FXTM (ForexTime) is a well-established global broker that has gained popularity for its wide range of trading platforms, account types, and competitive trading conditions. As one of the major players in the forex industry, FXTM caters to both beginners and experienced traders. In this review, we will provide a comprehensive overview of FXTM’s features, highlighting its pros and cons, based on industry trends, user feedback, and expert analysis.
Introduction to FXTM
Founded in 2011, FXTM has quickly grown into a reputable broker, offering trading across various asset classes, including forex, commodities, indices, and stocks. With a presence in over 180 countries and several industry awards, FXTM stands out for its customer-centric approach, education resources, and flexible account types.
Platforms and Technology
FXTM offers access to the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, providing traders with a familiar, robust, and feature-rich environment for forex and CFD trading. These platforms are widely known for their advanced charting tools, automated trading options (via Expert Advisors), and a range of indicators and timeframes.
FXTM: Pros and Cons
Pros
1. Wide Range of Account Types
FXTM provides several account types to cater to different trading styles and experience levels. These include Micro Accounts, Advantage Accounts, and Advantage Plus Accounts, each offering unique features such as varying spreads, leverage, and commission structures.
Example: The Advantage Account is known for offering some of the lowest spreads in the industry, starting from 0.0 pips, making it ideal for scalpers and high-frequency traders.
2. Tight Spreads and Competitive Commissions
One of the key advantages of trading with FXTM is its tight spreads and competitive commission structure. The Advantage Account offers raw spreads, which can drop to 0.0 pips, coupled with a commission starting at $0.40 per lot, depending on the volume traded. This is particularly beneficial for active traders.
User Feedback: Many users praise FXTM for its transparent and low-cost pricing model, especially on forex major pairs like EUR/USD and GBP/USD.
3. Advanced Trading Platforms
FXTM provides access to both MT4 and MT5, two of the most popular and versatile trading platforms in the industry. These platforms come with advanced charting tools, automated trading capabilities, and the ability to backtest strategies.
MT5 Upgrade: In addition to the standard features of MT4, MetaTrader 5 offers a broader range of instruments, more order types, and enhanced execution speeds, making it a preferred choice for traders who want access to stocks, indices, and commodities alongside forex.
4. Comprehensive Educational Resources
For beginners, FXTM offers a wide array of educational resources, including webinars, tutorials, and a comprehensive forex trading glossary. These resources help new traders understand market dynamics, trading strategies, and risk management.
Trend Insight: With the rise of retail trading, brokers like FXTM have focused on providing extensive educational materials, positioning themselves as brokers that support trader development.
5. Strong Regulatory Oversight
FXTM is regulated by several top-tier authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). This regulatory oversight ensures that FXTM adheres to strict standards in terms of security, transparency, and client protection.
Cons
1. Limited Availability of Products
While FXTM offers a wide range of forex pairs and CFDs on commodities and indices, its product portfolio for trading stocks and cryptocurrencies is relatively limited compared to other brokers. For traders seeking exposure to a broader range of markets, this may be a drawback.
Case Study: A trader who wants to diversify their portfolio with more stocks or cryptocurrencies may find FXTM’s offering more limited compared to competitors like eToro or IG Markets.
2. High Fees on Withdrawals
One of the recurring criticisms from users is the high fees associated with certain withdrawal methods. While deposits are usually free, some withdrawal options, especially bank transfers, incur high fees, which can cut into profits for smaller accounts.
User Feedback: Traders have reported that while FXTM offers multiple withdrawal methods, fees for methods like bank transfers can be as high as $30 per transaction, which can be inconvenient for traders with smaller balances.
3. Inactivity Fees
FXTM charges an inactivity fee for dormant accounts that remain unused for six months or longer. This can be a downside for traders who prefer to hold positions over the long term or those who take breaks from trading.
Example: A trader who stops trading for an extended period may face inactivity fees, which are deducted monthly once the account becomes dormant.
4. Complex Fee Structure
While FXTM offers competitive trading conditions, the fee structure can be somewhat complex, especially for beginners. With multiple account types, varying spreads, and commissions based on trading volume, it can take time for new traders to fully understand how these fees impact their bottom line.
Tip: Traders are advised to review FXTM’s account types and fee structure carefully before choosing the account that best suits their trading style.
Industry Trends and User Feedback
1. Rise of Algorithmic Trading
With the growing popularity of algorithmic trading and Expert Advisors (EAs), FXTM’s MT4 and MT5 platforms have been well-received by traders who prefer automated trading strategies. The availability of VPS hosting (Virtual Private Server) for uninterrupted algorithm execution is an added benefit for traders using EAs.
2. User Feedback on Customer Support
FXTM is often praised for its excellent customer support. With multilingual support available 24/5, FXTM is responsive to trader inquiries and provides support across various communication channels, including live chat, email, and phone.
User Insight: Many traders commend FXTM for its quick response times and the availability of support in multiple languages, especially for traders based in Europe, Asia, and Africa.
3. Leverage Adjustments
FXTM offers high leverage levels, especially for professional clients, which allows for increased market exposure with smaller capital. However, leverage is adjusted based on the trader’s jurisdiction due to regulatory constraints. For example, European traders regulated by CySEC have access to lower leverage levels (up to 30:1) compared to international traders who can access leverage of up to 2000:1.
Conclusion
FXTM offers a well-rounded trading experience with its competitive spreads, flexible account types, and access to industry-leading platforms. Whether you’re a beginner looking for educational resources or an experienced trader seeking advanced tools like MT5, FXTM caters to a broad spectrum of needs. However, the broker’s complex fee structure and limited product offerings in certain areas may not suit every trader.
