Is FXCM Scam? | FXCM Safety and Reliability

Pros

Cons

  • Regulated by FCA, CySEC, BMA, ASIC, FSCA, and FSP
  • Negative balance protection
  • Client protection amount
  • Over 20 years of trading experience
  • Listed on stock exchange
  • None

Introduction

FXCM is a forex and CFD broker that was originally founded in the US. in 1999. After about 10 years, there was an acquisition in 2010 and its headquarters moved from NYC to London in the UK. FXCM has over 200,000 traders worldwide and is regulated by top-tier financial authorities like FCA, the Financial Conduct Authority and CySEC, the Cyprus Securities and Commission Exchange. FXCM has no commissions on shares and low trading fees as well as non-trading fees.

Is FXCM Regulated?

The FXCM broker is regulated by many financial authorities in different countries like:

  • FCA: the Financial Conduct Authority in the UK
  • CySEC: the Cyprus Securities and Commission Exchange
  • FSCA: Financial Sector Conduct Authority of South Africa
  • BMA: the Bermuda Monetary Authority
  • ASIC: the Australian Securities and Investments Commission
  • FSP: the Financial Sector Conduct Authority in South Africa

Is FXCM a Scam?

FXCM was founded in 1999 and has over 20 years of experience and has survived from different financial disasters up-till-now and regulated by top-tier financial authorities in different countries. FXCM is also listed on NASDAQ stock exchange.

FXCM was also awarded with several awards along its history that make FXCM reliable.

Client Protection

FXCM also has client protection amounts under a variety of regulators in a lot of countries as the following table shows below.

FXCM Legal Entities Table

Country

Protection amount

Regulator

Broker’s Legal Entity

UK

£85,000

FCA

Forex Capital Markets Limited

EU

€20,000

CySEC

FXCM EU LTD

Australia

No protection

ASIC

FXCM Australia Pty. Limited

South Africa and some other African countries

No protection

FSCA

FXCM South Africa Pty. Limited

All other clients

No protection

BMA

FXCM Markets Limited

Negative Balance Protection

FXCM has also a negative balance protection for the EU clients in case anything wrong happens.

Two-step Verification

Unfortunately, FXCM lacks the two-step verification method while logging in.

FXCM Awards

Since its foundation in 1999, FXCM was awards like:

2021:

  • BEST FX PLATFORM IN THE PERSONAL WEALTH
  • BEST ZERO COMMISSION BROKER IN ADVFN INTERNATIONAL FINANCIAL AWARDS
  • BEST IN CLASS by FOREXBROKERS.COM
  • 2020:
  • TOP RATED 2020 – FOREX TRADING PLATFORM IN THE INVESTORS CHRONICLE
  • BEST FOREX TRADING PLATFORM – GLOBAL IN THE GLOBAL FOREX AWARDS 2020
  • BEST EDUCATION IN THE PERSONAL WEALTH 2020
  • BEST EDUCATIONAL MATERIALS BY INVESTMENT TRENDS
  • BEST CUSTOMER SERVICE BY INVESTMENT TRENDS
  • BEST PLATFORM FEATURES BY INVESTMENT TRENDS
  • BEST EDUCATIONAL MATERIALS BY INVESTMENT TRENDS
  • BEST VALUE FOR MONEY BY INVESTMENT TRENDS
  • BEST TRADING TOOLS AND RESEARCH IN SHARES AWARDS
  • BEST ONLINE TRADING APP BY COMPARE FOREX BROKERS
  • BEST TRADING TOOLS by PERSONAL WEALTH
  • 2019:
  • FXCM – BEST TECHNICAL TOOLS BY BROOKER CHOOSER
  • 2018:
  • FXCM – BEST CUSTOMER SUPPORT BY FXEMPIRE
  • 2017:
  • BEST CUSTOMER SUPPORT by FXEMPIRE
  • 2015:
  • BEST SELL-SIDE ANALYSIS CONTRIBUTOR: DAILYFX BY FX STREET
  • BEST FOREX TRADING AUTOMATION IN THE UK FOREX AWARDS
  • BEST FX PROVIDER by PERSONAL WEALTH
  • 2013:
  • BEST RETAIL BROKER EXECUTION IN THE FOREX MAGNATES LONDON SUMMIT AWARD
  • BEST FOREX BROKER OF THE YEAR in the UK FOREX AWARDS
  • BEST ONLINE FX PROVIDER by MONEY AM
  • BEST SELL-SIDE ANALYSIS CONTRIBUTOR by FX STREET
  • 2012:
  • LARGEST FOREX PROVIDER BY INVESTMENT TRENDS
  • BEST PROPRIETARY FX PLATFORM by FOREX MAGNATES
  • 2011:
  • BEST BROKER RESEARCH TEAM by FX STREET
  • 2010:
  • BEST FX PROVIDER BY WHAT INVESTMENT MAGAZINE READERSHIP
  • WINNER BEST ONLINE FX BROKER in the ONLINE FINANCE AWARDS
  • BEST SELL-SIDE ANALYSIS CONTRIBUTOR by FX STREET
  • BEST FOREX BROKER in the CHOICE AWARDS

FAQs

  1. How long does it take to verify my account?
  • It takes about 1 to 3 business days to verify your FXCM account.
  1. Does FXCM allow bot trading?
  • Yes, FXCM allows it through API trading.
  1. Does FXCM allow scalping and hedging?
  • Yes. Scalping and hedging are available for FXCM clients.
  1. What happens to my funds if the bank which holds my funds goes insolvent?
  • All retail client funds are housed in segregated accounts at top global banks.
  1. When trading forex, will you lose more than your initial deposit?
  • Both our MetaTrader 4 and Trade Station platforms are set to automatically close your positions when your margin requirement reaches 100% (stop out level).
  • Please note that this process is automated and is not a guarantee that your account will not enter into a negative equity situation and you should keep a balance amount in your account above your required margin.
  1. Can I login to more than one account from the same computer?
  • Yes, you can do such a thing by using the MT4 Multi Terminal or the trading station of FXCM.
  1. Can I login to the same account through different devices?
  • Yes, you can login to the MetaTrader 4 platform using the same password and username through different devices.
  1. Does FXCM accept payments from third parties?
  • No, payments should be from an account under your name.


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