FXCM France review – 5 things you should know about FXCM FR

FXCM France review – 5 things you should know about FXCM FR

Rating: 3

Recommended broker

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FXCM Group is one of the most established and respected forex and CFDs brokers in the world. It has been a major player in the market for over 20 years and in 2021 alone added to its long list of accolades with the Broker of the Year Award from Ultimate Fintech Awards, Best Zero commission Broker from ADVFN International Financial Awards and Best FX Platform from Online Personal Wealth Awards.

Headquartered in the United Kingdom, FXCM Group also operates in Hong Kong, Australia, Canada, Israel, South Africa and a number of European Union countries. The focus of this review is the services that FXCM offers to French and Luxembourg nationals through the website fxcm.com/fr.

FXCM FRANCE REGULATION AND SAFETY OF FUNDS

The FXCM Group’s majority owner is Jefferies Financial Group, formerly known as Leucadia Group. Jefferies Financial Group is one of the liquidity providers for FXCM Group, alongside global financial institutions like Barclays Bank, Citibank, Deutsche Bank, UBS, Morgan Stanley & Co. and Commerzbank.

In the UK, FXCM Group operates through the company Forex Capital Markets Limited, which is regulated by the Financial Conduct Authority (FCA). In the European Union, including France,  FXCM Group operates through the legal entity FXCM EU Ltd, based in Cyprus and regulated by the Cyprus Securities and Exchange Commission (CySEC):

 

There are many advantages to working with brokers supervised by the CySec because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). First, they must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach.

Whenever clients deposit money in their trading accounts, it is kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.

All brokers licensed in Cyprus are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. Cypriot forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.

On the FXCM France website, you can find historical rates statistics and data such as Execution quality reports.

FXCM FRANCE TRADING SOFTWARE

FXCM France offers clients MetaTrader 4 (MT4). In addition to the desktop application for Windows, a web-based version is available, as well as applications for Android and iOS mobile devices. Here is what the platform looks like using Demo account:

MetaTrader 4 is the most popular trading platform in the industry, with even the newer MetaTrader 5 only recently managing to overtake its predecessor in number of active users, but still lagging in trading volume. These platforms have established themselves as industry standard for a reason – they offer a wide range of features, including a variety of options for customization, multiple account usage, and most importantly, the ability to design and implement custom scripts for automated trading and backtesting trade strategies.

FXCM France offers the possibility to rent a Virtual Private Server (VPS) so that the Expert Advisor bots you use do not depend on your personal hardware.

FXCM FRANCE TRADING CONDITIONS

FXCM offers trading in over 30 financial instruments including forex, cryptocurrencies and CFDs on commodities and indices.

The minimum deposit for which you can open a trading account with FXCM France is 300 EUR. If you are using a credit or debit card, there is also a maximum deposit of 30 000 EUR per month.

The average spread for benchmark currency pairs EUR/USD and GBP/USD is 1.3 and 1.7 pips, fully in line with the industry average.

The leverage with which the different financial instruments can be traded is in line with ESMA requirements –  30:1 for major currency pairs, 20:1 for minor currency pairs, gold and major indices and 10:1 for commodities other than gold and minor indices. While high leverage creates opportunities for greater profits, it also increases the risk of sudden and excessive losses. This is why leading regulators impose limits on the leverage with which retail traders can trade.

A novice trader can test the waters with a limited risk account. This type of account limits the risk for the inexperienced trader by imposing an automated built-in protection mechanism that prevents losing more than the margin used on the positions. When opening a position, the maximum loss threshold is automatically limited by a guaranteed Stop Loss to the margin used to open your position. This account also comes with some restrictions – it is limited to French citizens and you cannot use it for hedging and trading cryptocurrencies.

If a limited risk account exceeds the threshold of 10 000 currency units, it is automatically switched to a standard account. FXCM France does not allow simultaneous use of different account types.

For more experienced traders, the FXCM France offers the option to apply for Active Trader status. In addition to dedicated support аnd other “premium services”, active trader accounts  are eligible for a different pricing.

They get to choose whether to move to a commission-based model. The FXCM France website makes it clear that the pricing offers are individual. From the examples given, it is clear that an Аctive trader can trade at a much lower spread of 0.2 pips per EUR/USD, but has to pay a commission of about 25 USD per 1 million currency units traded. In comparison, when trading without a commission at an average spread of 1.3 pips, the trader would have to pay a broker 130 USD for the same volume traded.

As is standard for brokers, FXCM France also provides the opportunity to apply for professional trader status. The requirements for this are high – to have а financial portfolio exceeding 500 000 EUR, to have traded leveraged derivatives in significant volumes in the past four quarters and/or to have worked in a professional position in the financial industry.

Professional trader status allows trading at leverage levels higher than those allowed for retail traders. But a professional trader waives the guarantees that CySEC requires for retail traders – including the negative balance protections, compensations under the Investor Compensation Fund and ability to use Financial Ombudsman services in Cyprus.

FXCM FRANCE DEPOSIT/WITHDRAW METHODS AND FEES

At the time of writing this review, FXCM France offers two methods for deposit and withdrawal – credit/debit card and bank transfer. While these methods are perfectly sufficient for most people, it should be noted that most brokers, including FXCM UK, offer more options, including popular e-wallets such as the Skrill or Neteller.

FXCM France does not charge deposit fees. Withdrawal fees depend on the currency and whether the trader’s account is domestic or international. There is no fee for euro withdrawals using the single euro payments area (SEPA) system.

Non-SEPA withdrawals in euros are charged 15 EUR for a domestic account and 30 EUR for an international account. The same level applies for withdrawals in British pounds. For withdrawals in dollars, the fees are 25 USD  for a domestic account and 40 for an international account, respectively.

If a deposit, withdrawal or transfer requires conversion from one currency to another, FXCM France charges additional fees that reach 150 pips for amounts under 10 000 USD.

If an account holder is granted a personal exemption and allowed to deposit more than 30 000 currency units per month by credit or debit card, a management fee of 3% is charged for the amount over 30 000.

Business and trust accounts are subject to a monthly fee of 25 units of base currency, if they do not meet the requirements for a minimum balance of  50 000 units of base currency.

BOTTOM LINE

In an environment filled with scammers trying to prey on inexperienced traders, FXCM France offers transparency, fair trading conditions and solid regulatory oversight. This broker provides all the basic tools that are necessary for both beginners and experienced traders.

If a negative of FXCM France has to be pointed out, it’s that the broker doesn’t offer much beyond the basic instruments required. Many of FXCM France’s competitors, as well as other divisions of the FXCM Group, offer more options for trading platforms, payment methods and financial assets to trade.


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