Forex.com vs FXCM
If you’re reading this article, you’re likely having trouble deciding whether Forex.com or FXCM (Forex Capital Markets) is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Forex.com vs FXCM review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Forex.com vs FXCM - Verdict
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Headquarters | United States | United Kingdom |
Regulators | ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA | ASIC, CySEC, FCA, FSCA |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2001 | 1999 |
Execution Type(s) | Market Maker | Market Maker, No Dealing Desk |
Minimum Deposit | $100 | $50 |
Negative Balance Protection | N/A | |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform, Trading View | Other, MetaTrader 4, Proprietary platform, Web-based+ |
Average Trading Cost EUR/USD | 1.1 pips | 0.6 pips |
Average Trading Cost GBP/USD | 1.3 pips | 1.0 pips |
Average Trading Cost WTI Crude Oil | $0.035 | 0.034 pips |
Average Trading Cost Gold | $0.63 | 0.30 pips |
Retail Loss Rate | 73.00% | 70.0% |
Minimum Raw Spreads | 0.0 pips | 0.2 pips |
Minimum Standard Spreads | 0.8 pips | 0.7 pips |
Minimum Commission for Forex | $5 per $100K | $5.00/round lot |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Get Started | Get Started |
Features and Platforms
N/A N/A Get Started Get Started
Forex.com
Forex.com provides trading interfaces on multiple platforms. It has a web option, mobile apps on Android and iOS, and a desktop application that comes with advanced trading resources. Those advanced resources include customizable indicators, the ability to program automatic trading strategies, and over 100 charting tools out-of-the-box.
If you’re a programmer, you also have the option to trade through Forex.com APIs.
Novice traders have quite a few resources to learn all about Forex on the company website. Forex.com hosts an entire educational portal that provides resources on trading concepts, managing risk, and technical analysis, among other themes. The website also manages an up-to-date economic calendar of potentially impactful Forex events.
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.
FXCM’s trading platform, aptly named Trading Station, is similar to Forex.com’s with several types of charting tools, indicators, and market statistics. It’s available on the web, as a desktop app, and on Android and iOS devices. Another similarity to Forex.com, FXCM provides APIs to create programmable trading strategies.
In addition to the trading platform, FXCM offers a suite of free and non-free apps that you can plug into your interface.
FXCM also has a comprehensive Knowledge section on its website. It covers educational topics about Forex trading, the worldwide economic market, and how to become a better trader. Additionally, the company has created an exhaustive video library and hosts daily webinars
Available Markets
N/A Get Started Get Started
When comparing the number of supported markets between the two exchanges, Forex.com has a clear advantage. The platform supports over 80 currency trading pairs, while FXCM offers less than 40.
In addition to Forex, Forex.com supports gold, silver, futures, and futures options trading. In this respect, FXCM’s markets are slightly more encompassing, including multiple indices, commodities, and cryptocurrencies.
Typical Spreads and Fees
1.1 pips 0.6 pips 1.3 pips 1.0 pips $0.035 0.034 pips $0.63 0.30 pips $60 $40 0.0 pips 0.2 pips 0.8 pips 0.7 pips $5 per $100K $5.00/round lot $15 monthly after 12 months N/A Get Started Get Started
Forex.com
There are three different account types you can trade through on Forex.com - Standard and Commissions. The Standard account has no commission fees, but the spreads are generally much higher than the other two account types. When you trade with the Standard account, spreads fluctuate in the one to three range for popular trading pairs with EUR/USD reaching as low as 1.1.
The Commissions are more favorable for high volume traders. They provide spreads as low as 0.2 and 0.1, respectively, for the USD/EUR market but charge a commission. If you choose the Commissions account, you’ll pay $5 per 100 thousand base currency that you trade.
FXCM
The spreads on FXCM are on par with Forex.com. The average spread on EUR/USD, for instance, is 1.3.
For Active Traders (>150 million monthly volume), FXCM lowers the spreads on each market, once again to levels similar to Forex.com. As an Active Trader, you pay $25 per one million base currency you trade.
FXCM charges a 50 base currency fee for a year of inactivity but has no withdrawal fee.
Security & Trust
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Country of the Regulator | Australia, Canada, Cyprus, Japan, Cayman Islands, Singapore, United Kingdom, United States | New Zealand, Seychelles |
Name of the Regulator | ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA | ASIC, CySEC, FCA, FSCA |
Regulatory License Number | 0339826,291, Undisclosed, 446717, 400/21, 25033, 345646, Undisclosed | 403326, SD045 |
| Get Started | Get Started |
Forex.com vs FXCM – Verdict
There are many more similarities than differences between Forex.com and FXCM. And, you couldn’t go wrong trading on either platform.
If a wide selection of Forex markets is important to you, however, Forex.com should be your pick. Otherwise, both companies offer competitive spreads and trading interfaces with an ample number of analysis tools. Try trading with a demo account on both platforms to get an authentic feel of which one would be best for you.
You might also be interested in reviewing the below broker comparisons:
- Forex.com vs Nadex
- Forex.com vs Liteforex
- Forex.com vs Markets.com
- FXCM vs XM
- FXCM vs Capital.com
- FXCM vs IG Markets
FAQs
Does Forex.com or FXCM offer lower pricing?
Forex.com and FXCM both offer a minimum commission-free spread on the EUR/USD of 0.8 pips. The former grants notably tighter spreads on equity CFDs, but the latter implements a more competitive cost structure for commodities. High-frequency traders will benefit from the Active Trader program at FXCM, where the minimum mark-up on the EUR/USD is 0.3 pips with a commission of $40 per $1,000,000 in trading volume. It can decrease as the trading volume increases, with the lowest listed at $25. The DMA account at Forex.com carries a lower spread at 0.2 pips for the same commission as FXCM. It drops to as low as $20 for over 2,000,000,000 in monthly volume. Therefore, it depends on what the client prefers to trade, as both offer advantages.
Which is better, Forex.com, or FXCM?
Both brokers offer a similar overall trading environment, making the final choice dependent on the individual traders and their asset preference. Forex.com is one of the largest MT4 brokers based on active servers as of April 2019 but fails to offer free upgrades to the core version. Both brokers generate valuable research and education, but FXCM provides clients with more value-added services and more trading platform choices, granting it a competitive edge over Forex.com.
How many Forex pairs and CFDs are available to trade?
Forex.com provides 82 currency pairs and over 220 CFDs. FXCM maintains only 40 Forex pairs and does not provide a list of all CFDs. From the publicly available information, Forex.com is a superior choice from an asset selection standpoint.
What are the minimum deposits for these brokers?
The minimum deposit at Forex.com is £100 or a currency equivalent, while it is only £50 at FXCM for international clients.