FOREX .com vs FXCM: Which Forex Broker is Better in 2023?

Taylor Aven May 23, 2023

0 1 5 minutes read

Hello again with another comparison! I’m here to go on a friendly rant on two of 2023’s most well-known forex brokers: FOREX .com and FXCM . As someone who has dabbled in the thrilling world of currency trading, I feel qualified to offer my insights into the aforementioned venues . Join me as I compare these two titans and help you decide which one takes the crown whether you are a seasoned investor or a curious newcomer to the world of forex . If you are ready, let’s jump straight into the reviews .

FOREX .com: One of the Household Names of the Industry

Okay everyone, sit back and listen to my review of FOREX .com! Having traded with this global online broker for a while and learned a thing or two about what they offer I feel qualified to dish the dirt . Founded in 2001, FOREX .com is now a major player in the trading industry as a subsidiary of GAIN Capital Holdings . Their portfolio includes industry heavyweights like City Index and Daniels Trading, proving they know what they’re doing . Institutional-grade platforms and market expertise led to their acquisition in 2020 by StoneX Group Inc . (NASDAQ: SNEX), a publicly traded company .

FOREX .com is unique due to the variety of markets it provides for traders around the world . They offer a wide range of investment options, from CFDs and spread betting to futures . Foreign exchange, commodities, indices, stocks, bonds, exchange-traded funds, gold, silver and cryptocurrencies are all available . That right there is a veritable feast fit for any and all traders . Oh, and I forgot to mention that they also offer account security for customers (in Europe at least) . You can rest easy knowing that your assets are protected thanks to the included negative balance protection and guaranteed stop loss orders both of which are required by ESMA .

Okay, so what makes FOREX .com so special? One of the first things you’ll notice is how simple and straightforward their website is to use . They offer a variety of user interfaces and high-quality learning and research resources to help you become a successful trader . In addition, they are approved by the CFTC as a registered FCM and RFED under regulatory supervision . In my opinion that’s a major plus!

The clincher is that FOREX .com has the data to back up its claim that it is the most popular FX broker in the United States . Their market dominance is clearly demonstrated in the CFTC Retail Forex Obligation report for June of 2020 . They have the firepower to satisfy even the most seasoned traders, with leveraged access to more than 80 currency pairs and competitive spreads .

Now, let’s not ignore the downsides . There are some ways in which FOREX .com could improve, despite its many strengths . For my readers in the US, take note: negative balance protection is not an option, so please proceed with caution . And what about the assured stop-loss orders? I’m sorry but there is none . Consider whether or not these characteristics would prevent you from using this trading strategy .

Finally let’s talk about the most obvious problem: the online presence . Although FOREX .com is fairly simple to navigate there are a few pages that could use some work . Their attention to detail is lacking and it’s the kind of thing that can leave you scratching your head when you read it .

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FXCM: Truly an Impressive Broker

Now you know it’s time to talk about FXCM! This market-making broker from New York has been around since 1999 so it has made quite an impression in that time . FXCM is serious about compliance now that its headquarters are in London, UK and it is regulated by the esteemed Financial Conduct Authority (FCA) and other strict regulatory authorities around the world .

FXCM provides a selection of trading accounts to meet the needs of individual traders . They provide the bare necessities such as access to forex and CFD instruments (including commodities and cryptocurrencies) and leverage to help you make the most of your investments . But FXCM’s strength lies in its extensive library of plugins and companion programs so get ready to be impressed . It’s a trading carnival in here! FXCM offers a wide variety of trading platforms including their proprietary Trading Station as well as the widely used MetaTrader 4, the copy-trading platform ZuluTrade and the powerful NinjaTrader, among others . How about that for adaptability!

Let’s cut to the chase though . Is there anything special about FXCM that sets it apart from the competition? For starters, trading forex and CFDs don’t have to break the bank, and you can get started with their low minimum deposits for their Standard Account . Plus, hold on to your hats because FXCM is unrivaled in terms of selection . The sheer variety of plugins available for use with their Trading Station and MT4 platforms will blow your mind . They also have something called an Active Trader account, which provides access to premium features like API connectivity and improved trading conditions . It’s a dream come true for investors who prefer almost any trading strategy .

Let’s not overlook customer service in the meantime . FXCM has their traders’ backs because they understand how important it is to be there for them . Their customer service team is available via multiple channels, including email, phone and live chat, and they have a solid reputation for responding quickly and effectively to inquiries . We could all use that kind of help as we negotiate the economic waters .

However FXCM does have some drawbacks just like any other broker . Some traders may be put off by the relatively sizable Active Trader account minimum . Also FXCM’s extensive trading options do not come without cost . You risk losing some of the protections afforded by the Financial Consumer Act .

Let Me Sup It All Up:

Now that we’ve looked at the advantages and disadvantages of both brokers, we can answer the burning question: which one is better for you, FOREX .com or FXCM? In the end, it will come down to your own trading requirements and preferences . FOREX .com could be the best option for you as a trader if you’re searching for a reputable international broker with a wide selection of services . They appeal to a wide range of investors thanks to features like a large selection of assets, low spreads and strict regulation . Their website’s accessibility and high-quality learning and investigation resources are additional factors contributing to their prominence .

However, if you want a wide range of options when it comes to trading platforms and add-ons, FXCM is your best bet . Trading Station, MetaTrader 4, ZuluTrade and more are just some of the popular platforms they support and their wide selection of plugins makes them a developer’s and a trader’s paradise . In addition they have low required deposits and provide helpful customer service .

Ultimately, your priorities should guide your decision between FOREX .com and FXCM . Is a broker with a strong regulatory background and a diverse selection of services important to you? If so, FOREX .com might be what you’re looking for . What about plugin diversity, platform adaptability, and a sandbox for your trading strategies? If so FXCM could be the broker that best suits your trading needs .

Final Words

Keep in mind that trading is a personal experience; what works for one trader may not for another . Consider your trading objectives, methods and personal preferences . Think about the advantages and disadvantages of each broker and choose the one that fits your requirements best . Best of luck in the markets to you . See you on the next time .