FXCC Review 2024

Trust

FXCC Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the two entities operating under the FXCC trade name:

• FX Central Clearing Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 121/10. We rate CySEC as a Tier-1 regulator.
• Central Clearing Ltd is licensed and regulated by the Mwali International Services Authorities (MISA) under license number BFX2024085. We rate MISA as a Tier-3 regulator. The entity is also registered in Nevis and St Vincent and the Grenadines.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. Only the EU-based entity guarantees the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Both entities ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Clients of FX Central Clearing Ltd are protected by up to EUR 20,000 under the Investor Compensation Scheme (ICF).
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with Central Clearing Ltd is 1:500.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

FXCC has a ‘best execution policy’ (for both entities), guaranteeing to take all necessary steps to provide its clients with the most faborable price quotes under prevailing market conditions. This is crucially important for ensuring price transparency.

Its legal documents are accessible and written in an easy-to-understand way. The broker also has a clearly defined ‘Client Categorization’ policy.

Is FXCC Safe to Trade With?

I concluded that FXCC is relatively safe to trade with due to the following factors:

• Regulated in two jurisdictions
• Has a ‘best execution policy’
• Has a client categorization policy

Fees

FXCC Trading Fees

FXCC Spreads

I tested FXCC’s spreads on 2 July 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, FXCC charges low spreads on currency pairs and indices, low-to-average spreads on commodities, and high spreads on cryptocurrencies.

FXCC Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My research indicates that FXCC’s overnight fees generally meet the industry benchmark. This is suitable for implementing longer-term trading strategies (e.g. swing trading).

FXCC’s Non-Trading Fees

After 120 calendar days of inactivity, FXCC begins to charge dormant accounts a monthly inactivity fee of 5 units of the base currency (EUR, USD, GBP). This fee is waived once trading activity resumes or the account balance drops to zero.

The broker does not charge a handling fee for deposits – only for withdrawals. Furthermore, it covers any banking fees that may be applied by the payment processor.

Accounts Comparison

I have compiled the table below to help you better understand the difference between FXCC’s ECN XLl account and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that FXCC’s ECN XL account beats the industry average STP and ECN accounts by a long shot. This makes it suitable for all forms of trading.

Are FXCC’s Fees Competitive?

FXCC’s fees are extremely competitive. The broker outperforms the broader industry in almost every aspect except for trading cryptocurrencies. Its Bitcoin spread exceeds the industry average.

Platforms and Tools

The Desktop Version of FXCC’s MetaTrader 4 Platform

I tested the desktop version of the MetaTrader 4 platform, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT4 is arguably the most popular platform in retail trading. However, its rugged chart screens and order-placing capabilities are outclassed by newer and sleeker platforms. The platform accommodates basic technical analysis and automated trading.

FXCC also offers several trading calculators, helping traders count their margin, suitable size for their trades, general market exposure, and more. These are available from the broker’s website with free access to all.

FXCC provides its clients with Virtual Private Server (VPS) hosting for low-latency automated trading. VPS is a tool that facilitates average execution speeds of under 3 milliseconds, which is ideal for precise order execution.

Additionally, it offers managed accounts on which professional traders and account managers can trade on behalf of retail traders with FXCC.

General Ease of Use

MT4’s layout is pretty straightforward. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chartists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down. This is generally obscured by MT4’s rugged design.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 30 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather large collection of drawing tools, MT4’s ruggedness makes it difficult to discern price action behavior.
• 9 timeframes. MT4 allows multi-timeframe analysis of price action behavior. The greater the timeframes, the more intricate examinations can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity enables traders to examine potential trading opportunities from different angles.

Orders

Trades can be placed in several ways on the MetaTrader 4 platform. For instant entries at the current spot price, traders can use the one-click trading feature. Alternatively, they can click ‘New Order,’ which is found on the main panel, and then choose between ‘Exchange Execution’ (market orders) and ‘Pending Order’ (limit and stop orders).

The one-click trading option can be seen at the top-left corner of the image below. You can also see how to choose between market orders and pending orders.

I have broken down the available order types on the MetaTrader 4 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price at which the order is filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 4 Platform

In my opinion, MT4 is an excellent option for fast and simple order execution. While its design may not be as modern as some newer platforms, it remains a reliable choice for many traders. However, for those who prioritize flexible chart scaling, MT4’s charting capabilities may feel somewhat limited.

FXCC’s Mobile MT4 App

MT4 mobile app can be accessed on the go on both Android and iOS devices and affords quick and easy access to the market. It’s very useful for opening, terminating, and adjusting open positions. Therefore, the app’s most important function is to allow traders to adjust their market exposure at all times.

My Key Takeaways After Testing FXCC’s MT4 Mobile App

The mobile app version of MetaTrader 4 shares the same underlying issue as the desktop version. It feels rather cumbersome and, therefore, not suitable for carrying out penetrating price action examinations. The problem stems from the fact that the app has to be run on low-resolution devices, which do not afford wide overviews of price action behavior.

FXCC’s Execution Performance

I measured FXCC’s execution speed over several days and discovered that it averages around 50 milliseconds. This performance beats the industry average and is suitable for high-frequency trading because it decreases the risk of negative slippage. Thus, I concluded that FXCC is suitable for day trading and scalping.

Tradable Instruments

Compared to the industry average, FXCC offers a high amount of currency pairs and indices, an average amount of commodities, and a low amount of cryptocurrencies.

The standout feature in FXCC’s instrument selection is its forex pairs offering, which I discovered to be one of the most diverse in the industry. Traders are given access to rare exotic pairs, such as MXNJPY, CHFPLN, USDHUF, and others.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With FXCC?

My Key Takeaways After Exploring FXCC’s Instruments Offering

FXCC has a decent instruments offering. It impresses with its extensive range of currency pairs comprised of multiple major, minor, and exotic pairs.

I also appreciated that FXCC offers gold and crude oil assets denominated in multiple currencies (EUR and USD), making it more competitive for traders with different base currencies. However, the broker notably lacks any share CFDs.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 12 June at around 10:02 a.m. CET via live chat. An agent connected to the chat within 30 seconds after I submitted my question regarding FXCC’s trading commissions.

He explained the difference between FXCC’s spread markup and typical volume-based commissions with relative ease. I found FXCC’s support to be generally fast and reliable.

Deposit and Withdrawal

FXCC accepts payments via bank wire, e-wallets, and cryptocurrencies. The broker does not charge a handling fee on deposits and will reimburse its clients for any third-party processing charges. It, however, charges withdrawals. Most payments are processed within 24 hours, though transaction times may vary.

FXCC Deposit Methods

FXCC Withdrawal Methods

Account Types and Terms

FXCC Account Opening Process

To set up a live account with FXCC, follow these easy steps:

• Step 1. Click ‘Register’ at the top-right corner of the main page.
• Step 2. Enter your name, phone number, email address, and country of residence.
• Step 3. Confirm your email address.
• Step 4. Upload proof of address and ID to verify your account.

FXCC Account Types

FXCC’s ECN XL account type features extremely favorable conditions. It has no deposit requirements, and at the same time affords commission-free trading with raw spreads.

Notably, FXCC has set its margin calls at 100% and stop-out levels at 50%. Traders will only receive a notification to deposit additional funds or close out their losing trades after their free margin is depleted.

However, the broker will automatically close their losing positions relatively quickly thereafter, given that most other brokers set their stop-out levels at around 30%.

Demo Accounts

FXCC offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account along with a live CFD account.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account must contact FXCC’s customer support and request the service.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with FXCC for instruments from different asset classes:

FXCC Restricted Countries

Central Clearing Ltd does not provide services to residents of the EEA countries, the USA, and some other countries. The services are not intended for distribution to or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Research

Research Tools

I have broken down the available research tools by type:

Economic Calendar

The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.

Forex News

The broker posts brief (3-4 sentences) forex news informing traders of the latest market developments.

Daily Technical Analysis

FXCC provides its clients with technical setups outlining viable trading opportunities. Each article contains a chart illustrating some anticipated market moves.

Additionally, traders can read about the prevailing market sentiment, important support and resistance levels, pivot points, and implied volatility. They are also presented with potential entry and exit levels, stop-loss and take-profit levels.

Education

Educational Tools

I have broken down FXCC’s educational materials by type:

Articles

Available from the website, FXCC’s educational articles cover an array of important trading topics, such as matters pertaining to technical analysis and margin trading. Traders can use them to learn how to use various technical indicators, how market execution functions, what is slippage, and more. The articles are written in an easy-to-grasp manner so that even first-time traders can quickly understand what is being said with relative ease.

e-Books

FXCC has published 11 educational e-books covering a wide spectrum of topics (building a trading plan, trading mentality, scalping, etc.). What I found particularly useful is the extra attention paid to trading psychology. Understanding how to adopt a proper trading mentality is especially important for long-term success in the market.

Glossary

The broker also has a broad glossary on its website, where traders can read about hundreds of trading concepts. Each description is quite detailed and highly informative.

The Bottom Line

FXCC is a forex and CFD broker that offers very low trading fees and achieves fast order execution speeds. Due to its hybrid ECN/STP model, FXCC has access to deep liquidity, making it a good choice for high-precision trading.

Clients can choose from 100 tradable instruments across different asset classes. However, there are no share CFDs.

For low-latency trading, FXCC offers free VPS hosting. Additionally, it offers managed accounts so that trading professionals can trade on behalf of the broker’s clients.

However, the offshore FXCC’s entity does not segregate its clients’ funds. Additionally, it offers no alternative to MetaTrader 4.

In summary, FXCC is a good choice for beginners because it has no minimum deposit requirement and offers extensive supporting content. Seasoned traders can benefit from its fast execution speeds and extremely competitive prices.

FAQ