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 FXCM. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
If you are reading this article, you’re likely having trouble deciding whether AvaTrade or FXCM 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 AvaTrade 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
- AvaTrade vs FXCM - Verdict
Ireland United Kingdom ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID ASIC, CySEC, FCA, FSCA 2006 1999 Market Maker Market Maker, No Dealing Desk $100 $50 N/A Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ Other, MetaTrader 4, Proprietary platform, Web-based+ 0.9 pips 0.6 pips 1.5 pips 1.0 pips $0.03 0.034 pips $0.29 0.30 pips 77.82% 70.0% Not applicable 0.2 pips 0.9 pips 0.7 pips Commission-free $5.00/round lot Visit Website Visit Website
Features and Platforms
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FXCM, which as of March 2018 was the second-largest retail Forex broker excluding the Japanese market, provides traders with its proprietary Trading Station, granting clients an excellent trading environment. It also maintains the core MT4 trading platform for automated trading solutions and ZuluTrade for social trading. Eight specialty trading platforms add to this broker's excellent offering. The overall choice at FXCM remains top-notch. It also offers excellent research via FXCM Plus and maintains a valuable educational section. While AvaTrade cannot match the quantity or quality of the FXCM trading platform selection, it does allow a total of eight platforms, making it a highly competitive broker. The educational unit SharpTrader provides a superior platform for educational purposes, and AvaTrade has a broader asset selection compared to FXCM.
Available Markets
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AvaTrade features over 1,250 assets across seven categories. Forex traders have 55 currency pairs and fourteen cryptocurrency pairs, complemented by 24 commodities and 26 index CFDs. FXCM maintains just 40 currency pairs, seven cryptocurrency pairs, eleven commodities, and fifteen index CFDs. AvaTrade extends its lead with more than 1,000 equity CFDs and ETFs plus 42 options contracts. While FXCM maintains an unspecified number of equities, the overall asset selection remains broader at AvaTrade, allowing traders to achieve superior cross-asset diversification and take advantage of more trading opportunities. FXCM does offer Forex and Stock Baskets, which are theme-based portfolios that are highly popular with many millennial traders. This adds diversification to FXCM, but not enough to compete with what AvaTrade enables. When it comes to available markets, AvaTrade blows FXCM clear out of the water.
Typical Spreads and Fees
0.9 pips 0.6 pips 1.5 pips 1.0 pips $0.03 0.034 pips $0.29 0.30 pips $39 $40 Not applicable 0.2 pips 0.9 pips 0.7 pips Commission-free $5.00/round lot $50 quarterly after 3 months N/A Visit Website Visit Website
While both brokers provide commission-free trading, the spreads at AvaTrade, commencing from 0.9 pips, remain well below the 1.4 pips at FXCM. Traders with low trading volumes or low frequencies of trading will enjoy a notably more cost-effective trading environment at FXCM. More committed and frequent traders will benefit from the five-tier Active Trader program at FXCM, where a cashback between $5 and $25 applies to each $1,000,000 traded. Other assets generally remain lower priced at FXCM. Traders face swap rates on leveraged overnight positions at both brokers. AvaTrade charges a $50 monthly inactivity fee after three months, while FXCM charges $50 annually after twelve months.
Security and Trust
United Arab Emirates, Australia, Ireland, Israel, Japan, British Virgin Islands, South Africa New Zealand, Seychelles ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID ASIC, CySEC, FCA, FSCA C53877, SIBA/L/13/1049, 406684, 45984, 1662, 190018, 514666577 403326, SD045 Visit Website Visit Website
AvaTrade vs FXCM – Verdict
New retail traders with low trading volumes will find AvaTrade a more suitable choice. SharpTrader remains one of the best educational tools with more than 40 lessons and over 200 videos, while AvaTrade maintains a quality selection of assets. With five primary trading platform and three social alternatives, this broker offers an excellent product and services portfolio for all retail traders. The quality educational section at AvaTrade results in 72.00% of retail traders trading at a loss, which despite the high number, place AvaTrade in the top quartile compared to other brokers. FXCM provides traders with an excellent choice of trading platforms and a superior choice for quantitative traders. High-frequency traders will benefit from the Active Trader program, but the asset selection at FXCM remains below average. FXCM Plus provides clients with an excellent service that includes trading ideas. New traders will benefit from the quality video library available at FXCM, where 74.74% of retail traders face losses. Both brokers provide an overall competitive trading environment but for different types of traders.
You might also be interested in reviewing the below broker comparisons:
- FXCM vs Capital.com
- FXCM vs XM
- FXCM vs IC Markets
- Avatrade vs Exness
- Avatrade vs CM Trading
- Avatrade vs LegacyFX
