History and Background
FXCM was incorporated in 1999 in New York and is one of the older forex brokers in the U.S. The broker opened its U.K. branch, which is the focus of our review in 2003 and became registered with the FSA (Financial Services Authority), the U.K. Regulator in the same year. Growing rapidly, FXCM crossed the 100,000 client threshold in 2007, becoming recognized in the same timeframe as one of the most innovative and promising actors in the forex business.
FXCM was incorporated in 1999 in New York and is one of the older forex brokers in the U.S. The broker opened its U.K. branch, which is the focus of our review in 2003 and became registered with the FSA (Financial Services Authority), the U.K. Regulator in the same year. Growing rapidly, FXCM crossed the 100,000 client threshold in 2007, becoming recognized in the same timeframe as one of the most innovative and promising actors in the forex business.
The broker has received numerous awards over the years, in tribute to its commitment to client satisfaction and contributions to the improvement of the retail forex concept. The "Best Forex Platform" at e-FX Awards 2009, the "Top U.S. Forex Brokerage" from the Stocks and Commodities Magazine in 2008, are two of the recent awards won by the company during its relatively long lifespan.
Advantages of Trading with FXCM U.K.
FXCM is a broker with a strong financial basis and a good reputation in the trader community. The broker's history stretches back into the 20th century and during that period the firm took part in many of the innovations and advances that have made the forex world more amenable to the retail client's expectations. FXCM's strong relationship with many of the world's premier banking institutions allow it to provide some of the most competitive quotes in the market to clients and its competent technical team makes a stable, safe trading experience possible. Being subject to U.K. regulations grants clients of FXCM the right to make their own choices with respect to hedging or FIFO rules, which is not permitted in the U.S. The industry popular MetaTrader4 platform is also available with FXCM U.K.
With this great background, FXCM welcomes swing traders, trend followers, automated systems users and scalpers with an equally positive attitude.
Trading Software
FXCM U.K. provides three basic choices as trading software each of which is as strong as the main platform, adding great diversity to the choices available to the firm's clients.
- FXCM Trade Station: Constantly improved and renovated, the Trade Station is FXCM's main platform, featuring one-click trading, hedging, streaming quotes at no slippage and an array of ten order types to allow maximum flexibility in client actions.
- MetaTrader4: The familiar MT4 system is the choice of brokers and traders alike. It is available to traders who would rather keep their established trading habits even as they move to FXCM due to its advantages in other aspects.
- Active Trader Platform: The Active Trader platform requires a monthly trade volume of $10 million, or a minimum initial deposit of $25,000 before traders can make use of it, but its advanced features readily justify the high price tag. Much lower spreads and the ability to view up to ten levels of market depth enable a whole new set of strategies for qualifying accounts based on the exploitation of support/resistance levels.
- FXCM Mobile: The mobile platform is for traders who are on the move. It is available to standard and micro accounts, and features live streaming rates depicted on powerful charts, detailed statistics on account balance, margin and equity levels, as well as the power to open or close market and entry orders with just a few clicks.
Account Types and Spreads
The standard FXCM Trade Station platform has spreads fixed at two pips for the EURUSD pair, and at three for GBPUSD. Users of the Active Trader Platform have even better rates, with the EURUSD pair changing hands at as low as 0.7 pips and the GBPUSD trading at 1.8 pips. FXCM works with many global banks to bring its clients the best possible rates in the market, and while during ordinary trading days spreads remain fixed, periods of exceptional volatility may widen them due to liquidity shortages at quoting banks.
A regular user trading through the FXCM Trade Station does not pay commissions, while Active Traders pay them on the basis of activity and trade volume. A trader with over 100 standard lots of trade volume per month will pay $5 per lot, while those enjoying trade volumes in excess of 1000 standard lots per month pay only $3.5 per transaction. These values can be negotiated further.
Leverage up to 200:1 is possible. Nonetheless, if you are new to forex trading, we invite you to recall that leverage is as much of a peril as it is a boon to trading, and that, in the case of a beginner at least, it may be a distraction in the best case scenario. Keep leverage as low as possible as you perfect your understanding of forex trading in order to let your account survive the process.
Safety
The greatest insurance that an FXCM trader has against fraud and unethical practices is the strong reputation of the company and its status as a market leader with a need to protect an already sizable client base. Regulatory oversight can catch hints of irregularities, but it by no means eliminates the capability to commit crimes or engage in unethical practices, so the best that you can do is to trade with a firm that you deem to be reliable, instead of relying on regulators to protect you from misfortunes and your own neglect.
FXCM U.K. is regulated by the Financial Services Authority of the U.K. (FSA) which demands that client funds be completely separated from the broker's capital and remain immune to claims of creditors in case of default. In addition, a large amount of data regarding FXCM's financial status is available at its website, while details about its standing with the regulator can be obtained at the FSA website.
Customer Service
FXCM's customer care department is the pride of the firm. Since FXCM U.K. is one of a smaller group of brokers with their own trading platforms and developments teams, it is able to respond to any arising issues with greater speed and effectiveness than is typically experienced with the standard forex broker. The multilingual staff is instructed to hold the client in high respect at all times and testimony of past and present trader's shows that the team adheres to these instructions diligently.
Beginner Support
Daily market commentary, free webinars, detailed Q&As responding to the common questions of newcomers to forex, powerful visual and audio tutorials summarize the many features of FXCM directed towards simplifying and hastening the novice trader's early experience with trading. As a broker with a history of commitment to client satisfaction, FXCM seeks to build long term relationships with traders, which is reflected in the treatment that new customers receive.
Conclusion
In terms of financial strength, sophistication and number of clients, effectiveness of customer support and beginner-friendliness, FXCM is certainly one of the top five brokers of the world. The need to satisfy the huge client base of the firm, their varying needs and expectations, necessitates that FXCM be one of the most advanced and technologically up-to-date brokers in the world, and they do not fail in these respects. The firm is a partner to world giants like Deutsche Bank and remains one of the most recognized names in the forex brokerage universe.
The tried and tested FXCM Trade Station Platform and the supporting MT4 software, the extraordinarily powerful Active Trader package for clients with more knowledge and experience of forex trading, and an elite maintenance staff that keeps the system rolling, are the strong points of the broker. More than 150,000 traders have voted with their accounts, trading hundreds of millions each month through the broker's reliable system. If the safety and mental ease of trading with a well-established firm are enough to fulfill your expectations from your broker, FXCM is easily the best choice for you.
The standard FXCM Trade Station platform has spreads fixed at two pips for the EURUSD pair, and at three for GBPUSD. Users of the Active Trader Platform have even better rates, with the EURUSD pair changing hands at as low as 0.7 pips and the GBPUSD trading at 1.8 pips. FXCM works with many global banks to bring its clients the best possible rates in the market, and while during ordinary trading days spreads remain fixed, periods of exceptional volatility may widen them due to liquidity shortages at quoting banks.
A regular user trading through the FXCM Trade Station does not pay commissions, while Active Traders pay them on the basis of activity and trade volume. A trader with over 100 standard lots of trade volume per month will pay $5 per lot, while those enjoying trade volumes in excess of 1000 standard lots per month pay only $3.5 per transaction. These values can be negotiated further.
Leverage up to 200:1 is possible. Nonetheless, if you are new to forex trading, we invite you to recall that leverage is as much of a peril as it is a boon to trading, and that, in the case of a beginner at least, it may be a distraction in the best case scenario. Keep leverage as low as possible as you perfect your understanding of forex trading in order to let your account survive the process.
Safety
The greatest insurance that an FXCM trader has against fraud and unethical practices is the strong reputation of the company and its status as a market leader with a need to protect an already sizable client base. Regulatory oversight can catch hints of irregularities, but it by no means eliminates the capability to commit crimes or engage in unethical practices, so the best that you can do is to trade with a firm that you deem to be reliable, instead of relying on regulators to protect you from misfortunes and your own neglect.
FXCM U.K. is regulated by the Financial Services Authority of the U.K. (FSA) which demands that client funds be completely separated from the broker's capital and remain immune to claims of creditors in case of default. In addition, a large amount of data regarding FXCM's financial status is available at its website, while details about its standing with the regulator can be obtained at the FSA website.
Customer Service
FXCM's customer care department is the pride of the firm. Since FXCM U.K. is one of a smaller group of brokers with their own trading platforms and developments teams, it is able to respond to any arising issues with greater speed and effectiveness than is typically experienced with the standard forex broker. The multilingual staff is instructed to hold the client in high respect at all times and testimony of past and present trader's shows that the team adheres to these instructions diligently.
Beginner Support
Daily market commentary, free webinars, detailed Q&As responding to the common questions of newcomers to forex, powerful visual and audio tutorials summarize the many features of FXCM directed towards simplifying and hastening the novice trader's early experience with trading. As a broker with a history of commitment to client satisfaction, FXCM seeks to build long term relationships with traders, which is reflected in the treatment that new customers receive.
Conclusion
In terms of financial strength, sophistication and number of clients, effectiveness of customer support and beginner-friendliness, FXCM is certainly one of the top five brokers of the world. The need to satisfy the huge client base of the firm, their varying needs and expectations, necessitates that FXCM be one of the most advanced and technologically up-to-date brokers in the world, and they do not fail in these respects. The firm is a partner to world giants like Deutsche Bank and remains one of the most recognized names in the forex brokerage universe.
The tried and tested FXCM Trade Station Platform and the supporting MT4 software, the extraordinarily powerful Active Trader package for clients with more knowledge and experience of forex trading, and an elite maintenance staff that keeps the system rolling, are the strong points of the broker. More than 150,000 traders have voted with their accounts, trading hundreds of millions each month through the broker's reliable system. If the safety and mental ease of trading with a well-established firm are enough to fulfill your expectations from your broker, FXCM is easily the best choice for you.
One of the many ways by which you can trade on the forex market is day trading. In most cases, standard day trading deals are opened and closed on the very same day. It is up to you to decide the number of trades that you want to make throughout the course of the day. However, most people think that all day trades should be closed on the same day. That’s not true. In some cases, a day trading deal may extend longer than a single day. If that happens, the deal is renewed of its own accord at 22:00 GMT each night until it goes in to closure. Of course, you will be charged a small fee for every renewal for the additional 24 hours that you get.
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