The Cypriot broker FXTM, which stands for ForexTime, was founded in 2011 by one of the creators of another well-known company Alpari. The brand ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC) and licensed by the Financial Services Board (FSB) of South Africa. The company has a branch in the UK as well.
Clients can trade more than 60 currency pairs, commodities, over 180 CFDs on shares, ETFs and indices. FXTM claims to have over 400,000 registered accounts.
The company offers two of the industry’s leading trading platforms MetaTrader 4 and 5 (MT4) and (MT5) that can be used on PC, MAC and mobile devices and provides some popular trading tools such as automated trading with expert advisors, trading signals and Level II data.
There are three kinds of accounts:
- Standard Account (forex, indices and commodities, floating leverage from 1:500 to 1:25, USD100 minimum deposit, instant order execution, spreads starting from 1.3 pips);
- Cent Account (forex and metals, fixed leverage from 1:500 to 1:25, USD5 minimum deposit, instant orders execution, spreads starting from 1.5 pips);
- Shares Account (shares only, fixed margin from 3% to 10%, USD100 minimum deposit, instant orders execution, spreads starting from USD0.1). Here FXTM is the counterparty to all client’s orders and doesn’t process them via ‘Straight Through Processing’ (STP), so it acts as a market maker and this could lead to potential conflicts of interests with customers.
On the other hand, there also are ECN (electronic Communication Network) accounts that offers access to prices from different liquidity providers. Here the orders are processed via STP basis and FXTM charges commissions for every deal.
Clients should consider that higher leverage leads to a greater risk of loss. Furthermore, there is no negative balance protection so they could owe money to the broker.
The Risk Disclosure on the company’s website show that stop loss orders are non-guaranteed and can be executed at a significantly worse than expected price (at the first available price) during the volatile market or low liquidity. Order Execution Policy informs that market orders can be executed at the different price than that shown in the platform (at the first available price), which means slippage exists.
FXTM offers some useful tools such as copy trading, daily market analysis, economic calendar, news, trading signals, as well as forex education.
The company covers all transferring fees for deposits up to USD1,000 and 50% for deposits above this amount.