FXCM Australia Review - is it a Good Broker in 2024?
FXCM Markets is the parent company behind FXCM Australia. Incorporated in Bermuda, the company offers a wide range of services worldwide. It was established in 1999 and has expanded to include a number of financial instruments since then.
In Great Britain, the Financial Conduct Authority (FCA) regulates FXCM Markets. The license number of the broker is 217689. Meanwhile, FXCM has an entity in Australia named FXCM Australia Pty. Limited, which holds license number 309763 from the Australian Financial Services.
Besides regulation and safety, it's also important to know if a broker has the right tools, learning resources, financial instruments, order execution tools, and platforms to facilitate trading. Let's take a closer look at all these features in the FXCM Australia review below.
FXCM Australia - General Information
FXCM Australia is an Australian-based broker that offers trading for several financial instruments, including but not limited to cryptos, commodities, Forex, indices, and stocks. Since the broker has low trading fees and does not charge any data fees, it is ideal for traders who don't want to pay hefty fees for everyday trades.
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💰 Account currency:
USD and more
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🚀 Minimum deposit:
From $50
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⚖️ Leverage:
Up to 1:30 *Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
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💱 Spread:
From 1.3 pips
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🔧 Instruments:
Currencies, stocks, indices, commodities, cryptocurrency
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💹 Margin Call / Stop Out:
50%
Pros and Cons
👍 Pros
• Low minimum deposit
• Demo Account
• Multiple financial instruments for trading
•No data fees
👎 Cons
• Inactivity fees
• High fees on bank withdrawals
FXCM Australia Review
FXCM Australia has many notable features for Australian clients. These offerings can be categorized into the following categories.
Trading
FXCM Australia offers zero rollover trading, which has helped save Australian clients up to 50 million AUD. The broker claims that, at maximum, a single client can save up to 29,820.17 AUD through no rollover trading.
When a trader holds a position past 5 pm New York time, they have to pay interest. Due to the current global interest rates, traders are charged interest on rollovers for both Buy and Sell positions.
However, on FXCM Australia, traders can enjoy no rollover trading on select indices and commodity CFDs. The CFDs on which no rollover fees are applicable include AUS200, SPX500, US30, NAS100, UK100, XAU/USD, XAG/USD, US2000, GER30, JPN225, CHN50, HKG33, INDIA50, FRA40, ESP35, EUSTX50.
FXCM Australia also offers a Rebate Program to active traders who want to get varying tier rebates based on the volume of their trades. Moreover, MetaTrader 4 integrates with FXCM forex execution. The broker accepts all EAs, inclusive of scalping EAs.
With an FXCM Australia account, trades can access different markets. In Australia, the most notable ones include RIO Tinto stocks, Commonwealth Bank, and Crown Resorts.
Before signing up for a specific account for actual trading, traders can use the Demo Account with preloaded virtual money to practice trades on different FXCM platforms, such as the Trading Station.
Platform
It's very important to have a user-friendly platform to execute seamless traders. The FXCM web platform offers robust charting tools that you can use to make informed choices about your trades.
Plus, the platform has powerful, pre-built tools, such as Trader Sentiment, Market Depth, and Real Volume. Traders can leverage these tools to make profitable trading decisions.
The platform can also be customized for your experience. You can create watch lists, use custom layouts to personalize the platform, or download indicators to facilitate trading.
Market Data and Resources
FXCM Australia gives traders access to market data and resources so that they can open positions in the market accordingly. Besides the daily financial news, the platform also shows the following:
API Trading: Traders can directly connect to the price server of the broker.
CFD and Forex Market Data: The broker has powerful trading tools, such as trader sentiment, that help traders get market insights from FXCM data.
Latest Insights: Traders can get the Weekly Market Cap from the broker's website. Plus, FXCM releases a Weekly Stockwatch in which experts hand-pick the best stocks and news that impacts the market.
Broker's Fees
Compared to other Australian brokers, FXCM has relatively lower fees. First off, there are no fees to open an account on the platform. As for spread costs on CFD instruments and currency pairs, the broker charges based on the volume of the trade.
CFDs
Depending on the account, the opening and closing fees for a position are added to the spread. The accounts that don't have a default pricing model are charged based on the commission pricing model on FXCM. Traders are notified in writing if their accounts qualify to receive FXCM commission pricing.
The commissions for some popular currency pairs are:
If you hold a trade past 5 pm Eastern Standard Time, a Finance Charge is applied to your trade. FXCM has a different formula for calculating the Finance Charge for each instrument type. A markup is charged on some instruments.
It is deducted for short CFD positions and added for long positions.
Forex
To calculate the Finance Charge on Forex, FXCM uses the following formula:
(Intra Bank Swap Rates x pip cost) x (1+/- markup)
On Wednesdays, FXCM Australia charges three times the rollover fee on Forex to account for the weekend holding positions. Here's an example to show how the fees for a Forex trade.
Trading Assets
FXCM Australia allows you to trade the following assets: Forex, shares, indices, commodities, and cryptocurrencies. Additionally, it offers access to the following trading baskets: Forex, stock, and cryptoMajor.
Some popular trading markets in Australia include:
AstraZeneca
ANZ Banking Group
RIO Tinto
Commonwealth Bank
Gamestop
Crown Resorts
BHP Group
Coles Group
Is FXCM Australia Regulated? Is This Сompany Safe?
FXCM Australia is regulated by the Australian Securities and Investments Commission (ASIC) and holds the Australian Financial Services License Number: 309763.
The company has an impressive track record of 20 years, ensuring safe and secure trading for clients. FXCM Australia also offers secure trading by allowing traders to invest in Safe Haven Assets.
These are investments that can be used during times of market instability and volatility. Since Safe Haven Assets are safe from losses, they tend to go up in price when most other assets are losing value.
FXCM - Best for Active Traders
FXCM Australia is best for active traders since advanced accounts have more features and lower fees. Plus, active traders can qualify for commission rates on all trades.
More importantly, active traders can rebate pricing as per the broker's Active Trader Rebate Program Tiers. Active traders can also benefit from FXCM's research tools and market sentiment analysis.
Summary
All in all, the FXCM Australia review shows that the broker is a good option for Australian clients who want to enjoy low fees and trade in local and international markets. Besides, the broker's wide choice of available markets and local regulations make it a good pick for Australian clients.
Top 5 FXCM Reviews
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Comment
rder execution is without delays even during active trading on important news releases. In short, I would describe FXCM as an ordinary broker, but honest in terms of trading)
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Comment
I’m trading with FXCM for the second week. I invested $2,300 and today the income is $487, not as promised in percentage, but I think this is good for 2 weeks of trading.
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Comment
The broker FXCM has its own rating among traders. Many people trade here. The company holds several regulatory licenses, indicating a serious approach to transparency and trust in the broker. I opened an account with FXCM five years ago. During this time, there hasn't been any serious reason to accuse the broker of unfair dealings. There are occasional issues, but they are not critical.
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Comment
I've been working with the broker fxcm for over four years now. It hasn't always been smooth sailing. Over the past two years, the company has changed its policy regarding swap rates. While previously, some assets had positive swap rates, now they are negative. Therefore, for medium-term trading, I had to adjust my trading system. However, the spread at fxcm remains very attractive.
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Comment
I’ve been trading with FXCM for several years and there is no doubt that it is the right choice. At the very least, this broker is licensed. There is good client support, so there are no problems with registration, correspondence, etc. Regarding the trading itself, I have a couple of comments, but they are not so significant.
FAQs
Does FXCM Australia Have a Demo Account?
FXCM has a Demo Account with 5,000 USD in virtual money. The account expires after a month of inactivity.
How Can Traders Use FXCM Demo Account?
Traders can use the FXCM Demo Account to practice trading on Trading Station, MT4, and NinjaTrader.
How Can I Deposit Money on FXCM Australia?
Australian clients can deposit funds through Skrill, Bank Wire Transfer, Neteller, and credit/debit card. The broker does not charge a fee for depositing funds through bank transfer, debit card, or credit card. Do note that bank transfers are not feasible for instant trades since they take a few days to be processed.
How Long Do Bank Transfers Take to be Processed?
Bank transfers are processed in 3 to 5 business days, while credit/debit or e-wallet transfers are processed within 24 hours.
Team that worked on the article
Johnathan M. is a U.S.-based writer and investor, a contributor to the Traders Union website. His two primary areas of expertise include finance and investing (specifically, forex and commodity trading) and religion/spirituality/meditation.
His experience includes writing articles for Investopedia.com, being the head writer for the Steve Pomeranz Show, a personal finance radio program on NPR. Johnathan is also an active currency (forex) trader, with over 20 years of investing experience.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).