After testing 16 spread betting firms, I found FXCM scored well for its range of markets and trading experience. However, its trading costs let it down. In this FXCM spread bet review, I share my testing feedback for each criteria based on how the broker performed during typical trading hours.
FXCM Summary
I found that FXCM performed well in a few areas of my testing, like customer service and trading experience, contributing to the broker’s total score of 64/100. The broker scored 7/10 for its trading experience thanks to offering a range of trading tools and Capitalise.ai, which provides a no-code solution for automating your strategies. These tools make FXCM an attractive option if you want to automate your spread betting strategies.
However, the broker performed surprisingly average for a large broker on the rest of my tests, which is why it scored lower than its main competitors. One fundamental reason for this score is the broker underperformed in the high trading costs , with 4 of the 9 currency pairs tested being more expensive than the industry averages.
*Your capital is at risk ‘64% of retail CFD accounts lose money’
During my live account testing, I found FXCM’s spreads highly competitive and stable throughout the trading day. The EUR/USD spread averaged 1.0 pips, fluctuating between 0.90 and 1.20 pips throughout the day. I liked that the spreads remained stable, fluctuating by only 0.10 pips in my tests, which is a sign of a decent spread betting broker. These competitive spreads are common throughout all of its markets, which is why I believe FXCM is well-positioned as a low-spread spread betting broker.
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Spread Bet Spreads
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1.00 | 1.30 | 1.60 | 1.30 | 1.50 |
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0.80 | 1.10 | 1.40 | 1.00 | 1.40 |
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0.90 | 1.20 | 1.40 | 1.10 | 1.80 |
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1.00 | 1.10 | 1.50 | 1.20 | 1.50 |
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0.85 | 1.40 | 1.40 | 0.82 | 1.77 |
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1.10 | 1.30 | 1.60 | 1.20 | 1.60 |
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1.20 | 1.30 | 1.30 | 1.20 | 1.70 |
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1.00 | 1.50 | 1.50 | 1.00 | 1.80 |
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1.30 | 1.50 | 1.50 | 1.50 | 1.50 |
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0.90 | 1.40 | 1.40 | 1.30 | 2.20 |
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0.90 | 1.20 | 1.60 | 1.50 | 1.80 |
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1.10 | 1.50 | 1.40 | 1.40 | 1.70 |
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1.20 | 1.50 | 1.50 | 1.40 | 1.80 |
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1.90 | 1.20 | 2.00 | 1.00 | 1.70 |
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1.40 | 1.70 | 1.60 | 1.40 | 1.80 |
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1.40 | 1.40 | 1.70 | 1.90 | 1.70 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 20/09/2024
In the table below, I compared the FXCM spread to the industry average. Except for the EUR/USD, the broker consistently had slightly above-average spreads.
| FXCM Average Spread | Average Industry Spread | |
|---|---|---|
| EUR/USD | 1.0 | 1.12 |
| AUD/USD | 1.3 | 1.26 |
| EUR/GBP | 1.3 | 1.35 |
| GBP/USD | 1.6 | 1.53 |
| USD/JPY | 1.3 | 1.26 |
| AUD/JPY | 1.8 | 1.86 |
| EUR/JPY | 1.8 | 1.85 |
| USD/CAD | 1.5 | 1.69 |
| USD/SGD | 3.0 | 2.81 |
To help calculate how spreads impact trading fees, use the fee calculator I created to compare FXCM with their main competitors.
Calculate Your Cost To Spread Bet
Total Cost of Spread Bet
Total Cost of Spread Bet
Total Cost of Spread Bet
Total Cost of Spread Bet
I tested other markets, such as indices, and discovered that FXCM maintains its competitiveness with spreads as low as 1 point. I compared the next most popular instrument for trading, which is shares. Below are the fees by each market with FXCM being above the industry average except for the US.
| Share Category | FXCM Spread | Industry Average |
|---|---|---|
| UK Shares | 6pt | 5.19pt |
| US Shares | 0.15% | 0.16% |
| Geman Shares | 0.20% | 0.15% |
| Hong Kong Shares | 0.25% | 0.20% |
| Australian Shares | 0.20% | 0.17% |
Verdict on FXCM’s Spreads
Based on my findings, FXCM delivers tight spreads and has positioned itself as one of the lowest spread brokers for spread betting. I like that the broker offers discounted spreads through its Active Trader Program, which will appeal to high-volume bettors. If you meet the program’s requirements, I think beating FXCM for the lowest spreads will be tough.
FXCM offers multiple platforms, including its proprietary Trading Station and MetaTrader 4, which provide advanced charting features, decent charting, and automated trading.
I found MetaTrader 4 to be a decent platform for technical analysis. It offers 30+ technical indicators, such as moving averages, MACD, and RSI, and drawing tools like trend lines.
One of MetaTrader 4’s standout features is the ability to automate your spread bets with Expert Advisors (EAs). These can execute your bets, manage your risk, and find new signals based on your trading rules, allowing you to monitor and bet on multiple financial markets 24 hours a day.
Unfortunately, developing your own EAs requires coding knowledge, which is why I was impressed with FXCM’s offering Capitalise.AI. This tool makes it easy for anyone to automate their strategies without coding. You simply give the AI your trading rules, and it’ll automate them for you.
The major drawback of MT4 is that you cannot spread bet on shares. If share dealing is important, you must use the Trading Station instead.
Trading Station has two versions: a desktop platform and a web platform. I found the desktop version more advanced. It allows you to add custom indicators, engage in automated trading, integrate with Capitalise AI, or use custom API to develop bespoke algorithmic trading solutions.
As for charting, you get 60+ indicators, such as Bollinger Bands, Stochastic, and ADX, giving you solid options for technical analysis and more indicators out of the box than MT4.
While the web version has the same charting capabilities, it lacks custom indicators and automated trading functionality. Visually, the UI is very basic, but you’ll find everything you need in reach with a chart, economic calendar, and watch list. I think the search toolbar is an excellent addition for quickly finding a market without adding it to a watchlist.
Unlike MT4, you can access all of FXCM’s markets with Trading Station, making it the better option for multi-asset trading.
FXCM offers a Trading Station mobile trading app on Android and iOS, which I found very similar to the web platform. The key difference is the ability to set and receive push notifications based on your price alerts, which is helpful to ensure you never miss a bet. I was pleased to see that you can still access the same number of indicators, allowing you to set up your mobile charts for on-the-go market analysis.
Alternatively, MetaTrader 4 also has a mobile trading app, but I found the features to be much more limited in my testing. You cannot use your custom indicators or EAs on the app, making it hard to bet on the go if you rely on these features. While you can set price alerts for push notifications, I think the MT4 mobile app is best suited for trade management while on the go rather than analysing the markets.
The broker has some solid trading conditions, and although not the fastest broker, it still provides fast execution speeds based on my tests, placing it in second place.
| Broker | Overall | Limit Order Speed | Limit Order Rank | Market Order Speed | Market Order Rank |
|---|---|---|---|---|---|
| Pepperstone | 1 | 77 | 1 | 100 | 1 |
| FXCM | 2 | 108 | 3 | 123 | 2 |
| City Index | 3 | 95 | 2 | 131 | 3 |
| FxPro | 12 | 151 | 5 | 138 | 4 |
| CMC Markets | 16 | 138 | 4 | 180 | 6 |
| IG | 17 | 174 | 6 | 141 | 5 |
FXCM achieves fast execution times as it is a market maker that allows near-instant execution, as all of your bets will be placed with the broker. To help get the fastest speeds and best pricing, the broker taps into 15+ liquidity providers.
Verdict On FXCM Trading Platforms
I think it’s important to have a choice of spread betting platforms, and with access to MetaTrader 4 and Trading Station, you have two top options for technical analysis. Not all brokers offer automated spread betting, so it’s good to see that FXCM has invested in making it accessible to everyone through its Capitalise.ai integrations.
64% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Yes, FXCM is safe, regulated by the Financial Conduct Authority, and has been around since 1999, making it one of the oldest spread betting brokers in the UK. According to FXCM, the broker has over 220,000 active clients, 700 institutional clients, and an annual retail trading volume of $3.9 trillion. Based on these facts, I gave them a trust score of 78, rating them highly trustworthy.
FXCM is regulated by the Financial Conduct Authority (FCA), which is seen as the leading financial regulator in the world for its operational and client protection frameworks. These frameworks ensure the broker segregates your money from their business funds, protecting you if the broker goes bankrupt.
The FCA also introduced negative balance protection for all FCA-regulated brokers, which prevents you from owing the broker money should you suffer losses that would take you below zero.
With FXCM being regulated by the FCA, you have access to these protections and more, which will improve the overall transparency and security of your trading experience with the broker.
In addition to the FCA, FXCM is also regulated by several top regulators, including:
| Regulator | Tier | Country |
|---|---|---|
| Financial Conduct Authority (FCA) | Tier 1 | United Kingdom |
| Australian Securities and Investments Commission (ASIC) | Tier 1 | Australia |
| Cyprus Security and Exchange Commission (CySEC) | Tier 1 | Cyprus/Europe |
| Canadian Investment Regulatory Organization (CIRO) | Tier 1 | Canada |
| Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) | Tier 1 | Germany/Europe |
| Financial Sector Conduct Authority (FSCA) | Tier 2 | South Africa |
As you can see in the table above, FXCM is well-regulated across multiple jurisdictions. When I see a broker with multiple regulators, I see this as a strong signal that the broker has had to meet the expectations across different authorities and frameworks.
FXCM has a long and well-respected reputation in the forex trading industry. As mentioned, acquiring 220,000+ clients that process almost $4 trillion in trading volume suggests the broker’s trading services are sound. The 700 institutions that use FXCM to manage and deal with their financial services also support this. Only top brokers with outstanding execution services and platforms can attract financial institutions.
Not only do they get support from their clients, but they are also well-praised by the industry. They have received over 40 awards, including “best forex broker” and “best trading platform,” from Forex Magnates, ADVFN, and Investors Chronicle.
To get a broader perspective of FXCM’s services to its clients, I like to see how the broker performs on TrustPilot, where clients can leave their reviews. FXCM has earned a “Great” rating from TrustPilot, scoring 4.0 out of 5 with 530 reviews. Considering its popularity, I was surprised that the broker has had so few reviews. Even so, it is clear that traders are happy with FXCM’s services, which gives them a high score.
Verdict on FXCM’s Trustworthiness
FXCM is clearly a trustworthy broker with its 220,000 strong client base and $3.9 trillion in annual trading volume, which the broker wouldn’t achieve if it were not trusted. Plus, the fact that the FCA regulates the broker and has received 40+ awards over its 20-year history shows that they are not a one-hit-wonder.
64% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
FXCM has a wide range of funding options, from debit cards to e-wallets like Skrill, giving you plenty of options for quickly and securely depositing your funds.
FXCM’s minimum deposit is £50 for all its nine deposit options, giving you a low barrier of entry to start betting with the broker. Although this opens the door to bettors with smaller budgets, I think you should be depositing at least £500 to open a few bets.
To fund your FXCM spread betting account, you can use any of the following account base currencies:
FXCM provides nine deposit options, these are:
I am impressed with the range of deposit options available with FXCM, offering nine choices giving you alternative options like e-wallets instead of debit cards or bank transfers. The broker has an extensive selection of funding guides on its website to help make deposits using any method, which is a nice touch.
Debit cards and e-wallets will take one business day to appear in your trading account, while wire bank transfers can take up to two business days. To test this, I deposited using a debit card, which took one day to land in my FXCM account, which aligns with the broker’s processing timelines.
As far as deposit fees go, I wasn’t charged anything for my deposit, but FXCM does state that they do not have any. I should highlight that any fees that appear during the deposit process are charged at the processor level (like Skrill or PayPal).
Withdrawing from FXCM was simple. You can access the withdrawal request in your myFXCM portal. Depending on your withdrawal method, the funds can take up to 2 business days to return to your account.
I found that FXCM doesn’t charge you to withdraw funds, and most options have no minimum withdrawal amount. However, I should point out that if you withdraw from a wire transfer (non-BACS) payment system, there is a £15 withdrawal fee.
I found opening an account with FXCM was easy, thanks to its step-by-step application process. You can choose your trading platform and base currency in the initial steps. Afterwards, there is a questionnaire to determine your trading knowledge, employment/financial status, and tolerance to risk. I appreciate that you can contact Live Chat through the application if you are stuck on the application.
After completing the questionnaire, you must submit your proof of address and ID documents to verify the account (this is required by law by the FCA). Once the application is approved, you can make your initial deposit.
Verdict On FXCM Funding
I like how FXCM makes it easy to start by offering nine funding methods, including traditional and digital methods like e-wallets. The low minimum deposit of £50 makes the broker appealing to spread bettors with smaller funds to get started.
FXCM is a multi-asset spread betting broker offering over 450+ financial spread betting markets ranging from forex to shares, which is a solid offering compared to the rest of the industry.
During my testing, I discovered that FXCM offers 41 forex pairs for spread betting, focusing primarily on major and minor pairs. While this may not be the widest foreign exchange market selection available, I believe having access to the major and minor pairs would appeal to most spread bettors. Spread betting on exotic pairs requires specialised knowledge and has different characteristics, so I don’t think the absence of these pairs will significantly impact your decision.
FXCM provides 21 commodity markets focused on only popular commodities like gold, silver, and oil. However, seeing other commodities like wheat and corn allows you to spread bets on soft commodity markets.
You can spread bet on 15 indices, including major stock indices such as the FTSE 100, DAX 40, and S&P 500. In addition to traditional indices, the broker provides indices baskets for currencies and stocks such as FAANG (Facebook, Amazon, Apple, Netflix, Alphabet). I think this is an interesting offer as it gives you a low-cost way of speculating on a group of assets instead of individually, which is something I haven’t seen many brokers offer.
One of the standout features of FXCM is its extensive share trading offering. With access to over 350 stocks from major exchanges in the US, EU, Hong Kong, and the UK, you can spread bet on popular shares like Barclays and Tesco without incurring commissions or stamp duty.
Surprisingly, the broker offers only one ETF, the Sprott Uranium Miners ETF, which I think is an unusual choice. It would be nice to have access to other ETFs like QQQ or SPY to track the more popular US markets.
FXCM offers a decent range of 10 treasuries and interest rates that compete with other top brokers like IG and CMC Markets, which are known for their variety of market access. You can spread bet on US and UK treasuries as well as the BUND and interest rates like SONIA (Sterling Overnight Interbank Average) Rate
Verdict On FXCM Trading Products
FXCM offers a decent 450+ range of markets, allowing you to bet on multiple markets, especially with low spreads. Considering how large FXCM is, I was surprised that they offer some of the fewest forex and commodity markets I’ve tested. That said, FXCM still offers all the popular trading instruments, so unless you bet on exotics, you won’t miss out on FXCM.
FXCM offers live chat as its first point of contact for customer support, which I found excellent. Live chat support is available 24/5, and I connected instantly with a support agent who answered my questions promptly.
I’m a fan of their opting for customer service through phone support, as this lets you quickly get in touch for urgent questions/account-related issues. Something that live chat cannot always help you with.
Another great feature is the ability to request a callback from FXCM’s support team. Simply leave your contact information, and they will call you back at the next opportunity. I found this very convenient as it frees up your time instead of waiting on hold.
In addition to phone and live chat, FXCM offers support via a few channels I rarely see from online brokers: email, WhatsApp, and even SMS text. These additional service channels provide extra flexibility for getting help in your preferred way.
Alternatively, FXCM has compiled a comprehensive library of articles and FAQs that quickly answer many common questions, which is useful for troubleshooting your questions before contacting support.
Verdict On FXCM Customer Service
I like that FXCM gives you multiple options to contact support, including live chat, telephone, and email, allowing you to contact them through your preferred method, which is a nice touch. When using FXCM’s customer service in my tests, I appreciated how fast I could access a human agent through Live Chat, making it quicker to solve my questions.
FXCM supplies you with a solid choice of market analysis consisting of market commentary and trading signals while providing educational resources like webinars and online guides.
FXCM Market Analysis
The broker offers its free insights into current and upcoming market events across each market sector. I liked that part of the commentary involved technical analysis and other macroeconomic events that may impact the price, giving you a heads-up on what to look for.
I would say that the insights provided are technical, so the language used isn’t the most beginner friendly in my opinion.
FXCM Forex Trading Signals
While testing the broker, I found that FXCM offers trading signals that are provided through Trading Central, who also service other top forex brokers with their technical analysis services. I like that the signals are built into the Trading Station platform for ease of access while also giving you a professional analyst commentary to help you understand the signal better. As you can see below, the signals are generated frequently, so you can filter the service only to show markets you care about, which is a good quality-of-life feature.
FXCM Live Webinars
As part of the broker’s research and educational services, FXCM hosts live webinars covering the morning market movements and the US Open. I found these webinars to provide decent value if you want a top-down view review of the early market sessions. Especially as they go through key support and resistance levels to keep an eye out for during the day.
These are decent webinars if you are a beginner, as they can help you learn to analyse the markets quicker while giving you hot points to focus on during the day. However, as an experienced trader, I found the information too generalised for my liking.
FXCM Trading Guides and Resources
The trading guides FXCM have created are targeted at new traders, offering a basic overview of trading forex and how to get started. I checked it out and thought the content was decent; it was informative, with lots of examples, images, and graphs to help explain the topic.
Alternatively, the broker’s website does host other educational resources and insights into forex trading, including forex trading strategies and technical analysis lessons
FXCM Demo Account
FXCM has a very generous demo account starting with £50,000 in virtual funds for you to practise how to spread bet with the Trading Station platform. I was pleased that the demo account didn’t limit any of its features, so you got access to the platform’s sentiment tools and Trading Central technical analysis service. Plus, you have unlimited access to the account removing the time pressure other brokers apply so you can take your time.
Verdict On FXCM Research and Education
FXCM has much to offer if you day trade with its daily research and trading signal services, giving you a reliable stream of information and new ideas across multiple markets.
FXCM’s educational resources also offer many ways to enhance your knowledge, especially the daily webinars that can help you learn the markets in real-time.
I think FXCM is one of the lowest-spread brokers I have tested, with spreads averaging 1.00 in my testing, making it an attractive option if you scalp the markets. You can tell FXCM is a technology-driven broker, as evidenced by the provision of its spread betting trading platforms, which offer advanced charts and automated trading. Even though the broker doesn’t provide the largest range of forex and commodity markets, I think FXCM provides excellent value if you want a low-cost broker with the ability to automate bets.
No FXCM is not illegal. The broker is legal and regulated by the Financial Conduct Authority, which authorises the broker to provide spread betting services to UK traders.
FXCM makes money through the spreads it charges on bets and overnight financing if you hold your spread bets overnight (rollover period). The spread is the difference between the buy (bid) and sell (ask) price of an asset, which can widen (get more expensive) or narrow (get cheaper) depending on liquidity. Overnight financing is charged based on the amount of margin you have open for a spread bet at 22:00 UK time.
Spread betting is a derivative that allows you to speculate on the price movements of a financial instrument without owning the underlying asset. It’s a leveraged product that allows you to bet on rising or falling markets, capitalising on all market conditions or hedging a trade.
You can place a stake per point and make money for every price movement in your favour. For every price movement against your bet, you’ll lose money.
FXCM is a good option for beginners as it offers an easy-to-grasp basic trading platform and free trading signals to help you generate new ideas. If you want to practise with the broker, it offers an excellent demo account and educational resources like live trading webinars and trading guides.
The main difference between spread betting and CFDs is that spread betting is exempt from capital gains tax (CGT), while CFD trading profits are subject to CGT. Plus, spread betting eliminates currency conversion fees when trading international shares (like Apple) or forex, as all bets are placed in GBP. Compared to CFDs, where you will be trading in the currency of the asset (USD, Euros, JPY, etc.) making spread betting cheaper and avoids currency fluctuation risk.
Yes, FXCM offers a demo account for spread betting, the default option when opening your demo account with the broker. The demo account gives you £50,000 in virtual funds and doesn’t expire unless the account is inactive for 30 days with no trades made.
No, FXCM does not offer crypto spread betting if your country of residence is in the UK, as the FCA has restricted retail forex traders’ access to high-risk markets like Bitcoin. If you live outside of the UK, the CFD broker offers cryptocurrencies like Bitcoin through its other regulated entities.
No, copy trading is unavailable to spread betting account types in the UK. The brokerage allows for copy trading with CFDs outside the UK with its standard account, where you have multiple services like ZuluTrade for copy trading.
Learn more about our review methodology.
Ask an Expert
How does FXCM’s platform compare to other spread betting providers?
FXCM’s platform is robust and user-friendly, offering a solid spread betting experience for both new and experienced traders.
Are FXCM’s spreads competitive in major markets?
Yes, FXCM offers competitive spreads, especially on major markets like forex, making it a popular choice for traders.