Disclaimer: Trading in financial instruments carries various risks, and you can lose more than your capital. This article may contain general advice. You should always seek professional advice when deciding if a product is right for you.
The background behind FXCM and Friedberg Direct
FXCM launched in 1999 and is headquartered in Sydney, Australia. As part of of the broader FXCM Group, it offers forex, CFDs, cryptocurrencies and commodities trading to more than 220,000 clients around the world.
Friedberg Direct was founded in 1971 and is based in Toronto, Ontario. The company manages over $2 billion in assets for both retail and institutional investors. FXCM and Friedberg Direct formed a relationship to allow Canadians to use FXCM products while holding accounts with a Canadian-regulated firm. Friedberg Direct is a member of the Investment Industry Regulatory Organization of Canada (IIROC) as well as the Canadian Investor Protection Fund (CIPF).
When you sign up, you can choose between two account types, depending on your trading experience, or a demo account for practice. The standard account has zero commissions and requires a low minimum of $50 to begin trading, but it has slightly higher spreads. Meanwhile the Active account requires a $25,000 minimum deposit and $3 commission per lot but has spreads as low as 0.2 pips. Here are the features of each account type:
Standard
Active
Minimum opening balance
$50
$25,000
Spreads
From 1.0 pips
From 0.2 pips
Commission per lot
$0
$3
Leverage
1:1 – 400:1
1:1 – 100:1
Minimum trade size
0.01
0.01
How many currency pairs are available to trade?
You can trade up to 39 currency pairs on either the standard or active accounts.
If you’re new to forex trading, you can sign up for a practice account with $50,000 virtual funds and a free forex trading guide. Click on “Practice Account” on the top of any page. You can access your account via the platforms or the mobile app to trade 24 hours a day, 5 days a week.
What trading platforms are available?
You can test each platform with a free practice account.
Trading Station. This is FXCM’s proprietary platform allowing you to trade on your desktop, online and through a mobile application.
MetaTrader 4. This is one of the most popular trading platforms in the world. Buy and sell foreign exchange and CFD with one-click trading. MT4 allows for smooth integration with No Desk Dealing execution.
NinjaTrader. This platform is suited to active traders and offers advanced features for trading foreign exchange, commodities and stocks. This option is not available to Mini account holders.
Specialty platforms. FXCM also offers a range of specialty platforms designed for specific trading needs.
Snapshot of FXCM platform
Feature
Description
Spread fee – AUD/USD
$0.03 per $1,000
Education and resources
Yes
Does it offer fixed spreads?
No
Leverage
400:1 on the standard account
Is it MetaTrader supported?
Yes
Minimum deposit required
$50 for the standard account
Compatible devices
Apple devices
Guaranteed stops
Yes
Payment methods
Credit card, debit card, BPay, wire transfers
Promotional bonus
Lower commission for active traders
24-hour trading
Yes (five days a week)
Demo account available?
Yes
FXCM highlight features
MetaTrader supported. FXCM provides access to global forex markets through four trading platforms: MetaTrader 4 (the most popular trading platform in the world), MetaTrader 5, Trading Station and NinjaTrader. A mobile app is also available to allow you to trade on the go.
Dealing Desk or No Dealing Desk. FXCM pioneered the No Dealing Desk forex execution model (available on Standard and Active Trader accounts), which provides anonymous execution and increased transparency. However, traditional Dealing Desk execution is also available on Mini accounts.
Compatible devices. With apps available for download from Google Play and the Apple App Store, FXCM allows you to trade on Android and iOS devices.
Three accounts. FXCM offers three types of accounts: Mini, Standard and Active Trader accounts. These accounts have different minimum deposits, different spreads and access to different currency pairs. FXCM offers an online wizard to help you choose the account that meets your requirements.
Spread fee. Spreads vary depending on whether you choose a Mini, Standard or Active Trader account. The minimum average AUD/USD spread with FXCM is 1.9 for a Mini account, 0.5 for a Standard account and 0.5 for an Active Trader account.
Leverage. FXCM offers leverage of up to 400:1.
Minimum deposit. You can open a Mini account with FXCM for just $50, and you can start trading right away.
Regulated in Canada. FXCM is a member of the Investment Industry Regulatory Organization of Canada (IIROC) as well as the Canadian Investor Protection Fund (CIPF).
Payment methods available. FXCM accepts Visa, Mastercard and Discover credit cards as well as BPAY, electronic funds transfer and bank wire deposits.
What support is available with FXCM?
FXCM operates an extensive online help section through its website where you can find the answers to trading queries and data. This is backed by a dedicated education section with webinars, video tutorials and a range of trading guides. You can also sign up for FXCM University, a free online course offering trading tips and knowledge.
If you need help, 24/7 customer support is available via phone, email and live chat.
What are the pros and cons of using the provider?
The pros
Free trading tools and education. Besides access to trading platforms, FXCM also provides a number of free trading tools and educational videos and webinars.
Practice account. If you’re new to trading or would like to try one of the platforms, you can sign up for a practice account with $50,000. Once you’re ready to start actually trading, you can sign up for a live account.
MetaTrader 4 supported. You can use MetaTrader 4 in conjunction with FXCM’s other programmes and platforms.
The cons
Risk. There is a great deal of risk involved in trading, especially if you’re new to it and you’re making trades with maximum leverage.
Client support not 24 hours. If you have queries or you need help with trades, you have to wait until the customer support and trading desk lines are open.
Mini clients limited. Mini account holders can only trade in 21 out of the 39 available currency pairs, and only have access to three out of the four trading platforms.
How do I sign up?
You can sign up for a live account online and start trading within one or two business days.
You will be asked to supply identification with your address on it. Either upload scanned versions through the website or send them via fax. Once your account is set up, you can start funding your account.
Did you have these questions about FXCM?
There are no fees for setting up Mini, Standard or Active Trader accounts, but corporate clients pay a once-off maintenance cost of CCY100. The same fee applies to trust, partnership and superannuation accounts.
These are deposits received from an account held by a person or company other than the person trading on FXCM.
The minimum deposit is $25 and the maximum is $20,000 within one calendar month.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs.
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