Broker Regulations
Also Australian Securities and Investments Commission (ASIC) regulated within Australia; FXCM Australia holds Australian Financial Services License.
In accordance with the Australian client money rules, FXCM Australia’s client funds are held in segregated bank accounts with an Australian authorised deposit-taking institution (Australian ADI), and held separately to FXCM Australia’s operational funds, like other ASIC regulated brokers. As well as being required to hold a minimum of $1 million in operating capital.
Leverage Options
FXCM Australia’s leverage differs depending on the instrument being traded and, for Forex, the equity in the customer’s account.
Each individual trading instrument has its own leverage ratio which is defined by FXCM Australia’s Risk Management team. The ratio is maintained via the increase or decrease of margin requirements monthly or after/prior to specific market events.
FXCM Australia offers one leverage model for CFD Trading irrespective of the customer’s account equity; the maximum leverage available on any particular CFD instrument is 200:1.
With Forex Trading, there are two default leverage models, as follows:
- For accounts with equity less than 20,000 of base currency, the maximum leverage available for any Forex pair is capped at 400:1.
- For accounts with equity greater than 20,000 of base currency, the maximum leverage available for any Forex pair is capped at 100:1.
Trading Pair Spread
The currency pairs that FXCM Australia’s customers have access to are as follows:
AUD/CAD AUD/CHF AUD/JPY AUD/NZD AUD/USD CAD/CHF
CAD/JPY CHF/JPY EUR/AUD EUR/CAD EUR/CHF EUR/GBP
EUR/JPY EUR/NOK EUR/NZD EUR/SEK EUR/TRY EUR/USD
GBP/AUD GBP/CAD GBP/CHF GBP/JPY GBP/NZD GBP/USD
NZD/CAD NZD/CHF NZD/JPY NZD/USD TRY/JPY USD/CAD
USD/CHF USD/CNH USD/JPY USD/MXN USD/NOK USD/SEK
USD/TRY USD/ZAR ZAR/JPY
The majors and the commodity pairs are the most liquid and most traded currency pairs in the Forex market. These pairs and their combinations (EUR/JPY, GBP/JPY and EUR/GBP) make up most trading in the Forex market. However, because these pairs have the largest volume of buyers and sellers, they also generally have the tightest spreads.
- Majors:EUR/USD, USD/JPY, GBP/USD, USD/CHF
- Commodity Pairs:AUD/USD, USD/CAD, NZD/USD
There are other currency pairs that allow FXCM Australia’s customers to take advantage of macroeconomic events in certain international markets, like the USD/MXN.
Trading Commission Fees
FXCM Australia offers commission-free trading with low spread costs.
Deposit Conditions
In order to start trading with FXCM Australia, traders are required to deposit funds into their account; they won’t receive a permanent account number until funds are deposited.
Account types
FXCM Australia offers a practice account for those that are new to trading with $5,000 virtual cash.
The live accounts that FXCM offers include:
Standard account
Lower volume traders can easily open a standard trading account with no fees attached, which will give them access to the MyFXCM client portal.
Active Trader account
For those customers that are high-volume investors, FXCM Australia offers an Active Trader account. This account offers dedicated support, premium services and custom solutions; high-volume traders are eligible for discounted pricing.
With the Active Trader account, traders can save over 60% on spread costs, they receive a dedicated Relationship Manager, the account unlocks market depth functionality on the Trading Station platform, they get free access to high-end institutional derived FX data and much more.
Customer Support
FXCM Australia encourages customer feedback and has several avenues for their customers to contact them, including live chat 24/5, via phone (call or text) and email. They’ve received a wide variety of industry awards including Forexbrokers.com – Annual Review 2018: 4.5/5 Stars Overall Review.
Tools for trading
FXCM Australia offers three different platforms as follows:
Trading Station
Trading Station is the in-house trading platform that includes powerful analytical tools for chart traders and simple capabilities for new traders. Created specifically to meet the demands of traders around the world, Trading Station offers an unmatched trading experience. It’s available on Desktop, web and mobile.
It offers users:
- Tailored trading: From beginners to advanced traders, Trading Station has been specifically designed with the trader in mind.
- Powerful Charts: It uses a unique charting system that allows intuitive chart trading.
- Automated Strategies: Trading opportunities are maximised with custom indicators and automated strategies, as well as having the ability to test strategies behind the scenes.
MetaTrader4
FXCM Australia offers enhanced features to allow users to get the most out of their MT4 experience. When you trade with them it means no 3rd party bridges and no auto account syncs.
FXCM Australia’s MT4 offers users:
- Enhanced Features: It accepts EAs including scalping EAs and its new features include 0.01 lot sizes, partial closing and more.
- Free VPS Hosting: FXCM Australia customers get free VPS hosting for an average 500K in notional volume.
MT4 features include:
- MT4 Trading System: Trade based on strategies of any complexity. Enter the market instantly or at a specific time with three types of order execution. Profit target, stop loss and trailing stop functions are available to actively manage an open position in the market.
- Analytics: Interactive charts and a variety of indicators are accessible. 30 built-in indicators and more than 2,000 free custom indicators are available, as well as 700 indicators that can be purchased.
- MetaTrader Market: The MT4 market provides users with the largest selection of trading applications globally, with more than 1,700 trading robots and 2,100 technical indicators available for purchase.
- Automated Trading: Fully customisable algorithms can be developed for automating trades using the Integrated Development Environment (IDE) and MQL4 programming language.
- Mobile Trading: MT4 is available on Android, iOS smartphones and tablets.
- Alerts and News: Live news feed, as well as programmable alerts are available to keep users aware of changing market conditions.
NinjaTrader
NinjaTrader users receive competitive pricing and quality execution from FXCM Australia’s large network of forex liquidity providers. This includes global banks, financial institutions, prime brokers as well as other market makers.
NinjaTrader offers:
- Strategy Builder: NinjaTrader’s Strategy Wizard allows users to build their own automated strategies without the having to be familiar with programming languages.
- Market Analyser: This is a real time quote sheet that provides a summary of current market conditions and trading opportunities.
- Market Replay: This feature allows users to replay level 1 data online after hours and on weekends.
Education and Informational Resources
FXCM Australia offers a variety of educational and informational resources including:
- Video Library: The video library provides resources for beginners and beyond. You can learn at your own pace with dozens of available videos on Forex basics, platform functionality, trading strategies, account support and more.
- Trading Guides: Their trading guides provide information on Forex basics, advanced strategies and market forecasts. Customers can increase their knowledge from a selection of in-depth trading, strategy and instrument guides.
- Webinar Archives: You can get up to speed if you missed a live webinar with FXCM Australia’s archive.
- Product Guide: Customers can identify trends and trading opportunities with FXCM Australia’s free Forex guides and trading forecasts.
- Live classroom: Ask questions live with FXCM Australia’s live classroom; you’ll have access to knowledgeable and experienced instructors.
Pros of Trading with FXCM Australia
- ASIC regulated and industry compliant.
- Easily deposit and withdraw funds using a variety of methods including credit/debit card, EFT, BPay and Skrill.
- A range of trading platforms, including an in-house solution, give customers a wide variety of trading options, as well as several options for market analysis.
- They’re local so they understand what their Australian customers need.
- They offer competitive spreads across a wide range of currencies, commodities and indices.
Cons of Trading with FXCM Australia
- You can’t start trading until funds are deposited into your account.
- Leverage levels are restricted.
- Free Guaranteed stop losses aren’t offered.
Conclusion
FXCM Australia is focused on providing their customer with the best possible trading experience. With access to their in-house trading solutions well as others, customers have several options to trade smarter and faster. However, their leverage levels are restricted and they require funds to be deposited into your account before you can start trading; FXCM Australia has both pros and cons like the other brokers we’ve reviewed in this series.