Explore the key differences between FXCM and FXTM in trading platforms, fees, and services to determine the best forex broker for your needs.
Choosing the right forex broker is a crucial decision for both beginner and experienced traders. FXCM and FXTM are two of the most popular forex brokers, each catering to different types of traders based on their unique offerings. In this comparison, we will analyze key features such as minimum deposit, trading platforms, spreads, account types, fees, and customer support. This guide will help you understand which broker is the best fit for your trading strategy and style.
Minimum Deposit
For new traders, the minimum deposit requirement is often a deciding factor. FXCM has a minimum deposit requirement of $50, which is affordable but slightly higher compared to FXTM's lower barrier of entry at $10. This difference is significant for beginners who want to start trading with minimal risk. FXTM’s low entry point makes it more attractive for novice traders or those who want to test the waters with smaller capital.
Trading Platforms
Trading platforms are essential for executing trades and managing your portfolio efficiently. FXCM offers an impressive range of six different trading platforms, including its proprietary Trading Station platform, the highly popular MetaTrader 4 (MT4), and social trading through ZuluTrade. Trading Station is particularly popular with algorithmic traders due to its advanced charting tools and technical indicators.
FXTM, on the other hand, provides three main platforms: MetaTrader 4, MetaTrader 5, and their proprietary mobile app, which caters to traders who prefer a simpler, user-friendly interface. While FXTM offers fewer platforms compared to FXCM, they are designed to be intuitive and effective for both beginners and professional traders. The MT4 and MT5 platforms, offered by both brokers, are industry-standard platforms that provide robust tools, including one-click trading and expert advisors (EAs) for automated trading.
Account Types and Fees
Both brokers offer a range of account types to cater to different trading preferences. FXCM has two main account types, while FXTM provides six account types, including Standard, Cent, and various ECN accounts. FXTM’s ECN account is particularly favored by professional traders, offering raw spreads starting from 0.0 pips and low commissions for high-volume traders. However, this comes with a minimum deposit requirement of $25,000, making it more suitable for experienced traders or institutions.
FXCM’s account structure is simpler but still competitive. They offer commission-free trading on their standard account, with spreads starting from 1.2 pips on major pairs. For high-volume traders, FXCM also offers the Active Trader Account, where spreads are reduced to 0.2 pips for a $25 commission per $1 million traded.
In terms of fees, FXTM charges between $4 to $20 per lot for its ECN accounts, while their Standard account charges no commission but higher spreads, starting from 1.5 pips. FXCM, on the other hand, tends to offer tighter spreads with lower commissions, which makes it a more cost-effective option for frequent traders.
Spreads and Leverage
Spreads and leverage can significantly impact your trading costs and potential profits. FXCM offers variable spreads starting from 0.6 pips on their standard account, while FXTM offers spreads as low as 0.0 pips on their ECN accounts. Both brokers provide high leverage for traders, with 30:1 leverage available on major currency pairs, which is the regulatory limit in certain jurisdictions such as Europe and Australia.
FXTM’s spreads on their standard account are typically higher, starting from 1.3 pips on major pairs like EUR/USD, whereas FXCM can offer spreads as low as 0.2 pips for their Active Trader clients. FXCM also offers seven cryptocurrency CFDs, which is a key differentiator for traders interested in digital assets, while FXTM does not offer cryptocurrency trading.
Markets and Assets
Both brokers offer a wide range of tradable assets, but FXTM provides a more diverse portfolio. FXTM offers access to 63 currency pairs, 178 US equity CFDs, and 11 index CFDs. They also have a selection of commodities such as gold, oil, and silver. In contrast, FXCM provides fewer currency pairs (39) but compensates with a broader range of commodity CFDs and cryptocurrencies, including Bitcoin, Ethereum, and Ripple.
FXCM also features specialized instruments like basket products, which allow traders to diversify across multiple assets within a single trade. If you are primarily interested in Forex and commodities, FXCM may offer a more streamlined approach, but if equities and a broader range of assets appeal to you, FXTM might be the better option.
Customer Support
Both brokers excel in customer support, offering multilingual support and various contact methods, including live chat, email, and phone. FXCM stands out with 24/5 customer service and additional tools such as FXCM Plus, which provides trading signals and market analytics to clients. They also have a free online educational platform that includes webinars and tutorials aimed at beginner traders.
FXTM, however, goes a step further by offering a comprehensive educational section with webinars, eBooks, articles, and video tutorials. Their customer support is available in multiple languages, making them more accessible to global traders. Moreover, FXTM offers a Loyalty Cashback Program, which rewards traders based on their trading activity.
Security and Regulation
When it comes to regulation, both brokers are well-regulated by reputable authorities, ensuring the safety of your funds and adherence to trading laws. FXCM is regulated by the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC). FXTM, under Exinity Limited, is regulated by several authorities, including the FCA, the Cyprus Securities and Exchange Commission (CySEC), and the Financial Sector Conduct Authority (FSCA) in South Africa.
Both brokers offer protection for client funds, with FXCM providing £85,000 under the Financial Services Compensation Scheme (FSCS), while FXTM offers protection up to €20,000 through the Cyprus Investor Compensation Fund (ICF). These compensation schemes provide an additional layer of trust and security, ensuring that traders’ funds are protected in case of insolvency or other unforeseen issues.
Deposit and Withdrawal Options
Both FXCM and FXTM offer a variety of deposit and withdrawal methods, making it convenient for traders worldwide. FXCM allows deposits via bank transfer, credit/debit cards, and online payment systems such as Skrill and Neteller. FXTM offers a similarly wide range of options, including bank wire, Visa/MasterCard, and popular e-wallets such as Skrill, Neteller, and Perfect Money.
In terms of fees, FXCM does not charge any deposit fees, but withdrawals via bank transfer may incur a fee depending on the payment processor used. FXTM also offers commission-free deposits for most methods, but there may be fees for certain withdrawal methods, especially when using third-party payment processors.
Demo Accounts and Educational Resources
For traders new to the forex market, demo accounts and educational resources are invaluable. Both FXCM and FXTM offer free demo accounts that allow you to practice trading with virtual funds before committing real money. FXCM’s demo account is particularly robust, providing access to their full range of platforms, including Trading Station and MT4, allowing traders to experience live market conditions with no risk. FXTM also provides a comprehensive demo account experience, accessible through MT4 and MT5, which is ideal for testing strategies and becoming familiar with the platforms.
In terms of educational resources, FXCM offers a wealth of materials, including webinars, tutorials, and articles aimed at helping traders improve their skills. They also provide a free online classroom that covers everything from the basics of forex trading to more advanced strategies. FXTM is particularly strong in this area, with a dedicated education section that includes eBooks, videos, webinars, and seminars. FXTM’s focus on education makes it a popular choice among beginners looking to improve their trading knowledge.
Which Broker Is Better for You?
Both FXCM and FXTM offer distinct advantages depending on your trading needs and experience level. If you’re a beginner or looking for low-cost entry into the forex market, FXTM’s low minimum deposit of $10 and extensive educational resources make it
Published by:
Daniel Carter