FXTM

Policies

FXTM keeps the funds deposited by its clients in segregated bank accounts. Making the funds inaccessible for the broker’s day-to-day business operations, which increases the level of safety. What’s more, FXTM is a part of the Financial Commission’s Compensation Fund. The Compensation Fund is dedicated to resolving disputes between the financial services industry and the market. Moreover, FXTM provides negative balance protection, which acts as insurance. Traders will never lose more money than the invested amount. Forex trading is a highly leveraged business that creates possible scenarios for losing more money than is on your trading balance. When you are trading with a broker who does not offer negative balance protection, in case your funds go negative due to high leverage and volatility, you will owe the outstanding money to your broker. 

In order to provide negative balance protection policies, brokers use Stop Out levels. Stop Out levels are predetermined margin percentages where the broker automatically closes open positions to prevent further losses. FXTM offers different Stop Out levels for its various account types. For instance, Micro accounts offer a 40% Stop Out level. Whereas Advantage and Advantage Plus accounts have a 50% Stop Out level. It’s important to take into consideration the automatic Stop Out percentage when you are placing orders, as you might be able to find a great trading setup and get closed out from an active trade due to high leverage. 

FXTM offers various asset classes for trading. The total number of instruments you can trade is more than 2,200. However, it must be noted that the number of available assets varies for different account types. In addition, you can trade more stocks and stock CFDs using the MetaTrader 5 platform. MetaTrader 4 is generally only used for trading currency pairs. 

Forex trading

The Forex broker provides access to trading 19 Major pairs such as AUD/JPY, AUD/USD, EUR/USD, USD/CAD, USD/JPY, and more. Major currency pairs are backed by strong economies and are more stable compared to exotic currencies. Retail traders, institutional traders, governments, international companies, and banks are exchanging more major currencies than exotic ones in the Forex market. As a result, liquidity is increased and spreads (spread is a difference between the bid and the ask price) are decreased. It’s best for novice traders to avoid trading exotic pairs due to low liquidity. FXTM offers 17 exotic pairs including CHF/NOK, EUR/HKD, GBP/PLN, EUR/TRY, USD/CZK, etc. In addition, you can trade up to 22 minor pairs which include CAD/JPY, EUR/NZD, AUD/CAD, and EUR/RUB, USD/RUB. 

Leverage for trading FX pairs using Advantage and Advantage Plus accounts is up to 2000:1. As for the Micro account, traders get 1000:1 leverage. Keep in mind that leverage can help you make more money from smaller price moves on the chart, but it can also increase your losses. Therefore, you should choose the leverage carefully. Strict regulators prevent brokers from offering high leverage. 

The minimum initial deposit required for opening a Micro account is only $10. Which is pretty reasonable. On the other hand, spreads start from 1.5 pips on the Micro account. Most Forex brokers offer lower spreads and trading-related fees than FXTM.

Shares trading 

The broker gives access to trading 646 US shares to Its clients. The list of companies includes AIRBNB, ALPHABET-A, ALIGN-TECHNOLOGY, AMAZON, and many more. In addition to US stocks, investors get access to Kenyan shares that includes BAMBURI CEMENT, EAST AFRICAN BRE, EQUITY GROUP HOL, KENIA ELECTRIC, and more. 

In addition, there are 644 single stocks available from the Hong Kong Stock Exchange. Moreover, you can also trade 17 Kenyan company stocks. Keep in mind that FXTM only offers trading real stocks using Advantage and Advantage Plus accounts and the minimum initial deposit to open these accounts is 500 EUR, USD, or GBP depending on your account currency. Traders can also fund their accounts using Nigerian naira starting from 80,000 NGN. Furthermore, trading real stocks are available from the MetaTrader 5 platform and US stocks are taxed in accordance with the US government rules and regulations, which is 30% of the dividend amount.

Stock CFD trading 

As already mentioned, stock CFD trading is preferred by many short-term traders due to lower trading fees and accessibility. What’s more, stock trading has certain benefits over currency trading. Stocks move very differently than currencies do. Some traders succeed in trading stocks while failing in trading currencies and vice versa. As a beginner trader, it’s important to try out different markets to get an idea of what works best for you. 

With FXTM you have access to 764 US stock CFDs and 50 European stock CFDs. What’s more, leverage for American stocks goes up to 10:1, whereas for European stocks leverage maxes out at 3:1. Spreads for trading stock CFDs start from 0 pips. When trading stock CFDs, traders have the ability to buy and sell assets and get revenue from markets moving up or down. Whereas in order to benefit from trading real stocks, investors buy when prices are down to acquire the assets and sell when the prices increase.

Commodity trading 

Commodities are raw materials. There are numerous ways you can invest in them. You can buy or sell physical metals, trade commodity CFDs, or invest in companies that mine or grow commodities. 

FXTM gives you access to trading 5 metal vs currency pairs including XAG/EUR (Silver vs Euro), XAG/USD (Silver vs US Dollar), XAU/EUR (Gold vs Euro), XAU/GBP (Gold vs British Pound) and XAU/USD (Gold vs US Dollar). Commodities such as gold and silver are used as a hedge against inflation by many investors. Metal prices are characterized by low volatility, therefore risks and rewards associated with investing in metals are generally low.