FXCM vs FxPro ComparedWho is Better Broker

by

FXCM vs FxPro: Who Is the Better Broker?

In the highly competitive world of online forex trading, choosing the right broker can feel overwhelming. Amid the endless options, two names frequently come up – FXCM and FxPro. Both have established themselves as prominent players in the industry, promising robust trading platforms, competitive spreads, and a range of asset classes. As an experienced finance writer dedicated to helping traders make informed decisions, I aim to dissect the features, strengths, and weaknesses of these two giants, giving you a clear picture of who might be the best fit for your trading style and needs.

Whether you’re a seasoned professional or just starting out, understanding how each broker operates, their fee structures, regulatory standing, platform offerings, and customer service quality is crucial. Let’s dive deeply into the comparison, unearthing every detail that could influence your choice.

The Origins and Background: A Brief Overview

FXCM: A Pioneer in Forex Trading

Founded in 1999, FXCM (Forex Capital Markets) quickly carved out a reputation as one of the most accessible and innovative forex brokers globally. Headquartered in New York City, FXCM has a long history rooted in providing retail traders with access to the forex market. Over the years, it expanded its offerings to include CFDs on indices, commodities, and cryptocurrencies. Its early adoption of technology and focus on trader education made it a household name among forex enthusiasts.

However, FXCM’s journey hasn’t been without hurdles. Notably, in 2017, the broker faced regulatory challenges in the United States, leading to a major overhaul of its operational structure. Despite these setbacks, FXCM remains a significant player, especially in the European and Asian markets, offering a variety of trading tools and educational resources.

FxPro: The Global Trader’s Choice

Founded in 2006, FxPro is a UK-based broker recognized for its comprehensive suite of trading platforms and global reach. With a reputation for transparency and innovation, FxPro has built a diverse client base spanning over 170 countries. Its core focus has been to offer an intuitive trading experience across multiple asset classes, including forex, CFDs, and cryptocurrencies.

FxPro’s commitment to regulatory compliance, technological excellence, and client support has helped it retain a strong position in the industry. Its global headquarters in London, alongside offices worldwide, highlights its international scope.

Regulatory Standing and Trustworthiness

Regulatory Frameworks and Licensing

Regulation plays a vital role in establishing trust and safeguarding trader interests. Let’s analyze how FXCM and FxPro stack up in this area.

FXCM:

  • Regulatory Bodies:

    • Financial Conduct Authority (FCA) — UK
    • Australian Securities and Investments Commission (ASIC) — Australia
    • Financial Services Agency (FSA) — Japan
    • Previously registered with the NFA in the US, but its US retail operations ceased after regulatory penalties.

  • Regulatory Strengths and Concerns:
    FXCM holds solid licenses in several regions, which provides traders with confidence regarding compliance and client fund protection. However, its US operations were significantly impacted by regulatory issues, notably in 2017, when the broker was fined and restricted from offering retail forex trading in the US. This history indicates the importance of understanding regional restrictions and the broker’s ongoing compliance.

FxPro:

  • Regulatory Bodies:

    • FCA (UK)
    • CySEC (Cyprus)
    • FSCA (South Africa)
    • SCB (Bahrain)

  • Regulatory Strengths:
    FxPro’s licenses from multiple respected regulators, including the FCA and CySEC, provide an extra layer of trust. Its strong European licensing, in particular, ensures adherence to high standards of client fund segregation and transparency.

Summary:
While both brokers are well-regulated, FxPro’s multiple licenses across various reputable jurisdictions may provide traders with a higher degree of confidence and flexibility across regions. FXCM’s regulatory history suggests a need for traders to be mindful of jurisdiction-specific offerings.

Trading Platforms and Technologies

FXCM’s Platform Options

FXCM primarily offers:

  • Trading Station: Developed by FXCM, this proprietary platform offers advanced charting tools, automated trading capabilities, and direct market access. It’s available as a desktop platform, mobile app, and a web version.

  • MetaTrader 4 (MT4): FXCM supports MT4, allowing traders to utilize custom indicators, Expert Advisors (EAs), and familiar interface.

  • MetaTrader 5 (MT5): Recently introduced, MT5 offers more assets, improved charting, and more order types.

  • API and Automated Trading: FXCM provides REST APIs, cTrader, and other tools for algorithmic traders and developers.

FxPro’s Platform Options

FxPro prides itself on offering multiple cutting-edge platforms:

  • MetaTrader 4 and MetaTrader 5: Widely regarded for their robustness, flexibility, and customizability, these platforms are staples for most retail traders.

  • cTrader: Known for its intuitive interface, fast order execution, and advanced charting, cTrader is popular among scalpers and algorithmic traders.

  • WebTrader: A user-friendly browser-based platform that requires no download.

  • Mobile Apps: Fully functional apps supporting all platforms, including proprietary mobile solutions.

Comparison:

  • Platform Diversity: FxPro offers a broader range of platforms, including cTrader, which is favored by a segment of technical traders.
  • Execution Speed: Both brokers emphasize fast executions, but cTrader’s order execution speed is often praised.
  • Automation: Both brokers support algorithmic trading, but FXCM’s API options are more extensive.

Final Thoughts on Platforms

Your choice depends on your preferred trading style and comfort with technology. If you favor cTrader’s interface and features, FxPro might be more appealing. If you prefer a mix of proprietary tools combined with MetaTrader support, FXCM offers a viable solution.

Asset Offerings and Markets

FXCM’s Asset Classes

  • Forex: Over 50 currency pairs, including majors, minors, and exotics.
  • Indices: Popular indices like the S&P 500, FTSE 100, DAX, and Nikkei.
  • Commodities: Gold, silver, oil, and other metals.
  • Cryptocurrencies: Bitcoin, Ethereum, Ripple, and more, available through CFD trading.
  • CFDs: On stocks, bonds, and energy products.

FxPro’s Asset Range

  • Forex: Around 70 currency pairs, including emerging market currencies.
  • Indices: Extensive, covering global markets.
  • Commodities: Precious metals, energies, agricultural products.
  • Cryptocurrency CFDs: Broad selection, including Bitcoin, Ethereum, Litecoin, etc.
  • Shares and Futures: Some access via CFDs or direct trading depending on the regulatory jurisdiction.

Which Is Better for Asset Variety?

FxPro generally offers a slightly wider range of assets, especially in cryptocurrencies and indices. If diversifying across multiple asset classes is a priority, FxPro’s broader selection may be advantageous.

Trading Conditions and Fees

Spreads and Commissions

  • FXCM:

    • Known for competitive spreads, especially on major currency pairs.
    • No commissions on forex, but charges may apply to CFD trading.
    • Spread example on EUR/USD: Approximately 1.2 pips (variable).

  • FxPro:

    • Offers tight spreads, often among the industry’s best, sometimes under 1 pip on majors.
    • Supports both commission-based and spread-only accounts.
    • Example EUR/USD spread: Around 0.6 pips on the pro account with commission included.

Swap/Rollover Fees

Both brokers charge swaps for holding positions overnight, with rates depending on the currency pairs and direction of trade. FxPro tends to offer more transparent and competitive rollover rates, especially on its ECN accounts.

Account Types and Minimum Deposits

  • FXCM:

    • Standard Account: No minimum deposit, but recommended deposit of $50.
    • Multiple account types tailored to different trading needs.
    • Suited to both beginner and professional traders.

  • FxPro:

    • Demo Accounts: Available for free.
    • Live Accounts: Minimum deposits as low as $100.
    • Offers ECN, Market, and Professional accounts with varying fee structures.

Hidden Fees and Additional Costs

Both brokers are clear about fee structures, but traders must be mindful of:

  • Inactivity fees — FXCM charges if accounts are dormant over a certain period.
  • Withdrawal fees — Usually minimal but vary by method.
  • Extended holding costs — Swap rates.

Summary:

In terms of costs, FxPro’s ECN accounts with low spreads and commissions might be attractively priced for active traders. FXCM’s spreads are competitive but can vary depending on market volatility.

Customer Support and User Experience

Customer Service and Support

  • FXCM:

    • Offers support via phone, email, and live chat.
    • Has a comprehensive educational section.
    • User reviews indicate prompt responses but sometimes inconsistent experiences.

  • FxPro:

    • Provides 24/5 customer support via live chat, phone, and email.
    • Has multi-lingual support and dedicated account managers for professional clients.
    • Generally receives positive feedback for responsive and knowledgeable assistance.

Educational Resources and Tools

  • FXCM:

    • Plenty of tutorials, webinars, and market analysis.
    • Trading courses suitable for beginners.

  • FxPro:

    • Extensive webinars, economic calendars, and trading guides.
    • Market news updates directly integrated into the platform.

User Experience:

Both brokers prioritize user-friendly interfaces, but FxPro’s platform suite is recognized for its sleek design and ease of use, especially with cTrader.

Security and Client Funds Protection

Both brokers are committed to fund segregation, ensuring client deposits are kept separate from operational funds. They also employ encryption and strict cybersecurity measures.

FXCM:

  • Implements client fund segregation compliant with regulatory standards.
  • Insurance schemes are region-specific.

FxPro:

  • Funds are segregated according to FCA and CySEC regulations.
  • Offers negative balance protection for retail clients, providing peace of mind during volatile markets.

Conclusion: Which Broker Is Better?

Choosing between FXCM and FxPro hinges on your individual preferences, trading goals, and regional considerations.

  • For traders seeking a seasoned broker with a strong US presence and proprietary platforms — FXCM is a solid choice, albeit with some regional restrictions and a past regulatory history in the US.

  • For traders desiring a globally regulated broker with diverse asset offerings and advanced platform options — FxPro, especially with its cTrader support and multiple licenses, is highly compelling.

If you are a beginner or intermediate trader, FxPro’s user-friendly platforms, tight spreads, and strong regulation may make it the more appealing option.

If you are an algorithmic trader or institutional investor, FXCM’s extensive API options and advanced trade execution tools could be advantageous.

Ultimately, both brokers are reputable, regulated, and capable of delivering a reliable trading experience.

Frequently Asked Questions (FAQs)

Is FXCM regulated in the United States?

No. FXCM’s US operations shut down in 2017 following regulatory issues. Its remaining offices are regulated in the UK, Australia, Japan, and other regions.

Is FxPro suitable for beginner traders?

Yes. FxPro offers user-friendly platforms, educational resources, and demo accounts that are well-suited for traders new to the markets.

Which broker offers better spreads?

Typically, FxPro tends to have slightly tighter spreads, especially on its ECN accounts, but actual costs depend on the account type and market conditions.

Can I trade cryptocurrencies with FXCM and FxPro?

Yes. Both brokers offer cryptocurrency CFDs, including Bitcoin and Ethereum, though availability may vary by region.

Are there any inactivity fees?

FXCM charges inactivity fees after a period of non-trading activity. FxPro also has inactivity charges, but terms can differ by account type.

Which broker provides better customer support?

Both are commendable but FxPro generally receives more positive reviews for responsiveness and multilingual support.

Making a choice between FXCM and FxPro ultimately depends on your specific needs, trading style, and regional considerations. Both brokers have proven track records, regulatory licenses, and comprehensive platforms, ensuring a high-quality trading environment. Do your due diligence, demo their platforms, and consider your long-term trading objectives before committing. Remember: the right broker is the one that aligns perfectly with your trading aspirations and provides reliable support along your financial journey.

Leave a Comment