FXTM Review 2024

Trust

FXTM Regulation

• Exinity UK Ltd is authorized and regulated by the Financial Conduct Authority (FCA) with license number 777911. We rate the FCA as a Tier 1 regulator.
• Exinity Capital East Africa Ltd is regulated by the Capital Markets Authority (CMA) of the Republic of Kenya as a Non-Dealing Online Foreign Exchange Broker with license number 135. We rate CMA as a Tier-2 regulator.
• Exinity Limited is regulated by the Financial Services Commission (FSC) of the Republic of Mauritius, license number C113012295. We rate the FSC as a Tier 3 regulator.

Why is It Important to Know Where Your Broker Subsidiary (Entity) is Regulated?

In order to serve clients worldwide, brokers must have multiple regional entities. The level of client protection guaranteed by regional regulators varies widely. Here are some of the key features to check on at your broker`s regional entity:

• Segregation of client funds. Segregating client funds from the operating capital of a broker prevents misuse, ensuring that traders’ funds can’t be used for operational expenses or speculative investments. At FXTM, all client funds are held in segregated accounts away from the company’s funds.
• Negative balance protection. This is a guarantee that clients cannot lose more than their account balance, even if the market unexpectedly makes a massive move or gaps. The broker states that clients of all FXTM entities have negative balance protection.
• Compensation scheme. A compensation scheme protects client funds in the unlikely event that the broker becomes insolvent. Exinity Limited provides account insurance of up to $1M (in excess of $20,000) from Lloyds of London.
• Maximum leverage. Limiting leverage controls the level of risk traders can take on. The higher the leverage, the higher the potential profits and losses. At the Exinity Limited entity of FXTM, the maximum leverage is 1:2000.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we evaluate the broker’s longevity in the industry, the company’s size, and its transparency.

FXTM was founded in 2013, marking it as an experienced CFD broker with a solid operating history of over a decade. According to the broker’s LinkedIn page, it has 51-200 employees, reflecting a medium-sized brokerage firm.

In my research, FXTM showed transparency in its regulatory status, listing its regulators in the footer of the website page. The website clearly breaks down trading costs on the Trading Commissions and Fees page. To view the nitty-gritty details, traders can find the Client Agreement on the Terms and Conditions page.

Is FXTM Safe to Trade With?

To summarize, I rate FXTM as relatively trustworthy and stable due to the following:

• Multi-regulated broker
• 11-year operating history
• All entities segregate funds
• Account insurance from Lloyds of London

Fees

FXTM Trading Fees

FXTM Spreads

I tested the spreads at FXTM across various markets during the London open and after the New York open on 8 April 2024. At these times, the market is typically highly liquid with the tightest spreads.

My tests showed that spreads are especially competitive in CFDs on shares and Bitcoin, but there is room for improvement in the spreads for some forex pairs.

FXTM Swap Fees

In the table below, you can see an example of the swap fees at FXTM. Swaps represent the fees charged (or credit earned) for holding a position overnight.

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

My live tests from 8 April 2024 showed that swap fees at FXTM are average for the industry.

FXTM Non-Trading Fees

FXTM charges a monthly inactivity fee of 10 EUR/USD/GBP for accounts that are dormant for 3 consecutive calendar months.

Are FXTM Fees Competitive?

I rate the fees at FXTM as average for the following reasons:

• Mixed spreads in popular instruments
• Standard overnight swap fees
• Withdrawal fees
• Inactivity fee

Platforms and Tools

FXTM Desktop and Web Platforms

General Ease of Use

In my tests, I used the MetaTrader 4 platform. It has advanced functionality like automated trading, but it looks and feels a bit dated. In light of this, I feel the platform is better suited to experienced traders than beginners.

MT4 can be accessed via desktop, web, and Android/iOS mobile devices. It can be used in 39 different languages, from Arabic to Vietnamese.

Key Features

The following are among the most important features the platform offers:

• Alerts. This feature updates traders when an instrument reaches a specific price level.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation, enabling them to operate faster. This is especially useful for day traders.
• Trading from the Chart. MT4 allows users the convenience of trading directly from the chart.

Charts

Charting features are robust. MetaTrader 4 offers:

• 30 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 23 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 9 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

Orders

MetaTrader also delivers when it comes to the range of available order types. The platform offers the following order types:

• Market Order. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. This order type allows traders to secure profits when they are in a winning trade while not having to exit the position.

WebTrader

The MetaTrader Web Platform (Web Trader) is a slightly stripped-down version of the desktop platform. It allows users to trade directly from any browser and operating system without any additional software.

Popular features include:

• One-click trading
• Trading from the chart
• Watchlists with real-time quotes
• Trade history
• Advanced charting with 30 indicators for technical analysis

My Key Takeaways After Testing FXTM on MetaTrader 4

MetaTrader 4 is one of the most feature-rich and popular trading platforms. It does not have a beginner-friendly interface and requires some time and effort to learn, but that is typical of advanced platforms.

FXTM Mobile App

General Ease of Use

The FXTM app has a modern and intuitive look and feel. Watchlists, tracking of open, pending, and closed positions, and trading from the chart are among the key features. Traders can also browse educational videos via the app.

Charts

The FXTM Trader app offers solid charting with 9 time frames, 10 indicators, and 4 chart types.

Orders

Standard order types are available, including market orders, limit orders, and stop-loss orders.

My Key Takeaways After Testing the FXTM Mobile App

Overall, I rate the FXTM Trader app as well-designed and especially good for beginners. However, it lacks advanced features, such as price alerts and trailing stop-loss orders.

FXTM Order Execution Model

FXTM is a non-dealing desk broker. In relation to any transaction, FXTM will either be on the other side of it as a principal or act as an intermediary. Both Advantage and Advantage Plus accounts use Market Execution, meaning that there are no requotes, and execution is assured.

Tradable Instruments

FXTM is particularly strong in the range of available CFDs on commodities, indices, and shares.

What are CFDs?

A Contract for Difference (CFD) is an agreement specifying that the buyer must pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. CFDs allow traders to speculate on price movements like futures and other derivative financial instruments without owning the underlying asset.

What Can You Trade with FXTM?

In the tables below, you can see a selection highlighting the variety of instruments available at FXTM:

My Key Takeaways After Exploring FXTM Tradable Instruments

The selection of tradable instruments at FXTM is highly diverse and can accommodate a range of trading strategies. For example, day traders can take advantage of the high levels of volatility in natural gas, while long-term investors can buy and hold 500+ different US shares.

Customer Support

FXTM Customer Support Test

Support is a key component of a broker’s offering – whether you are a new trader looking for guidance on how to use the platform or an experienced trader who needs help fast to exit their positions in the event of a technical glitch.

I tested FXTM support via live chat and phone with dozens of inquiries over a two-week period.

When using the chat feature, a bot answers you first, but you are passed on to a live operator if its answer is insufficient. In my tests, I was usually able to reach a human operator in less than one minute.

When testing phone support, I experienced short wait times and received helpful responses. I asked a range of questions, from easy to difficult, and had a positive experience overall.

Deposit and Withdrawal

FXTM Deposit Methods

The range of deposit methods is better than average for the industry, and processing times are fast.

FXTM Withdrawal Methods

Again, we see a better-than-average range of payment methods and fast withdrawal processing, but in some cases, fees must be considered.

Account Types and Terms

FXTM Account Opening Process

Prospective clients must complete an application with the Exinity Limited entity of FXTM to open an account. They will be asked to provide their gender, date of birth, field of work, citizenship, tax ID, address, and source of funds.

FXTM Account Types and their Benefits

The table below breaks down the key features of the two main account types: Advantage and Advantage Plus.

What is CFD leverage?

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

For the Exinity Limited entity of FXTM, the maximum leverage is 1:2000. This means that with an account of $1,000, you can control up to $2,000,000 worth of positions in the market. This is an unusually high level of leverage, and very risky to use.

Leverage is often described as a ‘double-edged sword’ as it can hurt you as much as it helps you. Traders should keep in mind that it can amplify both their profits and their losses.

FXTM Maximum Leverage by Asset Class

Available leverage differs according to the asset class, with the most leverage available with CFDs on forex and metals and the least with CFDs on shares.

Demo Account

FXTM offers demo accounts via MT4, MT5, and the FXTM Trader mobile app. Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking real money.

The demo account features live quotes and simulates live market conditions in assets like forex, commodities, indices, and stocks. Once users are up to speed on a demo account, they can easily switch to a live version.

Islamic Account

FXTM offers a swap-free Islamic account that adheres to the principles of Sharia law.

FXTM Restricted Countries

FXTM accepts clients from the majority of countries globally. However, the FXTM brand does not provide services to residents of the USA, Mauritius, Japan, Canada, Haiti, Iran, Suriname, the Democratic People’s Republic of Korea, Puerto Rico, the Occupied Area of Cyprus, Quebec, Iraq, Syria, Cuba, Belarus, and Myanmar.

Research

FXTM provides a steady flow of market analysis articles focusing on multiple markets. The week-ahead-themed articles help orient traders on key economic releases ahead of time and also touch on major technical levels to look out for. I like that the articles highlight instruments that may see major volatility and, thereby, interesting trading opportunities.

Signal Centre, powered by Acuity, can be accessed from the client portal. Acuity is an FCA-regulated provider of technical analysis and trading plans.

It provides trade ideas, including specific entry, take-profit, stop-loss, and confidence levels, several times a day. The signals cover multiple markets, including FX, indices, stocks, and commodities.

FXTM also provides a range of custom add-ons for MT4 within the client portal, including a Pivot Point Indicator, Pip Value Calculator, Spread Indicator, and a Market Data to CSV tool.

I especially liked the Pivot Point indicator, which shows the daily pivot and three major support and resistance levels.

My Takeaways from Exploring FXTM Research Content

FXTM has gone the extra mile with its research content and tools. The material goes beyond the theoretical and includes plenty of actionable ideas.

Education

FXTM offers a wide range of in-depth guides covering practical topics. Beginners can refer to an introduction to forex trading and CFDs, while more experienced traders can benefit from guides relating to trading styles like scalping. I especially liked the guides focused on specific instruments like oil and the NASDAQ 100.

Video content is focused on a few categories like trading basics and FXTM Invest. Bite-size videos of less than two minutes walk viewers through important concepts like swap fees and how FXTM Invest works.

FXTM also offers various ebooks covering topics like Japanese candlesticks, cryptocurrency trading, and Elliott Wave Theory, which are good sources of materials to print out for offline study.

The Bottom Line

To its credit, FXTM has over a decade of experience, and entities are regulated by three agencies, including the top-tier UK FCA. The offshore Exinity Limited entity has less regulatory oversight, but accounts are insured by Lloyds of London.

FXTM shines with the diversity of its offerings. CFD traders have a great range of instruments to work with, including crypto, soft commodities, and exotic forex pairs. Moreover, the broker offers real shares from US exchanges.

Third-party research from Acuity and MT4 add-ons reflect FXTM’s commitment to supporting clients. Active CFD traders can especially benefit from the advanced platforms and tools available, along with more competitive trading costs via the raw spreads Advantage account type.

However, FXTM has a minimum initial deposit of $500 which is higher than the industry average. I also found room for improvement in the spreads in the Advantage Plus account.

FAQ