FXCM is a popular forex broker. But is it possible to make money trading forex on FXCM? I decided to sign up and give it proper test and here are my results. I deposited $50 into my account – which is what the numerous ads for FXCM was advertising (get started with as little as $50).
Forex Trading on FXCM
FXCM offers all the major pairs as well as indices and commodities. I found the trading selection to be fairly limited and lacking. FXCM competitors are adding products like stock CFDs and cryptocurrencies. Even if you're a forex trading, you would appreciate having access to those markets for the odd trade. But if you are looking for a forex only platform, then you might want to consider FXCM.
Trading with just $50
FXCM has one of the lowest minimum deposits of any forex broker. XM is probably one of the only legit brokers that offers lower deposits (just $5).
But can you actually make money starting with just $50? The answer is it's possible but pretty tricky. I found it hard to do any sensible money management with just $50. If you're aiming to trade just 5% of your capital per trade, then you are going to need to deposit more, and how much more depends on how much leverage you are planning to trade with.
For more experienced traders
FXCM only offers Metatrader or their own proprietary web trader, which I found difficult to use. If you're a MT4/5 user, then you'll have no problems using their platform. However I much prefer to use a web trader.
FXCM offers no copy trading features, so I don't believe the platform is suitable for new traders. If you're new to trading, the $50 signup might seem lucrative, but honestly you'll probably just end up losing your money. I would suggest you try copy trading instead and use a platform such as eToro.
FXCM does offer a free practice trading account. It's a good way to test out the platform. And you can try using virtual money to see if you can make a profit with $50. They give you $5k in virtual money to trade, but I would recommend trying trading with the same amount of money you would deposit in a real account and use the same leverage etc.
In my opinion there are similar forex brokers out there that offer a more compelling product. XM will give you $30 no deposit bonus, Plus500 has stocks (which FXCM doesn't), eToro offers copytrading and EasyMarkets offers a better designed web trader.
Let me know in the comments if you've use FXCM before and whether or not you've had success on the platform.