FXGM Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this FXGM Review.
FXGM Review
FXGM (or Forex Global Markets) is a broker, offering multiple account types to its clients. That being the case, trading conditions do not vary significantly for the different account types. Most of the benefits come in terms of educational content, a personal account manager and other perks, which experienced traders do not need. The levels above silver get a limited subscription to Trading Central, an independent technical analysis.
The Company. Security of Funds
Company Country Regulation
Depaho Ltd. Cyprus CySEC
FXGM is currently owned by Depaho Ltd. a company based in Cyprus. We must mention, they own another trading brand – GTCM. The company is overseen by the local watchdog – The Cyprus Securities and Exchange Commission (CySEC). This gives them credibility, especially when compared to the multiple off-shore brokerages.
Financial markets may not be your first association, when you hear about Cyprus, but the country has attracted an impressive number of forex brokers. The local regulatory agency, CySEC imposes lots of rules on companies, who are registered with it. One of the most important principles, from a trader,s perspective, is the implementation of segregated accounts. This means client’s funds should be kept in acounts, which can not be freely accessed by the broker. In essence, the company can not steal your money in the most direct way. Furthermore all CySEC regulate brokers participate in the Investor Compensation Fund (ICF), a collective compensation scheme, which guarantees clients funds, in case the broker refuses to pay them. The maximum coverage, offered by this particular scheme is €20,000 per account.
While we are on the topic of regulation and Dephano Ltd, we must mention the company has been fined by CySEC in late 2015. The charges were not that severe, except for the one regarding misleading clients. We have no information about the specifics of the case, but it still does leave a stain on the firm’s reputation. There are negative reviews about this company in some popular forums.Overall, we have mixed feelings about this broker.
Trading Conditions
Minimum Initial Deposit
FXGM has set the initial minimum deposit level at $200. This is considered a bit high for today’s standards, with lots of companies demanding around $100. Some brokers, like IG, have even remove this barrier – you can deposit as low as you want to.
In our opinion the minimum deposit should not be a factor one has to consider highly, when comparing forex brokers. It is important, only if you are an inexperienced trader, taking the first steps after demo account trading.
Average spreads & Commissions
The spread offering by FXGM is not relevant to the current state of the industry. An average spread of 3 pips on EUR/USD is more than double, what you would be paying at other brokers. Although spread may not be that big of a factor if you enter trades less frequently, it still does add-up over time. Feel free to explore our live comparison of the spreads, currently offered by some of the best forex brokers here.
Leverage
FXGM offers a maximum leverage of 1:200, with the added condition, you must be an experienced trader (otherwise it is 1:100). Both of these offerings will satisfy the needs of a serious trader. That being said, you mat be under a different impression if you follow the industry, as lots of brokers offer leverage of 1:500 or even more.
We are not sure what client qualification methodology FXGM uses, but it is still a good idea to limit the leverage offered to new clients. Some newbies fall into the trap of thinking they must utilize their entire account balance for margin purposes at the same time. This can not be further away from the truth – doing so, puts your entire investment at significant risk. Though he rewards may be great at first, everybody is bound to have a loosing trade.
Trading Platforms
FXGM offers two trading platfoms to its clients: PROfit and MetaTrader4. They basically achieve the same goal, although one is far more popular and has a bit more functionality. we are talking about MT4, of course. It is basically the industry standard at this point, when it comes to currency trading. With its gret charting potential, the ability to load lots of instruments and be very demanding on the hardware and the MQL coding environment, it has earned a solid reputation. The most unique thing is probably the aforementioned MQL marketplace – a broker independent (which is good, since lots of brokers offer this platform) on-line shop where you can view, test and purchase custom technical indicators and automated trading systems. By the way we have reviewed some of these systems here.
PROfit, on the other hand feels a bit more clunky. One of the features which scalpers would enjoy is the quotes screen, where you can view all the quotes on multiple currency pairs, with one-click buy and sell buttons. We would recommend keeping the one-click trading feature off, to prevent missclicks, unless you are an experienced an quick trader. The platform allows you the freedom to move some of its elements around, which is quite necessary given their number – there are news feeds and even a video section.
The PROfit platform
Methods of Payment
FXGM accepts payments only via Bank Transfer and Credit/Debit Card. While they will get the job done, many people prefer using other solutions nowadays. E-wallets, such as Skrill are a popular alternative, especially when it comes to international transfers.
FXGM is a CySEC-regulated forex broker. The company owns another brand – GTCM with similar trading conditions. These conditions are not that impressive. The company has had its issues with the regulator and has payed fines in 2015. Furthermore there are negative reviews in some online forums. All of this leaves mixed feelings about FXGM. Despite the solid regulation, we would rather not recommend dealing with this broker.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
FXGM Review Conclusion
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