FXTM A Comprehensive Broker For CFDs & Forex

August 1, 2020
Brokers
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FXTM is a broker and application that was established in 2011 and which today operates in over 180 countries with over 3 million customers. FXTM offers plenty of forex, CFD, stock and commodity trading options and it offers a very competitive fee structure for forex and CFDs. Moreover, the broker offers some good customer service and demo account resources. The competitive fee structure and the strong educational resources mean that you can make an account that will help you in maximizing your profits. Click the link below to join now and gain access to a plethora of CFDs and forex pairs.

On the other hand, if you are looking for a holistic platform that offers a wide array of assets at the best rates then you should consider Capital.com as it offers a diverse range of stocks, ETFs, bonds, crypto, commodities. With one of the best and most affordable fee structures coupled with the most comprehensive educational resources, Capital.com promises to be a good platform for your trading needs.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with FXTM and scored our findings on a 10-point scale across 10 distinct categories.
Fees 7
Signup Process 9
Minimum Deposit 10
Ease of Use 5
Deposit & Withdrawal Options 10
Customer Support 9
Asset Classes 5
Referral Program 0
Demo Account & Educational Resources 10
Safety & Regulation 6
Total 71

Introduction To FXTM

FXTM was founded in 2011 and serves customers in over 180 countries with over 3 million customers. The broker is famous for its diverse product offerings in forex, CFDs, stocks and spot metals. The application has some great account types for different types of users and a competitive fee structure that can make trading profitable and enjoyable.

Pros & Cons To FXTM

Let’s have a look at the pros and cons for FXTM that can help you in deciding if FXTM is right for you.

FXTM Pros

  • Plenty of account types of different types of users
  • Many forex options
  • Many CFD options
  • Competitive fee structure
  • Good customer service via phone and live chat

FXTM Cons

  • High spreads for trading of exotic currencies
  • Does not offer asset types such as bonds and ETFs
  • Lack of regulation from strong regulators
  • Inactivity fees

FXTM Account Types

There are several types of accounts offered by FXTM depending on your requirements and preferences. Let’s have a quick look at them:

Account TypesOrder ExecutionLeverage / Margin Requirements
Standard AccountInstant ExecutionFloating from 1:2,000
CentInstant ExecutionFixedfrom 1:1,000 – 1:25 (FX), 1:500 -1:25 (Spot Metals)
ECN AccountMarket ExecutionFloating from 1:2,000
ECN Zero AccountMarket ExecutionFloating from 1:2,000
Stock CFDs AccountInstant ExecutionFixed leverage 1:10 for US Shares of and 1:3 for European Shares
FXTM Pro AccountMarket ExecutionFloating from 1:2,000 – 1:25

The Cent and Standard accounts can be good accounts for starters because you can get started with $10 or $100 respectively. For instance, the stock CFDs account can be used for individuals wanting to trade stock CFDs. Similarly, the FXTM Pro Account has spreads starting from 0 pips so if you are a volume trader who trades in bulk you may want to invest in it.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 FXTM Fees

The forex fee structure is slightly complicated because of the plethora of options that FXTM provides. The rates can change, however, there are a few minimum spreads that they mention that help you determine the range from which you can start trading. The forex pairs are divided into 3 categories namely, major, minor and exotics pairs.

FXTM Fees for Major Forex Pairs

A major pair is any pair that is commonly traded on the platform. An advantage of major forex pairs is that you will find lower spreads and higher liquidity. Some of the major pairs and the spreads associated with them are mentioned in the table below.

Currency Pair

Minimum Spreads (pips)

EUR/USD

0.1

AUD/JPY

0.4

AUD/USD

0.1

EUR/AUD

0.6

EUR/CHF

0.1

EUR/GBP

0.2

EUR/JPY

0.2

GBP/AUD

0.1

You can see from the sample above that the minimum spreads for the major currencies are quite low. The lower limits for spreads also provide you with a guideline to know when the spreads are fluctuating.

FXTM Fees For Minor Forex Pairs

Minor pairs include currencies that are not in as high demand as major pairs but they can be helpful in building a diversified forex portfolio mix. Since these currencies are not very high in demand they tend to have higher spreads.

Currency Pair

Minimum Spreads (pips)

AUD/CAD

2.5

AUD/CHF

3.2

AUD/NZD

4.0

CAD/CHF

4.3

CAD/JPY

3.0

CHF/SGD

7.5

The minimum spreads in the table above are considerably higher than the ones than the major forex table above. However, since these pairs are more unique than the ones in the major forex category they are obviously higher.

FXTM Fees For Exotic Currency Pairs

Exotic currency pairs are pairs that include currencies from the developing world such as the South African Rand or Pakistani Rupees etc. Exotic currencies often have low demand hence, the spreads can be very high when compared to minor or major forex spreads. However, a point to be noted is that currencies of developing nations tend to have more variation than currencies of developed nations hence, it could help you in earning more provided you invest in currencies that are likely to be profitable for you.

Currency Pair

Minimum Spreads (pips)

CHF/PLN

23.0

EUR/HKD

2.9

EUR/INR

300.0

EUR/PLN

7.0

EUR/TRY

5.5

GBP/INR

400.0

The minimum spreads for exotic currencies are quite high. However, it makes sense too because they are unique and rare, which is part of the reason that they are called exotic currencies in the first place. For instance, the GBP/INR conversion starts from a pip of 400 so it means that per pound there is a spread of 4 pence for trading with the INR.

FXTM Inactivity, Deposit & Withdrawal Fees

In case you do not have any trading activity on your trading account for a period of 6 months or more, FXTM will charge you an amount of 5 EUR/USD/GBP per account depending on your Trading Account on a monthly basis. There are no deposit and withdrawal fees however, there may be deposit or withdrawal charges if you are transferring money through local transfers.

FXTM Fees on European CFDs & US CFDs

The fees on European CFDs and US CFDs is variable and depends on the CFD security that is being traded. A few of the famous CFDs in Europe and their spreads are mentioned below.

European CFDs

Typical Spreads (pips)

Anheuser Busch

5.0

Credit Agricole SA

1.0

Adidas AG

19.0

Air LIQUIDE SA

10.0

AIRBUS SA

10.0

DAIMLER AG

5.0

Some of the spreads for some of the CFDs in USA are:

American CFDs

Typical Spreads (pips)

Apple

17.0

American Eagle

7.0

Amazon.com

84.0

Bank of America

12.0

Bed Bath & Beyond

5.0

NETFLIX

38.0

A common trend visible in some of the American stocks is that famous companies tend to have a wider spread than some of the lesser famous companies. For instance, Amazon.com, one of the largest companies in the world in terms of profit and revenue, has the widest spread of the companies mentioned above compared to a company like Bed Bath & Beyond which has a spread that is fractional to Amazon’s.

The fee structure does a really good job in being explicit and clear. However, it can do a better job in offering better rates for some currency pairs and exotic pairs in particular due to which the broker scores a 7.

Related: If you’re looking for a great Forex broker, check out our Tickmill review, they offer some great forex rates as well.

FXTM Fees Score: 7/10

#2 Signup Process

The sign-up procedure for FXTM is pretty simple and self-explanatory. Everything is done online and all documents are sent digitally. The procedure will help you in quickly getting signed up, however, the verification of your account tends to take up to 1 business day, due to which this broker loses a point in our scale since some other brokers can get you verified and trading in less than a day, sometimes in as little as 20 minutes. Still, waiting for 1 day is pretty good compared to others that can take 2, 4 or even more days to verify your account.

FXTM Signup Process Score: 9/10

#3 Minimum Initial Deposit

The minimum initial deposit depends on the account type and the base currency you are using and are illustrated in the table below:

Account TypeMinimum Deposit
Standard Account$/€/£ 100 / ₦40,000
Cent$/€/£ 10 / ₦2,000
ECN Account$/€/£ 500 / ₦80,000
ECN Zero Account$/€/£ 200 / ₦80,000
Stock CFDs Account$/€/£ 100 / ₦40,000
FXTM Pro Account$/€/£ 25,000 / ₦5,000,000

As you can see, if you are a beginner trader you can easily get started with the Cent or the Standard Account with a nominal deposit amount of 10 or 100 units of the base currency. However, if you want lower spreads and you are a professional trader you could get started with the FXTM Pro Account as long as you can handle the initial deposit of 25,000 of the account base currency. The fact that you can get started with a deposit of $10 means that the minimum deposit section gets a 10/10.

Related: if you want to get started without a minimum initial deposit, check out our Webull, IronFX and Qtrade reviews.

FXTM Minimum Initial Deposit Score: 10/10

#4 Ease of Use

Web Trading Platform

FXTM’s asset interface or dashboard interface is quite detailed and gives you plenty of trends and metrics on your asset. For instance, you can see the trend of your asset on the dashboard along with metrics displayed in text on the left side of your dashboard. However, the interface seems a bit outdated and the graphs seem slightly outdated as well.

fxtm

Search Tools

The search functions seem outdated as well. You do not have the option to type in what you want to search, instead, you have to manually read the different options from dropdown menus, which can be really anoying.

fxtm

Desktop & Mobile Trading Platform

The interface of the desktop and mobile applications is better than the web platform. However, it still seems like it is outdated. The desktop and mobile applications have the same features as the web application apart from the fact that you can set up import notifications for timely decision making.

fxtm

The outdated interface coupled with the lack of research tools like advanced charting or news feed features like those available with Capital.com and XTB, makes FXTM score a 5/10 in this dimension.

FXTM Ease of Use Score: 5/10

#5 Deposit & Withdrawal Options

There are plenty of options through which you can deposit or withdraw your funds with FXTM. It is always good for a broker to have multiple deposit and withdrawal options to provide users with the flexibility to deposit and withdraw funds in the manner that best suits their needs.

These are the different options FXTM offers for depositing or withdrawing funds:

  • Bank transfer or Wire transfer
  • Credit or Debit cards such as Mastercard & Visa
  • E-Wallets such as Skrill, Paypal and Neteller
  • Cryptocurrency such as Bitcoin

The plethora of popular deposit and withdrawal options holds FXTM in good stead. Most of the deposit and withdrawal options offered by FXTM are popular options used by traders around the world. They also offer cryptocurrencies to deposit and withdraw funds, something that many brokers don’t do, giving FXTM a perfect score in this category.

FXTM Deposit & Withdrawal Options Score: 10/10

#6 Customer Support At FXTM

There are plenty of options for customer support that can help you solve any issues that you may face with your account. Some of the customer support options that are available are:

  • Phone
  • Email
  • Live Chat

Ther phone support is available 24/5. The average response time via email is around 1 day. Phone support and live chat often respond quickly to customer queries and questions. Customer service is provided in several languages such as:

  • Arabic
  • Czech
  • Chinese
  • English
  • Farsi
  • French
  • Hindi
  • Indonesian
  • Italian
  • Spanish
  • Urdu 

The customer service is generally very good. However, the slightly slow response to emails and the fact that the service isn’t available during the weekends makes this broker get a 9 in this category rather than a perfect 10.

FXTM Customer Support Score: 9/10

#7 Asset Classes

Building a diversified portfolio is helpful in designing profitable portfolios and in managing risk. In this regard, these are some of the assets offered by FXTM:

  • Forex with over 50 pairs split into major, minor and exotics categories
  • CFDs on cryptocurrencies such as Bitcoin, Ethereum, Litecoin
  • CFDs for stock Indices and Commodities
  • Spot metals such as gold and silver
  • 100’s of Stocks

FXTM offers slightly more assets than apps that just offer forex and CFDs by providing metals and stocks as well, however, the lack of assets such as bonds & ETFs means that the score here is 5/10.

FXTM Asset Classes Score: 5/10

#8 Referral Program

Referral programs play an important role in making trading fun because you can use the platform with friends and learn more. However, there is no active referral program for FXTM for individual users.This reduces the chance that you have to earn more funds by referring more friends. Hence, the score for this dimension is 0.

FXTM Referral Program Score: 0/10

#9 Demo Account & Educational Resources

Demo account and educational resources always play a pivotal role in helping novice traders or individuals new to a platform to learn how to trade and how to use the platform to maximize their benefit. FXTM has a good demo account and educational resources, let’s have a look to see the main features of FXTM’s demo account and educational resources.

Demo Account

Demo accounts can be a good way for trading and testing out your trading strategies. FXTM offers a good demo account that you can trade-in. You get paper currency via your FXTM trading account that you can use to test out your strategies. This allows you to enhance your skillsets and improve your ability as a trader by making strategies and portfolios without having to worry about any risk or losses.

Educational Resources

Unlike most applications, FXTM has some really good educational resources that can help you out. Some of the educational resources are:

  • Tutorial videos on using the platform
  • Educational videos on trading different assets
  • Webinars
  • Educational articles

The tutorial videos regarding the platform can really help you in getting acquainted with the trading platform and how it works. Moreover, training videos on different assets can really help you in expanding your horizons and diversifying your portfolios by learning how to trade different assets.

Webinars are always a good way of understanding how market circumstances may affect different assets. Participating in webinars can help you in enhancing theoretical information from tutorial videos and understanding the practical influence of different events in the world on various assets. Moreover, you can stay up to date by reviewing the educational articles on different market phenomenon and events. The broker scores a perfect 10 in this dimension because of the holistic way that it is designed in which can be helpful any type of trader.

FXTM Demo Account & Educational Resources Score: 10/10

#10 Safety & Regulation

FXTM is regulated by the Financial Services Commission of Mauritius which is not really one the better regulators out there. Regulation can often help in instilling trust in users that the app is monitored by a governmental authority and trading in it is safe. However, FXTM lacks the regulation from a strong regulator like CySEC, FCA or SEC due to which it scores a 6.

FXTM Safety & Regulation Score: 6/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

FXTM vs. Capital.com

FXTM has a quick sign up procedure coupled with plenty of deposit and withdrawal options and an excellent demo account, which makeit a great broker. However, there are a few dimensions where Capital.com is much better and a more comprehensive alternative than FXTM for the following reasons:

Ease Of Use

Capital.com has a much more intuitive interface than FXTM. The interface of Capital.com allows you to have some great options to make informed decisions by using algorithms and market information by options such as advanced charting and news feed features.

More Asset Classes

Capital.com also has some great asset classes like plenty of bonds, stocks, ETFs, commodities and forex which provides it with a greater product portfolio than FXTM. Building a diversified portfolio is a great way to make a strong portfolio and Capital.com gives you that option by providing you with a myriad of options.

Better Customer Support

Capital.com also has a very good customer support service with a quick email response, a dedicated account manager and an efficient live chat and telephone service. The dedicated account manager is a really good feature of Capital.com as it allows someone to advise you based on your preferences and investment horizon.

Hence, we recommend Capital.com as a much more holistic and comprehensive trading platform compared to FXTM. Click the link below to signup to Capital.com today.

Related: If you want to learm more apot Capital.com, you can read this comprehensive review.

In Summary

FXTM is a really good platform for CFDs and forex with plenty of options in these domains with a wide range of minor forex pairs, major forex pairs, exotic forex pairs, crypto CFDs & stock CFDs. Similarly, the platform offers plenty of deposit and withdrawal options that can help you in easily using the platform on a daily basis. If you are looking for a good platform for forex and CFDs you should sign up for FXTM today.

FXTM is a good application that allows you to trade a myriad of assets however, Capital.com has many more assets that provide you with more trading options. Similarly, Capital.com has great customer support that will help you make the most of the trading platform. The interface of Capital.com is much more intuitive coupled with some great charting tools it can help you in trading profitably. Click the link below to join Capital.com for an educational and comprehensive trading platform.

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