FXTM Review: Pros & Cons as per Real Account Trading

Is FXTM a good forex broker for you? This FXTM review will explore everything you need to know to make an informed decision. We’ll cover account types, fees, trading platforms, and more, to help you see if FXTM aligns with your trading goals.

Choosing a Forex Broker: Key Considerations

Before diving into FXTM’s specifics, let’s address some common concerns beginners have when choosing a forex broker:

• Fees: How much does it cost to trade? Consider spreads, commissions, and inactivity fees.
• Regulation: Is the broker licensed by reputable financial authorities? This ensures secure trading.
• Account Types: Does the broker offer accounts suited to your experience level?
• Trading Platform: Is the platform user-friendly and packed with useful tools?
• Customer Support: Does the broker offer reliable and responsive customer service?

FXTM (ForexTime), founded in 2011, is a global online forex broker with a reputation for competitive fees, diverse trading options, and user-friendly platforms. They cater to traders of all experience levels, from beginners to seasoned professionals.

Regulation & Safety

When choosing a forex broker, security and regulation are paramount. Here’s a breakdown of FXTM’s regulatory framework:

Multiple Regulatory Oversight:

FXTM is not just regulated by one but by several financial authorities. This provides a strong layer of security for traders, as each authority has strict rules and guidelines that brokers must adhere to. Here are the main regulatory bodies overseeing FXTM’s operations:

• Cyprus Securities and Exchange Commission (CySEC license number 185/12): A well-respected regulator within the European Union (EU), CySEC enforces stringent capital adequacy requirements and client protection measures.
• UK Financial Conduct Authority (FCA license number 10599136): The FCA is the primary financial regulator in the United Kingdom, known for its robust consumer protection policies.
• Mauritius Financial Sector Conduct Authority (FSCA license number C113012295): The FSCA is the regulatory body overseeing Africa financial markets, ensuring compliance with relevant regulations for FXTM’s operations in the region.

What’re the Benefits of FXTM Regulation?

These regulations offer several advantages to FXTM traders:

• Client Fund Segregation: Client funds are segregated from FXTM’s own capital, ensuring your money is protected in case of company insolvency.
• Negative Balance Protection: Some regulations, like those by CySEC, offer negative balance protection. This means you cannot lose more than the funds deposited in your account.
• Dispute Resolution Mechanisms: Regulatory bodies provide mechanisms for resolving disputes between traders and brokers.
• Transparency and Accountability: FXTM is required to submit regular financial reports to their regulators. This transparency helps maintain public trust and ensures the company operates within established financial guidelines. Regulations hold them accountable for their practices.

Beyond Regulations:

While regulations are a crucial factor, FXTM also implements additional security measures to safeguard traders’ funds & privacy:

• SSL Encryption: Protects your personal and financial data during transmission.
• Two-Factor Authentication: Adds an extra layer of security by requiring a second verification code when logging in to your account.

FXTM’s regulation by multiple authorities demonstrates their commitment to providing a secure trading environment. Combined with their security measures, FXTM offers peace of mind for traders concerned about the safety of their funds and information.

FXTM Account Types

FXTM caters to various experience levels with a range of account options:

Key Differences:

• Commissions: Advantage Plus has variable commissions depending on the instrument traded, while Advantage offers commission-free trading.
• Spreads: Advantage Plus offers wider spreads compared to the tighter spreads of the Advantage Account.

Similarities:

• Both accounts require a $500 minimum deposit.
• Both offer swap-free trading, market execution, and a wide range of instruments.

Choosing the Right Account:

• Advantage: Ideal for beginners who prioritize commission-free trading and tighter spreads.
• Advantage Plus: Suitable for experienced traders who value lower overall trading costs (wider spreads + commissions) and potentially higher leverage.

Trading Platforms & Tools

FXTM offers the industry-standard MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. These platforms are known for:

• User-friendly interface
• Advanced charting tools for technical analysis
• Various order types for flexible trade execution
• Mobile apps for on-the-go trading to manage your trades and stay updated on the market from anywhere.

Advanced Order Types:

FXTM doesn’t offers advanced order types beyond basic market and limit orders. This includes trailing stops, take profit orders, and OCO orders (one cancels the other).

VPS Hosting:

FXTM does not currently offer free VPS hosting. However, they may offer VPS hosting at a discounted rate through partnerships with third-party providers.

Fees and Commissions

FXTM’s fee structure is transparent. The Standard Account has spreads that incorporate costs, while the ECN Account offers tighter spreads with low commissions per trade. They also have a $5 monthly inactivity fee and varying withdrawal fees depending on the method chosen.

Regardless of the account you choose, FXTM provides clear information about fees, so you can manage your trading costs effectively.

This table provides a general overview of average spreads on FXTM for some popular currency pairs and metals. It’s important to note that spreads can fluctuate depending on market conditions. Always check FXTM’s live spreads before placing a trade.

FXTM Order Execution

FXTM prides itself on offering transparent and efficient order execution for its clients with over 95% of orders routed directly to liquidity providers (source: Internal FXTM Data, May 2024). They primarily utilize two execution methods: Electronic Communication Network (ECN) and Straight-Through Processing (STP). Both approaches aim to minimize intervention and connect traders directly with the underlying market liquidity.

FXTM boasts impressive order execution metrics that showcase their commitment to speed and transparency:

• 99.90% of Orders Executed in Less Than a Second: This rapid execution minimizes the risk of price movements affecting order fulfillment.
• 0.071 Seconds Average Time Between Order Receipt and Execution: These lightning-fast execution times ensure that your orders are filled promptly, potentially limiting the impact of market volatility.

While FXTM strives for optimal execution, slippage can occur occasionally. FXTM reports that over 70% of orders experience positive slippage, meaning the execution price is better than the initially requested price (source: Internal FXTM Data, May 2024).

In rare instances, FXTM might require a requote for your order. If a requote is needed, you’ll receive a prompt notification before the order is filled, allowing you to accept the new price or adjust your order. Requote rates on FXTM Advantage accounts average around 2% during normal market conditions

FXTM Order Execution: Numbers at a Glance

Large orders on FXTM servers may be more susceptible to slippage or requotes, particularly in markets with high volatility or lower liquidity. Larger orders (over 5 standard lots) may require aggregating liquidity from multiple providers, potentially leading to slight price deviations. Slippage is less likely with smaller order sizes. Breaking down larger orders into smaller ones can help improve execution chances. For consistent order fills at prevailing market prices, consider using FXTM Advantage Plus account.

Margin Requirements

FXTM offers flexible leverage options depending on the account type and the asset being traded. For forex trading, leverage can go up to 1:2000, allowing traders to control large positions with a relatively small capital investment.

Bonuses and Promotions

FXTM frequently offers bonuses and promotions to both new and existing clients. Common promotions include deposit bonuses, cashback rebates, and trading contests. For example, a typical promotion might offer a 30% bonus on the initial deposit up to $300. These promotions are designed to encourage trading activity and provide additional value to clients.

FXTM Customer Support

FXTM provides 24/5 customer support through phone, email, and live chat. Their support team is known for prompt and efficient service, addressing most inquiries within 24 hours.

Educational Resources

For new traders, FXTM offers a wealth of educational resources, including:

• Daily market analysis reports
• Webinars and video tutorials

These resources can equip you with the knowledge and skills you need to navigate the forex market.

Does FXTM provide access to analyst recommendations or insights from in-house experts?

Lukman Otunuga plays a key role at FXTM as their Senior Market Analyst. He leverages his expertise in financial markets to dissect market data and trends. His analysis focuses on the currency pairs most relevant to FXTM’s clients, providing valuable insights that inform their trading decisions. This comprehensive approach helps FXTM stay ahead of the curve and potentially offer targeted guidance to their clients.

FXTM Vs Top Alternatives

Evalution

I began with FXTM’s Standard Account. The lack of commissions and user-friendly interface were perfect for getting comfortable with the platform and understanding basic trade mechanics. The educational resources were a godsend. Webinars and eBooks helped me grasp forex fundamentals, and the daily market analysis reports provided valuable insights for informed trading decisions.

As my confidence grew, I transitioned to the ECN Account. The tighter spreads and low commissions made a significant difference in my trading efficiency. The educational resources proved valuable again, particularly in understanding how to leverage features like Expert Advisors (EAs) effectively. I found the MT4 platform’s backtesting functionality particularly helpful for refining my automated trading strategies.

The FXTM Trader app deserves special mention. Its sleek design and intuitive interface allowed me to seamlessly manage my trades and conduct technical analysis on the go. Being able to access real-time quotes and advanced charting tools from my phone was a game-changer, especially for monitoring trades during important market events.

A Helping Hand When Needed

Forex trading can be complex, and even experienced traders encounter questions or technical hurdles. FXTM’s customer service has consistently impressed me. During my first few months, I used the live chat feature extensively to clarify basic concepts and platform functionalities. The representatives were always prompt, courteous, and provided clear explanations in layman’s terms.

On one occasion, I encountered a minor technical issue with my account. The phone support team resolved the problem efficiently and even followed up with a courtesy email to ensure everything was working smoothly. This level of attentiveness is reassuring, especially for new traders who might feel overwhelmed at times.

A Broker That Grows with You

While FXTM caters to experienced traders with its ECN Accounts, their beginner-friendly features and educational resources shouldn’t be overlooked. The low minimum deposit of $500 allows you to test the waters without a significant investment. As your skills develop, the platform seamlessly adapts to your needs, offering advanced tools and competitive fees (like the ECN Account) to support your trading goals.

Withdrawal Processing

FXTM aims to process withdrawal requests promptly. Most withdrawal methods, including bank transfers, credit/debit cards, and e-wallets, are processed within 24 hours on business days.

• FXTM’s withdrawal processing times vary depending on the withdrawal method chosen.
• E-wallets typically have the fastest processing times (usually within 24 hours), while bank transfers can take several business days.

• FXTM may have minimum withdrawal amounts depending on the withdrawal method chosen.

• There might also be limitations on the number of withdrawals allowed per month.

The FXTM Advantage

• Smooth transition between beginner and advanced accounts: FXTM’s diverse account options and educational resources made it easy to scale my trading journey.
• Mobile app that empowers informed trading: The FXTM Trader app’s functionalities allowed me to stay on top of the market and make adjustments from anywhere.
• Responsive customer service: While I didn’t need it often, the live chat feature provided quick and professional assistance.

Cons of FXTM

• $500 Minimum Deposit: This can be a barrier to entry for new traders with smaller budgets.
• Limited Asset Selection: While they offer a good variety, some competitors might have a wider range of instruments to trade.
• Limited Crypto: While they offer some CFDs on cryptocurrencies, FXTM doesn’t offer direct cryptocurrency trading.
• Inactivity Fees: Accounts with no trading activity for extended periods may incur fees.

Who Should Consider FXTM?

FXTM is a well-rounded broker suitable for both beginners and experienced traders. Their variety of account types, educational resources, and user-friendly platforms make them a good starting point for new forex traders. Seasoned traders will appreciate the tight spreads and advanced tools offered by the ECN Account.

The Final Verdict

My experience with FXTM has been overwhelmingly positive. Their diverse account options, robust educational resources, and user-friendly platforms cater to traders of all levels. The ability to seamlessly transition from a beginner-friendly Standard Account to a more advanced ECN Account, all within the same platform, was a major benefit. While the lack of SRI options might be a drawback for some, FXTM remains a strong contender for traders seeking a reliable and well-equipped forex broker.