Looking for a new Forex broker, either as a second option or for your first foray into the world of Forex trading? You’ve come to the right place! This broker comparison will take a deeper look at two heavyweights – FxPro and FXCM. FxPro, regulated by the FCA out of the UK, is home to over 1,300,000 traders and remains the market leader in no dealing desk (NDD) trading. FXCM is currently based in the United Kingdom after being based in the United States for many years before leaving that market. It is now in a rebranding phase as Leucadia company owned by Jefferies Financial Group Inc., 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
- FxPro vs FXCM - Verdict
United Kingdom United Kingdom N/A ASIC, CySEC, FCA, FSCA 2006 1999 No Dealing Desk Market Maker, No Dealing Desk $100 $50 Other, MetaTrader 4, MetaTrader 5, cTrader+ Other, MetaTrader 4, Proprietary platform, Web-based+ 1.3 pips 0.6 pips 1.5 pips 1.0 pips $0.03 0.034 pips $0.29 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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FxPro
As the market leader in NDD trading, the cTrader platform is at the core FxPro’s operations. It enables a superior trading environment, as an out-of-the-box solution, over the MT4/MT5 trading platforms, which are also provided by FxPro. Unfortunately, no third-party plugins are offered by this broker. Enhancing support for automated trading solutions comes in the form of VPS hosting, but the cost of $30 per month is on the high side.
New traders have access to an excellent educational platform, with an entire section dedicated to trading psychology. The well-designed educational course features video tutorials and trading tests, creating an outstanding service. FxPro grants its traders a comprehensive analytical suite through a partnership with Trading Central but also publishes in-house market news. The combination of services continually reduces the failure rate of traders, which is currently reported at 75.56%.
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 traders have great choices when it comes to trading platforms. FXCM offers the retail favorite MT4 and its proprietary Trading Station. While automated trading is fully supported across all trading platforms, this broker focuses on its Trading Station and like FxPro, does not provide any necessary third-party plugins for the MT4 trading platform. Social trading is possible through ZuluTrade, a market leader in this sector. FXCM provides a suite of tools for algorithmic trading solutions, which adds to the appeal of this brokerage.
FXCM Plus is a prime service provided to all clients and consists of trading signals, a trading analyzer, and trading analytics. An educational course is available for new traders, and FXCM publishes a great selection of written content covering financial markets and trading-related topics. The overall auxiliary trading services provided by this broker remain exceptional, supported by the failure rate of traders of 71.00%.
Available Markets
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FxPro focuses on the Forex market, where it offers over 70 currency pairs. Futures and spot indices are acceptable, but equity CFDs merely consist of major names. Regrettably, metals and energies are reduced to the minimum. FXCM provides only 39 currency pairs and falls well behind FxPro in this category. Commodity trading remains equally limited, but five cryptocurrency pairs are available. Equity trading is missing, and while both brokers are somewhat limited when it comes to asset selection, FxPro grants a better choice for cross-asset diversification. That being said, few traders really need more than a handful of tradable assets, so it’s highly possible that both of these brokers will offer what you are looking for.
Typical Spreads and Fees
1.3 pips 0.6 pips 1.5 pips 1.0 pips $0.03 0.034 pips $0.29 0.30 pips $38 $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
FxPro deploys the NDD execution model, while FXCM remains a market maker. Spreads in the FxPro MT4 account start at 1.4 pips, which remains unacceptably high. Traders have access to raw spreads as low as 0.0 pips, but the commission of $45 per $1,000,000 is elevated. FXCM spreads are superior and start at 0.6 pips commission-free, and are lowered to 0.2 pips for a commission of $25 per $1,000,000. Forex traders will find a more competitive pricing environment at FXCM.
Both brokers charge swap rates on leveraged overnight positions. The precise amount for each asset may be retrieved from inside the trading platforms. Equity and index CFDs are subject to corporate actions, which are debited or credited from the trader’s account. While deposit and withdrawal fees are waived, third-party charges apply. FXCM levies a £50 inactivity fee, but the overall cost structure is lower as compare to FxPro.
Security and Trust
The Bahamas, Cyprus, United Kingdom, South Africa New Zealand, Seychelles N/A ASIC, CySEC, FCA, FSCA 509956, 078/07, 45052, SIA-F184 403326, SD045 1, 1, 2, 4 N/A Visit Website Visit Website
FxPro UK LTD is authorized and regulated by the Financial Conduct Authority. Client funds remain segregated, and traders are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. This is the primary regulator for this brokerage, but it maintains entities regulated by the Cyprus Securities and Exchange Commission, the South African Financial Sector Conduct Authority, the Dubai Financial Services Authority, and the Securities Commission of The Bahamas. FxPro has a spotless record and remains one of the most trusted Forex brokers in the industry.
FXCM is also primarily under the regulatory framework of the FCA, with additional regulation 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. Since FXCM emerged from bankruptcy in 2017, it has a clean regulatory record.
FxPro remains one of the most trusted brokers active today, with a spotless record.
FxPro versus FXCM – Verdict
FxPro is a solid broker choice, as evident by its 1,300,000 traders. This broker is a market leader in NDD trading, and one of the most trusted ones in the industry. Transparency is outstanding, asset selection acceptable, but the pricing environment remains elevated. That being said, FXCM offers several competitive advantages that give this broker a significant edge. While fewer assets are available, trading costs are significantly lower. This broker’s auxiliary trading services are as exceptional as its support for automated trading solutions. The outlook for FXCM is brighter, and this broker has great untapped potential. Considering the cost-effective trading environment, it provides a better overall choice and FXCM edges out FxPro as a better option in this Forex broker comparison.
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