Forex.com vs FXCM: Comparison and Analysis

Forex.com vs FXCM: A Comprehensive Comparison

When it comes to choosing a broker for forex trading, it’s essential to consider factors such as security, demo account availability, account opening, social-copy trading, markets, trading fees, platforms, education, and customer care. In this comparison summary, we will analyse Forex.com and FXCM, two popular brokers in the forex trading industry, based on these factors.

Security

Forex.com is regulated by ten financial authorities, including the FCA, CySEC, ASIC, and CFTC, which makes it available in many countries, including the USA. Forex.com ‘s security rating is 95, which indicates that it’s a highly secure broker. On the other hand, FXCM is regulated by five financial authorities, including the FCA, ASIC, and CySEC, and its security rating is 94. Both brokers are highly secure and regulated.

Demo Account

Forex.com offers a 30-day demo account with virtual funds of $10,000, which can be restored by contacting customer support. In contrast, FXCM offers an unlimited demo account with virtual funds of $50,000, and traders can open multiple demo accounts with the same email address. FXCM wins in terms of demo account availability.

Account Opening

Forex.com requires a minimum deposit of $100, and it accepts USD, EUR, and GBP as account currencies. Payment methods include wire transfers, credit/debit cards, and eWallets (PayPal only). Forex.com offers a variety of account types, including Standard, MT4 and MT5, commission, corporate, DMA, STP Pro, Islamic, and Professional accounts. On the other hand, FXCM requires a minimum deposit of $50 for non-EU clients and $300 for UK and EU clients. It accepts USD, EUR, GBP, AUD, and CHF as account currencies, and payment methods include wire transfers, credit/debit cards, and eWallets. FXCM offers Standard, Islamic, Spread betting, Corporate, and Professional accounts. Forex.com wins in terms of account types and currencies.

Social-Copy Trading

Forex.com does not offer social-copy trading, while FXCM allows traders to engage in copy and social trading through third-party platforms such as ZuluTrade and TradingView. FXCM wins in terms of social-copy trading.

Markets

Forex.com offers a wide range of markets, including 80 forex pairs, 12 commodities, 18 indices, 80 crypto assets, 220+ stocks, and 0 ETFs. It’s mostly a CFD trading broker, which makes it suitable for short-term trading and price speculation. In contrast, FXCM offers 39 forex pairs, 9 commodities, 13 indices, 7 crypto assets, and 15 stocks. It’s also a CFD broker, which makes it suitable for short-term trading. Forex.com wins in terms of market variety.

Trading Fees

Forex.com offers variable spreads, with a starting point of 0.2 pips on forex, which is lower than the market average. However, it can be higher depending on the traders’ country. Fixed spreads are available but only on commodities. On the other hand, FXCM offers variable spreads, with a starting point of 1.3 pips on forex, which is above the market average. Share commission is 0%, just the spread. Forex.com wins in terms of trading fees.

Platforms

Forex.com offers a proprietary platform that is available via web and mobile devices, as well as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are available via webtrader, desktop, and mobile. The platform is user-friendly, with over 130 charting, trading, and drawing tools. On the other hand, FXCM offers the Trading Station, which is a proprietary platform available via desktop, web, and mobile, as well as MT4. Both brokers offer user-friendly platforms with a variety of tools. It’s a tie in terms of platforms.

Education/Customer Care

Forex.com offers detailed guides and tutorials on how to set up trades, technical analysis courses, and easy-to-contact customer care via email, phone, and live chat. However, it only offers customer care in English and Chinese. On the other hand, FXCM offers FAQs, trading guides, and a research section, as well as easy-to-contact customer care via phone, email, and live chat. It’s a tie in terms of education and customer care.

Conclusion

In summary, both Forex.com and FXCM are highly regulated and secure brokers with user-friendly platforms, education material, and easy-to-contact customer care. However, Forex.com offers a wider range of markets, account types, and lower trading fees, while FXCM offers an unlimited demo account and social-copy trading. Ultimately, the choice between the two brokers will depend on the trader’s priorities and preferences.