This Forex broker comparison features two dramatically different brokers, FXCM and easyMarkets, and if you’re considering either or both of these brokers, you must read this review before proceeding. easyMarkets is proud to be a market maker based in Cyprus, featuring fixed spreads, and prides itself as being honest. FXCM is also a market maker, though it is based in the United Kingdom, where it is a Leucadia company owned by the Jefferies Financial Group, a company listed on the NYSE under ticker symbol JEF.
This comparison will focus on the following four aspects plus an ultimate verdict:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- easyMarkets vs FXCM - Verdict
Cyprus United Kingdom ASIC, CySEC, FSA ASIC, CySEC, FCA, FSCA 2001 1999 Market Maker Market Maker, No Dealing Desk €100 $50 MetaTrader 4, Proprietary platform, Web-based Other, MetaTrader 4, Proprietary platform, Web-based+ 0.8 pips ($8.00) 0.6 pips 1.4 pips ($14.00) 1.0 pips $0.04 0.034 pips $0.40 0.30 pips N/A 70.0% N/A 0.2 pips N/A 0.7 pips N/A $5.00/round lot Visit Website Visit Website
Features and Platforms
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easyMarkets
Simplicity is a fundamental attribute of this broker, as evident by granting all clients the same trading account. The democratization of services, especially in the retail sector, has increased in popularity. easyMarkets encourages traders who wish access to all assets and trading features to utilize its proprietary webtrader. It comes with a stealth cost in the form of higher spreads, which is not ideal. The platform lacks support for automated trading solutions. The MetaTrader 4 platform is also available at easyMarkets, but only in its most basic form.
deal Cancellation and Freeze Rate represent two unique trading tools, suggesting placed trades may never be executed if the trader gets nervous. This can be a nice form of protection, but it comes at a price. Since it is impossible to freeze live markets, the final impression is that trading could be simulated. easyMarkets provides research, but besides the blog, the remaining categories are a collection of data not created by this broker. The broker’s educational segment does offer valuable content to new traders.
FXCM
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Traders have access to this broker’s proprietary Trading Station, the primary focus of FXCM. The MT4 trading platform is supported but offered merely as the most basic version without any of the required third-party plugins to unlock its full potential, as is the case with easyMarkets (and many other brokers). FXCM also offers the NinjaTrader platform. Improving the trading conditions is a suite of tools supporting algorithmic trading solutions, as all three platforms enable this feature. Social trading is possible via market-leader ZuluTrade.
New traders have the opportunity to increase their knowledge base through an educational course. Additionally, FXCM publishes an excellent selection of written content covering financial markets as well as topics related to trading. A prime service labeled FXCM Plus further enhances the trading experience with trading signals and analytics to improve results. The exceptional trading environment, supported by auxiliary trading services, is evident with this broker’s relatively successful trading rate as compared to most other Forex brokers.
The overall trading environment provided by FXCM is remarkably competitive.
Available Markets
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easyMarkets offers over 200 assets, with the Forex market the focus of its operations. The commodity selection is acceptable, but equity, index, and cryptocurrencies are fairly scarce. Where pure Forex traders have exceptional choices, diversified traders will not be served adequately. The most significant area of improvement for FXCM is overall asset selection. A total of 39 currency pairs doesn’t provide proper Forex market exposure, equity trading is not granted, and commodity and cryptocurrency assets are limited.
Typical Spreads and Fees
0.8 pips ($8.00) 0.6 pips 1.4 pips ($14.00) 1.0 pips $0.04 0.034 pips $0.40 0.30 pips $35.00 $40 N/A 0.2 pips N/A 0.7 pips N/A $5.00/round lot N/A N/A Visit Website Visit Website
The fixed spreads at easyMarkets are on the high side, creating a pricing environment that is less than ideal. At 0.9 pips, the EUR/USD spread is the lowest and is fairly competitive (if not slightly high) with other market makers, but other assets carry a more significant mark-up. Spreads in the MT4 trading platform are lower than in its proprietary webtrader. Variable spreads at FXCM start as low as 0.6 pips commission-free. For a commission of $25 per $1,000,000, trading costs are reduced to 0.2 pips. FXCM offers traders a far superior pricing structure as compared to easyMarkets.
Swap rates on leveraged overnight positions are charged by both FXCM and easyMarkets. The precise amount is available from inside of the trading platforms. Corporate actions like dividends, stock splits, and mergers, impact equity and index CFDs, which are debited or credited to portfolios. easyMarkets claims to cover all fees regarding deposits and withdrawals. FXCM carries a £50 inactivity fee, but the broad trading environment is more cost-effective.
A look at easyMarkets spreads:
Security and Trust
Australia, Cyprus, Seychelles New Zealand, Seychelles ASIC, CySEC, FSA ASIC, CySEC, FCA, FSCA 079/07, 246566, SD056 403326, SD045 1, 1, 4 N/A Visit Website Visit Website
EasyForex Trading LTD, the owner of easyMarkets, is regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number is 079/07. This broker is compliant with the Financial Instruments Directive 2014/65/EU or MiFID II and the EU’s 5th Anti-Money Laundering Directive. Per EU Directive 2014/49/EU, the Investor Compensation Fund (CIF) protects traders up to €20,000 in the event of a default. EasyMarkets Pty LTD is also authorized and regulated by the Australian Securities and Investments Commission (ASIC).
The UK Financial Conduct Authority (FCA) is the primary regulator of FXCM under license number 217689. Traders are protected under the Financial Services Compensation Scheme (FSCS), up to £85,000. Additional regulation is provided by the Autorité des Marchés Financiers (AMF) in France, the Australian Securities and Investments Commission (ASIC), and the Financial Sector Conduct Authority (FSCA) in South Africa. The French regulated entity is compliant with the Financial Instruments Directive 2014/65/EU or MiFID II, and the EU’s 5th Anti-Money Laundering Directive. Traders are additionally protected by the Fonds De Garantie Des Dépôts Et De Résolution (FGDR) up to a maximum of €70,000, per EU Directives 2014/49/EU and Directive 2014/59/EU.
easyMarkets vs FXCM – Verdict
easyMarkets pioneered a significant service when it launched in 2001, but has since been somewhat stymied. Though easyMarkets does offer some trader protection opportunities that set it apart from other brokers, its high fees make it a less than ideal option for most traders. That being said, easyMarkets offers a wider range of assets than FXCM does, which could be an advantage for some traders. In contrast to easyMarkets, FXCM offers a better trading environment overall, with more platform options, better research, and more competitive spreads. The only flaw of FXCM is its asset selection, which needs to be expanded drastically.
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