FXTM or, Forex Time was registered as a broker in 2011 and for a broker that old, and disappointingly, it hasn’t evolved that much. The broker claims to provide more than 200 CFD tradable assets but excludes cryptocurrencies. So, it’s a lie in a way. A similar anomaly is seen in the case of the broker FxPro, who also doesn’t allow trading on cryptocurrencies.
Although, the broker keeps cryptocurrencies as a CFD tradable asset.
Surprisingly, when we tried to visit the link for cryptocurrency CFDs, we were redirected to the home page. All the links apart from this one particular took us straight to where they were intended at. It should be kept in mind that cryptocurrencies are a volatile market and CFDs are a complex trading instrument. A combination of these two can create havoc if the trade goes wrong.
The broker has been registered since 2011 and has been giving out its services ever since. Interestingly, the broker does not accept clients from the USA, Canada and Japan. The forex pairs offered by the broker include the fiat currencies of the countries mentioned above as tradable pairs. We researched well, and couldn’t find a reason behind such an odd occurrence. Also, traders from these three countries combined can generate remarkable outputs.
Not a lot can be seen about the origins on the official website of the broker. Although no parent company is associated with the broker or at least it is not listed online, the regulations section of the web page mentions Exinity Limited, indicating the presence of a superior authority. So, that offers negative connotations.
Unlike most of the brokers, the account types like ECN and Standard create lots of confusion and trouble. The spreads on these accounts begin from 1.3 and 1.5 respectively, which are too high and testimony to bad approach by FXTM broker.
The minimum balance for the FXTM Pro account is $25,000, that is out of the budget for several traders. That’s a lot of money. In fact, many brokers don’t make so much in their initial years of day trading. With so much capital reserved as the minimum balance, the broker does not allow any specific “extra-feature” on this account. So, it fails to draw the attention of investors. Also, you feel like cheating.
The broker is all about forex and does not pay heed to other instruments or assets, which leaves you with no option of extending the portfolio. There is zilch for other market lovers. Apart from this, the CFD tradable assets are not provided in this account. It is hard to understand why does the broker wants twenty-five grands as the minimum balance. Nothing special can be seen about such an exaggerated account.
A trader using the ECN account is liable to commission and spread both, that only adds to the headache of a trader and investor. The commission charged on the account is two dollars for a lot, and the spreads begin from 0.1, which is not a big deal and does not excite an investor for trading.
The platforms here do not help in trading. Also, the broker has its own trading platform, the FXTM Trader, which is down the abyss. As traders, you would tend to lose your deposits and your securities can be forfeited.
Markets and Tradable Products:
The broker primarily focuses on providing CFD-backed trading, which hinges on risky. Commodities and indices also have to be traded via CFDs. CFD trading comes in with its own risk, and should not be carried out by novice brokers. Each link for CFD trading redirects to an introductory page of the same title. The broker fails to provide relevant information on the same page and sticks with basics like a few snapshots of tweets and the beginner level introduction of the particular title.
Account opening method is not good:
All the trader has to do to open an account with the trading firm, which is religated and does not support in registration.
Commission and fee
The broker asks for commissions on each trade, and of course, each account has to have a minimum deposit balance. In certain situations, the broker asks for commissions and spreads both at the same time. As far as we have seen, a broker either earns from commissions or variable spreads. Not by pressing them both onto the investor at the same time. So, it indicates something fishy. It must ring a bell and alert your senses of suspicion, You can get tricked. So, be careful.
While researching for the dealing desk specification, we came to know that FXTM is an NDD broker, meaning that the broker can change the spreads at his will. So, you are always on the edge of losing your money.
Deposits and withdrawals:
As far as we have studied the broker, this is the worst way you can come across. The methods are not secured and Since the broker asks hefty amounts to be deposited in the brokerage accounts as minimum deposits, at least the deposit and withdrawals have to be smooth enough for the trader.
The broker provides pathetic customer support via emails, live chat and calling services. The broker doesn’t provide the customer support on weekends. During these two days, non-active traders trade the most.
Education and Research material:
The broker has impressive links that should ideally redirect to something relevant, but on the contrary, all the links redirect to basic information. For example, the monthly market outlook button does not tell much about the actual outlook of the monthly market. Instead, after five to seven introductory lines the broker slips in a form for the visitor to fill and connect. We all know what happens next. Perhaps, the economic calendar that the broker provides is the only thing that is legitimate under this section.
Scam or safe:
The broker claims to be regulated by multiple regulatory authorities. We cannot put forward our opinion directly, but so many flaws and yet the possession of regulation seems unnatural.
The broker asks for impractical amounts of money as a minimum deposit balance and does not provide the expected services with that account. Also, the broker fails to offer the variety a diversified trader is looking at.
We recommend the traders to get involved with more vibrant and fair brokers. One good example can be tradeATF, which is the official sponsor of the national team of Argentina. Or, HFTrading, InvestLite and PrimeFin which majorly works around every need and are neatly designed for every trader, belonging to different levels of expertise.
Frequently asked questions:
What is the minimum deposit of FXTM?
The minimum deposit by the broker in its FXTM Pro account is $25,000.
Is FXTM scam or safe?
The presence of three different regulatory authorities can bring in relief, but such a huge minimum account for an account that is not that extravagant creates a doubt.
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