Our FXCM Review 2025 - 3.5/5

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FXCM in brief

Our opinion of FXCM

We particularly liked the variety of platforms offered by FXCM, including Trading Station, MetaTrader 4, and ZuluTrade, which cater to traders with different levels of experience and preferences. The integration of copy trading through ZuluTrade is a valuable feature for beginners or passive investors looking to replicate the strategies of successful traders. Additionally, the availability of a demo account provides an opportunity for traders to test strategies risk-free.

We would have liked to see a broader range of available assets, such as real stocks and ETFs, to diversify investment options. Additionally, the lack of two-factor authentication on trading platforms raises concerns about account security, and the high bank withdrawal fees reduce its appeal for frequent transactions.

Who is FXCM designed for?

FXCM is best suited to retail forex and CFD traders who value advanced trading tools and platform variety but are comfortable with a more limited asset selection and higher fees for certain services.

Before you zero in on FXCM, explore other options in the market.

Let's find out more about our test results on FXCM.

Security and reliability 3.5/5

FXCM, established in 1999, is a global forex and CFD broker with over two decades of experience in the financial trading industry. It is headquartered in London, UK, and operates under the regulation of several reputable authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Financial Sector Conduct Authority (FSCA) in South Africa.

However, it is not registered with the Ontario Securities Commission (OSC), British Columbia Securities Commission (BCSC), or Alberta Securities Commission (ASC), limiting its oversight specifically for Canadian traders.

The broker caters to a diverse international clientele, but FXCM does not disclose the exact number of its active users. Its reputation has been tarnished by legal and regulatory challenges, including a high-profile ban from U.S. markets due to deceptive practices in 2017. Despite these issues, the broker remains operational and regulated in other jurisdictions.

FXCM has received accolades for its platform and services, such as the “Best Forex Trading Platform” award from reputable industry reviewers. However, its recent recognition has not been as prominent as that of its competitors, highlighting its struggle to maintain a competitive edge in an evolving trading landscape.

FXCM provides basic risk management tools, including stop-loss orders and margin calls, to help traders manage exposure. The broker offers leverage of up to 1:30 for retail clients, complying with regulatory restrictions. However, it lacks more advanced features like guaranteed stop-loss orders, which some competitors provide.

Market and asset diversity 2.5/5

FXCM positions itself as a forex and CFD broker, focusing on providing trading opportunities in a limited range of asset classes. The broker offers forex, indices, commodities, cryptocurrencies, and CFDs on shares, but its asset selection falls short compared to market averages. This restricts diversification options for traders seeking broader market exposure.

Below is a comparison of FXCM’s available assets versus market averages:

Our opinion on FXCM's offerings

FXCM’s limited asset diversity places it at a disadvantage compared to brokers offering access to real stocks, ETFs, and a broader selection of CFDs. While it provides sufficient options for forex and basic CFD trading, traders seeking comprehensive portfolio diversification may need to look elsewhere.

Platforms and tools 3.5/5

FXCM offers a variety of trading platforms designed to cater to different trader profiles, from beginners to advanced users. While the platform selection is robust, certain limitations in tools and features detract from the overall user experience.

Available Platforms

• Trading Station: FXCM’s proprietary platform, offering advanced charting tools, technical indicators, and automated trading capabilities. However, the interface feels outdated compared to modern trading platforms.
• MetaTrader 4 (MT4): A widely popular platform that provides comprehensive trading features, including custom indicators, Expert Advisors (EAs) for automated trading, and robust charting tools. Despite its versatility, it lacks integrated features for direct social trading.
• NinjaTrader: Known for its advanced charting and technical analysis tools, NinjaTrader caters to experienced traders but is less beginner-friendly.
• ZuluTrade: FXCM’s copy trading platform that enables users to replicate the strategies of experienced traders. It’s an excellent option for passive investors but incurs additional subscription fees for certain services.

Analysis Tools and Decision Aids

• Market Research: FXCM provides a range of research tools, including economic calendars, news feeds, and market analysis reports. However, these tools are basic compared to brokers offering AI-driven insights or customizable screeners.
• Charting Tools: The platforms support detailed charting with a variety of technical indicators, but the absence of advanced tools like multi-chart views or strategy backtesting limits functionality for professional traders.
• Order Types: FXCM offers standard order types, including market, limit, and stop-loss orders. Trailing stops and conditional orders are also available, but the lack of guaranteed stop-loss orders reduces risk management options.

Fees, spreads and commissions 3/5

FXCM’s fee structure is competitive in some areas but higher in others, especially when compared to market averages. Below is a comparison of spreads and fees for some of the most traded asset classes:

Other Fees

FXCM’s fee structure includes some costly charges, particularly for withdrawals and inactivity, which may deter traders who prefer lower operational expenses.

• Deposit Fees: No fees are charged for deposits, making it cost-effective to fund your account.
• Withdrawal Fees: A $40 fee applies to international bank transfers, significantly higher than the industry average of $15-$25.
• Overnight Fees (Swaps): Variable fees are applied based on the asset class and the position held overnight. These fees can add up for long-term trades.
• Inactivity Fees: FXCM charges a $50 fee after 12 months of inactivity, which is higher compared to the market average of $10-$25.

How is FXCM's price positioning?

FXCM’s fees are higher than the market average for key asset classes such as forex, indices, and cryptocurrencies. The withdrawal fee for international bank transfers is also notably high, reducing its appeal for global clients. On the positive side, the absence of deposit fees and availability of commission-free trading on certain assets add some value. Overall, FXCM’s fee structure is functional but less competitive, making it more suitable for traders with a focus on specific assets rather than diversified portfolios.

Customer reviews 3.6/5

FXCM has a Trustpilot rating of 3.6/5 based on 577 reviews, reflecting a mixed user experience where some traders appreciate its platform variety and tools, while others criticize its limited asset diversity and high fees for certain services.

Here are some recent testimonials from Canadian users:

• Michael T (February 12, 2024): "I’ve been using FXCM for about six months now. While I appreciate the advanced charting tools on Trading Station, I’ve noticed that spreads on forex pairs like EUR/USD are slightly higher than I expected. Customer support was quick to respond when I had issues setting up my account, but the $40 fee for international withdrawals is disappointing."
• Sarah L (May 8, 2024): "As someone new to trading, I found the demo account on FXCM really helpful for learning the basics. However, when I moved to a live account, I realized that their asset selection is limited—no real stocks or ETFs, which is a downside for long-term investments. The platform is easy to navigate, but the lack of guaranteed stop-loss orders left me nervous about risk management."
• Kevin J (January 3, 2025): "I started trading cryptocurrencies on FXCM, but the fees are higher than what I’m used to with other brokers. On the positive side, their integration with ZuluTrade is a great feature for copy trading, and I’ve learned a lot from following experienced traders. That said, the platform’s lack of two-factor authentication for extra security is a big concern for me."

How is FXCM positioned in relation to its competitors?

Conclusion of our review on FXCM

FXCM provides a solid range of trading platforms and offers copy trading through ZuluTrade, which is a unique feature compared to many competitors. However, its asset diversity is narrower, and its fees, particularly for spreads and withdrawals, are less competitive.

While the broker is regulated by respected authorities, its limited focus on innovation and additional features like no-cost withdrawals or a broader asset range places it at a disadvantage in the market.

Before opening an account with FXCM, compare the best brokers in Canada:

What types of accounts are available with FXCM in Canada?

Standard Account

The Standard Account requires a minimum deposit of $50, making it accessible for beginners and intermediate traders. It provides access to forex, indices, commodities, cryptocurrencies, and CFDs on shares with leverage up to 1:30. Spreads start from 1.3 pips, and copy trading is available via ZuluTrade. 

Premium Account

The Premium Account is designed for high-volume and professional traders, requiring a $20,000 minimum deposit. This account offers lower spreads than the Standard Account while maintaining access to the same assets and leverage up to 1:30. Copy trading is also available through ZuluTrade.

Demo Account

FXCM’s Demo Account provides $50,000 in fictitious capital for traders to practice strategies and explore platform features. It mimics the trading conditions of the Standard Account, including access to the same asset classes and simulated spreads. This account is ideal for beginners or experienced traders testing new strategies without risking real capital.

Islamic Account

FXCM offers an Islamic account designed to comply with the principles of Islamic finance. This account eliminates interest charges on overnight positions, replacing them with a fixed administrative fee.

The Islamic account is available upon request and is specifically tailored for traders adhering to Sharia law, providing a trading solution that aligns with their financial and ethical values.

Deposits and withdrawals at FXCM: How does it work?

FXCM provides a standard range of deposit and withdrawal methods, including bank transfers, credit/debit cards, and popular eWallets like Skrill, Neteller, and PayPal. While deposits are typically free and processed quickly, the broker's withdrawal fees, such as the $40 fee for international bank transfers and percentage-based fees for cards and eWallets, are higher than the industry average.

In contrast, many competitors offer fee-free withdrawal options for most payment methods. Additionally, the 3-5 business days required for bank transfer withdrawals is slower than the near-instant processing times some brokers provide for all methods.

FXCM’s payment system is reliable but less cost-effective for active traders or those requiring frequent fund withdrawals, making it less competitive compared to brokers with no-cost or faster withdrawal options.

Does FXCM offer copy trading?

FXCM does offer copy trading through its integration with ZuluTrade, a well-known third-party platform designed for replicating the strategies of experienced traders. This feature is particularly useful for beginners or passive investors who prefer not to trade actively.

Software/Platforms Used

• ZuluTrade: This platform allows users to select from a wide range of professional traders, evaluate their performance, and automatically replicate their trades. The platform also provides detailed statistics and ratings for each trader to help users make informed decisions.

Number of Traders to Copy

• ZuluTrade offers access to hundreds of traders from across the globe. Users can filter and choose traders based on parameters such as risk level, profitability, and trading history.

Additional Fees

• Copy trading with ZuluTrade may incur additional subscription fees, which can vary depending on the trader being copied and the trading volume. These fees are separate from the regular spreads and commissions charged by FXCM.

Copy Trading Features

• Risk Management Tools: ZuluTrade provides features like stop-loss limits and risk allocation settings, allowing users to manage their exposure.
• Diverse Strategies: Users can choose traders employing different strategies, from aggressive high-frequency trading to conservative long-term investing.
• Performance Metrics: Detailed trader profiles display important metrics such as total return, drawdown levels, and consistency.

What is the tax treatment of income generated by FXCM?

Income generated through trading with FXCM in Canada is considered taxable income and is subject to the regulations set by the Canada Revenue Agency (CRA). The type of tax applied depends on the nature of your trading activity, classified as either business income or capital gains.

Applicable Tax Regime for FXCM Trading Income in Canada

• Business Income: If trading is your primary occupation or you engage in frequent and systematic trading, your earnings are classified as business income and taxed at your marginal tax rate.
• Capital Gains: If trading is occasional or done as a form of investment, 50% of the profits are taxable under capital gains tax.

How to declare trading income or revenues

• Maintain Accurate Records: Keep detailed records of all trades, including dates, amounts, fees, and profits or losses. FXCM provides account statements that can assist in maintaining accurate records.
• File Your Taxes Annually: Report your trading income on your tax return using the appropriate forms:
• For business income, use Form T2125 (Statement of Business or Professional Activities).
• For capital gains, use Schedule 3 (Capital Gains or Losses).
• Deduct Eligible Expenses: You may deduct certain trading-related expenses, such as platform fees, withdrawal charges, or educational resources, depending on your classification.

Points to remember while filing your taxes

• Trading losses can offset profits either in the same year or carried forward/backward to reduce taxable income.
• Always consult a tax professional to ensure compliance with Canadian tax laws and to determine the proper classification of your trading activity.
• The CRA has stringent rules for declaring foreign income, so report all earnings accurately, even if FXCM accounts are held in other currencies.

Contact: How do I contact FXCM customer service?

FAQs

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.