IG Vs FXCM

Category: Broker Guides | Author: Trading Brokers | Date: July 22, 2023

When it comes to navigating the complex world of financial markets, having access to a reliable and feature-rich trading platform is paramount. In this article, we undertake a thorough comparison between two renowned trading platforms: IG and FXCM. As industry frontrunners, both platforms offer a diverse array of tools and services tailored to the needs of traders. By evaluating crucial aspects such as available trading instruments, user experience, customer support, and more, we aim to equip traders with the knowledge necessary to make an informed decision. Join us as we dissect the similarities and differences between IG and FXCM, enabling you to select the platform that best suits your trading objectives and preferences.

Overview of IG

IG

IG

IG is a renowned online trading platform known for its diverse range of unique features that cater to traders of all levels. Offering a wide selection of financial instruments such as stocks, indices, commodities, forex, and cryptocurrencies, IG allows traders to access various markets and diversify their portfolios. The platform stands out with its intuitive and user-friendly interface, ensuring seamless navigation and efficient execution of trades. Advanced charting tools, real-time market data, and a wide array of order types empower traders to analyze market trends, make informed decisions, and implement precise trading strategies.

Additionally, IG offers competitive spreads and flexible leverage options, providing traders with greater control over their positions. With multiple trading platforms including web-based and mobile applications, IG enables users to access their accounts and trade on the go. The platform’s commitment to education is evident through its comprehensive range of educational resources, research tools, and expert analysis, equipping traders with valuable insights to enhance their trading skills. Overall, IG’s unique features make it a standout choice for traders seeking a robust and comprehensive trading experience.

Pros of IG

  • Wide range of financial instruments including stocks, indices, commodities, forex, and cryptocurrencies.
  • Intuitive and user-friendly interface for seamless trading experience.
  • Advanced charting tools and real-time market data for in-depth analysis.
  • Various order types for precise trade execution.
  • Competitive spreads and flexible leverage options.

Cons of IG

  • Limited availability of certain financial instruments in specific regions.
  • Inactivity fee for dormant accounts.
  • Higher minimum deposit requirements compared to some other platforms.
  • Limited customer support options outside of regular trading hours.
  • Potential for occasional platform outages during high market volatility.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview of FXCM

FXCM

FXCM

FXCM is a reputable and widely recognized trading platform that offers an extensive array of features and tools to meet the diverse needs of traders. With a broad range of financial instruments available, including forex, indices, commodities, and cryptocurrencies, FXCM provides traders with ample opportunities to capitalize on various market trends. The platform stands out with its user-friendly interface, making it accessible to both beginner and experienced traders. Advanced charting tools, real-time market data, and customizable indicators enable traders to conduct in-depth technical analysis and make informed trading decisions.

FXCM also offers innovative features such as the provision of powerful trading algorithms and strategies, empowering users to automate their trading activities and execute trades more efficiently. Furthermore, FXCM provides competitive spreads and flexible leverage options, allowing traders to optimize their risk-reward ratios. The platform’s commitment to education is evident through its comprehensive educational resources, market research tools, and expert analysis, providing traders with valuable insights and enhancing their trading skills. Overall, FXCM offers a robust and feature-rich trading experience, making it a compelling choice for traders seeking a reliable and advanced platform.

Pros of FXCM

  • Wide range of financial instruments including forex, indices, commodities, and cryptocurrencies.
  • User-friendly interface suitable for both beginner and experienced traders.
  • Advanced charting tools, real-time market data, and customizable indicators for in-depth technical analysis.
  • Provision of powerful trading algorithms and strategies for automated trading.
  • Competitive spreads and flexible leverage options.

Cons of FXCM

  • Limited availability of certain financial instruments in specific regions.
  • Inactivity fee for dormant accounts.
  • Higher minimum deposit requirements compared to some other platforms.
  • Limited customer support options outside of regular trading hours.
  • Platform performance may be affected during periods of high market volatility.
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.

Comparing IG and FXCM

Here are some key factors to consider when comparing IG and FXCM:

Regulation

Both IG and FXCM operate under the supervision of reputable regulatory bodies, ensuring compliance with industry standards and providing traders with a sense of security. IG is regulated by the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC) in Australia, while FXCM is regulated by the FCA, ASIC, and the Financial Services Board (FSB) in South Africa. These regulatory bodies impose strict guidelines to safeguard clients’ funds, promote fair trading practices, and ensure transparency. Traders can trust both IG and FXCM to maintain high levels of regulatory compliance and provide a secure trading environment.

Trading platforms

IG and FXCM offer proprietary trading platforms with comprehensive features and tools. IG’s proprietary platform is known for its user-friendly interface, accessibility across desktop and mobile devices, and advanced charting capabilities. Additionally, IG supports the widely used MetaTrader 4 (MT4) platform, allowing traders to leverage its extensive features. Similarly, FXCM’s proprietary platform provides a seamless trading experience with robust charting tools and user-friendly navigation across multiple devices. Like IG, FXCM also supports MetaTrader 4 (MT4) for traders who prefer its advanced features. Whether utilizing the proprietary platforms or MT4, both IG and FXCM ensure traders have access to powerful trading tools and a user-friendly interface.

Pricing and Fees

Based on pricing and fees, IG offers a lower average forex spread of 0.6 pips compared to FXCM’s 1.3 pips. IG also requires no minimum deposit, while FXCM has a minimum deposit of $50. For inactivity fees, IG charges $12 per month after 2 years of inactivity, whereas FXCM has no inactivity fees. Regarding withdrawal fees, IG has no fees for bank transfers but charges up to $15 for credit/debit cards and PayPal. FXCM, on the other hand, does not impose any withdrawal fees. Additionally, IG’s Equity CFD commission is 0.10% minimum, whereas FXCM doesn’t charge any commission.

Broker Types

IG is a market maker broker, which means that they create their own market and prices for their clients. This can have advantages such as faster execution and lower spreads, but it can also create conflicts of interest as they may trade against their clients or manipulate prices. FXCM is a hybrid broker, which means that they use both market maker and no dealing desk (NDD) models depending on the account type and instrument.

Leverage

IG offers leverage options based on client classification. For retail clients, IG provides leverage up to 1:30, and for professional clients, leverage can go up to 1:200. FXCM, on the other hand, offers higher leverage options, with leverage reaching up to 1:400. Traders should exercise caution when utilizing high leverage, as it amplifies both potential profits and losses. The leverage options provided by both brokers cater to different risk appetites, allowing traders to choose leverage levels that align with their risk tolerance and trading strategies.

Asset Selection

IG stands out with its extensive selection of assets, including forex, indices, commodities, shares, cryptocurrencies, options, ETFs, bonds, interest rates, sectors, and IPOs. This diverse range allows traders to access various markets and diversify their portfolios. In contrast, FXCM focuses primarily on forex trading and offers a narrower asset selection limited to currency pairs. Traders seeking a wider range of trading opportunities across multiple asset classes may find IG’s broader selection more appealing, while those primarily interested in forex trading may find FXCM’s focused offering sufficient.

Social Trading

When comparing social trading features, FXCM stands out as it supports social and copy trading through third-party platforms like ZuluTrade and Tradingview. Traders on FXCM can engage with signal providers, follow their strategies, and copy their trades, creating a collaborative and interactive trading environment. On the other hand, IG Markets does not offer social or copy trading features, limiting the social aspect of trading on their platform. Both FXCM and IG Markets provide access to Tradingview via their web platforms, but FXCM’s advantage lies in enabling traders to execute trades directly from Tradingview, enhancing the seamless integration of social trading for its users.

Minimum Deposit

When comparing the minimum deposit requirements between IG and FXCM, IG has a  minimum deposit of $250. FXCM, on the other hand, requires a minimum deposit of $50 for non-EU clients and $300 for UK and EU clients.

Withdrawal and Deposit Methods

When it comes to deposit and withdrawal methods, both IG and FXCM accept wire transfer and credit/debit cards, providing common options for funding and withdrawing from accounts. However, they differ in other choices. IG stands out by accepting PayPal, a convenient and secure online payment service that facilitates quick transactions. On the other hand, FXCM offers additional options such as Skrill and Neteller, popular e-wallet services that enable online payments and transfers. Both brokers do not impose any fees for deposits or withdrawals, but it’s essential to be aware of potential third-party fees depending on the payment method and currency used. Additionally, both IG and FXCM support multiple base currencies for accounts, with IG offering a broader selection of 6 base currencies compared to FXCM’s 4. This flexibility in base currency options can be a factor to consider for traders worldwide.

IG or FXCM: Which is Best for You?

Determining which broker, IG or FXCM, is best for you depends on your specific trading preferences and requirements. If you value a wider range of asset classes, including forex, indices, commodities, shares, cryptocurrencies, options, ETFs, bonds, interest rates, sectors, and IPOs, and desire a user-friendly interface with the option to access the popular MetaTrader 4 (MT4) platform, then IG may be the ideal choice for you. On the other hand, if you primarily focus on forex trading and prefer a specialized forex broker with competitive leverage options reaching up to 1:400, and a lower minimum deposit requirement of $50, then FXCM might be the more suitable option. Consider your preferred asset selection, trading style, leverage requirements, and budget constraints to determine which broker aligns best with your trading goals and preferences. Ultimately, making an informed decision based on your individual needs will ensure a trading experience that is tailored to your specific requirements.

Conclusion

In conclusion, both IG and FXCM are prominent trading platforms that offer unique features and cater to the diverse needs of traders. IG stands out with its extensive asset selection, user-friendly interface, and support for the popular MetaTrader 4 (MT4) platform. On the other hand, FXCM excels in its specialization in forex trading, competitive leverage options, and lower minimum deposit requirement. Ultimately, the choice between IG and FXCM depends on individual trading preferences, such as the desired asset classes, trading style, leverage requirements, and budget considerations. By carefully evaluating these factors, traders can select the platform that aligns best with their goals and provides them with a robust and tailored trading experience.


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