FxPro vs FXCM
Looking for a new Forex broker, either as a second option or for your first foray into the world of Forex trading? You’ve come to the right place! This broker comparison will take a deeper look at two heavyweights – FxPro and FXCM. FxPro, regulated by the FCA out of the UK, is home to over 1,300,000 traders and remains the market leader in no dealing desk (NDD) trading. FXCM is currently based in the United Kingdom after being based in the United States for many years before leaving that market. It is now in a rebranding phase as Leucadia company owned by Jefferies Financial Group Inc., listed on the NYSE under ticker symbol JEF.
This comparison will focus on the following four aspects plus an ultimate verdict:
|Feature||FxPro (visit site)||FXCM (visit site)|
|FCA, CySEC, FSCA, DFSA and SCB||FCA, ASIC, FSCA|
Type of Broker:
|NDD||No Dealing Desk, Dealing Desk|
U.S. Clients Allowed:
|£500 or a currency equivalent||£300|
Commissions / Spreads:
|Spread Betting||Active Trader|
|Yes for clients under FXCM LTD, FXCM AU and FXCM ZA|
Features and Platforms
As the market leader in NDD trading, the cTrader platform is at the core FxPro’s operations. It enables a superior trading environment, as an out-of-the-box solution, over the MT4/MT5 trading platforms, which are also provided by FxPro. Unfortunately, no third-party plugins are offered by this broker. Enhancing support for automated trading solutions comes in the form of VPS hosting, but the cost of $30 per month is on the high side.
New traders have access to an excellent educational platform, with an entire section dedicated to trading psychology. The well-designed educational course features video tutorials and trading tests, creating an outstanding service. FxPro grants its traders a comprehensive analytical suite through a partnership with Trading Central but also publishes in-house market news. The combination of services continually reduces the failure rate of traders, which is currently reported at 75.56%.
FxPro established itself as a primary broker in the ultra-competitive sector.
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 traders have great choices when it comes to trading platforms. FXCM offers the retail favorite MT4 and its proprietary Trading Station. While automated trading is fully supported across all trading platforms, this broker focuses on its Trading Station and like FxPro, does not provide any necessary third-party plugins for the MT4 trading platform. Social trading is possible through ZuluTrade, a market leader in this sector. FXCM provides a suite of tools for algorithmic trading solutions, which adds to the appeal of this brokerage.
FXCM Plus is a prime service provided to all clients and consists of trading signals, a trading analyzer, and trading analytics. An educational course is available for new traders, and FXCM publishes a great selection of written content covering financial markets and trading-related topics. The overall auxiliary trading services provided by this broker remain exceptional, supported by the failure rate of traders of 71.00%.
FXCM provides a truly superb trading environment to traders.
|Type of Platform:||MT4, MT5, cTrader||MT4, Trading Station, ZuluTrade|
Guaranteed Stop Loss:
Interest on Margin:
FxPro focuses on the Forex market, where it offers over 70 currency pairs. Futures and spot indices are acceptable, but equity CFDs merely consist of major names. Regrettably, metals and energies are reduced to the minimum. FXCM provides only 39 currency pairs and falls well behind FxPro in this category. Commodity trading remains equally limited, but five cryptocurrency pairs are available. Equity trading is missing, and while both brokers are somewhat limited when it comes to asset selection, FxPro grants a better choice for cross-asset diversification. That being said, few traders really need more than a handful of tradable assets, so it’s highly possible that both of these brokers will offer what you are looking for.
Typical Spreads and Fees
FxPro deploys the NDD execution model, while FXCM remains a market maker. Spreads in the FxPro MT4 account start at 1.4 pips, which remains unacceptably high. Traders have access to raw spreads as low as 0.0 pips, but the commission of $45 per $1,000,000 is elevated. FXCM spreads are superior and start at 0.6 pips commission-free, and are lowered to 0.2 pips for a commission of $25 per $1,000,000. Forex traders will find a more competitive pricing environment at FXCM.
Both brokers charge swap rates on leveraged overnight positions. The precise amount for each asset may be retrieved from inside the trading platforms. Equity and index CFDs are subject to corporate actions, which are debited or credited from the trader’s account. While deposit and withdrawal fees are waived, third-party charges apply. FXCM levies a £50 inactivity fee, but the overall cost structure is lower as compare to FxPro.
FxPro deploys an NDD model, but trading costs remain elevated.
FXCM is a market maker but provides excellent execution and a far superior trading environment.
Security and Trust
FxPro UK LTD is authorized and regulated by the Financial Conduct Authority. Client funds remain segregated, and traders are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. This is the primary regulator for this brokerage, but it maintains entities regulated by the Cyprus Securities and Exchange Commission, the South African Financial Sector Conduct Authority, the Dubai Financial Services Authority, and the Securities Commission of The Bahamas. FxPro has a spotless record and remains one of the most trusted Forex brokers in the industry.
FXCM is also primarily under the regulatory framework of the FCA, with additional regulation by the Autorité des Marchés Financiers (AMF) in France, the Australian Securities and Investments Commission (ASIC), and the Financial Sector Conduct Authority (FSCA) in South Africa. Since FXCM emerged from bankruptcy in 2017, it has a clean regulatory record.
FxPro remains one of the most trusted brokers active today, with a spotless record.
FXCM has a troubled past but has worked diligently to rebuild its reputation for honesty and reliability. Since it emerged from bankruptcy in 2017 and under new management, it has also maintained a clean record.
FXPro versus FXCM – Verdict
FxPro is a solid broker choice, as evident by its 1,300,000 traders. This broker is a market leader in NDD trading, and one of the most trusted ones in the industry. Transparency is outstanding, asset selection acceptable, but the pricing environment remains elevated. That being said, FXCM offers several competitive advantages that give this broker a significant edge. While fewer assets are available, trading costs are significantly lower. This broker’s auxiliary trading services are as exceptional as its support for automated trading solutions. The outlook for FXCM is brighter, and this broker has great untapped potential. Considering the cost-effective trading environment, it provides a better overall choice and FXCM edges out FxPro as a better option in this Forex broker comparison.
Which broker is better for beginner traders?
While FXCM provides new traders with quality educational content, FXPro has a notable edge due to its excellent multi-tiered education division. It consists of beginner and advanced lessons and includes a dedicated piece of psychology. FXCM Plus, filled with valuable trading services, closes the gap to FXPro, and both brokers maintain the MT4 trading platform, but new retail traders will benefit more from FXPro than FXCM.
What about MetaTrader and copy trading?
FXPro and FXCM both maintain the MT4 trading platforms, but the former also grants MT5 and provides the MT4 Trading Central plugin. It creates a more competitive trading platform at FXPro, but it does not support social trading. FXCM pulls ahead in that category as it allows social trading via market leader ZuluTrade. Therefore, FXPro has an edge with its MetaTrader environment, while FXCM has it in social trading.
Which is the more reliable broker?
FXPro remains one of the most trusted brokers, while FXCM enters the third year of rebuilding trusts following more than a decade of fines, misconduct, and fraud under its previous management. Under new leadership since 2017, FXCM made notable progress and transformed into a more transparent broker, increasing its reliability. Given the excellent history of FXPro, this broker represents a more reliable option with a greater degree of trust.
How many Forex pairs and CFDs are available to trade?
Asset selection remains a distinct weakness at FXCM, where clients have only 40 Forex pairs available for trading. Regrettably, it does not maintain a list of all CFDs. FXPro provides traders with 70 currency pairs, complemented by 185 CFDs. While the overall asset selection remains minimal at both brokers, FXPro maintains an edge.