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David Waring 08-19-2008 08:22 PM

FXCM (Forex Capital Markets) Reviews
A Review of Forex Capital Markets (FXCM)

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In my opinion Forex Capital Markets (FXCM) offers the most comprehensive services, and best trading experience in the forex industry.

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In our last lesson we finished up our module on factors to consider when choosing a forex broker, with a look at some of the important factors to consider when evaluating a firm's customer service. In today's lesson we begin the last module of our free forex trading course, with a review of the firm which I feel is the leader in the retail forex market, FXCM.

Before I get started with this review, there are two things that viewers should be aware of if they are not already.

1. As I state fairly often in the community discussions over at, before leaving to start InformedTrades and focus on my own trading, I worked for FXCM for 7 years. With this in mind some will obviously say that my opinion is biased by this fact, and there is no question that this is the firm that I am the most familiar with.

2. As InformedTrades community member and Airelon pointed out recently in his blog, like with most things, there is unfortunately no one brokerage firm that is going to fit 100% of everyone's needs. It is for this reason that I am wrapping up the forex course not only with a review of my preferred broker, but also with a 5 video series on factors to consider so that you don't have to rely on my choice, but can be informed enough to evaluate and choose a broker based on your own research.

Now that we have that out of the way, the primary reason why I have chosen to recommend FXCM, is that in my opinion they are the firm that has the highest quality offering, when taking into account the points I have outlined in my last series of videos. For this video I will quickly go over each of those points, and then in the videos that follow, we will delve a little deeper into some of the ones that I think are the most important.

As I pointed out in my first video on important factors to consider when choosing a forex broker, regulation and stability are the most important factors in my opinion for the retail forex trader to consider. As you can see for yourself on the financial data for FCM's page we also covered in that video, as of this lesson FXCM is one of the best capitalized FCM's in the United States, with over $70 Million in liquid assets and over $55 Million in excess net capital.

In addition to being registered and regulated in the United States, FXCM also has offices and is registered in the United Kingdom, Hong Kong, Japan, and Canada. This means not one but 4 regulatory agencies oversee the firm, and also that traders are able to open regulated accounts in most of the major countries where forex is traded.

As for transaction costs, FXCM offers commission free trading like most brokers, and spreads and execution which from my experience are very competitive, especially in volatile market conditions where execution quality tends to drop substantially with many other brokers.

The firm offers a variety of different platforms, including their flagship FXCM Trading Station, as well as professional and web based trading platforms. The two things that traders often want which are not currently offered as of this lesson, are mobile trading and the Metatrader Platform, which they are currently working on integrating.While FXCM is highly competitive in the above categories, my two favorite things about them are the value added services and high quality of customer service that they offer. FXCM has a huge research team which puts out multiple pieces a day on the market which you can find at For live accounts they also give free access to the premium section of Dailyfx, called Dailyfxplus which offers real time news, trading signals, trade recommendations, and charts with real time technical levels posted throughout the day.

From a customer service standpoint they are open 24 hours a day 7 days a week, and traders can reach their customer service desk via phone, email, chat, and forums. For traders who do not speak English, they also have support in a variety of different languages including Spanish, French, German, Mandarin, Cantonese, Russian, Arabic, and Portuguese.

That's our lesson for today, in our next lesson I will give a walkthough of FXCM's premium service for live clients Dailyfxplus so I hope to see you then.

As always if there are any questions or comments please leave them in the comments section below, and good luck with your trading!

FXCM's Active Trader Platform

FXCM also offers a platform designed for short term traders who desire the ability to see Level II Type Market Depth, which shows how much liquidity is available at a given price. The Active Trader Group also provides lower spreads for high-volume traders. The combined transaction costs (spreads + commissions) should be substantially lower than typical FXCM Standard Accounts. Minimum requirements to join are a $25,000 deposit or 10M per month in notional volume. Click here for my review of FXCM's Active Trader platform.

ARIANNE483 09-30-2008 09:51 PM

Hi David,
In the account summary of the fx reports in their demo acoount,there are some other fees like withdrawal fee,management fee,performance fee,and some othe comission fee,if i will open a live account in fxcm,what other fees do i need to pay aside from the spreads?I just wanna know coz i'm planning to open an account in fxcm,but for now i'm still in your site making sure that i'm well informed...
Glad to hear if you have something in reply...thank you very much David...I learned so much from your site,more power&God speed.....


David Waring 10-01-2008 09:10 AM

Hi Arianne483,

Glad to hear from you.

With the exception of wire fee, all of the lines you have mentioned are only applicable if someone is managing your account for you. If you are self trading your account then none of those other lines are applicable.

The wire fee relates to if you choose to withdraw money and have it electronically wired to your bank account there is I believe a $25 fee for that for domestic wires and a $40 fee for international wires. If you prefer not to pay that you can have a check sent for free.

As far as trading goes however all you pay is the spread. Hope that helps.

Best Regards,

ARIANNE483 10-08-2008 02:16 AM

international account
Hi David,
How are you doing?I just wanna ask about how to open an account on fxcm micro?what's the requirements being the fact i'm from outside the US?I really wanna open an account this week but don't know how to start it...but i wanna try the micro lot first cuz i wanna see how much i have learned in my forex lessons...
your reply will be highly appreciated...thank you David.God speed....


David Waring 10-08-2008 05:00 PM

Hi Arianne83,

Glad to hear from you.

About 50% of FXCM clients are not from the US so you should have no problem opening an account there. Simply goto and click the "open a live account" link on the left hand side of the page and go through all of the steps and they will have your account open in a couple of days.

Best Regards,

ARIANNE483 10-13-2008 04:55 PM

Hi David,
Just wanna ask if how much would it cost me in micro lot if i earn 1.25 US dollar.How the micro lot spread works?And is it still safe to invest in fxcm in this scary situation of the US financial turbulence?The whole world is looking of the falling US financial market and along with that is the fears of the many investors to trust in your economy.Are investors still safe in fxcm?Can i pay through western union?
I need your reply please....thank you so much David....have a nice day...


David Waring 10-13-2008 05:19 PM

Hi Arianne,

Glad to hear from you.

The spread on the micro lot works exactly the same way as on the standard and mini platform but, as the contract size is 1/100th of the standard contract and 1/10th the size of the mini contract the dollar cost of the spread is also 1/100th of the standard account and 1/10th of the mini account.

So for example if the spread on the EUR/USD is 2 pips for example then this would be 20 cents on the micro account, $2 on the mini account, or $20 on the standard account.

FXCM is a very liquid company with over $78 Million in liquid assets listed on the last CFTC Financials Report. In addition to this, the company does not rely on the debt markets to finance their operations. With these two facts in mind, in my opinion FXCM is a safe company to have money with in the current environment.

Hope that helps. If there are any other questions or comments please feel free to post as always.

Best Regards,

themillionaire08 11-02-2008 11:09 AM

I've been trading live for a month now and they're OK, I wish if they can add H4 to their Market place platform.


David Waring 11-02-2008 05:14 PM

Hi themillionaire08,

Glad to hear from you and glad you have had a good experience with FXCM so far.

What is the H4 that you refer to I am not familiar with that.

Best Regards,

themillionaire08 11-03-2008 01:52 AM

I mean 4 hours time frame


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