FXTM Review: 5 facts to consider (February 2023)

Rating: 5

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Following its exponential growth on the European market and beyond, it would not be an exaggeration to say that FXTM quickly became one of the best known and most trusted brands in the forex industry.

Using innovative technologies and products, FXTM gained recognition on highly competitive financial markets and has been continuously acknowledged by multiple awarding bodies.

The broker has won more than 25 industry awards, among which ‘The Best Trading Experience Broker’ by World Finance for three consecutive years – 2021, 2020 and 2019, ‘The Best ECN Broker for 2020’ by Daytrading.com, ‘The Best Trading Conditions Broker’ for 2019 by World Finance Awards and’ The Best Customer Service Global Broker’ for 2017 by World Finance.

Launched back in 2011 by the owners of Alpari International, currently FXTM is a global leader in online trading offering excellent trading conditions, advanced education for beginner and experienced traders alike, and the best trading tools one can possibly hope for. FXTM services well over 4 million clients in some 150 countries around the world.

The FXTM company and safety of funds

The comprehensive regulatory background makes FXTM undeniably one of the most secure brokers on the forex market today.

FXTM operates under the umbrella of Exinity Group, which also represents Alpari International. In different regions around the world FXTM is represented by its subsidiaries:

• ForexTime Ltd, based in Cyprus and regulated both by the Cyprus Securities and Exchange Commission (CySEC) with CIF license number 185/12, and the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614;
• Exinity UK Limited, based in London and authorized and regulated by the Financial Conduct Authority (FCA) in the UK with license number 777911;
• Exinity Limited, registered in the Republic of Mauritius and regulated by the Financial Services Commission (FSC) of the Republic of Mauritius with an Investment Dealer License with license number C113012295;
• Exinity Capital East Africa Ltd, registered in Nairobi, Republic of Kenya and regulated by the Capital Markets Authority (CMA) of the Republic of Kenya as a Non- Dealing Online Foreign Exchange Broker with license number 135.

You may compare the benefits of the various regulatory institutions, where FXTM is licensed and authorized in our table below.

FXTM EU license

Under the guidelines of the European Securities and Markets Authority (ESMA) all brokers operating in the European Union should be licensed by at least one official national regulatory institution as for example the Cyprus Securities and Exchange Commission (CySEC) – as a matter of fact one of the most popular regulatory destinations in the forex industry. On our next screenshot you may take a look at the FXTM’s CySEC license.

The EU market is considered one of the most strictly regulated ones, when it comes to forex and CFD trading. Apart from being required to hold all clients’ money is segregated, protected from creditors, trust accounts, all EU brokers are also required to provide traders with a negative balance protection, meaning that no one can lose more money than what he or she has initially deposited.

On top of that all EU brokers should be holding at all times no less than 730 000 EUR, designated as a minimum operational capital, with which to cover all outstanding payments towards traders.

And we should not forget the special client compensations schemes, where all EU brokers are also obliged to participate, and which basically insure your trading account up to a certain amount – in the case of CySEC up to 20 000 EUR – payable in the unlikely event your broker files for bankruptcy.

FXTM UK license

The regulatory requirements of the Financial Conduct Authority (FCA) in the UK are pretty similar to those imposed by the European Securities and Markets Authority (ESMA).

All FCA regulated brokers should hold their clients funds in segregated, protected from creditors trust accounts, should maintain the equivalent of 730 000 EUR as a minimum operational capital as well, and should provide all clients with a negative balance protection.

And while in the European Union the maximum amount the local compensation schemes will insure in the general case does not exceed 20 000 EUR (with a few minor exceptions where the amount might reach 30 000 EUR), with the Financial Services Compensation Scheme (FSCS) in the UK your trading account will be protected for up to 85 000 GBP in the unfortunate event your broker happens to be insolvent.

In the UK on the other hand you won’t be able to trade crypto CFDs, which the FCA totally banned some time ago, while with an FXTM account registered in the EU, you will still be able to trade Bitcoin vs. USD, Ethereum vs. USD, and Litecoin vs. USD.

FXTM Trading Accounts Comparison and Minimum Deposits

FXTM offers three account types – Micro, Advantage and Advantage Plus Account, where you can start trading with just 10 USD, 500 USD and once again 500 USD respectively. Of course you can also fund your trading accounts with the same amounts in Euro or British Pounds.

An Islamic account and a demo account are also available and most importantly – scalping and hedging are allowed.

FXTM Spreads, Leverage and Commissions

Spreads and Commissions

The FXTM spreads look pretty attractive starting from 1,5 pips with the Micro and the Advantage Plus Accounts without a trading commission being taken.

With the Advantage Account on the other hand spreads start virtually from zero pips, but you will have to pay a small trading commission, depending on the volume you are trading. The commission varies between 0.4 USD and 2 USD per standard lot traded (1 lot equals 100 000 base currency units) and could basically add up to 0,2 pips to the equation.

A nice perk with FXTM is the fact that the broker does not have a rollover fee, meaning that you won’t be charged anything if you opt to keep a position open overnight. And that basically means that all FXTM accounts are suitable for Muslim traders, who, because of the Sharia Law are not allowed to pay or collect interest under any pretext.

Leverage

Due to the local regulations, clients of FXTM in the EU and the UK can trade with leverage no higher than 1:30. In 2018 the European Securities and Markets Authority (ESMA) adopted a new set of rules regarding the maximum leverage brokers are allowed to offer to retail traders – restrictions which were also adopted by the Financial Conduct Authority (FCA) in the UK and latter by the financial authorities in Australia.

According to the ESMA rules, which are obligatory for all brokers operating in the EU, the maximum leverage for major forex pairs could be no higher than:

• 30:1 for major currency pairs;
• 20:1 for non- major currency pairs, gold and major indices;
• 10:1 for commodities other than gold and non-major equity indices;
• 5:1 for individual equities and other reference values;
• 2:1 for crypto currencies.

Unlike in the EU however, FXTM clients in the UK are banned from trading crypto CFDs altogether.

All international clients of FXTM on the other hand, as well as those who qualify as professional traders, could benefit from leverage as high as 1:2000.

FXTM Trading Instruments

The list of trading instruments available at FXTM is comprehensive and includes forex pairs, major minor and exotics, precious metals, soft and energy commodities, indices, currency indices, stock baskets, stock CFDs, physical stocks and CFDs on crypto currencies.

FXTM execution

You can hardly hope for better execution of your trades than the one you can find with FXTM. The latest statistics reveal that 99.81% of all orders are executed in less than a fraction of a second, with the average execution time being just 0.082 seconds.

On top of that some 95.18% of all orders came with an improved price of around 0.31 pips due to the automatic price improvement.

In addition FXTM guarantees little to no requotes and positive slippage.

FXTM Trading Platforms

FXTM offers the two most popular platforms on the forex market today – the industry standard MetaTarder4 and MetaTrader5 – as well as a proprietary mobile trading app with a user- friendly interface and advanced features.

MetaTrader5 is considered the ultimate trading platform in terms of functionality and basically everything a trader might wish for. It has been developed from the legendary MetaTrader4 and in addition to well known features as for example the customizable Expert Advisors and the numerous market indicators, with which one can easily run automate trading sessions, MetaTrader5 also allows traders to assess the market depth by taking a look at the volume of bids and offers for a financial security at different prices.

In addition with MT5 you can also receive data on Time and Sales directly from the leading stock exchanges around the world.

And while both MT4 and MT5 support hedging, which allows having multiple positions of a financial instrument, both in the same and opposite direction, only MT5 allows netting – support for the netting account system, which only allows having one open position of a financial instrument.

Additional perk that could swing the scale towards MT5 instead of MT4 is the number of built- in technical or market indicators, which can automatically detect patters in the price dynamics of a financial instrument and help users to make trading decisions. With a MT5 you have 38 market indicators, while with a MT4 – only 30.

Finally, with a MT5 you will have 44 graphic or analytical objects, while with a MT4 just 31. Graphic objects can help you identify the price trend of a financial instrument, to detect cycles and support or resistance levels, and to build trend lines among others.

The FXTM Copy- trading Service

FXTM Invest is a state- of- the- art, flexible and user- friendly copy- trading program. It offers clients the opportunity to follow the trades of professional Strategy Managers. A client who follows the trades of a Strategy Manager is called an Investor and usually pays between 20% and 30% of the profit for the service.

FXTM Promotions

FXTM offers various promotions and forex trading contests, where traders can enjoy attractive prizes from an iPhone to a real Tesla car. All traders, who refer a friend to FXTM will immediately get 50 USD referral bonus to their trading accounts.

Over 30 payment methods available at FXTM

At FXTM you can use well over 30 different payment methods, some of which specific to the region you reside in. The broker accepts major debit and credit cards like VISA, Mastercard, Maestro and American Express, and various popular e-wallets including Skrill, Neteller, FasaPay PerfectMoney, VLOAD, Web Money, Yandex Money, QIWI Wallet, TC Pay Wallet and Konnexone.

In addition the broker accepts bank wire transfers, crypto payments and local bank transfers available to clients in Latin American, South East Asian, China, Vietnam, Morocco, India, Turkey, Nigeria, Indonesia, Egypt, Bangladesh, Pakistan, Laos and Afghanistan.

FXTM Education

FXTM is an excellent choice of a broker especially for beginner traders, because of its comprehensive e-book library of educational materials, complemented by daily market news, reports and analysis, automatic signals and notifications and more.

On top of that you can also update your trading strategy by referring to various webinars, seminars and short educational videos, as well as a user- friendly guide to different market indicators and trading tips.

FXTM Awards

As we already noted, because of its outstanding trading services FXTM has won well over 25 industry awards, among which ‘The Best Trading Experience Broker’ by World Finance for three consecutive years – 2021, 2020 and 2019, ‘The Best ECN Broker for 2020’ by Daytrading.com, ‘The Best Trading Conditions Broker’ for 2019 by World Finance Awards and’ The Best Customer Service Global Broker’ for 2017 by World Finance.

Language support

The FXTM services are available in 18 languages among which Arabic, Chinese, English, German, Italian, French, Spanish, Russian, Hindi, Indonesian, Malay, Thai and Urdu.

Conclusion

FXTM is clearly one of the best brokers you can opt for, no matter if you are an experienced trader or just making your first steps into the world of forex trading. The broker offers exceptional trading conditions – tight spreads, seamless execution, comprehensive selection of trading instruments, state- of- the- art trading platforms, and a great set of educational materials, along with the utmost security for your funds.