FXCM South Africa Review – 5 things you should know

FXCM South Africa Review – 5 things you should know

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FXCM South Africa is perhaps one of the best brokers one can wish for in South Africa. It basically follows the best practices of FXCM and delivers them to the South African audience. It is such a great showcase of what FX brokers are capable of.

The review that is about to unfold is of FXCM South Africa (fxcm.com/za). FXCM South Africa is held by the FXCM South Africa (PTY) LTD, which is a subsidiary of FXCM Group. The group consists of brokers spread throughout the world, each regulated by the appropriate overseer. The FXCM Group has one of the highest numbers of branching brokers around, a testimony of the broker’s dedication to integrity, security, and constant strife for innovation. These subsidiaries are:

  • Forex Capital Markets Limited, regulated by the FCA (fxcm.com/uk), where FXCM Group is also based.
  • FXCM EU LTD regulated by CySEC (fxcm.com/eu)
  • FXCM Australia Pty. Limited, regulated by ASIC (fxcm.com/au)
  • Friedberg Direct, a.k.a FXCM Canada, licensed by IIROC (fxcm.com/ca)
  • FXCM South Africa (PTY) Ltd licensed by FSCA (fxcm.com/za)

We proceeded with opening a demo account because live accounts are reserved only for actual traders and investors. We are confident that the demo account accurately mirrors the live trading conditions. These trading conditions center mainly around the spread and the available financial instruments. The EUR/USD spread was on average 1.2 pips, which is the industry average by all means. The available financial assets are forex currency pairs, commodities, cryptocurrencies, indexes, and stocks. The leverage is maxed at 1:400, which is a common value for brokers not constrained by leverage-imposing rules. Account holders depositing over $50 000 are restricted to use a maximum of 1:100.

Overall, the trading conditions here are right on point.

FXCM SOUTH AFRICA REGULATION AND SAFETY OF FUNDS

Things are very straightforward here. FXCM South Africa, or FXCM South Africa (PTY) LTD, is authorized and regulated by the Financial Sector Conduct Authority (FSCA)

The FSCA has pretty much the same policies and beliefs as most financial regulators, although it is worth mentioning that the EU, the US, and certain other jurisdictions have a stronger regulatory framework. Nevertheless, outside of the mainstream, the FSCA might well be the best license issuer. Its responsibilities range from being the main stabilizing force in the SA market industry to protecting individual users and traders from frauds. Of course, it makes sure that all brokers under its gaze are kept in check and always provide the most secure and fair trading and payment conditions.

There is no leverage cap imposed by the authorities, opening up all South African brokers to offer leverages that have at times gone over the 1:500. For comparison, FCA, CySec and ASIC regulated brokers can’t to their clients leverage higher than 1:30. In the case of FXCM South Africa, the leverage is capped at 1:400.

However, unlike the FCA, CySEC, and IIROC (among others), the FSCA does not include a compensation scheme for users. The added layer of protection is provided by the regulator. This is not fatal, but it may be a deal-breaker for some.

FXCM SOUTH AFRICA TRADING SOFTWARE

TradingStation is the main trading area provided by the broker. It’s one very powerful software that is made available on virtually any device, including mobile devices, web browser, and also as standalone desktop software.

The main focus of this trading software is accessibility. There is a huge room to customize your experience without losing any options. There are also automated trading capabilities, preloaded indicators, various charting apps, a plethora of order types, backtesting, live news and calendar, trading analytics tools, and so much more.

The next big platform is of course the MT4, a powerhouse of a software, and the best one in the market.  With its hundreds of unique features and other common options, the MT4 is a mix of the familiar with the unknown, creating a continuum of learning and discovery.

One of the main focus of FXCM South Africa seems to be the ZuluTrade, essentially a social auto-trading platform permitting users to copy the trading strategies of other users, allowing for automatic mirror trading. As FXCM Africa says it best, ZuluTrade does everything for you!

NinjaTrader is the third major trading software here. NinjaTrader8 is the newest addition in the mainline of excellent platforms. Although not as popular as the MT4, this NinjaTrader still delivers a very heavy punch. NinjaTrader includes advanced charting tools and packages, excessive drawing tools, custom indicators, trade management tools allowing for more control over open positions, automated trading capabilities, a ton of customization options, backtesting, price alerts, and many more.

Finally, users are also given Capitalise.ai, a platform allowing users to create code-free strategy automation with simplicity and without complicated processes. Just type a strategy and the AI will do the rest!

FXCM SOUTH AFRICA BONUSES AND PROMOTIONS

The South African regulator is noteworthy for its tolerance towards bonuses and promotions, something that EU and US regulators have condemned.

Following are the available promotional packages made available by FXCM South Africa”

  • Friends and Family Referral Promotion: Users can get up to $300 in their trading accounts when they refer the broker to friends and family.
  • FXCM Rebate Program: Users who trade more than $10 million a month will be able to get rebates from the broker. There are separate tiers and a calculator to help with the number. This promotion is only for very serious and active traders.

FXCM SOUTH AFRICA DEPOSIT/WITHDRAW METHODS AND FEES

The broker allows for deposits made via credit cards, debit cards, Skrill, and Neteller. Honestly, the only way to get a hold of the minimum deposit was to contact the support team. A friendly agent disclosed that there the minimum deposit is $50.

Withdrawals with wire transfers take usually up to 5 days to process.

The terms and conditions reveal that there are certain fees and charges that may be applicable from time to time, with no further details on any specifics. The broker encourages anyone with questions to contact the support team. This to us seems suspicious, and is perhaps the only con to the broker, but nevertheless a big minus!

The truth is that there is relatively very little payment information revealed. FXCM South Africa is one of those brokers that offers more insight only to registered users, which is not a bad thing, but we would have liked some further payment exposition on the website. After all, payment conditions are crucial to any brokerage!

Bottom Line

Overall, FXCM South Africa is a decent broker, one that does everything within the framework of standardized FX practices. For a South African broker, dare we say that it may be one of the best ones? Yes, we do.

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