FXCM Fees – Overview

Editor’s Verdict

FXCM fees directly impact profitability and can reveal which strategies this broker supports, and which remain discouraged. Therefore, traders should carefully evaluate the trading costs at FXCM, as they represent the primary aspect of the competitiveness of the trading environment.

We offer a breakdown of FXCM trading and non-trading fees, helping traders make an informed decision and compare it to other brokers. How competitive are the FXCM trading fees?

Overview of FXCM Fees and Charges

FXCM maintains commission-free trading fees with reasonable Forex spreads from 0.8 pips or $8.00 per 1.0 round lot.

Here is a snapshot of FXCM’s fees:

FXCM Fees, Spreads, and Commission Explained

Trading fees at brokers break down into trading and non-trading fees. Understanding the FXCM fees will help traders comprehend what they must pay, why they must pay, and how those costs compare to other brokers.

Trading fees are:

• Spreads (the difference between the bid and the ask price of an asset, where FXCM offers reasonable commission-free Forex spreads of 0.8 pips or $8.00 per 1.0 round lot)
• Commissions (FXCM does not charge commissions and only earns from internal markups over raw spreads)
• Swap rates (charged on leveraged overnight positions, where FXCM levies a markup between 35% and 50% of market interest rates, which depends on the trading instrument)
• Currency conversion fees (they apply each time the currency denomination differs from the account base currency, where FXCM levies a fee of 150 pips on transactions below 10,000 currency units)

Non-trading fees are:

• Deposit fees (not applicable at FXCM)
• Withdrawal fees (withdrawals except bank wires remain free)
• Inactivity fees (FXCM charges 50 currency units of the base account after twelve months of dormancy)
• Currency conversion fees (they apply if the transaction currency differs from the account base currency and are expensive at FXCM)

FXCM Trading Fees

FXCM trading fees apply to each transaction and are asset dependent.

Here is an overview of minimum FXCM trading fees:

Overnight Fees (Swap rates)

Swap rates are the most ignored trading costs, which may become the most significant fee per trade, dependent on the strategy. Swap rates apply on leveraged overnight positions, which triple on Wednesday to account for trades kept open over the weekend.

MT4 traders can easily access swap rates from their platform by following these steps:

1. Right-click the desired symbol in the Market Watch window and select Specification.

2. Scroll down until you see Swap Long and Swap Short.

FXCM Non-Trading Fees

Deposits, withdrawals, and inactivity fees are transactions other than trading and are non-trading fees, which are notably less frequent. Traders should know about them to avoid confusion. Currency conversion fees are a separate category, as they belong to trading and non-trading fees and are the least visible. They apply each time FXCM must exchange one currency for another, including trading, and most traders are unaware of this hidden fee.

Currency Conversion Fees

A currency conversion fees apply each time the deposit currency or the quote currency of an asset does not match the account base currency. For example, trading Euro-denominated assets from a US Dollar trading account or making a Swiss Franc deposit into a British Pound base account.

FXCM levies the following currency conversion fees:

• 0 - 9,999 - 150 pips
• 10,000 - 49,999 - 100 pips
• 50,000 - 99,999 - 50 pips
• 100,000+ - 10 pips

FXCM Deposit Fee

FXCM does not levy internal deposit fees, meaning a trader making a $100 deposit into a US Dollar base account will receive $100. Should the deposit currency mismatch with the account base currency, a currency conversion fee applies, as outlined above, which is expensive.

Traders who deposit into an incorrect bank account will pay an administration fee of 50 units of the account base currency or JPY 5,000. FXCM refers to any bank account of another FXCM client or a non-segregated FXCM bank account while the client remains designated as a trader with a segregated bank account.

FXCM Withdrawal Fee

Most FXCM withdrawals remain free of internal fees, except for high currency conversion fees where applicable. Traders must also consider potential third-party payment processor charges and follow-on fees if they plan to use the FXCM withdrawal, like paying bills or general consumption, which FXCM does not control.

FXCM bank withdrawal fees range between 0 to 25 currency units for domestic transactions and between 0 to 40 for international ones, except for Japanese Yen transactions, which cost JPY ¥3,000. Stop payment fees on withdrawals via cheques cost between 10 and 35 currency units, dependent on the withdrawal currency.

FXCM Inactivity Fee

FXCM levies an inactivity fee after twelve months of dormancy, when no trading activity occurs. FXCM defines trading activity as the account owner or authorized party placing a new trade or maintaining an existing one (via swap rates).

The FXCM inactivity fee charged is the lesser value of the account balance and 50 currency units of the account base currency, for example, $50, except for Japanese Yen accounts, where the FXCM inactivity fee is JPY 5,000. Once the account balance reaches $0 and the FXCM inactivity applies, FXCM may close the trading account per its terms and conditions.

FXCM Safety and Security

Since 2015, FXCM has had a spotless record with seven regulators. It segregates client deposits from corporate funds and offers negative balance protection, ensuring clients cannot lose more than their deposit. It operates a transparent brokerage, details all trading fees, and ensures traders can reach FXCM via e-mail, phone, and live chat at any of its offices. Therefore, traders can consider FXCM as a safe and secure Forex broker.

Bottom Line

FXCM maintains a commission-free cost structure with a reasonable Forex fee starting from 0.8 pips or $8.00 per 1.0 standard round lot. The Active Trader Rebate Program is excellent for high-frequency, high-volume traders and scalpers, as it lowers final FXCM trading fees in a five-tier bracket. The minimum monthly trading volume to qualify for rebates is a notional trading volume of ten million of the account base currency, which equals approximately 100 Forex lots for a per-lot rebate of $0.50. The maximum is $2.50, bringing the lowest Forex trading fees to a competitive $5.50 per lot.

Traders should consider the currency conversion fees, if applicable, of 150 pips on transactions below 10,000 currency units. Most deposits and withdrawals, except for bank wires, remain free of internal costs, but traders may face third-party processing levies. FXCM remains a competitively priced, commission-free broker with deep liquidity pools.

For additional information on FXCM broker, read our review.

FAQs

Does FXCM charge raw account commission?

No, FXCM does not offer a trading account with raw commissions and only presents its commission-free alternative.

Does FXCM charge inactivity fees?

Yes, FXCM charges 50 currency units of the base account currency after twelve months of inactivity.

When does FXCM charge fees?

The timing of FXCM’s fee charge is asset dependent. Spreads apply instantly once a trader opens a position, but swap rates on leveraged overnight positions only after the cut-off time. Currency conversion fees apply if the quote currency of the asset differs from the account base currency.

How much does FXCM charge for withdrawal?

Bank wires may face an internal fee of up to 40 currency units of the base account currency, but most payment processors remain free of FXCM withdrawal fees.

What trading fees does FXCM charge?

FXCM charges markups on raw market spreads, swap rates on leveraged overnight positions, and currency conversions where applicable.

Does FXCM charge a monthly fee?

FXCM charges markups on raw market spreads, swap rates on leveraged overnight positions, and currency conversions where applicable.

Does FXCM charge commissions?

No, FXCM does not charge commissions.

By DailyForex.com Team

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.