FXTM Review – Is FXTM a good forex broker?

FXTM Review – Is FXTM a good forex broker?

Rating: 4.94

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The FXTM brand was initially launched in 2011 and since then the company has firmly established itself as one of the best global forex brokers. This is one of the fastest-growing companies in the industry with over 2 million clients worldwide and over 25 prestigious awards. FXTM has a superb reputation and offers a great trading environment for traders from different counties and of different experience levels.

ForexTime, or FXTM, has a number of offices around the world including in the UK, South Africa, and Mauritius but is headquartered in Cyprus. It has also started offering services in emerging markets and has branches in Nigeria, Kenya, Malaysia, and Indonesia.

FXTM’s product and service offerings are all-encompassing. There are various instruments to trade in, including a number of currency pairs and CFDs (plus shares CFDs reinforced by a direct connection to the NYSE and NASDAQ), metals, commodities, indices, and stock baskets. Clients of the broker may choose from market and instant execution, two renowned trading platforms – MetaTrader 4 and MetaTrader 5, and a wide range of trading accounts. FXTM would suit the needs of traders of all skill levels and preferences, and it is no surprise the broker has won awards such as Best Trading Experience 2019 through 2021 (World Finance), Best ECN Broker 2020 (Daytrading.com), Best Trading Conditions 2019 (World Finance Awards), Best Customer Service Global 2017 (World Finance), etc.

In addition to all that, the company provides highly-skilled, multilingual customer support in multiple languages, and offers a huge variety of payment methods, and account types.

In the following review, we have attempted to summarize FXTM’s offer, cover the advantages and disadvantages of trading with this broker, and help you establish if this is the right choice for you.

REGULATIONS AND SAFETY OF FUNDS

A license is the first and most important thing you should look up when choosing a broker – and FXTM has multiple. As a top international brokerage, FXTM is thoroughly regulated in a few different countries and regions.

FXTM began its now over a decade-long history by obtaining a license in Europe’s main regulatory hub – Cyprus – in 2012 and has since obtained licenses from the UK’s FCA in 2018, the Financial Sector Conduct Authority of South Africa, and the Financial Services Commission of Mauritius. All of these licenses prove that if you choose to do business with FXTM, you would be dealing with a broker who maintains the highest standards and does everything legally, transparently, and by the book.

FXTM Brand NameCountry/regionRegulator
Exinity UK LimitedThe UKFinancial Conduct Authority (FCA)
ForexTime LtdThe EUCyprus Securities and Exchange Commission (CySEC)
ForexTime LimitedSouth AfricaFinancial Sector Conduct Authority (FSCA)
Exinity LimitedMauritiusFinancial Services Commissions Mauritius (FSCM)

FXTM’s CySEC license

FXTM is licensed and regulated by the Cyprus Commodities and Exchange Commission (CySEC) as ForexTime Ltd.

CySEC applies a set of rules and requirements to license holders which ensures a high level of security and makes trading with a Cypriot broker a safe and transparent affair. CySEC requires Cyprus-based companies to hold at least €730 000 as proof of their financial stability. Client funds must be held in segregated accounts – this not only speeds up withdrawals but proves that the broker would not be using your funds for its own financial operations because it has very limited access to your money once you have invested. Regulated entities are also required to report to the Commission on a regular basis. Furthermore, CySEC applies a compensation scheme to additionally guarantee clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund which provides compensations to a maximum of €20 000 per person in the event of broker insolvency. Negative balance protection is also a complete must and is provided to all retail clients – this means you could never lose more money than you have in your account.

As Cyprus participates in the European Markets in Financial Instruments Directive (MiFID), all companies regulated in the country are free to operate in all EEA member states. Despite that fact, FXTM is officially registered with a number of reputable European regulators: Germany’s BaFin, Italy’s CONSOB, France’s AMF, Spain’s CNMV, and Norway’s FSAN.

FXTM’s FCA license

FXTM holds a license by another top European regulator – the UK’s FCA – as Exinity UK Limited. The main requirements UK companies have to meet are pretty much the same as for CySEC-regulated brokers – segregation of client funds, negative balance protection, a minimum operational capital of €730 000, certain leverage restrictions, a ban on binary options, and bonuses. The main difference is that the Financial Services Compensation Scheme (FSCS) all UK brokers have to participate in, offers a bigger compensation in case your broker becomes insolvent – up to £85 000 depending on the size of your investment.

Open Account NowTrade with a multiregulated forex broker. Your deposit with FXTM UK is guaranteed up to 85 000 GBP by the FSCS.

FXTM’s FSCA license

FXTM is also licensed by the FSCA of South Africa as a Financial Services Provider. The broker holds a category 1 license to act as an Intermediary in Securities and Instruments (Shares, Money market instruments, Bonds, Derivative instruments). The Financial Services Board of South Africa oversees the non-banking financial services industry and supervises such providers to ensure that they comply with the duties imposed by the Act.

The FSCA aims to create a safe and transparent trading environment for South African customers, ensure fair treatment, and make sure that traders are well-informed. Brokers regulated in the country have to have a local office and hold a minimum capital that is determined on a case-by-case basis and is enough to cover all possible expenses. They also have to pass through certain evaluation procedures and prove that they are financially stable, that their staff is well-qualified, and that they have good standing and reputation in the industry.

FXTM’s FSC of Mauritius license

FXTM has an offshore office like many other international brokerages. Companies set up such offices in order to avoid some of the stricter regulations that exist in the EU, and the UK – like the bonus ban and leverage restrictions – and subsequently offer better conditions and remain competitive.

FXTM has chosen the island of Mauritius for its offshore office and has obtained an official license from the local regulator, the FSC. Compared to the other jurisdictions we have already covered, the FSC has far fewer conditions for brokers – but there are still some basic requirements. All brokers have to hold some sort of minimum capital – the size of that capital varies between €25 000 and €250 000. The exact amount depends on the specific situation and on whether the broker will be acting as an introducing broker or not.

RegulatorMinimum operational capitalCompensation amount
FXTM EUCySEC€730 000€20 000
FXTM UKThe FCA€730 000£85 000
FXTM South AfricaFSCAdetermined on a case-by-case basis
FXTM GlobalFSC of Mauritius€25 000 to €250 000

FXTM’s global branches

In recent years, FXTM has turned its attention to emerging global markets and created branches in Nigeria, Indonesia, and Malaysia. All of these subdivisions are managed by the Mauritius-regulated company Exinity Limited but offer some unique features.

FXTM Nigeria

Nigeria is the largest, and fastest-growing economy in Africa so it is no surprise that FXTM has decided to set up a branch offering service to Nigerian clients specifically. The broker has been fairly well-accepted in the country as suggested by its many awards – Best Forex Brand Nigeria 2016, Best Online Forex Trading Company of the Year Nigeria 2017 and 2018, Best Forex Broker in Nigeria 2020, Most Trusted Broker in Nigeria 2021, etc. These awards speak of the broker’s consistent effort to provide Nigerian clients with the best service possible.

Nigerian traders would probably be thrilled to know that they can deposit directly in Nigerian Naira, and fund their account through a local bank – at a fixed rate with no added conversion fee.

FXTM Indonesia

FXTM has an impressive track record in Asian markets, having gained a multitude of awards over the years. This extends to the broker’s Indonesian branch – FXTM aims to provide local traders with the best possible conditions at the lowest possible price. Clients would be able to open an account in Indonesian rupees, and fund their accounts through a local bank – again, at a fixed rate.

FXTM Malaysia

Malaysia is a major Asian emerging economy – and FXTM has a branch dedicated to clients from this country specifically. Brokers in Malaysia are formally not regulated which makes turning to an established, international brokerage like FXTM even more important.

FXTM’s website is now available in Malay.

TRADING CONDITIONS

As mentioned, FXTM offers access to a variety of markets – a huge number of currency pairs, and forex indices, metals, commodities, stocks, and stock CFDs, stock baskets. The broker’s trading conditions are notoriously good – for a fraction of the money most other brokers would ask of you, you could get access to tight spreads, low commissions, and an overall incredible trading environment.

FXTM offers three different trading account types – Micro, Advantage (which is supposedly the most popular), and Advantage Plus. Swap-free versions of all of these accounts are available for clients of the Muslim faith.

The minimum deposit amount on the Micro account is just $10 – a rather small sum considering the range of markets, the tight spreads, and how renowned the broker is. Investing in an Advantage, or an Advantage Plus account would cost you $500 but give you far more opportunities than you would get if you simply opened a Micro account. However, we can safely say that a Micro account is a great place to start for people who have less trading experience and are just testing out the waters.

Keep in mind that if you choose to open a Micro account, you would only be able to use MT4 and subsequently would not have the chance to trade stocks, stock CFDs, and indices. There is also a maximum number of orders – 300 – and a maximum volume per order – 10 lots. With the other accounts, you could trade whatever asset you would like on MT4 or MT5, and the number of orders and volume per order is unlimited.

Average spreads and Commissions

The most common costs associated with trading are the spread and commission charged by brokers for each trade.

 

AccountMinimum Deposit AmountCommissionSpreadPlatformsExecutionAvailable Instruments
Micro$10NoneFrom 1.5 pipsMT4InstantCurrencies, Currency Indices, Metals, Commodities, Stock Baskets
Advantage$500Between $0.4 and $2 per side per lotFrom 0 pipsMT4, MT5MarketCurrencies, Metals, Commodities, Indices, Currency Indices, Stock Baskets, Stock CFDs, Stocks
Advantage Plus$500NoneFrom 1.5 pipsMT4, MT5MarketCurrencies, Metals, Commodities, Indices Currency Indices, Stock Baskets, Stock CFDs, Stocks

Both Micro and Advantage Plus accounts are commission-free – the trading costs would be added directly to the spread which means that it would not be as tight. However, spreads are still pretty good on both of these accounts –  they start from 1.5 pips which could still be very lucrative for you.

Spreads on Advantage accounts are much tighter and start from 0 pips which is as good as it gets. There is, however, an additional commission of between $0.4 and $2 per side per lot depending on your trading volume, and your equity. The broker has included a comprehensive table explaining their Advantage account commissions on the website.

For example, if your equity is under $3000 and the trading volume – under 100 lots – you would have to add 20 to the following formula – (Volume (in lots) x Contract Size (in currency units) x Open Price of the asset) / 1,000,000 x Commission x 2. So if you have traded 1 lot (100 000 currency units), the price of the asset was 1.21892,  your equity is under $3000, and your trading volume – under 100 lots – you would have to pay a $4.88 round-turn commission. This is actually pretty low considering the commissions you could stumble upon in the world of trading.

Opening an Advantage account is probably your best option – the price of a pip per lot is usually $10, which means that trading with spreads starting from 1.5 pips would have you pay at least $15 per lot. On the Advantage account, you would have to pay less than $5 – moreover, that rate is fixed which provides an additional level of certainty.

However, the more you trade, and the more money you invest, the smaller commission you would have to pay – the commission you could see above is calculated for the lowest equity and trading volume. IT could, of course, be much lower.

Trade with spreads starting from 0 pips Open Account Now

Leverage

BranchMaximum leverage for retail clientsMaximum leverage for professional clients
FXTM UK1:301:2000
FXTM EU1:301:2000
FXTM South Africa1:20001:2000
FXTM Mauritius1:20001:2000

The leverage you could get access to depends mainly on which branch of the broker you have opened an account with. The UK and the EU have both imposed leverage restrictions, at least when it comes to the maximum leverage retail clients could get – up to 1:30 on forex majors, and even lower on more volatile assets like gold and major indices (1:20), commodities (1:10), stocks (1:5), and cryptocurrencies (1:2). This is why FXTM UK and FXTM EU can offer a maximum leverage of 1:30. Unless of course you qualify as a professional client and meet some additional criteria – you would have to have net capital larger than $500 000, to have worked in a relevant position in the financial sector for at least a year, or to have placed a certain number of big offers in the past four quarters. Only when you meet two of those three conditions would you be able to trade with higher leverage.

Matters are a bit different when it comes to the broker’s other branches. There are no leverage restrictions that limit the rates the South Africa and Mauritius-based subdivisions of the broker could offer – which is why leverage could go up to 1:2000 depending on your account type and margin.

On Micro accounts, clients can trade with fixed leverage of between 1:3 and 1:1000 on currencies, and 1:500 on metals. Leverage on Advantage and Advantage Plus accounts is floating and depends on certain margin requirements. If you have less than $50 000 in your account, leverage can indeed go up to 1:2000 on forex majors but is lower on other assets – up to 1:500 on metals and indices. However, the more money you have in the account, the lower leverage you would be able to get access to – as low as 1:25 if you have more than $8 000 000 and can subsequently make extremely huge offers, and lose a lot of money.

Leverage increases your trading potential immensely enabling you to make bigger offers – and subsequently win or lose far more money than you would have if you traded with no leverage instead. That is why FXTM allows you to set the leverage you are going to trade with yourself based on market volatility, your own experience, and the capital you are willing to risk.

Open Account NowTrade with up to 1:2000 leverage

TRADING SOFTWARE

As we have already mentioned, FXTM supports MetaTrader 4 and MetaTrader 5 – currently the two most popular trading platforms. The broker offers the desktop and mobile versions of both platforms (for iOS and Android devices), as well as their web version. MT5 currently has the highest number of clients while MT4 remains the platform with the largest trading volume.

MT4 provides an advanced charting package, lots of technical indicators, an extensive back-testing environment, and a variety of Expert Advisors (EAs) – with whose help you can trade automatically in accordance with algorithms – and customizable signals. The platform offers over 30 technical indicators, 9 different timeframes, 4 pending order types, and 3 types of order execution. You would also be able to develop your own EAs, indicators, and other scripts with the MQL4 coding language. Thanks to its ease of use, MT4 is also suitable for beginner traders – since they can find their way around the platform quite easily. MT4 provides access to a range of markets – foreign exchange, commodities, CFDs, and indices.

MT4’s successor, MetaTrader 5, allows the execution of orders in several financial markets and stock exchanges through a single trading account. This platform gives access to more financial markets and instruments – not only foreign exchange, commodities, CFDs, and indices but also stocks and futures. Just like MT4, MT5 features an advanced charting package, trading and analysis tools, alerts, signals, and customizable indicators but their number has grown significantly. You would be able to use 38 different indicators, as many as 21 timeframes, 6 pending order types, and 4 order execution types. What is more, MetaQuites, the platforms’ developers, has made a number of significant upgrades – adding a tool for analyzing exchange markets, news management improvement, and most importantly – including a netting option.

 

 

FXTM was among the first brokers who updated MT5 to its most recent version. That version provides users with extra flexibility and control over their trades, enhancing their trading experience to the max.

Platform ComparisonMT4MT5
Marketsforex, commodities, CFDs, indicesforex, commodities, CFDs, indices, stocks, futures
HedgingYesYes
NettingNoYes
Indictors3038
Timeframes921
Pending order types46
Economic CalendarNoYes
Market DepthNoYes
Community chatNoYes

What is more, FXTM offers a Multi-Account Manager (MAM) program that allows traders with many accounts to conveniently manage all of them.

FXTM Trader

FXTM Trader is FXTM’s own mobile trading app which allows you to trade and track positions on multiple devices. Although the app is no MT, it does not have to be – it was designed for fast and convenient trading on the go. The app supports one-click trading and gives access to all the indicators and charting tools you might need. It allows you to choose from over 250 instruments and track price movements 24/7. A good option for those looking for a convenient and satisfying trading experience in the palm of their hand.

FXTM Invest

FXTM Invest is the broker’s copy-trading solution – a perfect option for beginners that do not yet know all the ropes of trading. FXTM Invest allows you to choose a Strategy Manager based on their performance – the program gives you information about return rates and risk levels. After you have subscribed to a certain Strategy Manager, you will automatically copy strategies and share a percentage when your Strategy Manager profits. Of course, you would be able to subscribe and unsubscribe at any time. More experienced traders could become Strategy Managers themselves – share knowledge with the community and earn an extra income.

 

Try FXTM’s copy-trading solutionOpen Account Now

Execution

FXTM offers great execution – fast speed, little requotes, and positive slippage.

According to FXTM’s recent statistics, 99.81% of orders were executed in less than a second, with the average time being 0.082 seconds. 95.18% of orders came with an improved price of around 0.31 pips due to automatic price improvement.

BONUSES AND PROMOTIONS

Although bonuses are currently banned in some of the jurisdictions where FXTM is regulated in – namely the UK and the EU – the broker’s global branches are free to offer some attractive promotions to clients.

If you share a referral link with a friend, and they register and meet the broker’s conditions, you would be receiving a $50 bonus for every person you have referred.

Additionally, FXTM regularly organizes trading contests that give you the opportunity to both show what you are capable of and test your strategies, and win huge prizes in the process – such as a Tesla or an iPhone. The broker also has different promotions around specific holidays so be sure to track their website for news.

Remember that promotions come with additional Terms and Conditions – so get acquainted with those first.

EDUCATION

FXTM has not forgotten to provide traders with a variety of educational materials that might be of interest not only to those who have just discovered trading but also to seasoned professionals.

You will find a comprehensive guide to different indicators and trading strategies (which you could later try in the broker’s demo account), a glossary, a few e-books on different theories, strategies, and more general topics, short educational videos for traders of different skill levels, as well as regular articles and tutorials. All of these sources are completely free so make sure to check out what FXTM has in stock.

PAYMENT METHODS

FXTM accepts a variety of payment methods, some of them region-specific. Clients would be able to deposit using Visa, MasterCard, Maestro or a Google Pay card, wire transfer, FasaPay, or e-wallets such as Skrill, Neteller, PerfectMoney, VLOAD, WebMoney, Yandex.Money, QIWI, and Konnexone.

Clients from some counties could make payments using a local transfer – if you are from a Latin American or South East Asian country, China, Vietnam, Maroco, India, Turkey, Nigeria, Indonesia, Egypt, Bangladesh, Pakistan, Laos, or Afghanistan, make sure to check FXTM’s website to learn what additional payment solutions might be available for you.

Payment SolutionCurrenciesDeposit FeeWithdrawal FeeProcessing Time for Deposit/Withdrawal
Visa/MasterCardEUR, USD, GBPNone$3/€2/£2Instant/24 hours
Wire TransferGBP, USD, EURNone€303-5 Business Days/24 hours
FasaPayUSD, IDRNone0.5%Instant/24 hours
SkrillEUR, USD, GBP, PLN, CZKNoneNoneInstant/1 Business Day
NetellerEUR, INR, USD, GBP, PLN, NGNNoneNoneInstant/24 hours
PerfectMoneyUSD, EURNone0.5 %Instant/24 hours
VLOADUSD, EURNoneNoneInstant/24 hours
KonnexoneUSDNone2 %Up to 1 business day for both deposits and withdrawals
TC Pay WalletUSD, EUR, AEDNoneNoneInstant/24 hours
WebMoneyUSD, EUR, RURNone2%Instant/24 hours
QIWIRURNone1.5%Instant/24 hours
Yandex.MoneyRURNone1.5%Instant/24 hours

FXTM does not charge deposit fees, and also does not have withdrawal fees on some payment methods such as Skrill, Neteller, and VLOAD. The commissions on all other withdrawals are not huge – $3 for every credit/debit card withdrawal, €30 for international wire transfers (which is standard), and a percentage fee on most other payment solutions. For example, if you are withdrawing money using Konnexone or WebMoney, you would be charged a fee equal to 2% of your transaction. Using QIWI or Yandex.Money would result in a 1.5% fee while withdrawing via PerfectMoney or FasaPay would cost you only 0.5% of the transaction amount.

We would advise you to use a card or wire transfer if you are withdrawing a larger amount of money since there is a fixed fee – a percentage fee would only grow bigger with bigger withdrawal amounts. If you are, however, withdrawing a smaller sum, it would probably be wiser to avoid bank transfers since fees for international transactions are usually quite big.

Visit FXTM website nowCheck the comprehensive list of payment solutions on FXTM’s website

BOTTOM LINE

FXTM is a global award-winning broker with clients from over 180 countries that offers a wide array of products, trading accounts,  platforms, and payment methods. While novice traders will benefit from different educational resources and FXTM’s copy trading solution, experienced clients will appreciate the many options the broker provides when it comes to account types and trading platforms. FXTM offers some of the best conditions you could find – low minimum deposits, tight spreads, fast execution, and potentially high leverage. No matter where you are based – be it the UK, the EU, Africa, or Asia – this broker would be glad to make you their client for a tiny amount of money.

FXTM Review – Is FXTM a good forex broker?

The FXTM brand was initially launched in 2011 and since then the company has firmly established itself as one of the best

Regulation and Safety 7
Trading Costs (Spreads & Commission) 7
Leverage 8.5
Minimum initial deposit 7.5
Overall 7.4
Summary
ForexTime is a global and award-winning broker with clients from over 180 countries. It offers a wide array of almost everything: tradable products, trading accounts & platforms, payment methods, execution types, you name it.
7.5
Detailed review of FXTM
User Rating : 3 (7 votes)

4 Comments

  1. I’ve been trading with FXTM for about a year now. Can’t say one thing bad about them. My Pro account is up over 144% thanks to Lefturn Inc, Best combo right there! Best Broker meet Best Traders!

  2. I need to join

  3. do they alSO TRADE in crypto investment >

  4. A liar. I can’t get my money back

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