There are numerous brokerage firms in the financial market. However, the one that offers excellent services helps traders achieve success and also wins their hearts. Traders should always choose brokers vigilantly. There are firms like FXCM, which only keep an eye on your hard-earned money. They find ways to snatch your funds, including additional charges, hidden fees, and numerous unreasonable trading charges.
FXCM has been in the financial market since 1999. There is no improvement in its outdated services and poor support over these years. The official website is the gateway that presents entire services in brief. On the contrary, the website of FXCM resembles fake websites. We will cover other points in detail in this FXCM review 2021.
Is FXCM scam or safe?
The broker does not hold a license with central regulatory bodies such as ASIC, CySEC, and several others. Some random and offshore authority regulates the broker, and we cannot trust such firms. We don’t understand why the broker is least interested in getting itself registered with some authentic authorities. It has been more than 20 operational years, and it is still not paying attention to this major issue. It seems like the broker wants to hide its suspicious activities.
The firm does not offer advanced safeguard tools and robust encryption to secure your sensitive information and transactions. For non-European clients, the platform lacks negative balance protection. Thus, both your personal data and money are at risk with the firm. Think before making any decision, or else you will lose everything.
Tradable products and markets
The greater the number of tradable assets better and diversified is the trading portfolio. It further mitigates the risk involved with the trade. Unfortunately, the broker fails to offer a wide range of tradable assets. Also, the products in each market type are restricted. You may lose extremely profitable trading opportunities due to this.
Trading platforms
The broker has still not upgraded its trading platforms. It is still offering services through traditional and outdated MT4. However, the entire world has moved to ultra-modern and super fast MT5. We don’t know why the broker is not taking any action to replace it.
The use of these out-of-fashion platforms directly impacts trading and, thus, the profit size. They fail to provide traders with accurate results, which future affects the decision.
Fees, spreads, and commissions
The broker claims that it offers commission-free trading on assets, but the reality is a bit hard. It charges a pretty high commission on several trades. Also, there are many additional and hidden fees. It includes the inactivity fee, which is $50. The fund withdrawal fees are also relatively high when compared with other renowned firms’ fee structures.
Let’s move towards the spreads charged by the broker from traders. They are the major financial charges which impact your profit size to a larger extent. The larger the spread lower is the amount left with you as a profit. The spreads charged by FXCM are high and variable. Moreover, they keep on enhancing while executing the trade.
Account opening process
The account opening process of the broker is complex and slower as compared to other forex brokers. FXCM demands several sensitive information such as bank and financial stamens and several others. You might not feel comfortable providing this sensitive information to the firm.
Moreover, it takes several days (more than usual) to provide you with an online trading account. The only reason behind this delay is the slow document verification process. It might irritate most of you, and you may also lose some of the most profitable opportunities.
Deposit and withdrawal
The process of deposit and withdrawal with the broker is time-consuming and requires numerous formalities. You need to fill an online withdrawal form, and it takes about three to seven days for the request to get approved. It means you have to wait for a long time, even in the case of any emergency. Moreover, the fees associated with this are high.
Another major problem with the deposit and withdrawal is the limited payment option for making payments. Also, the available options are not used globally. Other than this, the broker does not accept minor account base currencies. There is no information about cash, debit, and credit card.
Research tools
Research tools are the best financial instruments that can provide accurate market price prediction, the future price of asset, entry and exit trade positions. You can grab better and larger profits by simply trading them during trading.
Unfortunately, the broker does not have much to offer in this arena also. It lacks several major tools, such as Fibonacci retracements and moving averages. Also, you will not find fundamental tools.
Customer support
The customer support service of the broker is the worst. It does not provide traders with a quick and relevant response. The response time for each contact option is longer than usual. Also, the services are not available on weekends.
What are the setbacks of trading with FXCM?
Trading with FXCM may result in the following significant disadvantages:
1) Restricted trading portfolio
2) High withdrawal fees
3) High inactivity fee charged after one year
4) The trading platform lacks two-step authentication
5) The account opening process is slower than that of other forex brokers
6) Does not accept minor account base currencies
7) No two-step login
8) No regular price alerts
9) Some popular asset such as bonds and real stocks are not available with the firm for trading
10) Does not provide 24/7 support
11) Customer service is poor
12) Lacks fundamental data
13) Does not provide negative balance protection to non-European clients
The Bottom Line
It is always good to stay away from scam firms like FXCM. Some local and untrustworthy authorities regulate the broker. Hence, you cannot trust the broker. Your money, along with personal details, is not secure as it lacks advance and robust security tools. Also, it disappoints in terms of services, platforms, and customer support. Overall, it is better to go with other renowned and advance firms that offer top-class services at affordable rates. It includes firms like ETFinancne, Global TradeATF, PrimeFin, ROinvesting.
FAQs
Can you trust FXCM?
No, Regulation is the main point that tells whether the broker is safe or not. The broker is not regulated by trusted and central regulatory authorities such as ASIC, CySEC, and several others. Thus, making the broker a risky venture to invest with.
What are some disadvantages of FXCM?
Some of the major setbacks of the broker are discussed in the following points.
1) Restricted trading portfolio
2) High withdrawal fees
3) High inactivity fee charged after one year
4) The trading platform lacks two-step authentication
5) The account opening process is slower than that of other forex brokers
6) Does not accept minor account base currencies
7) No two-step login
8) No regular price alerts
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