FXTM is authorised and regulated by the FCA in UK. The fees at FXTM are higher than average. Check all the pros and cons of choosing FXTM to trade CFDs in the UK.
FXTM is an FCA-Authorised CFD broker. It is licensed to provide trading services in the UK on various financial instruments. It is an STP/ECN broker that offers maximum leverage of 1:30 in the United Kingdom.
There are several pros and cons of choosing FXTM in the UK. Clients must check and compare every aspect of an online CFD broker to choose the best-suited broker for themselves.
We have honestly reviewed every component of the broker that can affect the trading experience. FXTM has an FCA-regulated entity for clients in the United Kingdom. In this review, we have comprehensively reviewed the UK entity of FXTM registered by the name Exinity UK Ltd for clients based in the UK.
FXTM UK Pros
FXTM UK Cons
Table of Content
|Broker Name||Exinity UK Limited|
|Regulation||FSCA, FCA, CySEC|
|Year of Establishment||2011|
|Minimum Deposit||$/€/£ 10|
|Trading Platforms||MT4, MT5|
|Trading Instruments||62 forex pairs and 200+ CFDs on commodities, indices, shares, ETFs, cryptocurrencies|
The safety of funds and data of clients depends largely on regulatory compliance under which the clients are getting registered. The regulation of a particular CFD broker can be different for clients residing in a different jurisdiction.
Following are the regulation details of FXTM for different entities.
The compliance, protection, current status, and other details of FXTM in the UK can be checked through the official FCA website. Clients in the UK are protected under the Financial Ombudsman Service of the Financial Conduct Authority (FCA).
In case of any unsettled dispute between clients and the broker, clients will be covered by the Financial Services Compensation Scheme (FSCS). This compensation fund is similar to insurance for clients of Exinity UK Ltd. FSCS provides coverage of up to €85,000 per case.
Clients residing in the United Kingdom can only register under FCA regulated entity of FXTM. No clients from the outside UK can register under Exinity UK Ltd. The registered office of FXTM in the UK is situated at 1 St. Katharine’s Way, London, E1W 1UN, UNITED KINGDOM.
FXTM was launched in 2011 and acquired the FCA license in 2018. They offer CFD trading services in the UK according to the regulatory regimes of FCA. They are an ECN broker which means they do not take part in clients’ trade orders.
According to our review, FXTM is a well-regulated CFD broker. The FCA regulation makes them fairly safe for clients in the UK. The third-party risk of choosing FXTM in the UK is very low.
The fees charged by the online CFD brokers for trading and non-trading activities can have a major impact on the trading experience. For a comprehensive analysis and comparison of the fee structure at FXTM, we have separately reviewed every component of fees.
The spreads at FXTM start from 1.5 pips with the Standard Account type. The Advantage account type has lower spreads starting from 0 but a fixed commission on currency pairs and metals.
The average spread for EUR/USD is 1.9 pips with the Micro account type. The Advantage Plus account incurs an average spread of 2.1 pips for EUR/USD. Spreads are negligible on currency pairs with the Advantage Account.
The following table compares the spreads incurred with different account types at FXTM.
|Trading Instrument||Micro Account||Advantage Account||Advantage Plus Account|
|US Tech 100 Index||40||8||36|
The trading commission for the MT5 Advantage account is fixed at $4 for a round trade of a standard lot.
The trading commission at FXTM with the MT4 Advantage account is variable and depends on the volume traded. It is calculated with a predefined formula.
(Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2
For a round turn trade of 1 standard lot of EUR/USD, the commission is $4.88. Although it depends on the prevailing rates and equity in the account.
Clients who trade for more than a day must check the swap fees before trading. A swap fee is not applicable if a position is opened and closed on the same day.
At FXTM in the UK, deposits are free for all the available methods but a fixed commission is charged on withdrawals. The withdrawal fees are different for each method and have been reviewed separately under the deposits and withdrawal section.
FXTM also charges inactivity fees if no trading activities occur consecutively for 6 months. After 6 months of inactivity, 5 EUR/ USD/ GBP (depending on the account currency) will be deducted every month until the account balance reaches 0.
Apart from these, there is no other non-trading fee at FXTM in the UK.
Overall, the spreads are higher at FXTM when compared with the majority of CFD brokers in the UK. The spreads can be slightly lower at times with the Advantage Plus account but it is still wider than many peers.
The commission is variable and below if the trade size or the account equity is high. Compared to commission-based accounts of other regulated CFD brokers, commissions are average at FXTM.
The swap rates and non-trading charges are higher than average. Many regulated brokers in the UK do not charge inactivity fees or withdrawal commissions.
Different account types are ideal for different types of traders. We have separately reviewed features and differences between all the account types at FXTM in the UK. If you cannot decide which account type is best for you, this section can assist in choosing.
There are 4 types of accounts at FXTM with a difference in fee structure, execution method, and a few other methods. Clients can open a demo account with trading conditions of all the account types.
Each account type can be chosen with GBP/USD/EUR as the base currency. The account equity will be held in this currency regardless of the deposit currency.
Following are the available account types at FXTM in the UK.
It uses an instant execution technique in which trades are executed at the quoted price only. A maximum of 10 lots can be traded in a single order with a margin call of 60%.
The disadvantage of choosing the Micro account is that it only allows trading on available forex pairs and metal crosses. Commodities and Indices cannot be traded with the Standard account.
This account is ideal for all types of traders seeking spread-based CFD trading on forex, gold, and silver.
The Advantage account follows the market execution technique where orders are executed without requotes.
The minimum deposit for this account is $/€/£ 500. All the available instruments at FXTM can be traded with the Advantage account. This account can be chosen with MT4 and MT5 trading platforms. The commission with the MT5 platform is fixed while with MT4 is variable.
The Advantage account at FXTM is ideal for scalpers and large volume traders who wish to trade with very low spreads at the expense of trading commission.
All the available CFD instruments at FXTM can be traded with this account type. This account is ideal for all types of traders who wish to trade with market execution without commission at a slightly lower spread.
The retail trading accounts can be converted to professional accounts if certain criteria are met by the client. The size of the portfolio (all assets) should be more than 500,000 EUR, client must have work experience of more than 1 year in the financial sector, and must have traded at least 10 standard lots in the last 4 quarters. The maximum leverage is increased up to 1:300 with the professional account.
Apart from pricing pattern and order execution technique, there are no major differences in the account types. Although, different account types can suffice the needs and suit the trading styles for different types of traders in the UK.
Before opening the account, clients must check and compare all the components of the broker. Once you are certain with the choice of account type, a trading account can be opened through the website and app of FXTM.
Clients residing in the UK must register only with the FCA-regulated entity Exinity UK Ltd from the website www.forextime.com/uk. Follow these steps to open an account at FXTM.
Step 1: Basic Details
Clients need to visit the account opening page at FXTM and enter their basic details. This includes first name, last name, county of residence, mobile number, email, and password. The phone number needs to be verified through OTP via SMS.
Step 2: Address and DOB
After verification of the phone number, you will be redirected to your personal area but you will need to fill up the address form before using it. Gender, date of birth, address, and Tax Identification Number (TIN) need to be filled in.
Step 3: Account Configuration
After submitting the address form, the account needs to be configured according to personal preferences. In this step, the account type has to be chosen. Clients also need to select the base account currency between USD, EUR, and GBP and maximum leverage. Once done a password needs to be chosen by the client for the trading account.
Step 4: Verification
To access all the features in the personal area, clients are required to verify their accounts by uploading documents supporting proof of address and identity. A passport or any national ID can be used for this. A scanned copy can be uploaded under profile verification. The verification can take up to 24 hours.
Step 5: Deposit & Trade
Once the account is verified, a confirmation mail is sent to the registered email. Now clients only need to make a deposit to start trading. Several methods can be used to deposit at FXTM in the UK. Once the deposits are reflected in the bank account, the trading platform can be downloaded or a web trader platform can be used to execute trade orders.
Clients residing in the UK can deposit and withdraw at FXTM through Credit cards, E-wallets, and Bankwire transfers. The processing time and the withdrawal commission are different for each available method.
Apart from this, no other methods are available to deposit or withdraw at FXTM in the UK. Compared to other CFD brokers in the UK, the number of available transaction methods is low. A commission on withdrawal is also a disadvantage of FXTM.
FXTM supports the complete suite of MetaTrader 4 and MetaTrader 5 trading platforms for all the account types. The MT4 trading platform is the most widely used CFD trading platform globally. While the MT5 trading platfom is an upgraded version of the MT4 mostly preferred by professional and experienced traders.
Both the platforms can be downloaded on PC, mobile, and tablet to trade from a preferred device. FXTM additionally offers regular market updates and volatility alerts through the mailbox on the MT4 and MT5 trading platforms.
The FXTM trader app is a proprietary trading application for mobile and tablet devices. It can be used to open, close, or modify trade orders. It has a user-friendly dashboard where accounts can be managed and monitored on the go.
At the time of this review, there are no other trading platforms supported with any of the account types.
Whenever clients face queries, the customer support service can be reached out to resolve them. A user-friendly and easily accessible customer support service can enhance the trading experience. Chat, email, and phone are the three methods available to connect with the support staff at FXTM.
Overall, we liked the customer support service as the executives are very helpful and diligent. There is no issue in connectivity through all the available methods. The availability of support services through Telegram and Facebook Messenger is an additional advantage.
FXTM offers various tools that can enhance the trading experience of the traders and help them make better trading decisions. FXTM offers research and education tools on the MT4/MT5 trading platform, website, and FXTM Traders app.
The tools that can help in the research are daily market analysis and economic calendar. The daily market analysis is an analysis report published by the team of experts at FXTM. The daily reports include the overall summary of the market with prediction of trends.
The analysis report does not involve any instrument in particular but global capital markets as a whole. If you seek research reports for any particular instrument, you might need to look up to third parties. Fundamental analysis reports are also not available at FXTM.
The education tools have a rich variety and can help beginners to acknowledge the basics of forex and CFD trading. The trading guides for forex and CFD trading cover everuthing that a beginner must know to start trading.
However, the education tools at FXTM are limited and can only help the beginners who know nothing about forex and CFD trading. There are no tools that can enhance the knowledge and trading strategies of retail traders who are already trading for a while.
In terms of research and education tools, FXTM is a decent broker with just enough learning and research tools to help the beginners. Experienced traders might have to look out for third parties for research and education.
Several financial instruments can be traded as Contract for Deposit (CFD) at FXTM in the UK. A total of 4 asset classes namely forex, commodities, indices, and stocks can be traded as CFD at FXTM.
Clients must note that CFDs are derivative instruments in which there is no physical settlement of the underlying asset. There is no exchange of the asset that is getting traded as CFD. Only the price difference between opening and closing positions is speculated to book profits or losses.
Following are the instruments that can be traded as CFD at FXTM.
Following is a table that compares the available instruments for all asset classes at FXTM in the UK. It must be noted that the maximum leverage mentioned is for the retail clients. This leverage can be increased up to 1:300 if you become a professional client upon meeting certain criteria.
|Asset Class||Number of Instrument||Maximum Leverage|
|Commodities||8||1:20 for Gold, 1:10 for others|
Compared to other regulated CFD brokers in the UK, the number of available forex pairs is impressive. The number of commodities and indices is comparatively lower than most of the peers. Cryptocurrency CFDs and soft commodities CFDs are not available to trade at FXTM.
Yes, FXTM is an FCA-regulated CFD broker and can be considered safe for clients in the UK. There are multiple account types with different fee structures to suit the trading styles of different types of traders.
It offers excellent customer support service but the trading and non-trading fees are slightly higher than peers. Clients who wish to trade with an ECN broker that is well regulated under FCA can choose to trade with FXTM in the UK.
FXTM was launched in 2011 and has been offering CFD trading for 11 years.
£10 is the minimum deposit with the Standard Account type at FXTM. The minimum deposit for the Advantage and Advantage Plus account types is £500.
Each account type at FXTM namely Micro, Standard, and Advantage Plus is ideal for different types of traders. The Micro account is ideal for beginners as the minimum deposit is lower (£50) and no trading commissions are involved.
The Advantage account is ideal for experienced traders who prefer low spread at the expense of trading commission on each order. The Advantage Plus account does not involve a trading commission and allows trading on all available instruments at FXTM.
Yes, FXTM is a CFD broker where clients can make money if they make profits on the trade orders. However, if losses are booked on trades, clients can also lose money. It is advisable for beginners to trade via a demo account before using the real account to gain some experience. More than 70% of beginners lose money while trading CFDs.
The withdrawals at FXTM can only be done through the method used for deposits. Clients in the UK can withdraw from FXTM through credit/debit cards, e-wallets, and bank wire transfers. The minimum deposit amount at FXTM is $5.