Quick Facts
Regulation: IG Group is regulated by FCA, ASIC, FMA, and others, while FXCM is regulated by FCA, ASIC, and IIROC.
Founded: IG Group was founded in 1974, and FXCM was founded in 1999.
Headquarters: IG Group is headquartered in London, and FXCM is headquartered in Sydney.
Minimum Deposit: IG Group has a minimum deposit requirement of £250 (or equivalent), and FXCM has a minimum deposit requirement of $50 for a micro account and $10,000 for an active trader account.
Leverage: IG Group offers leverage of up to 200:1, and FXCM offers leverage of up to 500:1.
Assets: IG Group offers trading on over 17,000 markets, including forex, shares, and commodities, and FXCM offers trading on over 180 forex pairs and CFDs.
Platforms: IG Group offers MetaTrader 4 and its proprietary platform, WebTrader, and FXCM offers MetaTrader 4, Trading Station, and Mobile Trading Station.
Spreads: IG Group’s spreads start at 0.6 pips on major forex pairs, and FXCM’s spreads start at 1.3 pips on major forex pairs.
Execution Speed: Both IG Group and FXCM offer fast execution speeds, with IG Group’s averaging around 1-2 milliseconds and FXCM’s averaging around 1-3 milliseconds.
Risk Management Tools: Both IG Group and FXCM offer a range of risk management tools, including negative balance protection and guaranteed stop-loss orders, but with some differences in specific features.
IG Group vs FXCM: A Comprehensive Comparison of Two Leading Forex Brokers
Forex trading has become increasingly popular over the years, and with the rise of online trading platforms, it’s easier than ever to get started. However, choosing the right forex broker can be a daunting task, especially for beginners. In this article, we’ll compare two leading forex brokers, IG Group and FXCM, to help you make an informed decision.
Introduction to IG Group and FXCM
IG Group and FXCM are both well-established forex brokers that have been in the industry for over two decades. IG Group, formerly known as IG Markets, was founded in 1974 and is headquartered in London, UK. FXCM, on the other hand, was founded in 1999 and is headquartered in New York, USA.
Both brokers offer a range of trading instruments, including forex, CFDs, stocks, and cryptocurrencies. However, they have distinct differences in terms of their trading platforms, account types, fees, and regulatory compliance.
IG Group: An Overview
IG Group is a UK-based forex broker that is regulated by the Financial Conduct Authority (FCA). It offers a wide range of trading instruments, including over 80 currency pairs, CFDs on stocks, indices, and commodities, and spread betting on various markets.
IG Group’s trading platform, IG WebTrader, is a user-friendly and customizable platform that offers advanced trading tools, including technical analysis charts and alerts. IG Group also offers mobile trading apps for Android and iOS devices.
FXCM: An Overview
FXCM is a US-based forex broker that is regulated by the Commodity Futures Trading Commission (CFTC). It offers a range of trading instruments, including over 30 currency pairs, CFDs on stocks, indices, and commodities, and spread betting on various markets.
FXCM’s trading platform, FXCM WebTrader, is a user-friendly platform that offers advanced trading tools, including technical analysis charts and alerts. FXCM also offers mobile trading apps for Android and iOS devices.
Comparison of Trading Platforms
Both IG Group and FXCM offer advanced trading platforms that cater to the needs of beginners and experienced traders. However, there are some key differences:
IG WebTrader: IG Group’s trading platform is highly customizable and offers advanced trading tools, including technical analysis charts and alerts. It also offers a range of order types, including market orders, stop-loss orders, and limit orders.
FXCM WebTrader: FXCM’s trading platform is user-friendly and offers advanced trading tools, including technical analysis charts and alerts. However, it lacks the customization options and advanced order types offered by IG Group.
Comparison of Account Types
Both IG Group and FXCM offer a range of account types that cater to different trading needs and preferences. Here’s a comparison of their account types:
IG Group:
- Mini Account: $250 minimum deposit, spreads from 0.8 pips
- Standard Account: $2,500 minimum deposit, spreads from 0.6 pips
- Premium Account: $10,000 minimum deposit, spreads from 0.4 pips
FXCM:
- Mini Account: $50 minimum deposit, spreads from 1.5 pips
- Standard Account: $500 minimum deposit, spreads from 1.0 pip
- Active Trader Account: $10,000 minimum deposit, spreads from 0.8 pips
Comparison of Fees and Spreads
Fees and spreads are an important consideration when choosing a forex broker. Here’s a comparison of IG Group’s and FXCM’s fees and spreads:
IG Group:
- Spreads: From 0.8 pips on major currency pairs
- Commission: $3 per lot on forex trades
- Overnight Funding: IG Group charges overnight funding fees on CFD trades
FXCM:
- Spreads: From 1.5 pips on major currency pairs
- Commission: $0.50 per 100,000 units traded
- Overnight Funding: FXCM charges overnight funding fees on CFD trades
Comparison of Regulatory Compliance
Regulatory compliance is an important consideration when choosing a forex broker. Here’s a comparison of IG Group’s and FXCM’s regulatory compliance:
IG Group: Regulated by the Financial Conduct Authority (FCA) in the UK
FXCM: Regulated by the Commodity Futures Trading Commission (CFTC) in the US
Comparison of Customer Support
Customer support is an important consideration when choosing a forex broker. Here’s a comparison of IG Group’s and FXCM’s customer support:
IG Group: 24/7 customer support via phone, email, and live chat
FXCM: 24/7 customer support via phone, email, and live chat
Recommendations
Beginners: FXCM’s user-friendly trading platform and competitive spreads make it an excellent choice for beginners.
Experienced Traders: IG Group’s advanced trading tools and competitive spreads make it an excellent choice for experienced traders.
Scalpers and Day Traders: FXCM’s low spreads and fast execution speeds make it an excellent choice for scalpers and day traders.
Frequently Asked Questions:
Forex Broker Comparison: IG Group vs FXCM
Overview
Choosing the right forex broker can be a daunting task, especially for new traders. In this FAQ section, we will compare two popular forex brokers, IG Group and FXCM, to help you make an informed decision.
Frequently Asked Questions
1. What are the main differences between IG Group and FXCM?
Regulator: IG Group is regulated by FCA, ASIC, MAS, while FXCM is regulated by FCA, ASIC, IIROC.
Minimum Deposit: IG Group has a minimum deposit requirement of £250 (or equivalent), while FXCM has a minimum deposit requirement of $50 for a micro account and $10,000 for an active trader account.
Trading Platforms: IG Group offers MetaTrader 4 and its proprietary platform, WebTrader, while FXCM offers MetaTrader 4, Trading Station, and Mobile Trading Station.
Leverage: IG Group offers leverage of up to 200:1, while FXCM offers leverage of up to 500:1.
Spreads: IG Group’s spreads start at 0.6 pips on major forex pairs, while FXCM’s spreads start at 1.3 pips on major forex pairs.
Execution Speed: Both IG Group and FXCM offer fast execution speeds, with IG Group’s averaging around 1-2 milliseconds and FXCM’s averaging around 1-3 milliseconds.
Risk Management Tools: Both IG Group and FXCM offer a range of risk management tools, including negative balance protection and guaranteed stop-loss orders, but with some differences in specific features.
2. Which broker offers better customer support?
IG Group: 24/5 phone support, 24/5 live chat, email support
FXCM: 24/5 phone support, 24/5 live chat, email support
Both brokers offer comprehensive customer support, but IG Group has a more extensive range of support options.
3. What are the fees and commissions for trading?
IG Group: No commission for forex trading, commission for CFDs and spread betting (dependent on asset)
FXCM: No commission for trading, commission-free for certain account types (dependent on asset)
Both brokers have competitive fees and commissions, but IG Group charges commissions on CFDs and spread betting.
4. Which broker has more trading instruments available?
IG Group: Over 17,000 markets, including forex, indices, commodities, and CFDs
FXCM: Over 180 currency pairs, including forex, commodities, and CFDs
IG Group has a much wider range of trading instruments available.
5. Is one broker more secure than the other?
Both IG Group and FXCM are secure brokers, regulated by top-tier regulators, including the FCA, ASIC, and IIROC. Both brokers also offer negative balance protection and segregated client accounts.
Rating
IG Group: 4.8/5
FXCM: 4.5/5
