FXTM, also known as “ForexTime”, is a well-established Forex / CFD brokerage house which has been in business ever since 2011. FXTM has grown rapidly in recent years and has a corporate structure composed of three entities which match its three bases of operations: the U.K., Cyprus, and Mauritius. FXTM allows its clients to trade Forex currency pairs and crosses, including some exotics, the precious metals gold and silver, crude oil and natural gas. Traders can also trade major equity indices, cryptocurrencies*, and CFDs** on major American stocks and shares. FXTM also enables direct trading in stocks, not wrapped in CFDs, where the trader takes direct legal ownership of the shares when buying them, just like a traditional stockbroker (available under Exinity Limited).
|⚖️ Regulations||CySEC, FCA, FSC|
|💰 Type of broker||Instant/Market Execution|
|💰 Minimum Deposit||$10|
|💰 Maximum Leverage||1:2000|
|📊 Type of platform||MetaTrader 4, MetaTrader 5|
|💳 Deposit with credit card||Yes|
|👛 Depositing with wire transfer||Yes|
|🎮 Demo account provided||Yes|
|🛍️ Instruments traded||CFDs, Commodities, Metals, Stocks, Oil, Gold, Indices|
FXTM established itself as a leader in emerging and frontier markets, offering products and services to new retail traders often overlooked by other brokers. It does so by implementing a localized approach in high-growth markets, where economic conditions exist to ignite a boom and demand for Forex trading. FXTM Nigeria is one example where this broker took a distinct leadership role. Nigeria remains the largest economy in Africa and has the third-highest youth population globally. The tech-savvy generation seeks to unlock additional revenue streams, and Nigeria could become a regional trading hub. Therefore, FXTM opened two offices, one in Lagos and one in Abuja. Nigeria remains in prolonged confidence repairing mode after a boom-and-bust cycle amid widespread Forex scams and frauds rattled the industry a decade ago. FXTM Nigeria remains at the forefront to rebuild the Nigerian Forex market, which will undoubtedly yield benefits moving forward, adding to its more than two million clients.
One of the most defining missions of FXTM Nigeria is education, where it presents traders with an award-winning solution. FXTM Nigeria also maintains training centers in Abuja, Lagos, and Port Harcourt. Multi-lingual customer support is available 24/7, ensuring traders that FXTM Nigeria has the support infrastructure to assist them whenever necessary. Another appealing aspect for Nigerian traders is that one of the FXTM analysts is from Nigeria. A trading account in the Nigerian Naira and deposit and withdrawal options are equally available. The low minimum deposit and excellent ECN cost structure make FXTM Nigeria possible the best choice for Nigerian Forex traders. The commitment to education and the degree of trust FXTM brings to Nigeria are tremendous assets. With a local presence and a clean regulatory track record, FXTM Nigeria is the type of Forex broker Nigeria needs to thrive as a trading hub.
Indonesia is another high growth market, and FXTM Indonesia remains well-positioned to increase its domestic market share. FXTM Indonesia caters to traders since 2011 and maintains a primary website in Indonesian plus two websites dedicated to traders from Indonesia. With more than 270 million people, Indonesia is the fourth-most populous country. The newly industrialized nation also houses the sixteenth-largest global GDP. It presents FXTM with yet another regional trading hub from where it can expand its business. The management team at FXTM does an excellent job in identifying new trading hot spots ignored by other brokers, where it establishes operations and builds trust with local traders. While it presently does not maintain an office in Indonesia, FXTM will likely expand and add to its Asian representation after establishing offices in India and South Korea. Indonesian traders often commit less capital when they start Forex trading, and the $10 minimum deposit requirement offers all new traders access to one of the most competitive pricing environments.
FXTM Indonesia allows deposits in the Indonesian Rupiah. Per the explanation on its website section labeled FXTM Indonesia Deposit Methods, local transactions go through a Forex manager. While FXTM supports Indonesian Rupiah deposits, traders can only open trading accounts with the Euro or the US Dollar as the account currency. A currency conversion fee applies, levied by Forex Online Changer, the leading Indonesian platform to obtain e-currency, and traders must retrieve the exchange rate from there. FXTM does not charge a deposit fee. It credits 100% of the received funds from the transaction. It may take up to one business day, depending on the verification of the deposit by the bank or FXTM. Indonesian Forex traders who seek a competitive and trustworthy trading environment may not come across a better offer than FXTM Indonesia.
Another attractive and high-growth market for FXTM is Malaysia, but it ran into some challenges this year. While FXTM Malaysia earned a spot among the top ten market commentary contributors to media companies in Malaysia, the financial regulator, the Securities Commission Malaysia, or SC, also added it to its blacklist. It published the most recent update on February 2nd, 2021, by placing ten entities on its investor alert list, including FXTM. The SC failed to specify the reason other than stating FXTM is carrying on unlicensed activities in Malaysia. The last event at the end of 2019, organized by FXTM partners, attracted more than 200 individuals across Malaysia and took place in Johor, Kuching, Kota Kinabalu, and Penang. It remains one of the most competitive countries in Asia and the world, besting developed nations like Australia or South Korea. It is home to a vibrant and expanding technology sector, and many Forex affiliates are active across the country of more than 32 million people.
FXTM does not have a representative office in Malaysia but frequently hosts events there. It aims to educate and promote its services in Malaysia and accepts traders from there. Since it does not operate out of Malaysia, regulatory approval by the SC is not a requirement. Therefore, traders should overlook the questionable blacklisting of FXTM by the SC. FXTM remains one of the most transparent and well-regulated brokers. FXTM does support commission-free deposits and withdrawals in the Malaysian Ringgit via online banking services provided by leading Malaysian financial institutions. FXTM continues to branch out, serving clients from more than 180 countries with a competitive product and services portfolio. FXTM Malaysia remains well-positioned to expand its market share as one of the most trusted brokers serving Malaysia, where demand for quality brokers continues to rise.Back to Top
Regulation and Security
This should not constitute as advertisement in the territory of Belgium, France and Netherlands
FXTM enjoys an extremely high and very strong level of regulation in several jurisdictions. It is based in three different countries, with three different corporate branches to match.
ForexTime Limited (www.forextime.com/eu) is regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12, licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614. The company is also registered with the Financial Conduct Authority of the UK with number 600475. Exinity Limited (www.forextime.com) is regulated by the Financial Services Commission (FSC) of the Republic of Mauritius with an Investment Dealer License bearing license number C113012295. Forextime UK Limited (www.forextime.com/uk) is authorised and regulated by the Financial Conduct Authority, firm reference number 777911.
This multi-jurisdictional setup allows FXTM to differentiate its offering depending upon where its traders are located. It is worth mentioning that acquiring regulation is not an easy feat for any Forex broker, so the mere fact that ForexTime has acquired regulation in several jurisdictions is extremely admirable.
FXTM is formally regulated in the United Kingdom, Cyprus, and Mauritius. In the United Kingdom, ForexTime UK Limited is authorized by the Financial Conduct Authority to provide regulated products and services under license number 777911.
In Cyprus, ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission under license number 185/12.
In South Africa, ForexTime Limited is licensed by the Financial Sector Conduct Authority of South Africa under FSP number 46614.
In Mauritius, Exinity Limited is licensed by the Financial Services Commission with a category 1 global business license and as an SEC-2.1B investment dealer (full service excluding underwriting) under license number C113012295. Exinity Limited is also a member of the Financial Commission, an international dispute resolution body serving the financial services industry.
FXTM’s regulation in both the United Kingdom and Cyprus provides its clients depositing in FXTM’s branch in either jurisdiction with a degree of investor protection. The U.K.’s Financial Conduct Authority has a Financial Services Compensation Scheme which can protect deposits of up to £85,000. Cyprus’ CySEC maintains an Investor Compensation Fund which is empowered to award depositors who lose their account deposit due to the failure of a regulated firm an amount up to €20,000 or 90% of the covered investor’s claim, whichever is lower, regardless of the number of accounts held, currency and place of offering the investment service.
FXTM has been in operation as a dedicated Forex / CFD brokerage house since 2011, giving it a reasonably long track record. Applying the “lindy effect” rule, the longer time a broker has successfully been in business, the better the reputation that broker can be assumed to have. This means that FXTM has a meaningful track record and an established reputation of safety as a brand which it needs and wants to protect, to ensure it remains in good standing in such advanced and highly regulated financial services centers such as the U.K.
FXTM’s story of steady expansion adds to their level of credibility. After its initial establishment in Cyprus in 2011, FXTM grew and acquired its South African license in 2016, and its U.K. license in 2018. FXTM’s client base globally has grown quite steadily.
As with all Forex / CFD brokerages regulated in member states of the European Union like Cyprus or the United Kingdom, clients of FXTM are automatically granted negative balance protection. The “tail risk” of an unusual, extreme market movement, which can be exponentially raised by excessive leverage, is borne fully and voluntarily by FXTM in other cases.
Is FXTM safe?
FXTM maintains full compliance with its three regulators. Non-EEA and will deal with Exinity Limited out of Mauritius. The regulator does not require deposit insurance, as granted by CySEC under the Investor Compensation Fund (CIF) up to €20,000 and the FCA Financial Services Compensation Scheme (FSCS) up to £85,000. FXTM rectifies this with a membership of The Financial Commission, the Hong Kong-based independent self-regulatory organization, and external dispute resolution (EDR) body for the Forex industry, where the Compensation Fund protects deposits up to €20,000 per case.
Performance statistics, which include order execution speed, slippage, requotes, FXTM Invest Manager Rankings, as well as, Client Satisfaction and Services, are independently confirmed by Big Four accounting firm PricewaterhouseCoopers Limited (PwC). It satisfies the International Standard on Assurance Engagements (ISAE) 3000. Transparency represents an essential attribute at FXTM, where it delivers well, Transparency represents an essential attribute at FXTM, where it delivers well. They meet strict financial standards and are required to report periodically to their regulators.
Client deposits remain segregated from company funds, in compliance with regulatory stipulations. Given its broad international reach with a distinct focus on localized services, FXTM has a well-established partnership with various banks. Over 84% of funds are processed within five minutes, ensuring swift access to deposits and withdrawals. The SSL (Secure Sockets Layer) network security protocol secures all online traffic between FXTM and traders, per established industry standards.
The overall trading environment is safe, and traders can trust FXTM with their personal information and deposits. Additional steps taken by this broker, like independent verification by PwC of published statistics or enhanced deposit protection as granted by The Financial Commission, show that FXTM is willing to commit to measures that are not required by regulators. Therefore, FXTM is quite a safe broker for trading.Back to Top
The total fees charged by any brokerage should always be one of the very top considerations of someone looking for the most suitable Forex / CFD broker. It ranks right up there with security / safety of funds deposited. Each cost should be examined rigorously. It can be helpful to divide all fees and costs into two categories: trading fees, such as spreads, commissions, and overnight financing; and miscellaneous fees, such as periodic charges for account inactivity, or fees or commissions charged by the brokerage itself against account deposits or withdrawals. The trading fee element is the much more important side, so it makes sense to begin a fee analysis here.
Looking at trading fees first, we will start with spreads and commissions, which are worth taking together as a comprehensive “round trip” cost of opening and closing one trade. As FXTM offer a few different account types which charge slightly different fees, we will judge the trading fees of its most common account type, the Standard Account.
The average round trip cost of trading the benchmark EUR/USD Forex currency pair is 2 pips with the company's Standard Account. This is slightly on the high side for the industry. The Cent Account, FXTM’s account with the lowest minimum deposit (only $10) averages slightly higher at 2.2 pips. However, this falls to only 0.8 pips with one of the ECN-style accounts, which represents a very competitive rate considering the minimum deposit is only $500 for this account type.
The average round trip fees and costs for other CFD instruments offered such as commodities, individual stocks and equity indices are average for the industry.
Finally, FXTM’s offering of real share trading through its accounts based outside the European Union is not only a relatively unique service, its trading costs in this area are competitive and slightly lower than its direct competitors.
These levels of spreads and commissions are broadly competitive on the ECN side, especially for clients with relatively low deposit amounts. The minimum deposit required to open a “true” ECN account is only $500, so for traders depositing anything close to this sum, these fees are competitive. However, traders with considerably larger sums to deposit such as a few thousand dollars would find the trading fees average, but nothing special, at least for trading Forex and CFD products.
An often-overlooked element of the trading fee structure is overnight financing, which is typically a net charge applied to any trade open at 5 p.m. New York time. These fees are, at least hypothetically, calculated from intrabank tom/next intrabank fees, but retail brokerages usually give considerably less favorable rates. This can make swing or position trading expensive, particularly when a trader wants to be long of a currency with a relatively high interest rate and short of another currency with a relatively low (or even negative) interest rate. FXTM are totally transparent regarding their overnight financing rates, which is a sign of trustworthiness: frequently, brokers don’t publicize their existing rates, but they can always be found within the relevant trading platforms if you know where to look for them.
FXTM makes no claims about how their overnight financing / swap rates are derived. Many brokers claim they are based upon interbank tom/next rates, yet the rates offered always seem to be considerably less favorable to the client than the prevailing tom/next rates. Therefore, we are inclined to applaud FXTM for not making any such claims. A comparison of FXTM’s rates to the industry average at the time this FXTM review was written shows that FXTM’s rates are very competitive and slightly better than the average. Now here’s something truly unique about FXTM and their overnight financing / swap rates: some of their account types charge no swaps at all! The Cent Account and the Shares Account are completely swap-free, while swap is not paid in any other account that uses the MetaTrader 4 platform.
Another factor which makes us believe that FXTM has a commendable sensitivity towards the problem of traders being “bled” quietly by certain retail Forex CFD brokerages charging relatively high overnight financing rates, is that in 2013, they ran a limited period promotion where overnight financing would only be charged or paid over weekends, and not on weekday rollovers. This is impressive, and we never heard of another brokerage offering a similar promotion of this type.
Finally, we conclude the topic of fees by checking whether clients are charged any incidental fees by FXTM, regardless of whether a trade is made.
FXTM imposes a dormant account / account inactivity fee of $5 per month but an account must have initiated no trading activity for a period of at least six months before this fee will be imposed. This is good by the standards of the industry. FXTM also charges additional withdrawal fees against withdrawals made by credit cards or bank wire transfer. The exact charge depends upon the country of residence of the client making the withdrawal but is typically approximately $2 for a withdrawal by credit card and approximately €20 for a wire transfer. These fees are justifiable, but many retail Forex / CFD brokerages do not charge them, so it is not a competitive practice.
A listing of FXTM’s overnight financing / swap rates applicable to Forex grabbed from their site at the time this review was written is shown below. You can find out more about FXTM's swap rates on their website here.Back to Top
What Can I Trade
Following safety of funds and regulatory oversight, plus fees of course, the major priority to think about when choosing a new Forex / CFD brokerage is what assets you can trade. Many newer traders will be looking to trade only one single asset class, such as Forex, or CFDs on individual stocks and shares, but more experienced traders will probably be looking for diversification, meaning a wide offering across Forex, commodities, stocks, etc.
FXTM offers the following instruments for trading:
Forex – more than 57 currency pairs and crosses, including exotic currencies, the majors are listed below
For more pairs offered by FXTM click here
Metals – a category somewhere between Forex and commodities that deserves to stand on its own, in the opinion of many traders, so let’s treat it that way. FXTM offers trading in spot gold and spot silver. Gold is paired with the U.S. Dollar, the euro, and the British pound. Silver is paired with only the U.S. dollar and the euro.
Commodities – a narrow selection of commodities, with only energies offered: both types of crude oil and natural gas:
Equity Indices – a selection of 11 major equity indices, offered from approximately 10 developed nations (no emerging markets are included within the selection):
Cryptocurrencies (available under Exinity Limited) –4 major cryptos are offered paired with the USD. At the time of this FXTM review, the only cryptocurrency not offered from the top 5 largest cryptocurrencies is Bitcoin Cash:
U.S. Shares as CFDs – a wide selection of 120 major U.S. shares may be traded as certificates for deposit:
To read more about all US shares you can trade click here
FXTM offers US stock trading both as CFDs and as individual stocks which are fully-owned. As of our latest check in June 2020, the company expanded its stock offering from 10 stocks to many more, with nearly 100 options. The change reflects the company's continuing push to improve its offerings and to meet the needs of its traders, and with stock trading becoming increasingly popular, FXTM has certainly grown to provide a truly competitive stock offering.
Our conclusion regarding FXTM’s offering of tradable assets is quite favorable, with a range of asset classes offered that should satisfy traders looking to trade Forex, major equity CFDs, and individual leading U.S. equities. We think that the offering is sufficient for traders who are not particularly interested in diversification across a wide range of commodities or emerging market equity indices.
As of December 2020, FXTM expanded its asset offerings with new currency and stock baskets including indexes monitoring popular currencies against a basket of their partners, including indexes of the USD, JP, EUR, GBP, AUD, and NZD. Other interesting indexes added by FXTM include a green index, a social index, a mobile index, and a vegan index.
FXTM Accepted Countries
ForexTime Limited is regulated in Cyprus by the Cyprus Securities and Exchange Commission (CySEC), while ForexTime UK Limited operates under oversight by the Financial Conduct Authority (FCA). All international traders manage their accounts at Exinity Limited under the jurisdiction of the Financial Services Commission of the Republic of Mauritius (FSCM).
FXTM Brand does not offer its services to residents of: USA, Mauritius, Japan, Canada, Haiti, Suriname, the Democratic Republic of Korea, Puerto Rico, New Zealand and the Occupied Area of Cyprus.
Please note that Forextime Limited currently only provides services to clients residing in the European Economic Area, Switzerland and South Africa, while, Forextime UK Limited accepts clients from all member countries of the European Economic Area.Back to Top
FXTM Account Types
A choice of six different account types is offered.
Accounts are divided into two types: Standard Accounts and ECN Accounts. The difference is essentially between execution costs restricted to variable spreads subject to a minimum amount, and variable spreads subject to no minimum plus commission (ECN). Both execution models have pros and cons, and each may better suit a different type of trader.
The Standard Account with the lowest minimum deposit is the Cent Account, which requires a deposit of only $10 to open. The account may be denominated in USD, EUR, GBP, or Nigerian Naira for customers residing in Nigeria. Variable spreads are charged and are subject to the highest minimums imposed by FXTM, making a typical “round trip” spread on the benchmark EUR/USD currency pair as high as 2.2 pips. However, overnight swaps are not charged or paid in this account type. This account offers 25 major and minor Forex currency pairs and 2 metals for trading. The maximum position size per trade is 1 lot (typically equivalent to $100,000 in nominal value) although of course where account size is low, maximum leverage (more on leverage later) will play a big role in defining a lower practical maximum. The only trading platform which may be used with this account type is the MetaTrader 4 platform.
The next Standard Account is, a little confusingly, called the Standard Account. It is available in the same base currencies as the Cent Account, but a minimum deposit of $100 is required. Variable spreads are charged and are subject to somewhat lower minimums, making a typical round trip spread on the benchmark EUR/USD currency pair approximately 2 pips. Customers have a choice whether to use the MetaTrader 4 or MetaTrader 5 trading platform with this account type. If MetaTrader 4 is used, overnight swaps are not charged, but they are charged if MetaTrader 5 is used. This account offers the full range of Forex, metals, commodities, equity indices and equities as CFDs described earlier as FXTM’s offering – everything except U.S. shares not wrapped as CFDs. The maximum position size per trade is 30 lots (typically equivalent to $3 million in nominal value).
The last of the Standard Accounts offered is the Stock CFDs Account. It is available in the same base currencies as the other two Standard Account types and requires a minimum deposit of $100 to open. Only the MetaTrader 4 platform may be used with this account type. Over 120 U.S. shares can be traded wrapped as CFDs. A fixed leverage of 10 to 1 is offered. A maximum position size per trade of 10 lots is offered.
Now we will move on to the range of ECN Accounts offered by FXTM. For ECN accounts you will tend to pay a lower cost to execute trades, but at the same time prices may gap wildly under extreme market conditions, especially when trading currency crosses with generally low liquidity. All ECN type accounts are available in the same base currencies which we already listed for the Standard Accounts. All the accounts are swap-free with no overnight swap charged if the MetaTrader 4 platform is used. Customers have a choice between using MetaTrader 4 and MetaTrader 5 in all account types.
The ECN Account with the lowest minimum deposit required is the ECN Zero Account, at only $200. No commission is charged, and the minimum floating spread is 1.5 pips, so it is very difficult to see here what qualifies this to be considered as an ECN account. Traders using the MetaTrader 4 platform can trade 48 Forex currency pairs and crosses, 3 metals, and 14 CFDs. Traders using the MetaTrader 5 platform have a smaller range of assets they can trade: 33 Forex currency pairs and crosses are offered here, as well as 2 metals.
The next account we’ll look at is the ECN Account. A minimum deposit of $500 is required. There is a variable floating spread which is always at a minimum of 0.1 pips, unlike some ECN style accounts at other Forex / CFD brokerages which offer no minimum spread and sometimes even quote inverted spreads. The commission charged is $2 per lot for a round trip trade, which translates to 0.02% of the nominal value of the trade position size. Traders using the MetaTrader 4 platform can trade 48 Forex currency pairs and crosses, 3 metals, and 14 CFDs. Traders using the MetaTrader 5 platform have a smaller range of assets they can trade: 33 Forex currency pairs and crosses are offered here, as well as 2 metals.
The final account of the six offered is the FXTM Pro Account. As its title suggests, this account type is intended for advanced and well-capitalized traders, requiring a minimum deposit of $25,000. Despite it being an ECN account, no commissions are charged, and the variable spread which FXTM describes as “institutional level” may fall as low as zero. If the MetaTrader 4 trading platform is used to trade this account, 43 Forex currency pairs and 2 metals may be traded. If the MetaTrader 5 trading platform is used instead, 33 Forex currency pairs and 2 metals may be traded, as well as 10 major stocks.
Bottom line: our verdict is that a suitably wide range of alternative account types are offered, but some of the account types seem to be better value and more meaningful than others. We see the best all-round account offered by FXTM as the ECN Account which requires a minimum deposit of $500. The Cent Account can be opened with a deposit as small as $10 and at this level of capitalization, even with the relatively high average spread on EUR/USD of 2.2 pips, at such a low deposit level it is certainly competitive.
Leverage is an important topic to consider when evaluating a Forex / CFD brokerage. FXTM’s position on leverage is a little complicated as it offers accounts based in several different countries, all of which have different laws and regulations governing the maximum amount of leverage which may be offered. This means that we must consider where the trader is based more than the type of account which the trader wants to open to determine available leverage.
FXTM in the United Kingdom and Cyprus offer a maximum leverage of 30:1 on Forex, 20:1 on precious metals, 10:1 on commodities and indices and 5:1 for individual stocks and shares, and 2:1 on cryptocurrencies.
FXTM in Mauritius is not subject to any restrictions on leverage, therefore the maximum amounts offered by them to these accounts are a decision for FXTM alone. Here FXTM’s leverage offering is quite complex, because the maximum leverage offered is determined by a combination of factors:
- Account Type (the Pro Account offers a lower maximum leverage than the other account types, presumably to mitigate risk to FXTM from large wins by successful traders who have deposited the $25,000+ minimum deposit)
- Instrument Traded – major Forex pairs offer the highest leverage, minors and metals less, followed by Forex exotics and then cryptocurrencies, which are offered with the lowest leverage of any asset class.
- Notional Value of a Trade – the maximum leverage is only offered on the first $200k or $300k of the notional value traded, decreasing by higher tranches of value. For example,
Despite this, we can set out the absolute maximum leverage offered by FXTM outside the E.U. and the U.K. by asset class as follows:
Every type of account offered by FXTM allows hedging, scalping, and automated trading via Expert Advisers. As FXTM only uses the MetaTrader 4 and MetaTrader 5 trading platforms, there is a wide range of automated tools available which work with these platforms, and FXTM does not block or disable them.
Bottom Line: FXTM has no proprietary platform. Clients of all account types except the Stock CFDs Account and the Cent Account (two types of Standard Accounts offered by FXTM) have a choice between using the extremely well-known and popular MetaTrader 4 or MetaTrader 5. Clients with a Cent Account or Stock CFDs Account must use the MetaTrader 4 platform and have no choice of platforms.
This will not be a problem for most traders as the old yet beloved MetaTrader 4 platform is still widely used. However, traders who dislike MetaTrader for any reason or who want features offered by other platforms may be disappointed. A further issue is that a slightly different range of assets is offered within the same account types depending upon whether MetaTrader 4 or MetaTrader 5 is used, meaning choice of platform requires some consideration of which assets you want to be able to trade.
Where a choice between the two platforms is available, it can be helpful to review the pros and cons of each to determine which is the better fit for you.
Broadly speaking, it can be well argued that MetaTrader 4 is more suitable for trading Forex while MetaTrader 5 is better suited for trading stocks and commodities. The other major difference between the two platforms is that MetaTrader 5 complies with the U.S.A.’s “no hedging” regulation which states that brokerages there must process every trade on a first in, first out basis. This effectively makes precise hedging impossible.
Both MetaTrader 4 and MetaTrader 5 are available on all operating systems, tablet, mobile, app-based or web-based. Many users feel the apps tend to run with less glitches on a PC or laptop compared to the web version.
Despite no longer enjoying technical support from MetaQuotes, the MetaTrader 4 platform remains the gold standard of retail Forex / CFD trading platforms. It is relatively easy to use and intuitive, and in any case, its look and feel is extremely similar to MetaTrader 5 which was designed and marketed by the same parent company.
MetaTrader 4 allows hedging. It uses a programming language called MQL4. Unfortunately, there is no “backwards compatibility” in MetasTrader 5, so programs written for MetaTrader 4 are not compatible with MetaTrader 5 and will not run on that platform.
MetaTrader 4 comes with a back-testing function but it is relatively slow and cumbersome, with MeatTrader 5’s back testing function running much more quickly. It is also able to conduct multiple simultaneous back tests on more than one asset.
MetaQuotes launched this some years ago as a successor to their wildly successful MetaTrader 4 platform. However, it didn’t really take off as most traders felt it offered little more than the MetaTrader 4 while not allowing hedging and being slightly pushier and more intrusive overall. However, anyone familiar with MetaTrader 4 won’t find using MetaTrader 5 much of a challenge. It is relatively easy to use and intuitive, and in any case, its look and feel is extremely like MetaTrader 4 which was designed and marketed by the same parent company.
MetaTrader 5 does not allow precise hedging, although some traders work around this effectively by making a stack of trades in the same asset where each trade has a slightly different position size. It uses a programming language called MQL5 which is more advanced than MQL4. Unfortunately, there is no “backwards compatibility” in MetaTrader 5, so programs written for MetaTrader 4 are not compatible with MetaTrader 5 and will not run on this platform.
MetaTrader 5’s back testing function is superior to MetaTrader 4’s. It is also able to conduct multiple simultaneous back tests on more than one asset.
FXTM offers traders the market-leading MT4 trading platform and upgrades it with six add-ons. Most brokers only provide the out-of-the-box version, which remains sub-standard without necessary upgrades. At FXTM, traders get the Orders Indicator, the Pip Value Calculator, the Pivots SR Levels, the Spread Indicator, the Market Data to CSV, and the Day Bar Info Indicator. FXTM also developed its FXTM Pivot Points strategy, available as an expert advisor (EA) running on the MT4 trading platform. VPS hosting further supports automated trading solutions at FXTM. With the FXTM MT4 trading platform, traders gain access to the most versatile solution available today. It was released more than fifteen years ago, but it maintains the most significant market share. More than 20,000 EAs and custom indicators are readily available from the integrated market. Many are free of charge, but traders should avoid them, as they generally do not deliver promised results. There are numerous high-quality upgrades for a price that can transform the core MT4 version into a cutting-edge solution.
The most visible drawback of the MT4 trading platform is its user-interface. It remains among the worst among all platforms. The third-party upgrades change that and add invaluable functionalities to it. Since the FXTM MT4 already comes with more than half a dozen upgrades, traders remain ahead of most brokers who only offer the core version but market it as a leading trading platform. The FXTM MT4 is available as a desktop client, a webtrader, and a mobile version. An often overlooked feature is the copy trading function embedded in the trading platform. Traders can browse all strategy providers from the Signal tab, where complete details are available. Most strategies have a monthly subscription cost but no profit-sharing. Overall, the upgraded FXTM MT4 presents most traders with an excellent choice.
Traders who do not wish to download the desktop version of FXTM MT4 may opt for the FXTM Webtrader, also by MetaQuotes. Given the widespread popularity of the MT4 desktop client, the MT4 WebTrader also enjoys a leadership position. All MT4 WebTrader clients remain identical, regardless of the broker. The user interface is marginally improved but remains notably behind that of proprietary alternatives. The FXTM WebTrader supports 18 languages. Supported web browsers include Internet Explorer 11, Microsoft Edge 12, Mozilla Firefox 34, Google Chrome 43, Safari 8, and Opera 32 or higher versions. It does not support automated trading solutions or third-party upgrades, making it a choice for manual trades only who have no advanced requirements. The FXTM Webtrader does offer one-click trading, real-time quotes, and advanced analytics tools. For new retail traders, it may be the ideal entry-point to trading. It remains an easy-to-learn trading platform, light on system resources, and provides manual traders with the essential tools necessary to get started.
While the FXTM MT4 desktop client provides traders with a significant edge, the FXTM Webtrader does not feature it. Manual traders will operate from an average trading platform, light on resources and light on functions. Committed traders should consider skipping it. Learning how to use the full-featured FXTM MT4 desktop client, which comes with seven add-ons provided by FXTM, will result in valuable long-term benefits. The FXTM Webtrader lacks most of the components that helped the MT4 trading platform become the most used Forex trading platform. Most proprietary trading platforms at brokers fail to compete with the MT4 desktop client but provide a significantly more competitive alternative at a download-free webtrader. Therefore, traders should remain with the well-documented and time-tested strengths and advantages of the FXTM MT4 desktop client and ignore the lesser FXTM Webtrader.Back to Top
FXTM has two standout features: firstly, its strong regulatory regime in two major industry centers which enjoy high levels of regulatory protection (the U.K. and Cyprus); secondly, FXTM Invest, which is FXTM’s copy trading program.
Regulation in the U.K. is significant, as under U.K. regulations, depositors can be protected by deposit insurance in case of a regulated brokerage’s insolvency or other resulting inability to access deposited funds. The protection is up to a relatively high amount of £85,000 per depositor. In Cyprus, there is an investor compensation fund which can protect depositors up to the amount of €20,000 per depositor. or 90% of the covered investor’s claim, whichever is lower, regardless of the number of accounts held, currency and place of offering the investment service.
FXTM Invest is a copy trading program which simply allows customers to let their account mirror the trades of selected Strategy Managers. At the time of writing, there are over 600 strategy managers to choose from, so there is plenty of choice. Strategy Managers get paid from the net profit on those trades which customers choose to copy, which is taken from the profit in the copier’s account.
Strategy Managers may set their own fee percentage up to a limit of 50%, as it is up to trade copiers to choose whether to copy them or not. FXTM customers may become a trade copier with as little as $100 in capital.
FXTM Invest is not available for clients of Forextime UK Limited
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Research and Education
FXTM’s education offering is reasonably well-stocked and comprehensive. While any Forex / CFD brokerage might produce a good all-round offering without offering research or education at all, that is not to say that this is not a “nice to have” if it is done well.
In FXTM’s education section, subsections are divided into eBooks, Forex Trading Seminars, Forex Trading Webinars, a Forex Glossary, What is Forex, a Beginners Guide to Forex Trading, Forex Trading Strategies, Short Forex Educational Videos, Education Videos, Education Articles, and a “Periodic Table” which is basically a glossary of investment terms built in an unusual and fun style.
The seminars are real-life meetup events which are held around the world, at the time of writing they were scheduled close to once per week. The webinars are of course virtual and are conducted in a variety of languages and scheduled at a rate of approximately three each week. At the time of writing, webinars were being conducted in Bengali and Vietnamese as well as English.
We were most impressed by the detailed material on a range of trading strategies which can be hard to find. The beginner’s guide was also nice.
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For most clients, customer support won’t be much of an issue. Having said that, it is comforting to know that if you do need help, you will be able to get hold of someone competent quickly who will take responsibility for fixing whatever your problem is.
FXTM’s customer support has a good reputation, partly because they are a well-regulated and global Forex / CFD brokerage, and partly because support is given with a wide variety of languages with from native speakers.
The FXTM customer support desk is available 24 hours a day, on regular weekdays.
Traders can contact a rep at different departments in several international locations via email of telephone. Live chat is also available.
FXTM has support centers with respective dedicated focus on China, India, Indonesia, Malaysia, Nigeria, South Korea and Thailand.
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FXTM Bonuses and Promotions
FXTM regulation in the UK and the EU (Cyprus) prohibits new bonuses and promotions due to regulatory changes. Therefore, FXTM grants them to international traders from its Mauritius entity. With the Brexit transition period ending this year, it is unclear if the FCA will continue to restrict bonuses and promotions, or if it will allow brokers to offer them. Until then, only non-UK and non-EU traders may participate in the three distinct offers from FXTM, which can benefit traders who use them as intended.
Before requesting a bonus or participating in a promotion, it is paramount to read and understand the terms and conditions. Many traders just accept any capital boost and are often confused when they are unable to withdraw their full account balance or make a withdrawal and see their bonus capital removed. They mistakenly blame brokers in reviews for misconduct but violated the terms and conditions under which the incentive exists.
FXTM offers a refer-a-friend bonus to assist with its marketing efforts, available until the end of 2020. Existing clients will receive a unique referral link, which they will use to attract new clients to FXTM. A minimum deposit, as outlined under Compare Account and FXTM Invest, where applicable, is mandatory. After the referred trader executes 10.0 standard lots, both accounts, the referrer, and the referee will receive a $50 bonus.
A dedicated Forex contest section is maintained, where FXTM introduces demo and live account contests. Demo contests continue to gain popularity among new retail traders, as real cash prizes in the form of deposits into a live trading account, represent the most common reward. Many contests last between one week and one month, allowing traders numerous chances to qualify for one, and boosting their capital base.
The most rewarding promotion maintained by FXTM is the Loyalty Program. It consists of five tiers where traders receive between $2 and $5 per complete lot every week. The classification depends on total deposits, but with Tier 1 extended to $15,000, most clients will qualify for $2 per lot. A minimum accumulative deposit of $60,000 is required to unlock $5 per lot. The maximum rebate amount is just $500 for Tier 1 members, which increases to $10,000 for Tier 5.
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Opening an Account
The account opening process with FXTM is quite good and speedy even in their highly regulated locations. You can expect to get your account open and ready within two days from beginning the account opening process. Clients only need to navigate through a few screens where they submit a few details and choose the type of account they want to sign up for.
It is worth noting that residents of the U.S.A. and a few other countries cannot be accepted as new clients by FXTM.
In addition to providing personal and account details, new clients are required to verify their identity and prove their place of residence, as is customary. The process is completely digitized.Back to Top
FXTM Deposits and Withdrawals
FXTM caters primarily to new retail traders and has many traders from emerging economies. It is the only international broker offering trading accounts in the Nigerian Naira. Given its diverse client base, often from low-income countries, a somewhat complex account structure with various minimum deposits is in place. The two main categories are standard accounts and ECN accounts, which have three and four sub-categories, respectively.
The minimum deposit for the Cent Account is only $/€/£ 10 or ₦2 000. It is an ideal substitute for the demo account and allows new traders to practice in live trading conditions. The Standard Account requires a minimum deposit of $/€/£ 100 or ₦40,000, so does the Stocks CFDs Account. Regrettably, the trading conditions are unacceptable due to high spreads except for equity CFDs. Forex traders face excessive mark-ups, geared towards broker profitability, another standard operating procedure among market makers.
Traders are asked for a higher minimum deposit across the board in the advertised ECN account types. Typical ECN accounts offer raw spreads for a commission. At FXTM, no version lists one except the one labeled ECN Account, for a minimum deposit of $/€/£ 500 or ₦80,000, which is typical for most ECN brokers. The Stocks Account (available under Exinity Limited) commands the same, while the ECN Zero Account requires less at $/€/£ 200 but still ₦80,000. FXTM offers the FXTM Pro Account for a minimum deposit of $/€/£ 25,000 or ₦5,000,000. Though traders may be momentarily confused by so many account options, the range of choices and low minimum deposits offer excellent trading opportunities.
FXTM imposes no additional fees on any deposit beyond what the deposit mechanism itself may charge.
A very wide range of deposit and withdrawal methods are supported by FXTM. The most notable channels are Neteller, Skrill, Western Union, and WebMoney. Major credit cards are also accepted, and bank transfers can also be used.
Withdrawals can be made using the same methods. In practice, withdrawals must be made through the same channels that deposits are made through, which is a common practice applied by almost all retail Forex / CFD brokerages.
Unfortunately, FXTM charges a withdrawal fee for most withdrawal options. The most notable fees average to about $3 for withdrawal by credit card and about $20 for bank transfers.Back to Top
- Broker's Name : FXTM
- Headquarter : Cyprus
- Regulation : CySEC, FCA, FSC, CMA
- Type of Broker : Instant/Market Execution
- U.S. Clients Allowed :
- Minimum Deposit : $10
- Maximum Leverage : Flexible
- Commissions / Spreads : Variable
- Account 1 : Standard Accounts
- Account 2 : ECN Accounts
- Account 3 : Shares Account
- Demo Account :
- Islamic Account :
- Segregated Account :
- Managed Accounts :
- Institutional Accounts :
- Deposit Options :
- Withdrawal Options :
- ETFs :
- CFDs :
- Commodities :
- Metals :
- Stocks :
- Oil :
- Gold :
- Binary Options :
- Indices :
- Type of Platform : MetaTrader 4, MetaTrader 5
- Platform Languages :
- OS Compatibility :
- Trading Signals :
- Charting Package :
- Market Analysis :
- Chart Trading :
- Automated Trading :
- Scalping :
- Hedging :
- Mobile Alerts :
- E-mail Alerts :
- Trailing Stops :
- Guaranteed Stop Loss :
- Guaranteed Limit Orders :
- Guaranteed Execution :
- One-click Execution :
- OCO Orders :
- Interest on Margin :
- Web-based Trading :
- Mobile Trading :
- Website Languages :
- Support Hours : 24/5 + weekend hours
- E-mail Support :
- SMS Support :
- Chat :
Pros and Cons
- Excellent regulation / reputation
- ECN-style account options
- Only MetaTrader platforms offered
- Clients from several countries not accepted
FXTM is one of the few Forex brokers that offers free trading signals to its clients, a service that can be extremely valuable, especially for new traders who want to learn from the experts. FXTM signals can be accessed easily for all depositing traders, directly in the trading platform. The signals include a choice of four take-profit levels and protective stop loss recommendations so that traders can trade intelligently based on their financial goals. FXTM signals are available before the market opens in the UK and US and are based on a diverse range of popular indicators. Forex signals can be more advantageous than auto trading or social trading, as they give traders an ability to make their own decisions about how to govern their portfolios and not leave their funds up to othersBack to Top
Where is FXTM based?
The U.K., Cyprus, and Mauritius.
How does FXTM make money?
FXTM makes its money from spreads and commissions charged on trades and an overnight financing mark-up.
How can I deposit into an FXTM account?
FXTM provides several methods for depositing and withdrawing funds. Transactions may be conducted through Western Union, Skrill, FasaPay and Neteller as well as credit cards and bank wire transfers. Several minor channels popular in developing nations are also accepted.
Please note that the list of the methods above depend on the FXTM entity and on the Clients Country of Residence.
Is FXTM regulated? Are its clients protected by regulatory deposit insurance?
FXTM is regulated by the FCA in the U.K., by CySEC in Cyprus and by the FSC in Mauritius. The FCA offers deposit insurance up to £85,000 and CySEC offers an investor protection fund up to €20,000 but eligibility is not automatic even if a depositor’s funds become inaccessible due to no fault of their own.
What is the maximum leverage offered by FXTM?
The maximum leverage offered is a very high 2000 to 1, but if accounts are held through the E.U. or the U.K., regulation applies that imposes a legal maximum of 30 to 1.
How do I open an account with FXTM?
The easiest way to open an account with FXTM is to click on the Open Account buttons on this review and fill out the form. Registration takes only a few minutes and you’ll be on your way to trading.
Does FXTM offer the MetaTrader trading platform?
Yes, FXTM offers both the MT4 and MT5 trading platforms.
Is FXTM A market maker?
FXTM deploys a hybrid market maker/ECN model. The commission-free trading account is where FXTM can act as a market maker, and they feature the typically elevated spreads. The commission-based alternatives get the ECN execution model.
Is FXTM A legit company?
FXTM is not only a legit company but also one of the most trusted Forex brokers globally. It maintains a clean regulatory track record and presents clients with a transparent trading environment.
What is the minimum deposit for FXTM?
The minimum deposit at FXTM is $10, making it accessible to all types of traders.
How long does it take to withdraw from FXTM?
The withdrawal time depends on the selected payment processor, and FXTM provided 47 choices. Most show processing times of 24 hours, while a few may take between three to five business days. Most online payment options are close to instant once FXTM processes the request.Back to Top
FXTM deserves a positive review. Fees are reasonably competitive for depositors of a few hundred dollars, and the ECN account option seems to be competitive for Forex traders at a deposit range quite close to the $500 minimum! The range of assets offered for trading is not highly diverse, making FXTM a more suitable broker for traders happy to focus on Forex, the major metals and energies, and major U.S. stocks only. FXTM’s reputation is right up at the high end of the industry, with a lengthy track record and good regulatory standing in the U.K., which is particularly impressive, not to mention its good standing in Cyprus.
* Cryptocurrency trading is available for those trading with Exinity Limited.
** CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% 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.Back to Top
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