instruments can you trade on FXCM?
- The deposit and withdrawal options
- Which trading platforms are offered by FXCM?
- Is FXCM Genuine or Is It A Scam?
- Pros and Cons
Name of the platform: FXCM
Official Website URL: https://www.fxcm.com/uk/
Overall Rating: (3.1 / 5)
Recommended: Not Recommended
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Is FXCM legit? (What is it about?)
FXCM is recognized as one of the pioneers of the online trading industry. The company that is responsible for the creation of this platform made its entry into the market with the aim of making it possible for investors from all walks to make their money through:
- Forex trading
- Spread betting (to the UK and Ireland residents)
FXCM was established in 1999 and has since then been striving to ensure that global traders have access to a large liquid market by offering:
- Innovative trading tools
- Constant support from the trading educators
- Strict financial standards to guarantee the safety of the traders’ money.
Leucadia National Corporation is currently the largest economic owner of this platform. Most people who know Leucadia recognize it for its excellence in its line of business (investing in a wide variety of businesses, more so those in the financial services and investments industry).
Where is FXCM Ltd located?
The FXCM Group has its headquarters in London (UK), from where it offers its services to all customers. It also has a couple of offices in Germany, Italy, France, and Australia, from where it brings its services closer to its region-specific customers.
FXCM also has well-established partnerships with local companies in Greece, Israel, and South Africa. This is a move to expand its global outreach to a larger customer base.
FXCM strives to bring nothing short of the best trading experience to its customers, and it does this by enabling them to access intuitive platform options. As an FXCM customer, you can make your money through the award-winning Trading Station that has a collection of tools that enhance the trading experience.
Is FXCM regulated or not?
FXCM LTD, the company that owns and runs FXCM is regulated is authorized and regulated in the UK, by the Financial Conduct Authority. The current FCA regulations stipulate that a broker must adhere to very strict financial standards, including:
- Meeting the capital requirements
- Getting transparent about all the business practices
- Keeping client funds well-protected
For the global offices, there are Forex Capital Markets Limited offices that see to it that the country’s financial authority and licensing procedures are followed accordingly. The global offices are regulated as follows:
- FXCM Australia Pty Limited – regulated by ASIC
- FXCM Germany – partially regulated by BaFin
- FXCM Italy – regulated by CONSOB
- FXCM South Africa- regulated by FSCA
The Account Types offered by FXCM
Customers can open a live forex trading account or they can simply do it with a demo account. Demo account owners can apply for a live trading account upon the confirmation of their residence and compliance of their application.
Besides, FXCM has very impressive opportunities for those who are getting started with trading, as well as welcome back bonuses that are offered with some underlying conditions.
Once you have signed up for a live trading account, you can choose between the following options:
- A single account – this allows you to trade in all the trading instruments in FXCM’s offerings.
- Active Trader Account – this account works best for the high volume investors. It has premium services as well as tailor-made solutions. Traders who have this type of account can also enjoy discounted pricing on their spread costs.
The fees traders get charged
With all the types of FXCM accounts, traders usually pay floating spreads only, so that they can trade indices and commodities.
Some other spread fees you can expect to get charged (examples), include:
- EUR/USD – 1.3 pips
- Crude Oil WTI-0.04
- Gold – 0.76
- BTC/USD – 27.13
Here are the spreads for crypto trades:
Which instruments can you trade on FXCM?
FXCM offers a wide range of market instruments such as:
- Spread betting
You should confirm, during the signup process, which instruments you can trade in your country.
The deposit and withdrawal options
FXCM seeks to bring the much-desired convenience to the users of its platform. It does this by offering a wide range of deposit and withdrawal options, as shown below:
- Credit card
- Debit card
- Bank wire
Note that the minimum deposit is $50. Your live trading account can only become operational if you deposit this amount.
- Credit card
- Debit card
- Bank wire
FXCM does not charge any withdrawal fees for credit and debit card transactions. Those using international bank wire requests to withdraw, however, have to incur a $40 withdrawal fee.
Upon the processing and confirmation of withdrawal, funds will take about 2 business days to get released to your payment provider.
Which trading platforms are offered by FXCM?
FXCM’s clients can enjoy a collection of some of the top-notch trading platforms, including:
- Trade Station
- Traders View
The above software suite enables traders to access very powerful trading tools, volume indicators, optimization capabilities, as well as automated trading strategies.
Is FXCM Genuine or Is It A Scam?
FXCM is, in my humble opinion, genuine. The fact that FXCM LTD is regulated by FCA and that the other global businesses are also regulated by the respective financial regulatory bodies in their regions goes a long way into proving that this company which started its operations back in 1999 is genuine and not a scam.
Unfortunately, customer reviews on consumer trust sites show what FXCM’s services are not the very best in the market. On Trustpilot, for instance, FXCM has an average rating of (3.1/5) stars. Compared to the top performers in the industry, FXCM still has a long way to go as far as customer satisfaction is concerned.
Pros and cons
- Low spreads
- Good trading platforms
- Customer education is taken seriously
- Low consumer trust ratings
Final Words and Verdict
Verdict: Legit (not recommended)
Overall Rating: (3.1 / 5)
Despite being legit, FXCM fails to back up its promises with efficient service delivery as can be proven by the poor customer ratings on consumer trust sites. Generally, I think FXCM has what it takes to rise to the ranks of the top of the industry, but it has to take into consideration the needs of its customers. Meanwhile, you can have a look at what my number one crypto exchange has to offer.
That’s all for my review about whether FXCM is legit and whether it’s the best in the industry. I hope you’re now well informed and in a better position to make a decision about whether you’ll use it or not. Let me know what your thoughts about it are in the comments section.
Eric, Investor and Blogger at Start Make Stop Waste!