Overview of FXCM fees and charges
It's safe to say that FXCM's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use FXCM even in case you trade frequently like multiple times a week or daily.
Here's a high level overview of FXCM's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Not available|
|EURUSD fee||Average||The fees are built into the spread, 1.2 pips is the average spread cost during peak trading hours in 2021 Q4.|
|US tech fund fee||-||Not available|
|Inactivity fee||Low||$50 per year after one year of inactivity|
FXCM fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.
This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:
- Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
- A commission is either based on the traded volume or it is fixed.
- A spread is the difference between the buy price and the sell price
- Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.
We compare FXCM fees with its closest competitors, Forex.com and Pepperstone.
FXCM trading fees
FXCM's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let's break down the trading fees into the different asset classes available at FXCM.
FXCM's trading fees are low.
It is super hard to compare trading fees for forex brokers. What we did at BrokerChooser? Instead of quoting long fee tables, we compare brokers by calculating all fees of a typical trade for two currency pairs.
- EURUSD, a popular currency pair
- EURGBP, another popular currency pair
The typical trade means that you buy for $20,000 using 30:1 leverage, and sell it after a week.
This super catch-all benchmark includes spreads and financing costs for all brokers.
Here is the verdict.
|EURUSD benchmark fee||$11.1||$5.9||$6.2|
|EURGBP benchmark fee||$15.8||$7.1||$8.4|
FXCM financing rates are low.
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||5.4%||2.6%||2.6%|
|Vodafone CFD financing rate||-||2.5%||2.6%|
|EURUSD financing rate||2.4%||1.0%||1.2%|
|EURGBP financing rate||3.1%||0.9%||1.6%|
Currency conversion fee
FXCM will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: Exchange rate received from liquidity providers plus a mark-up. We used the EURUSD trading fees for the calculation..
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FXCM non-trading fees
When it comes to looking at all the non-trading fees FXCM is an average broker. This means that some of the non-trading fees are high, but the others are low or not charged at all.
Non-trading fees include various brokerage fees and charges at FXCM that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.
FXCM deposit fee
Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and FXCM is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods FXCM offers.
FXCM withdrawal fee
Unlike the majority of the online brokers we have reviewed FXCM does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.
|Withdrawal fee with bank transfer||$0||$0||$0|
FXCM inactivity fee
FXCM does apply an inactivity fee and it is $50 per year after one year of inactivity. This means that you need to be strategic about your trading activity to avoid getting charged after a longer time of no trade. The fact that FXCM charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.
FXCM has low inactivity fee.
|Inactivity fee||$50 per year after one year of inactivity||£/$/€ 15 or JPY 1500 per month after one year of inactivity||No inactivity fee|
Read more about FXCM inactivity fee on their own site.