FXTM

FXTM Review
Trader's rate 4.5
Editor's rate 5.0

Trading Accounts

 

Account type Minimum deposit   Minimum trade size Maximum leverage  Average Spreads  Execution type
Cent  $5 0.01 1:500 2.2 pips  Instant
Standard  $100 0.01 1:500 1.8 pips Instant
ECN Zero.mt4 $200 0.01 1:500 1.7 pips  Market
ECN MT5 $500  0.01 1:500 1.9 pips + commission $2* Market
ECN $500  0.01 1:500 0.7 pips + commission $2* Market
PRO $25 000 0.01 1:200 0.4 pips Market

 

* Commission is calculated per standard lot of 100 000 currency base units (per side).
** Leverage depends on the knowledge and experience of each Client

 

FXTM offers a wide range of trading accounts, which may be categorized in two groups: Standard (Standard, CENT, and Shares accounts) and ECN (ECN MT4, ECN MT5, ECN ZERO and Pro).

 

In addition to the ones shown in the table above, there is a special account for trading in CFDs on shares, called Shares account, which is directly connected to NYSE and NASDAQ’s product price listings.

 

Furthermore, FXTM offers PAMM and swap-free options. Swap-free (Islamic) services are available on all account types (except the MT5 one) and involve a fee of $ 1.7 per lot.

 

Micro, mini and standard lots are available on all account types.

 

Trading Conditions

 

Minimum initial deposit

In order to open an account with FXTM, one has to invest just $5, which is a symbolically low minimum initial deposit.

 

Spreads & Commission

Most of FXTM’s accounts are commission-free: Standard ones, as well as the ECN Zero and Pro accounts. Only ECN MT4 & ECN MT5 accounts involve a small commission fee of $4 (per standard lot round trip).

 

The floating spreads offered by this broker vary by account type. The tightest spreads are available on the ECN and Pro accounts; however, the latter is intended for institutional clients (with minimum initial deposit of $25 000), so we would recommend the ECN (MT4). The typical ECN (MT4) spreads amount to 0.7 pips on EUR/USD and if we include the commission, average trading costs for this pair are around 1.1 pips per lot, which is a good offer.

 

Maximum leverage

High leverage levels are available with this broker – up to 1:500. However, in order to control the risk associated with it, the broker utilizes a floating leverage system. 

 

The Company. Security of funds

 

FXTM is a broker that truly suits the needs of traders of all skill levels and preferences. Its offering covers more than 240 tradeable instruments, including a number of currency pairs and various CFDs. Besides, clients of this broker may choose from market and instant execution, MetaTrader 4 and MetaTrader 5 trading platforms, and a wide range of trading accounts. Besides, this client-centric broker created an array of ways to provide its clients with effective trading knowledge and education. 

 

Forex Time (FXTM) was established in 2011 when one of the co-founders of Alpari separated from the Russia-based broker and launched one of his own under the FXTM brand. Since then, the company has opened a number of offices around the world, and is believed to be one of the fastest growing brokers in the industry. The latest of them is FXTM London office which opened its doors in April this year in order to better serve clients in the UK and Europe. Besides, the company is regulated in multiple jurisdictions:

 

Company

Country

Regulation

ForexTime Limited

Cyprus

CySEC

ForexTime Limited

South Africa

FSB

FT Global Limited

Belize 

IFSC

ForexTime UK Limited

UK

FCA-registered

 

ForexTime Limited, doing business as FXTM, is licensed and regulated by the Cyprus Commodities and Exchange Commission (CySEC) as a Cypriot Investment Firm. Cypriot Investment Firm are required to hold at least €730 000 as a proof of financial stability. Client funds must be held in segregated accounts and regulated entities are required to report to the Commission on a regular basis.

 

Furthermore, CySEC applies a compensation scheme as an additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, able to provide compensations to a maximum of 20,000 EUR per person in the event of broker insolvency.

 

As Cyprus is part of the European MiFID regulations, all CySEC regulated are free to operate in all EU Member States. In spite of this, FXTM is officially registered with a number of EU regulators: UK’s FCA, Germany’s BaFin, Italy’s CONSOB, France’s AMF, Spain’s CNMV and Norway’s FSAN.

 

What is more, FXTM (ForexTime Limited) is licensed by the Financial Services Board (FSB) of South Africa as a Financial Services Provider. The broker holds a category 1 license to act as an Intermediary in Securities and Instruments (Shares, Money market instruments, Bonds, Derivative instruments).

 

Trading platforms

 

As we have already mentioned, FXTM supports both MetaQuutes platforms: MT4 and MT5. The broker offers both of them as desktop, web and mobile versions (for iOS & Android devices) and makes regular updates.

 

In spite of the number of enhancements made to MT5 lately (and the final introduction of hedging on both desktop and web versions), MetaTrader 4 is still preferred by most brokers and experienced traders. It provides an advanced charting package, lots of technical indicators, extensive back-testing environment and a variety of Expert Advisors (EAs). Thanks to its ease of use, MT4 is also suitable for beginner traders, for they can also find their way around it quite easily.

 

MT4’s successor, MetaTrader 5, allows the execution of orders in several financial markets and stock exchanges through a single trading account. The platform features advanced charting package, trading and analysis tools, alerts, signals, and customizable indicators. Besides, MetaQuites has recently made many significant upgrades to it, such as adding a tool for analyzing exchange markets, news management improvement, and most importantly the hedging feature.

 

For clients who prefer automated trading strategies through Expert Advisors (EAs), FXTM offers a designated forex VPS service, and technical traders can take advantage of the Trading Central technical analysis tool – free of charge. Besides, FXTM offers advanced copy-trading solution, called FXTM Invest.

 

Promotions

FXTM regularly organizes various promotions and trading contests, as it strives to offer its clients the best trading opportunities and to empower their skills and knowledge.

 

At the time of writing this review FXTM offers Loyalty Cashback program, where traders can get $2 – $5 rebates per lot anyone who deposits $5 up to $10000, based on their deposit value. Meanwhile, new clients switching from another broker get $4 for every lot they trade.

 

In addition, the broker offers a Refer-a-friend bonus of $25 ONCE a referral becomes active.

 

Payment methods

 

FXTM offers various secure payment methods, including credit/debit card payments, Bank Wire transfers, and numerous E-wallets, such as Skrill, Neteller, Alsfa-Ckick, WebMoney, Western Union, Payza, dotpay, Yandex and Qiwi.

 

Conclusion

 

ForexTime is a global and award-winning broker with clients from over 180 countries. It offers a wide array of almost everything: tradable products, trading accounts & platforms, payment methods, execution types, you name it.

 

Pros  Cons
Well-regulated No major disadvantages
Variety of tradable products and trading accounts offered  
Tight ECN spreads
Low minimum initial deposit & commission fees  
High leverage levels offered  
Promotions available  

 

Country: Cyprus

Regulated by:  CySEC (Cyprus), IFSC (Belize)

Licensed by the Financial Services Board (FSB) of South Africa, with FSP No. 4661

Website: www.forextime.com 

Promotions: 

Loyalty cashback programme

Switch to ForexTime

 

WHY FXTM

✓ Regulated broker.

✓ Advanced risk management and segregation of client funds held in top-tier banks.

✓ SWAP-free option available. 

✓ Leverage up to 1:1000.

✓ Tight spreads starting from 0 pips.

✓ 120+ instruments including currency pairs, Spot Metals, CFDs on Commodity Futures, CFDs on ETF’s and Indices and Share CFDs.

✓  Variety of tailor-made account types to suit the needs of any type of trader. 

✓ Full feature trading platforms available on multiple desktop and mobile devices. 

✓ Various secure and trusted payment methods. Including credit/debit card payments, E-wallets and Bank Wire transfers. 

✓ Investment programs such as PAMM and FXTM Invest. 

✓ Regular Live and Demo Contests with amazing cash prizes (terms and conditions apply).

✓ Online forex courses and webinars for proper trader education.

✓ Local seminars held in different places around the world. 

✓ Daily in-depth fundamental analysis articles and videos.

✓ Customer Support team that speaks your language.

✓ Cutting edge mobile application to ensure you keep track of the markets at all times. 

AvaTrade

AvaTrade Review
Trader's rate 2.1
Editor's rate 3.7

Trading Accounts

 

Account type  Minimum deposit Minimum trade size Maximum leverage  Average Spread  Trading Platform
Fixed spread  $100 0.01 1:400
(1:200 on AvaTrader) 
Fixed, 3 pips on EUR/USD MT4/AvaTrader
Floating spread $100 0.01 1:400 Variable, 1.8 pips on EUR/USD MT4

 

Clients of AvaTrade can sign up for one of 2 available account types, depending on the spread offered: a fixed spread account, offered on both available platforms, and a floating spread account, provided solely on the MT4. Both account types are commission-free and offer trading in micro lots.


Traders, willing to invest more funds are offered extra benefits: accounts with a minimum of $1000 are provided with daily signals and charting tools by Trading Central, those with at least $10000 balance – access to Direct Dealing room and clients who have deposited $100 000, get express withdrawals, customized trading terms, and special gifts.


In addition, this broker provides Islamic (swap-free) services to Muslim clients.


The Company. Security of Funds


AvaTrade (formerly AvaFX) is was established in 2006 and is a part of the Ava Group, an international company offering more than 200 instruments for trade: more than 50 currency pairs, a wide range of CFDs on indices, stock, commodities, precious metals, ETFs, Bitcoin, Litecoin and others. Headquartered in Ireland’s Dublin, the Group has a global presence, servicing its customers worldwide through its offices in France, Spain, Italy, Australia, Japan, China, and Mongolia.


All companies within the group are duly licensed and regulated by the respective authorities:


- Dublin-based Ava Trade EU Ltd. is licensed by the Central Bank of Ireland and regulated by MiFID in the European Union;
- Ava Capital Markets Australia Pty Ltd. headquartered in Australia, is regulated by ASIC;
- Ava Trade Ltd. is licensed in the British Virgin Islands, and
- Japan-based Ava Trade Japan K.K. is regulated by the Financial Services Agency and the Financial Futures Association of Japan.


In February 2016, AvaTrade has set up a unit in South Africa, regulated by the Financial Services Board and in April 2016 it has also established a new subsidiary to take charge of its business and clients in Israel.


So clients of AvaTrade need not worry about the security of their funds.


Trading Conditions


Minimum Initial Deposit
Traders are required to deposit $100 in order to open an account with AvaTrade, which is an average minimum initial amount. In comparison, XM, also Licensed in the EU and Australia, requires just $5 and leading global broker FXCM –$50.


Average spreads & Commissions
There are both fixed and variable spreads in this broker’s portfolio. AvaTrade’s fixed spreads, however, are too high for the industry standard, amounting to 3 pips on EUR/USD. While fixed spreads can protect you from the spread widening which may occur at the close of markets or during major news releases, we would much rather trade with a broker offering capped variable spreads.


AvaTrade’s floating spreads, however, are not tight either. Provided solely on the MT4 platform, they are averaged 1.8 pips on EUR/USD, which is a comparatively high value. The good news is that traders can benefit from commission-free trading, as this broker gets its compensation through the spread.


In comparison, FXCM provides variable spreads averaged to 0,4 pips for the EUR/USD pair and charges a commission of $8 per lot round turn. So basically average trading costs with this broker amount to around 1.2 pips, commission included. For further information, you may look up real-time spreads of 15 leading brokers may be viewed here.


Leverage
The maximum leverage rates at AvaTrade are up to 1:400, which is considered comparatively high, however many other brokers offer similar or higher leverage rates: FXCM provides leverage up to 1:200, and FxPro - up to 1:500. More forex brokers offering leverage equal to or exceeding 1:500 can be viewed here.


Higher leverage ratios may multiply your earnings on a small deposit, but they may also lead to losses, exceeding initial investments. That is why we advise traders to exercise caution.


Trading Platforms


When trading with AvaTrade, you will be offered their proprietary AvaTrader and the popular Metatrader 4 (MT4).


AvaTrader is simple and easy to use forex and CFD trading platform, offering 200+ financial instruments at fixed spreads, more than 30 built-in indicators, comprehensive range of orders, alerts & charting tools. It is available as desktop, web, and mobile versions.

 

AvaTrader platform


We have tried the AvaTrader platform and we find it to be a bit cluttered and unresponsive, so we would rather opt in for the MT4. Metatrader 4 is preferred by most experienced traders, because it is equipped with an advanced charting package, a number of technical indicators, a variety of Expert Advisors (EAs) and extensive back-testing environment.


Speaking of automated strategies, we should point out that AvaTrader’s automated trading package is remarkably rich. It includes ZuluTrade system, Mirror Trader, Signal Trader, and AvaTrade's own Ava AutoTrader, which also enables algorithmic trading through your API interface.


What is more, AvaTrader is one of the few brokers offering spread betting on MT4, the profits of which are exempt from Capital Gains Tax & Stamp Duty.


Promotions
At the time of writing this review, the broker offered the following bonus schemes:


- Welcome bonus on first deposit from $40 (for deposits amounting to a minimum of $200) up to $ 10 000;
- Refer a friend bonus for each friend who opens a live account from $75 up to $400, depending on the referred person’s initial deposit amount.


Methods of Payment


Clients of AvaTrade can make deposits to and withdrawals from their accounts via credit/debit cards (Visa, MasterCard, Maestro), bank wire, Skrill and Neteller.


Accepted currencies: EUR and USD, as well as GBP (only available for clients from the UK), and AUD (only available for Australian clients).


Conclusion


Part of a Global group, AvaTrade is a reputable award-winning broker with 10 years of experience, offering numerous trading solutions to the FX community. In a nutshell, here are the advantages and disadvantages with regards to this broker:

 

Pros  Cons
Well-regulated global broker Comparatively high spreads
Choice of trading platforms  Market maker model
MT4 available   
Variety of trading instruments  

 

Headquarters:  Dublin Exchange Facility, IFSC, Dublin 1

Country: Ireland

Regulated by: Central Bank of Ireland, ASIC, FSA Japan, MiFID compliant

AvaTrade offer various instruments including Currencies, BITCOIN, CFD’s, FX Options and many others