FCM Forex Review
Fidelis Capital Markets (FCM forex) offers its clients a wide range of account types to choose from: Mini, Standard and VIP (zero-commission accounts), as well as two ECN accounts, providing tighter spreads, but involving commission.
In addition, swap-free (Islamic) accounts are available only to clients who are of Islamic belief. Swap-free trading positions may be held for a maximum of 5 days, and beyond that period the normal overnight fee will apply.
As regards new and inexperienced traders, there are demo accounts, as well as micro lots available for trade.
The Company. Security of Funds
Fidelis Capital Markets (FCM forex) is a forex broker, offering online trading in currency pairs, Contracts for Difference (‘CFDs’) and precious metals within STP trading environment.
SN Financials Ltd., doing business as FCM forex, is a Cyprus-based company, which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC).
CySEC applies certain rules to license holders, which cannot be compared to the stringent ones imposed by US regulatory authorities, however, these rules provide certain level of security and are indicative of good standing in the industry.
First of all, the Commission requires Cyprus-based forex brokers to hold at least €1,000,000 as a proof of financial stability.
Moreover, the Cypriot financial watchdog applies a compensation scheme as additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, which protects clients’ funds in case of company insolvency up to £20,000 per person. Similar compensation scheme applies in UK: FCA-regulated brokers in UK are under the umbrella of the Financial Services Compensation Scheme, where the maximum compensation cover is £50,000.
Besides, as a CySEC-regulated unit, SN Financials Ltd. is regulated under the Markets in Financial Instruments Directive (MiFID) and is entitled to provide services throughout the EU under the MiFID Passporting Regime. The company is also registered or authorized by a number of professional and governmental bodies, such as FCA, BaFIN, CNMV.
What is more, this broker has a Belize-based subsidiary, Fidelis Capital Markets Ltd., licensed by the International Financial Services Commission (Belize) and authorized to trade in financial and commodity based derivatives instruments and other securities.
Minimum Initial Deposit
In order to open an account with FCM forex, traders have to invest at least $5. Such minimum initial amount is a comparatively low one. Other Cyprus-based brokers, like FXTM and XM, also demand $5 from its clients as a start for their Cent/Mini accounts. Others, however, require minimum initial deposits, amounting to €1,000 (Sensus Capital).
Spreads & Commissions
This broker offers floating spreads, varying by account category from 0.5 to 3 pips on EUR/USD, the average ones on the Standard commission-free account amounting to 1.8 pips on EUR/USD, which is comparatively high for the forex market. In comparison, XM provides spreads from 1.0 pips on EUR/USD on its Standard commission-free account.
As regards ECN account types, the average spreads available are 0.5 pips on EUR/USD, however costly commissions apply – $15 round turn for the Classic ECN account. This basically means that the average transactions cost is around 2 pips (commission included), which is a really high value, especially given the ECN environment.
In comparison, Cyprus-based Exness provides its ECN account holders with average spreads of 0.4 pips on EUR/USD, incurring a commission of $ 2.5 per standard lot is charged. You may look up real-time spread of 15 leading brokers here.
Unlike most brokers, FCM forex does not offer discounts on commission fees for large-volume traders, as we found out by trying out the practice demo ECN Pro & Gold accounts.
The default leverage with FCM forex is 1:200, and the maximum level is up to 1:400. Leverage ratios of 1:400 and above are considered comparatively high, as some jurisdictions cap leverage ratios at considerably lower levels.
The reason for such leverage limitations is that the higher leverage, the higher the risk of losses, which may even exceed initial investments. If you, however, need more leverage, many Cyprus-based brokers offer such: XM – up to 1:888, and Exness – up to 1:2000 (the highest available level in the industry). A list of brokers offering leverage higher than 1:500 may be viewed here.
What is more, this broker requires no additional margin for hedged positions. This is really an advantage, as it allows you to open offsetting positions with equal volumes for the same trading instrument, while your margin for these positions remains zero.
FCM forex supports the industry’s standard MetaTrader 4, which is the trading platform preferred by most experienced traders. It comes in desktop and mobile versions and provides a number of technical indicators, advanced charting package and a wide range of Expert Advisors (EAs).
Auto Trading strategies allow you to trade the FX markets 24/5 without any user intervention, and without sitting in front of the screen all day. You simply employ EAs to do the trading for you, test history data and generate performance reports. What is more, you can even customize your trading strategies, as MT4’s MQL4 is a robust C-language offering a code for optimizing, developing and testing a number of popular EAs.
As many other brokers, FCM forex also offers its clients a welcome bonus. It amounts to 100% on the trader’s initial deposit (up to $5000).
Besides, this broker organizes live FX contests, such as the “Prince of Pips” conducted in 2015 with $17,000 prize pool.
What is more, FCM forex has partnered with forex rebate web site PayBackFX, so its clients can receive cash back for each trade they make, ranging from $0.75 to $10.5 roundturn, depending on the account type.
Methods of Payment
FCM forex’s clients can make deposits to and withdrawals from their accounts via the following payment methods: credit/debit cards, bank transfer and e-wallet systems, such as Neteller, Skrill, CashU.
Accepted currencies are USD and EURO and there are No transaction fees for deposits exceeding $5000.
FCM forex is a well-regulated ECN/STP broker that offers online trading in FX and CFDs through the popular MT4.
FCM Forex Review Conclusion
For more information about currency trading brokers visit TopForexBrokers.com forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about FCM Forex Review.