Forex.Com Vs FXCM
The popularity and accessibility of online trading platforms have soared in recent years, presenting investors and traders with a myriad of options, each offering its own set of features, tools, and services. Navigating this landscape to find the most suitable platform for your needs and goals can be a daunting task. In this article, we will conduct a comprehensive comparison between two widely recognized and utilized online trading platforms: Forex.Com and FXCM. We will look at their backgrounds, pros and cons, and how they differ in terms of regulation, trading platform, pricing and fees, leverage, asset selection, social trading, minimum deposit, and withdrawal and deposit methods. By the end of this article, you should have a better idea of which platform suits you better: Forex.Com or FXCM.
Overview of Forex.Com
Forex.Com is a US-based online trading platform that was founded in 2001. It is a subsidiary of StoneX Group Inc., a Fortune 100 financial giant with revenues exceeding $54 billion. Forex.Com offers access to over 500 markets, including forex, cryptocurrencies, stocks, indices, commodities and more. The platform stands out for its advanced trading technology and tools, providing traders with a competitive edge. Notable features include TradingView charts, Performance Analytics, SMART Signals, and Capitalise.ai, empowering users with sophisticated analysis and automation capabilities.
Maintaining regulatory compliance across various jurisdictions, Forex.com operates under the oversight of esteemed regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC) in Australia, and the Investment Industry Regulatory Organization of Canada (IIROC) in Canada.
Pros of Forex.Com
- Commission-free trading on forex and cryptos
- Low fees on stocks and indices
- Wide range of assets to trade
- Advanced trading technology and tools
- Extensive educational resources
Cons of Forex.Com
- High spreads on some assets
- Withdrawal fee of $25 for wire transfers
- Limited social trading features
- No direct customer support phone line
- High minimum deposit of $2,000 for futures accounts
Overview of FXCM
FXCM is a UK-based online trading platform that was founded in 1999 by Drew Niv. It is one of the world’s leading providers of contracts for difference (CFDs) and spread betting services. FXCM offers access to an extensive selection of over 10,000 markets, including forex, cryptocurrencies, stocks, indices, commodities, and more, FXCM enables traders to diversify their portfolios and capitalize on a wide range of investment opportunities. Renowned for its award-winning trading platform and mobile app, FXCM provides users with cutting-edge features that enhance the trading experience.
These features include a pattern recognition scanner, a client sentiment tool, a comprehensive news feed, and customizable alerts, empowering traders with real-time market insights and analysis. Upholding stringent regulatory standards, FXCM is regulated by esteemed authorities worldwide. Notable regulatory bodies overseeing its operations include the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC) in Australia, the Monetary Authority of Singapore (MAS) in Singapore, and the Investment Industry Regulatory Organization of Canada (IIROC) in Canada.
Pros of FXCM
- Commission-free trading on forex and cryptos
- Low spreads on some assets
- Wide range of assets to trade
- Award-winning trading platform and mobile app
- Dedicated customer support phone line
Cons of FXCM
- Platform fees for some services
- Complex pricing structure for some assets
- No access to futures trading
- Limited social trading features
- High minimum deposit of £5,000 for premium accounts
Comparison between Forex.Com and FXCM
In this section, we will compare Forex.Com and FXCM based on the following features:
Forex.com is regulated by ASIC, CIMA, CFTC, FCA, FSA, IIROC, JFSA, NFA, and SFC, ensuring a high level of oversight across different jurisdictions. On the other hand, FXCM is regulated by ACP, AFM, ASIC, BaFin, CONSOB, FCA, FSCA, and SFC. Both brokers adhere to stringent regulatory standards, providing traders with a secure and transparent trading environment.
Forex.com offers a web-based platform that supports advanced charting, research, and analysis tools. Users can also access the platform through a mobile app for iOS and Android devices. FXCM provides multiple platforms for different levels of traders, including the web-based ZeroWeb, the desktop-based ZeroPro, the mobile app ZeroMobile, and the software tool ZeroFree.
Pricing and Fees
Both Forex.Com and FXCM offer commission-free trading on forex and cryptos, which is a great advantage for traders who want to save on costs. However, Forex.Com charges low fees on stocks and indices, but it has high spreads on some assets, such as commodities and currencies. It also charges a withdrawal fee of $25 for wire transfers. While, FXCM charges low spreads on some assets, such as forex and cryptos, but it has complex pricing structures for some assets, such as stocks and indices. It also charges platform fees for some services, such as guaranteed stop-loss orders and premium accounts.
Forex.com and FXCM are both No Dealing Desk (NDD) brokers, which means that they do not take the opposite side of their clients’ trades. Instead, they act as intermediaries between their clients and liquidity providers, such as banks or other brokers. This reduces the potential conflict of interest between the broker and the client and ensures fair and transparent pricing. Both brokers also offer Electronic Communication Network (ECN) and Straight Through Processing (STP) execution models, which allow for fast and direct access to the market without any intervention from the broker.
Both Forex.Com and FXCM offer leverage or margin trading, which allows you to trade with more money than you have in your account. Generally speaking, Forex.Com offers higher leverage than FXCM, especially for non-US residents. For example, Forex.Com offers up to 30:1 leverage for major currency pairs, while FXCM offers up to 20:1 leverage for forex trading.
Forex.com offers a wide range of assets to trade, including over 50 currency pairs, over 15 commodities, over 10 indices, over 100 cryptocurrencies, and over 40 crypto pairs. FXCM has a more limited asset selection, including over 10,000 US stocks, over 1,000 non-US stocks from Canada and Europe, over 100 options contracts, over 10 ETFs, and over 10 cryptocurrencies.
Forex.com and FXCM both offer social trading services through their partnership with ZuluTrade, a leading social trading platform. You can also use various tools and features to customize your social trading experience, such as choosing the amount of risk, the number of traders to follow, and the types of instruments to trade. However, there are some differences between Forex.com and FXCM in terms of their social trading offerings. Forex.com offers social trading for both classic and profit-sharing accounts, while FXCM only offers it for profit-sharing accounts. Profit-sharing accounts are subject to a monthly subscription fee and a monthly performance fee per selected trader, while classic accounts are not.
Forex.com has a higher minimum deposit requirement than FXCM. Forex.com requires a minimum deposit of $100 or equivalent in other currencies, while FXCM requires only $50 or equivalent. This means that FXCM is more accessible for beginners or traders with smaller capital.
Withdrawal and Deposit Methods
Forex.com supports various methods for depositing and withdrawing funds from its platform such as credit/debit cards (Visa/Mastercard), bank transfers (wire/ACH), PayPal (for US clients only), Skrill (for non-US clients only), Neteller (for non-US clients only), WebMoney (for non-US clients only), Rapid Transfer (for non-US clients only), Klarna/Sofort Banking (for non-US clients only). The minimum withdrawal amount is $30 and the withdrawal fee is $5. FXCM does not provide any information about its withdrawal and deposit methods on its website.
Which Should You Choose: Forex.Com or FXCM?
The decision between Forex.com and FXCM depends on your personal preferences, goals, and needs as a trader or investor. Online trading platforms do not have a one-size-fits-all solution. However, here are some general guidelines that can help you make an informed decision: If you are an advanced or professional trader looking to access a wide range of markets with low fees on stocks and indices, leverage sophisticated trading technology and tools, back-test and automate your trading strategies, and have access to futures trading, Forex.com may be the preferred option for you. Forex.com offers a platform that caters to advanced traders, providing access to various markets and offering advanced trading tools and analysis features. It also allows traders to automate their strategies and trade futures contracts.
On the other hand, if you are a beginner or casual trader seeking access to a wide range of markets with low spreads on forex and cryptocurrencies, leverage innovative features such as pattern recognition scanners, client sentiment tools, news feeds, and alerts, and have no minimum deposit requirement, FXCM might be a better fit. FXCM focuses on providing traders with user-friendly platforms and features designed to enhance the trading experience, especially for beginners. It offers educational resources and tools to help traders make informed decisions and navigate the forex and cryptocurrency markets.
In this article, we have compared two of the most well-known and widely used online trading platforms: Forex.Com and FXCM. We have looked at their backgrounds, pros and cons, and how they differ in terms of regulation, trading platform, pricing and fees, leverage, asset selection, social trading, minimum deposit, and withdrawal and deposit methods. We have also provided some general guidelines on which platform suits you better depending on your preferences, goals and needs. However, the final choice is yours to make based on your own research and due diligence. We hope this article has been helpful and informative for you. Happy trading!
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