FXCM

Charges

FXCM does not charge accounts a commission on any trades made by clients with Standard and Micro accounts, does not charge for deposits, and does not charge conversion fees on foreign currency. Clients with a Micro account incur a small fee for making a withdrawal, although the rate remains the same irrespective of the amount being withdrawn. Repeated withdrawals within a single month, however, lead to slightly increasing withdrawal fees on each occasion.

Margins

FXCM imposes a standard 2% margin on client accounts. FXCM calculate margin requirements according to notional trade size, and further bolster with a small ‘cushion’ fee to help reduce the impact of daily and weekly fluctuations.

History

FXCM (AKA Forex Capital Markets) is an online Forex trading broker. Sited in New York, FXCM offers users a forum to trade via its in-house trading platforms, and third party programs (such as MetaTrader).

Both retail and institutional clients can use FXCM to margin trade on international Forex markets. FXCM also provides a platform for CFD trading on major commodities (e.g. gold).

FXCM is regulated by the Financial Conduct Authority in the UK.

Financials

FXCM’s reported pro forma revenue for 2013 was $489.6M.  2013 earnings before interest, taxes, depreciation, and amortization were $158.0 million. Customer equity stands at $1.191 billion as of December 31, 2013.

Platform Features

FXCM’s Margin Watcher keeps clients up to date with margin increases and decreases on a minute-by-minute basis, and offers clients the opportunity to trade at higher margins than standard. The FXCM Trading Station calculates in real time the funds required for clients to maintain their positions, and the funds necessary to take further positions.

FXCM also offers 24 hour reporting, allowing clients to generate bespoke account statements whenever they choose.

Mobile Dealing

FXCM’s Trading Station app, specifically designed for mobile usage, allows traders to access the Forex market on the go, and place and manage trades via the smartphone interface.

Educational Material

FXCM offer a comprehensive Training Course free to all live clients. The package includes access to sixty training videos, covering not only the use and effective management of FXCM, but a range of FX and general trading topics (ranging from beginner to expert). Client’s can also access FXCM’s ‘Live Classroom’, and tune into lessons on Forex theory and approaches from accomplished traders from Monday to Friday every week. In 2012, Investment Trends awarded FXCM the prize for ‘Best Online Education Materials’.

Pros

FXCM’s core strength is the sheer number of options it affords to clients – it serves as a ‘one stop shop’, allowing clients to trade on a variety of different platforms and in a wide variety of markets. Its support and training infrastructure is frequently noted as one of the absolute best on the market. As one of the oldest and most well established Forex brokers, it is supported by some of the most notable banks and financial institutions in the world.

Cons

FXCM obligate clients to deposit a minimum which is comparatively high, meaning that casual traders, and/or those without significant starting capital, may be frozen out.

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