AvaTrade vs FXCM
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.74% of retail investor accounts lose money when trading CFDs with FXCM. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
If you are reading this article, you’re likely having trouble deciding whether AvaTrade or FXCM is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this AvaTrade vs FXCM review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- AvaTrade vs FXCM - Verdict
|Feature||AvaTrade (visit site)||FXCM (visit site)|
|MiFID, Central Bank of Ireland, FSA, ASIC, BVI, FFAJ, FSCA, ADMG - FRSA||FCA, ASIC, FSCA|
Type of Broker:
|ECN/STP||No Dealing Desk, Dealing Desk|
U.S. Clients Allowed:
Commissions / Spreads:
|Yes for clients under FXCM LTD, FXCM AU and FXCM ZA|
Features and Platforms
FXCM, which as of March 2018 was the second-largest retail Forex broker excluding the Japanese market, provides traders with its proprietary Trading Station, granting clients an excellent trading environment. It also maintains the core MT4 trading platform for automated trading solutions and ZuluTrade for social trading. Eight specialty trading platforms add to this broker's excellent offering. The overall choice at FXCM remains top-notch. It also offers excellent research via FXCM Plus and maintains a valuable educational section. While AvaTrade cannot match the quantity or quality of the FXCM trading platform selection, it does allow a total of eight platforms, making it a highly competitive broker. The educational unit SharpTrader provides a superior platform for educational purposes, and AvaTrade has a broader asset selection compared to FXCM.
|Type of Platform:||MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based||MT4, Trading Station, ZuluTrade|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
AvaTrade features over 1,250 assets across seven categories. Forex traders have 55 currency pairs and fourteen cryptocurrency pairs, complemented by 24 commodities and 26 index CFDs. FXCM maintains just 40 currency pairs, seven cryptocurrency pairs, eleven commodities, and fifteen index CFDs. AvaTrade extends its lead with more than 1,000 equity CFDs and ETFs plus 42 options contracts. While FXCM maintains an unspecified number of equities, the overall asset selection remains broader at AvaTrade, allowing traders to achieve superior cross-asset diversification and take advantage of more trading opportunities. FXCM does offer Forex and Stock Baskets, which are theme-based portfolios that are highly popular with many millennial traders. This adds diversification to FXCM, but not enough to compete with what AvaTrade enables. When it comes to available markets, AvaTrade blows FXCM clear out of the water.
Typical Spreads and Fees
While both brokers provide commission-free trading, the spreads at AvaTrade, commencing from 0.9 pips, remain well below the 1.4 pips at FXCM. Traders with low trading volumes or low frequencies of trading will enjoy a notably more cost-effective trading environment at FXCM. More committed and frequent traders will benefit from the five-tier Active Trader program at FXCM, where a cashback between $5 and $25 applies to each $1,000,000 traded. Other assets generally remain lower priced at FXCM. Traders face swap rates on leveraged overnight positions at both brokers. AvaTrade charges a $50 monthly inactivity fee after three months, while FXCM charges $50 annually after twelve months.
Security and TrustAvaTrade maintains regulatory supervision from seven global regulators, with the primary one being the Central Bank of Ireland. The transparent trading environment assisted it in becoming one of the most trusted brokers operational today. FXCM continues to cover the lost ground under its previous management, which earned this broker a reputation for misconduct and fraud and resulted in numerous regulatory fines. Since 2017 it came under the ownership of publicly listed Jefferies Financial Group, and the rebranding as a Leucadia company began in 2018. Since then, FXCM enjoys an exemplary regulatory record and has made vast improvements in transparency and honesty. Client deposits remain segregated at AvaTrade and FXCM, while an investor compensation fund exists in jurisdictions where required by law. AvaTrade maintains an edge given its overall history.
AvaTrade vs FXCM – Verdict
New retail traders with low trading volumes will find AvaTrade a more suitable choice. SharpTrader remains one of the best educational tools with more than 40 lessons and over 200 videos, while AvaTrade maintains a quality selection of assets. With five primary trading platform and three social alternatives, this broker offers an excellent product and services portfolio for all retail traders. The quality educational section at AvaTrade results in 72.00% of retail traders trading at a loss, which despite the high number, place AvaTrade in the top quartile compared to other brokers. FXCM provides traders with an excellent choice of trading platforms and a superior choice for quantitative traders. High-frequency traders will benefit from the Active Trader program, but the asset selection at FXCM remains below average. FXCM Plus provides clients with an excellent service that includes trading ideas. New traders will benefit from the quality video library available at FXCM, where 74.74% of retail traders face losses. Both brokers provide an overall competitive trading environment but for different types of traders.
Does AvaTrade or FXCM offer lower pricing?
AvaTrade offers lower Forex pricing compared to FXCM, but both maintain a commission-free trading environment. High-frequency traders can achieve a superior cost structure at FXCM via the Active Trader program. FXCM also provides lower mark-ups on other assets. Therefore, the final trading costs depend on traded assets, frequency, and volume.
Which trading platform is better: AvaTrade or FXCM?
Both brokers provide traders with an excellent trading platform choice. AvaTrade and FXCM deploy their proprietary trading platforms, where the latter has a significant edge. The out-of-the-box MT4 trading platform is available at both brokers alike. Where AvaTrade developed a distinct alternative for options traders and mobile ones, FXCM delivers eight solutions for automated trading solutions. Social trading is possible at both brokers. AvaTrade caters more to retail traders, while FXCM also serves demanding professional requirements together with quantitative traders.
How many Forex pairs and CFDs are available to trade?
AvaTrade maintains 55 currency pairs versus just 40 at FXCM. The overall asset selection also remains superior at the former, with more than 1,250 CFDs. The latter does not disclose all of its equity CFDs. The total does not eclipse what AvaTrade maintains, assessed per the other assets, which remain well below AvaTrade across the board.
Which broker is better for beginner traders?
FXCM provides new retail traders with a quality video library consisting of various topics. Valuable written content complements the educational section, and FXCM Plus enhances the overall service, which remains extremely competitive. AvaTrade, primarily via SharpTrader, accessible on a separate website away from AvaTrade following the spin-out, provides a superior educational section and one of the best-structured ones for new retail traders to consider.