Forex.com vs FXCM
If you’re reading this article, you’re likely having trouble deciding whether Forex.com or FXCM (Forex Capital Markets) 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 Forex.com vs FXCM review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
|Feature||Forex.com (visit site)||FXCM (visit site)|
|Headquarter:||United States||United Kingdom|
|CFTC, FCA, NFA, FSA, ASIC, IIROC, SFC, CIMA, MAS||FCA, ASIC, FSCA|
Type of Broker:
|Market Maker||No Dealing Desk, Dealing Desk|
U.S. Clients Allowed:
Commissions / Spreads:
|Variable Spreads||Variable Spreads|
Demo Account :
|Yes for clients under FXCM LTD, FXCM AU and FXCM ZA|
Features and Platforms
Forex.com provides trading interfaces on multiple platforms. It has a web option, mobile apps on Android and iOS, and a desktop application that comes with advanced trading resources. Those advanced resources include customizable indicators, the ability to program automatic trading strategies, and over 100 charting tools out-of-the-box.
If you’re a programmer, you also have the option to trade through Forex.com APIs.
Forex.com’s web interface contains all of the features of a standard Forex trading platform. | Source: Forex.com
Novice traders have quite a few resources to learn all about Forex on the company website. Forex.com hosts an entire educational portal that provides resources on trading concepts, managing risk, and technical analysis, among other themes. The website also manages an up-to-date economic calendar of potentially impactful Forex events.
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 this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FXCM’s trading platform, aptly named Trading Station, is similar to Forex.com’s with several types of charting tools, indicators, and market statistics. It’s available on the web, as a desktop app, and on Android and iOS devices. Another similarity to Forex.com, FXCM provides APIs to create programmable trading strategies.
FXCM’s Trading Station is similar to Forex.com in its scope of offerings. | Source: FXCM
In addition to the trading platform, FXCM offers a suite of free and non-free apps that you can plug into your interface.
FXCM also has a comprehensive Knowledge section on its website. It covers educational topics about Forex trading, the worldwide economic market, and how to become a better trader. Additionally, the company has created an exhaustive video library and hosts daily webinars
|Type of Platform:||MetaTrader 4, Proprietary platform||MetaTrader 4, Proprietary platform, Web-based|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
When comparing the number of supported markets between the two exchanges, Forex.com has a clear advantage. The platform supports over 80 currency trading pairs, while FXCM offers less than 40.
This list represents a small portion of the over 80 markets that Forex.com offers. | Source: Forex.com
In addition to Forex, Forex.com supports gold, silver, futures, and futures options trading. In this respect, FXCM’s markets are slightly more encompassing, including multiple indices, commodities, and cryptocurrencies.
|Yes (Non-US Clients Only)|
Typical Spreads and Fees
There are three different account types you can trade through on Forex.com - Standard, Commissions, and Direct Market Access (DMA). The Standard account has no commission fees, but the spreads are generally much higher than the other two account types. When you trade with the Standard account, spreads fluctuate in the one to three range for popular trading pairs with EUR/USD reaching as low as 1.1.
The Commissions and DMA accounts are more favorable for high volume traders. They provide spreads as low as 0.2 and 0.1, respectively, for the USD/EUR market but charge a commission. If you choose the Commissions account, you’ll pay $5 per 100 thousand base currency that you trade. Your commissions with a DMA account follow a variable fee schedule.
Commissions on Forex.com’s DMA accounts vary from $20 to $60 per million that you trade. | Source: Forex.com
The spreads on FXCM are on par with Forex.com. The average spread on EUR/USD, for instance, is 1.3.
For Active Traders (>150 million monthly volume), FXCM lowers the spreads on each market, once again to levels similar to Forex.com. As an Active Trader, you pay $25 per one million base currency you trade.
FXCM charges a 50 base currency fee for a year of inactivity but has no withdrawal fee.
Security and Trust
Both Forex.com and FXCM have a generally stellar track record and adhere to strict regulatory standards. Be wary, though; in 2017, the U.S. Commodity Futures Trading Commission fined FXCM for defrauding retail Forex customers.
|Forex.com launched in 2001 and has quickly grown to become the largest Forex broker in the United States. In the first quarter of 2019, the company managed $1.3 billion of customer assets.||FXCM is older than Forex.com with roots established in 1999. However, Leucadia, a publicly-traded company, bought out the trading platform in 2015. FXCM has won several awards in categories such as best technical tools, best customer support, and best Forex provider, to name a few.|
|To keep customer funds secure, Forex.com separates them from the company’s operating assets and stores them in reputable banks around the world. The Forex.com team regularly audits and reviews these banks.||Like Forex.com, FXCM keeps user funds in segregated accounts at top-tier world banks. FXCM also provides an execution scorecard of their own, detailing many of the same statistics as its competitor.|
|Directly on the Forex.com website, you can find an execution scorecard that outlines the platform’s:|
● average execution speed.
● percentage of improved limit orders.
● and average price movement per limit order, among other statistics.
|The company also publicly publishes its financials every quarter.|
Forex.com vs FXCM – Verdict
There are many more similarities than differences between Forex.com and FXCM. And, you couldn’t go wrong trading on either platform.
If a wide selection of Forex markets is important to you, however, Forex.com should be your pick. Otherwise, both companies offer competitive spreads and trading interfaces with an ample number of analysis tools. Try trading with a demo account on both platforms to get an authentic feel of which one would be best for you.
Does Forex.com or FXCM offer lower pricing?
Forex.com and FXCM both offer a minimum commission-free spread on the EUR/USD of 0.8 pips. The former grants notably tighter spreads on equity CFDs, but the latter implements a more competitive cost structure for commodities. High-frequency traders will benefit from the Active Trader program at FXCM, where the minimum mark-up on the EUR/USD is 0.3 pips with a commission of $40 per $1,000,000 in trading volume. It can decrease as the trading volume increases, with the lowest listed at $25. The DMA account at Forex.com carries a lower spread at 0.2 pips for the same commission as FXCM. It drops to as low as $20 for over 2,000,000,000 in monthly volume. Therefore, it depends on what the client prefers to trade, as both offer advantages.
Which is better, Forex.com, or FXCM?
Both brokers offer a similar overall trading environment, making the final choice dependent on the individual traders and their asset preference. Forex.com is one of the largest MT4 brokers based on active servers as of April 2019 but fails to offer free upgrades to the core version. Both brokers generate valuable research and education, but FXCM provides clients with more value-added services and more trading platform choices, granting it a competitive edge over Forex.com.
How many Forex pairs and CFDs are available to trade?
Forex.com provides 82 currency pairs and over 220 CFDs. FXCM maintains only 40 Forex pairs and does not provide a list of all CFDs. From the publicly available information, Forex.com is a superior choice from an asset selection standpoint.
What are the minimum deposits for these brokers?
The minimum deposit at Forex.com is £100 or a currency equivalent, while it is only £50 at FXCM for international clients.