1. FXCM Capital Markets; Introduction
  2. FXCM Capital Markets; Account Types, Minimum Deposits And Services Offered
  3. FXCM Capital Markets; Commission Structure
  4. FXCM Capital Markets; Customer Support And Analysis Tools
  5. FXCM Capital Markets; Additional Info
  6. FXCM Capital Markets; Summary

Commission Structure
On Standard and Micro accounts, FXCM does not charge a commission on trades. Rather, the firm makes a profit by marking up the spread which traders must pay. In order to enter a trade, a trader must always pay the ask price, and to sell/short, must execute at the bid price. The spread is the difference between the bid and ask price. FXCM does not offer a fixed spread, which means the spread will vary, based on market liquidity. During high volume times, the spread will typically be relatively small, and during low volume times, the spread will be relatively wider. The firm uses fractional pip pricing

SEE: Spread-To-Pip Potential: Which Pairs Are Worth Day Trading?

Active Trader accounts do incur commissions, although spreads are typically smaller than what is available on Standard and Micro accounts.

Figure 2. Active Trader Commissions


Rollover is a not a commission, but can have a positive or negative impact on the profitability of a position if that position is held overnight. FXCM provides the current rollover rates right in the trading platform, so that traders can see how much they will gain if they are long a higher interest rate currency, or how much their account will be debited if they are long a lower interest rate currency.

SEE: Understanding Forex Rollover Credits And Debits.

Figure 3. Quote with Rollover (RollS and RollB)*
*Spread and roll rates are subject to change.

Forex brokers traditionally provide leverage or margin to their trading clients. FXCM provides maximum leverage of 50:1, or 2% margin. This means that the trader must put at least 2% of the value of the trade. For exotic currency pairs, the maximum leverage is 20:1. Spreads and commissions are applied to the full amount of the transaction, and not just the margin put up by the trader.

SEE: Top 7 Questions about Currency Trading Answered.


FXCM Capital Markets; Customer Support And Analysis Tools
Related Articles
  1. Investing

    FXCM Exits American Market, Stock Crashes

    FXCM is selling its unprofitable American business to help settle outstanding debts.
  2. Investing

    FXCM Falls on Big Loss (FXCM)

    After reporting an operating loss of $35.8 million, currency brokerage FXCM is falling in early trading.
  3. Investing

    FXCM Sells Forex Website for $40 Million (FXCM)

    The foreign currency brokerage plans to use the proceeds to repay outstanding debts.
  4. Investing

    FXCM Reports Profitability in Operations Abroad

    FXCM said its American operations were driving net incomes lower, and the firm may be more profitable without them.
  5. Trading

    Beginner's Guide To FXCM And Trading Station

    From signing on, to charting and trade management, learn how to trade the forex market with FXCM's online trading software.
Frequently Asked Questions
  1. Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money?

    Can pension money be used to fund other retirement accounts?
  2. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ...
  3. How does a company move from an OTC market to a major exchange?

    The over-the-counter market is not an actual exchange like the NYSE or Nasdaq. Instead, it is a network of companies that ...
  4. Can I roll a traditional IRA into a 529 college account for my grandchild?

    The short answer: Not without paying taxes. But as with much of the tax code, there are various nuisances and exemptions ...
Trading Center