Today, our broker comparison will focus on Mauritius-based FXTM and UK-based FXCM. Since 2011, FXTM has been a part of the Exinity Group, based in Mauritius. It serves over 3 million clients from over 180 countries. Regulated in Africa, Asia, Europe, and Latin America, this broker has carved out a leadership position in emerging markets. FXCM, since its forced relocation to the UK, is under new management after losing its US license amid scandals, malpractice, and fraud. It continues to attempt to rebuild trust, as a Leucadia company owned by Jefferies Financial Group, with an outstanding trading environment.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- FXTM vs. FXCM - Verdict
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Headquarters | Mauritius | United Kingdom |
Regulators | CMA, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FCA, FSCA |
Tier 1 Regulator(s)? | N/A | |
Owned by Public Company? | ||
Year Established | 2011 | 1999 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker, No Dealing Desk |
Minimum Deposit | $200 | $50 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, Proprietary platform, Web-based+ |
Average Trading Cost EUR/USD | 0.1 pips | 0.6 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.0 pips |
Average Trading Cost WTI Crude Oil | $0.09 | 0.034 pips |
Average Trading Cost Gold | $0.18 | 0.30 pips |
Retail Loss Rate | 77.00% | 70.0% |
Minimum Raw Spreads | 0.0 Pips | 0.2 pips |
Minimum Standard Spreads | 1.5 pips | 0.7 pips |
Minimum Commission for Forex | $0.80 - $4.00 per round lot | $5.00/round lot |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
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Features and Platforms
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MT4 | ||
MT5 | ||
MT4/MT5 Add-Ons | N/A | |
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
Social/Copy Trading | N/A | |
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
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FXTM
The full suite of the MT4/MT5 trading platforms is available, but FXTM enhances MT4 with six plugins. It results in a superior choice, however, the necessary third-party plugins required to upgrade the trading platform into a cutting-edge version remains missing. FXTM Trader is a proprietary trading platform for mobile phones only. Support for automated trading strategies exists via free VPS hosting. Manual traders may use the research tool, FXTM Pivot Points Strategy, which was developed in-house.
FXTM clearly shows its focus on new traders with the inclusion of a proper educational section which contains videos, articles, eBooks, webinars, and seminars. Before trading live markets, new retail traders should consider reviewing the educational offerings at FXTM. In-house research consists of brief written content and market analysis videos, which provides new trading ideas on a regular basis. High-frequency traders will enjoy the withdrawable cashback program, labeled FXTM Loyalty.
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 the superior trading portal delivered by the proprietary Trading Station, the basic version of MT4, and social trading leader, ZuluTrade. A pro upgrade to TradingView for one year also exists. All three trading platforms fully support automated trading solutions, enhanced via a suite of tools consisting of eight specialty platforms which support algorithmic trading solutions maintained by this broker.
FXCM covers financial markets and trading-related topics through a series of well-written content. The free online classroom presents new traders with a valuable educational platform. Adding another support layer is FXCM Plus, the prime service maintained by this broker, which grants market analytics and trading signals. An SMS trading signal service is equally available. The auxiliary trading services complement the core trading environment, resulting in a very competitive overall service for traders to consider.
Available Markets
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Currency Pairs | N/A | |
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
Bonds | N/A | |
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
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FXTM offers 63 currency pairs, eight commodities, and four cryptocurrencies. While Forex traders have an acceptable choice, other sectors are not well represented. Equity traders have a better selection with 178 US equity and eleven index CFDs, together with 347 US stocks (not CFDs). FXCM maintains only 39 currency pairs, but grants access to eleven commodities, and seven cryptocurrencies. An unspecified number of equity CFDs and thirteen index CFDs complete the asset choice, together with various baskets, a selection of FXCM assets tradable as one instrument.
Typical Spreads and Fees
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Average Trading Cost EUR/USD | 0.1 pips | 0.6 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.0 pips |
Average Trading Cost WTI Crude Oil | $0.09 | 0.034 pips |
Average Trading Cost Gold | $0.18 | 0.30 pips |
Average Trading Cost Bitcoin | N/A | $40 |
Minimum Raw Spreads | 0.0 Pips | 0.2 pips |
Minimum Standard Spreads | 1.5 pips | 0.7 pips |
Minimum Commission for Forex | $0.80 - $4.00 per round lot | $5.00/round lot |
Deposit Fee | ||
Withdrawal Fee | ||
Inactivity Fee | $5 monthly after 6 months | N/A |
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FXTM grants commission-free CFD trading in unleveraged accounts only. The ECN Zero version commences with a minimum spread of 1.5 pips, lowered to 1.3 pips in the Standard account. 0.1 pips for a commission between $4 and $20 per round lot in the ECN MT4 account combine tight spreads with excessive commissions. A significantly more competitive cost structure exists at FXCM, where commission-free spreads start at 0.6 pips, reduced to 0.2 pips for a commission of $25 per $1,000,00 or $2.50 per lot.
Overnight leveraged positioned incur swap rates, while corporate actions such as dividends and mergers impact equity and index positions, forwarded by both brokers to clients. Depending on the payment processor, third-party fees for deposits and withdrawals apply. Final trading costs at FXTM decrease through the loyalty program. At FXCM, the overall pricing environment remains superior, despite a £50 inactivity fee.
Security and Trust
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Country of the Regulator | Cyprus, Kenya, Mauritius, United Kingdom, South Africa | New Zealand, Seychelles |
Name of the Regulator | CMA, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FCA, FSCA |
Regulatory License Number | 185/12, 777911, C113012295, 135, 46614 | 403326, SD045 |
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Exinity Limited, the owner of FXTM and Alpari, maintains primary regulation with the Financial Services Commission (FSC) of the Republic of Mauritius. It is also a member of the Hong Kong-based Financial Commission, where protection of up to €20,000 per trader exists. The Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) regulate ForexTime Limited and ForexTime UK Limited, respectively. Client deposit protection up to €20,000 and £85,000 under the Cypriot Investor Compensation Fund (CIF) and the Financial Services Compensation Scheme (FSCS), respectively, grant additional security. PricewaterhouseCoopers Limited (PwC), a Big Four accounting firm, audits FXCM per the International Standard on Assurance Engagements (ISAE) 3000.
The FXCM regulatory oversight consists of the UK Financial Conduct Authority (FCA), 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. Most international traders will trade with the unregulated Bermuda entity, where a competitive trading environment exists. Aside from the FSCS £85,000 deposit protection, the French Fonds De Garantie Des Dépôts Et De Résolution (FGDR) offers €70,000 to traders of that entity. Until January 2017, under the previous management team, FXCM was plagued by fines and misconduct. Since then, as a Leucadia company, it has a clean regulatory record and excellent transparency scores.
FXTM Vs FXCM – Verdict
FXTM maintains a secure trading environment, and FXCM continues to shed its tarnished reputation for a fourth year. Both are compliant with their regulators and grant new traders an excellent educational portal. FXTM provides higher leverage, but FXCM implements a significantly more competitive cost structure. FXTM maintains a leadership position in emerging markets, and the overall product and services selection is acceptable. FXCM features enhanced auxiliary trading services, on top of an excellent core trading environment, with extended support for automated trading solutions. With untapped potential at FXCM, the sum of the existing trading environment is more favorable as compared to FXTM, which executes its business model well.
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