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FXCM regulation

Your expert
Gyula L.
Fact checked by
Tamás D.
Updated
1w ago
Personally tested
Data-driven
Independent

Is FXCM regulated?

Trying to find out whether FXCM is regulated? Not sure which authorities are overseeing FXCM and why this matters?

Rest assured, the lack of regulation at FXCM is not a reason for worry. Our brokerage experts have determined that FXCM is a fully regulated broker, overseen in UK, Australia, South Africa and Cyprus. We gathered all the information on the regulatory profile of FXCM and will explain why this matters.

Why FXCM is trustworthy
Gyula
Gyula Lencsés, CFA
Forex • Derivatives • Market Analysis

I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of FXCM as of December 2024:

  • FXCM is regulated by several authorities of which at least one is top-tier, which is vital for safeguarding your money.
  • FXCM must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
  • As FXCM is regulated by several authorities, it is super important that you open an account with an entity that has top-tier regulation.
  • Explore the services of FXCM in our comprehensive FXCM review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.
Overall score
4.3/5
Minimum deposit
$50
FX fee
Low
Index CFD fee
Low
Withdrawal fee
$0
Account opening
1-3 days
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73% of retail CFD accounts lose money

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FXCM has top-tier regulation

Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.

FXCM operates in several countries and is supervised by the following financial authorities:

  • UK - Financial Conduct Authority (FCA)
  • Australia - Australian Securities and Investments Commission (ASIC)
  • South Africa and some other African countries - Financial Sector Conduct Authority (FSCA)
  • EU - Cyprus Securities and Exchange Commission (CySEC)
  • Rest of the clients - Not regulated
  • Israel - Israeli Securities Authority

Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.

Your can protect your money by choosing a well-regulated broker.

Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.

Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.

Client fund segregation: your ultimate safeguard

As a broker with top-tier regulation, FXCM is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.

Client fund segregation is like having your money in a separate safe from FXCM’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.

In the highly unlikely event that FXCM commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.

Depending on your country of residence, you can open an account at one or more of FXCM's legal entities.
This can be important because the investor protection amount, the maximum leverage allowed and the regulator differs depending on the entity. Only the clients of Stratos Markets Limited and Stratos Europe Limited are covered by investor protection.

FXCM investor protection
Country of clients Investor protection amount Regulator Legal entity
UK £85,000 FCA Forex Capital Markets Limited - Stratos Markets Limited
Australia No protection ASIC FXCM Australia Pty. Limited - Stratos Trading Pty. Limited
South Africa £85,000 FSCA FXCM South Africa Pty. Limited - Stratos South Africa (Pty) Ltd
EU €20,000 CySEC FXCM EU LTD - Stratos Europe Limited
All other clients No protection N/A FXCM Markets Limited - Stratos Global LLC

FXCM provides negative balance protection for retail clients. If the balance on your account goes into negative, you will be protected.

Choose your brokerage entity smartly

Since FXCM is regulated by multiple authorities, it's crucial to open an account with an entity that has top-tier regulation. This ensures your investments are always protected under the highest standards.

Whenever possible, avoid signing up with entities that are regulated in off-shore countries such as the Seychelles, the Bahamas, St. Vincent and Grenadine, etc. While you may have access to a much higher level of leverage for your trades, this is extremely risky and you run a much higher risk of losing all your invested money.

In addition, rules and regulations imposed by regulators in these countries are typically less severe, potentially damaging the safety of your investments. If you are offered the option to choose which entity you open an account with, go with the one that operates under a stricter regulator.

Get to know FXCM better and browse other top-tier regulated brokers

For detailed insights into trading conditions, costs, and service quality at FXCM, check out BrokerChooser's FXCM review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.

The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.

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Further reading

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

author
Gyula Lencsés, CFA
Author of this article
Gyula is a former analyst expert and Head of Content at BrokerChooser. With over a decade in finance, he led content creation at BrokerChooser and personally evaluated some of our 100+ listed brokers. He opened real-money accounts, executed transactions, and engaged with customer services, offering firsthand assessments. Prior to BrokerChooser, he managed mutual funds in wealth management, trading stocks, ETFs, bonds, commodities, forex, and derivatives. His goal: simplify the hunt for top brokers in a dynamic investment landscape.
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