FXTM Vs FXCM

Category: Broker Guides | Author: Trading Brokers | Date: July 19, 2023

FXTM and FXCM are two well-known and established brokers that offer online trading services to clients around the world. They both specialize in forex and CFD trading, but they also have some differences in their features, pricing, and platforms. In this article, we will compare and contrast FXTM and FXCM based on various criteria, such as regulation, trustworthiness, trading platforms, pricing and fees, broker type, leverage, asset selection, social trading, minimum deposit, and withdrawal and deposit methods. We will also provide a summary of the pros and cons of each broker and give our recommendation on which one you should choose based on your personal preferences, trading style, and goals. By the end of this article, you should have a clear idea of which broker is better for you and why. Let’s get started.

FXTM Overview

FXTM

FXTM

FXTM is a globally recognized forex and CFD broker, established in 2011, with over 3 million clients from 180 countries. The company offers a wide range of trading instruments, including forex, CFDs on shares, indices, commodities, metals, and cryptocurrencies. Traders can access various platforms, such as MetaTrader 4, MetaTrader 5, and TradingView Pro, with advanced features for charting, technical analysis, and automated trading. FXTM’s account types cater to different trader needs, while regulatory oversight by top financial authorities like FCA, CySEC, FSCA, and FSC ensures client protection. The broker provides competitive pricing with low forex fees and spreads, and leverage of up to 1:2000. FXTM also supports social trading through FXTM Invest, enabling traders to follow or copy successful investors for a fee, fostering a dynamic trading environment.

Pros and Cons of FXTM

Pros:

  • Regulated by several reputable authorities
  • Low forex fees and competitive spreads on most currency pairs.
  • Copy trading and managed accounts options for traders who want to follow or delegate their trading to experienced professionals.
  • Extensive educational resources.

Cons:

  • Does not accept US-based traders due to regulatory restrictions.
  • Limited product portfolio, as it does not offer bonds, mutual funds, and options.
  • Withdrawal fees are charged for most payment methods, except for bank wire transfers.
  • No social trading platforms are supported, such as Myfxbook or ZuluTrade.
FXTM Logo

FXTM is an award-winning broker with strict regulation in multiple jurisdictions. They have user-friendly trading platforms, various account types and funding methods, along with a vast range of educational materials and trading tools to help you make informed trade decisions.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

FXCM Overview

FXCM

FXCM

FXCM is a forex and CFD broker that operates from the UK and has a global presence. It was established in 1999 and has grown to become one of the leading brokers in the online trading industry. FXCM offers its clients a variety of trading platforms, such as MetaTrader 4 and 5, Trading Station, and a mobile app. These platforms have advanced features and functionalities that cater to different trading styles and preferences.

FXCM also has a simple but helpful account type structure, which includes a Standard account, an Active Trader account, and a Professional account. FXCM provides access to over 40 currency pairs, as well as indices, commodities, single-share CFDs, and crypto-derivatives. FXCM has competitive pricing and fast execution, with average spreads of 0.7 pips for EUR/USD and 0.5 pips for XLM/USD. It also offers a free paper trading option with a virtual account balance of $50,000 for traders who want to practice their skills. FXCM provides high-quality educational content and technical research tools for traders of all levels. It has webinars, articles, videos, trading guides, and a comprehensive glossary of forex terms.

Pros and Cons of FXCM

Pros

  • Regulated by top-tier authorities, such as the UK FCA, the Australian ASIC, and the South African FSCA.
  • Low spreads and high leverage on forex and CFD trading.
  • Copy trading and social trading options available

Cons

  • Does not accept US-based traders due to regulatory restrictions.
  • Limited product portfolio, as it does not offer bonds, mutual funds, options, or futures.
  • High bank withdrawal fees, which can range from $40 to $60 depending on the currency and destination.
FXCM Logo

FXCM is an established and well-regulated online broker with an excellent range of powerful trading platforms that are loaded with tools and market insights to help you discover trades and make informed decisions.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparison between FXTM and FXCM

Let’s take a closer look at some key features that differentiate FXTM and FXCM and help you make an informed decision about your trading journey

Regulation and Trustworthiness:

FXTM and FXCM are both subject to stringent regulatory oversight. FXTM falls under the regulation of FCA, CySEC, FSCA, and FSC, ensuring its compliance with high standards in different regions. FXCM, on the other hand, is regulated by ASIC, FCA, and ACP, reinforcing its commitment to transparency and best practices. Traders considering either of these brokers can find confidence in their strong regulatory backing.

Trading Platforms:

FXTM offers a variety of trading platforms, including MetaTrader 4, MetaTrader 5, and TradingView Pro. These platforms provide advanced charting tools, technical indicators, and automated trading features. Additionally, FXTM supports copy trading and managed accounts for those seeking professional guidance.

FXCM’s trading platforms include Trading Station, MetaTrader 4, and ZuluTrade. Trading Station stands as their proprietary platform, with Real Volume, Market Depth, and Trader Sentiment indicators. ZuluTrade enables social trading, allowing traders to copy the trades of successful investors.

Pricing and Fees:

FXTM and FXCM have different pricing and fee structures depending on the account type and trading platform. FXTM offers four account types: Standard, Cent, ECN, and ECN Zero. FXCM offers two account types: Standard and Active Trader. Both brokers charge commissions on some of their accounts, while others are commission-free but have wider spreads. FXTM’s spreads start from 1.3 pips on the Standard account, 1.5 pips on the Cent account, 0.1 pips on the ECN account, and 0.5 pips on the ECN Zero account1. FXCM’s spreads start from 1.3 pips on the Standard account and 0.2 pips on the Active Trader account. Both brokers also charge overnight financing fees for holding positions open past market hours.

Broker Type:

FXTM operates as an ECN and Market Maker broker, allowing it to act as both a liquidity provider and an intermediary between traders and liquidity providers. This versatility enables FXTM to offer different account types with various pricing models and execution modes. The broker emphasizes fast execution with no requotes or rejections. In contrast, FXCM is a No Dealing Desk and Dealing Desk broker, providing it with the ability to act as an intermediary between traders and liquidity providers or as a market maker itself. Like FXTM, FXCM can offer different account types with various pricing models and execution modes, and it highlights transparent pricing with no hidden fees or markups.

Leverage:

FXTM offers leverage of up to 1:2000 for forex trading, dependent on the account type, jurisdiction, and traded instrument. This high leverage allows traders to control larger positions with less capital but also exposes them to higher risks due to market fluctuations. FXCM, on the other hand, offers leverage of up to 1:30 for forex trading, also depending on the account type, jurisdiction, and instrument. While this leverage still provides traders with the opportunity to control larger positions with smaller capital, it carries the same risk of rapid losses during market fluctuations as with FXTM.

Asset Selection:

FXTM provides a wide range of assets, with over 250 options, including forex, CFDs on shares, indices, commodities, metals, and cryptocurrencies. The broker particularly focuses on forex, offering 62 currency pairs, as well as CFD trading options on various other assets. FXCM, while also offering diverse assets, provides over 40 options, including forex, CFDs on shares, indices, commodities, metals, and cryptocurrencies. Similar to FXTM, the main focus of FXCM is forex trading, offering 39 currency pairs alongside CFD trading on several other instruments.

Social Trading

FXTM offers social trading via FXTM Invest, allowing traders to follow or copy successful investors for a fee. Traders can also become strategy managers and earn extra income by sharing their trades. The platform’s ranking system provides performance and risk insights for informed decisions. Similarly, FXCM supports social trading through ZuluTrade, enabling traders to follow or copy successful investors without any fees. Traders can also become signal providers and earn commissions by sharing their trades. ZuluTrade’s ranking system offers valuable insights into signal providers’ performance and risk levels.

Minimum Deposit

FXTM requires a low minimum deposit of $10 or the currency equivalent for its Standard and Cent accounts. For ECN accounts, the minimum deposit ranges from $200 to $500 depending on the account type. FXCM also maintains a low minimum deposit requirement of $50 or the currency equivalent for its Standard account. However, for the Active Trader account, a substantially higher minimum deposit of $25,000 or the currency equivalent is necessary.

Withdrawal and Deposit Methods

Both FXTM and FXCM offer a range of withdrawal and deposit methods, including credit/debit cards, bank transfers, and e-wallets such as Neteller and Skrill. FXTM also supports local payment methods like M-Pesa. Credit/debit card and e-wallet withdrawals are typically processed within 24 hours with no fees. However, bank transfers may take up to five business days and may incur fees depending on the bank used.

Which Should You Choose: FXTM or FXCM?

The choice between FXTM and FXCM depends on your personal preferences, trading style, and goals. If you are looking for a broker with higher leverage, more asset selection, and copy trading options, then FXTM might be a better choice for you. FXTM offers up to 1:2000 leverage for forex trading, over 250 assets to trade, and an FXTM Invest platform for social trading. FXTM also has a higher trust score and a wider global presence than FXCM.

If you are looking for a broker with lower spreads, more advanced trading platforms, and free VPS hosting, then FXCM might be a better choice for you. FXCM offers lower spreads and commissions for forex and CFD trading, Trading Station platform with premium add-ons, and ZuluTrade platform for social trading. FXCM also provides free VPS hosting and automated trading features for its clients.

Ultimately, the best way to decide which broker is better for you is to try them out yourself. You can open a demo account with both brokers and test their services and features before opening a live account. This way, you can compare them side by side and see which one suits your needs and expectations better.

Conclusion

In conclusion, FXTM and FXCM are both reputable and regulated brokers that offer forex and CFD trading, as well as social trading options. They have some similarities and differences in their features, pricing, and platforms. The choice between them depends on your personal preferences, trading style, and goals. You can try them out yourself with a demo account and see which one you like better. Alternatively, you can also check out other brokers that we have reviewed and compared on our website. We hope this comparison was helpful and informative for you.


Relevant Articles