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Interactive Brokers vs FXCM 2023

BrokerNotes.co

Written by BrokerNotes.co

November 08, 2022

Trying to decide between Interactive Brokers and FXCM? Weโ€™ve taken the guesswork out of the equation with our Comparison Tool. Use our tool to compare hundreds of data points, side-by-side, to see how these two brokers stack up against each other.

Based on our extensive research, hands-on testing, and expert analysis of over a hundred data-driven variables, we've determined that, overall, Interactive Brokers ranks more highly than FXCM.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Overall RatingInteractive BrokersFXCM
Overall Rating 9.7 / 10 8.5 / 10
Account TypeInteractive BrokersFXCM
Standard Trade Size (100,000 units) Yes Yes
Mini Trade Size (10,000 units) Yes Yes
Micro Trade Size (1,000 units) No Yes
Islamic Account No No
Copy TradingInteractive BrokersFXCM
Social Trading / Copy Trading No Yes
DupliTrade No No
ZuluTrade No Yes
CryptocurrencyInteractive BrokersFXCM
Cryptocurrency (Physical) Yes No
Cryptocurrency (CFD) No Yes
Bitcoin Yes Yes
ethereum No Yes
Forex Trading (Spot or CFDs)Interactive BrokersFXCM
Forex Trading (Spot or CFDs) Yes Yes
Mobile Trading - Forex or CFDs Yes Yes
Indices (Index CFDs)Interactive BrokersFXCM
DAX Yes Yes
Dow Jones Yes Yes
FTSE Yes Yes
NASDAQ 100 Yes Yes
Nikkei Yes Yes
SP 500 Yes Yes
InvestmentsInteractive BrokersFXCM
Forex Trading (Spot or CFDs) Yes Yes
Spread Betting No Yes
Social Trading / Copy Trading No Yes
Metals Yes Yes
Energies Yes Yes
Agriculturals Yes No
ETF Yes No
U.S. Stocks (CFD) Yes Yes
Trading PlatformsInteractive BrokersFXCM
Apple iOS App Yes Yes
Android App Yes Yes
Proprietary Platform Yes Yes
Desktop Platform (Windows) Yes Yes
Web Platform Yes Yes
MetaTrader 4 (MT4) No Yes
MetaTrader 5 (MT5) No No
Regulatory LicensesInteractive BrokersFXCM
Tier-1 Licenses 8 3
ASIC Authorised (Australia) Yes Yes
IIROC Authorised (Canada) Yes Yes
FCA Authorised (U.K.) Yes Yes
SFC Authorised (Hong Kong) Yes No
MAS Authorised (Singapore) Yes No
FINMA Authorised (Switzerland) Yes No
CFTC Registered (USA) Yes No
Tier-2 Licenses 1 3
Tier-3 Licenses 0 0
Research, EducationInteractive BrokersFXCM
Trading Central (Recognia) Yes Yes
Forex News (Top-Tier Sources) Yes Yes
Daily Market Commentary Yes Yes
Autochartist No Yes
Investor Dictionary (Glossary) Yes Yes
Videos - Beginner Trading Videos Yes Yes
Client Webinars (Archived) Yes Yes
Trading CostsInteractive BrokersFXCM
Minimum Initial Deposit $0 Starts from $50
Average Spread EUR/USD - Standard 0.6 (Aug 2022) 1.38 (Q2 2022)
All-in Cost EUR/USD - Active 0.6 (Aug 2022) 1.38 (Q2 2022)
Active Trader or VIP Discounts Yes Yes
Bank Wire (Deposit/Withdraw) Yes Yes
Visa/Mastercard (Credit/Debit) No Yes
PayPal (Deposit/Withdraw) No No
Trading ToolsInteractive BrokersFXCM
Watchlists - Total Fields 640 12
Mobile Watchlist Yes Yes
Charting - Indicators / Studies (Total) 128 57
Mobile Charting - Indicators / Studies 97 59
Trust FactorsInteractive BrokersFXCM
Year Founded 1977 1999
Publicly Traded (Listed) Yes Yes
Bank No No
Authorised in European Union Yes info Yes info
Trust Score 99 96
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Interactive Brokers vs FXCM Comparison

Comparing forex brokers side by side is no easy task. For our 2023 annual forex broker review, we spent hundreds of hours assessing 39 forex and CFD brokerages to find the best forex broker. Let's compare Interactive Brokers vs FXCM.

Can I trust Interactive Brokers?

Interactive Brokers has a trust score of 99, giving it a "Highly Trusted" trust label. Here's what each trust score label means:

  • "Highly Trusted" (90-99) - These brokers are considered the most trustworthy firms in the industry. Simply put, we would not hesitate to open and fund an account with a Highly Trusted broker.
  • "Trusted" (80-89) - These brokers are reliable and trustworthy. "Trusted" firms are a solid choice, and may simply hold fewer regulatory licences or feature different corporate structures than those brokers that have earned our top Trust Score rating.
  • "Average Risk" (70-79) - Average Risk brokers are firms we generally consider to be safe, but that may warrant a closer inspection before you open and fund a live trading account. At the least, we always encourage traders to check the regulatory licenses for Average Risk firms to verify that they are regulated in their own country of residence.
  • "High Risk" (60-69) - High-risk firms should be scrutinized and carefully reviewed before opening an account. These forex brokers are โ€“ in most cases โ€“ operating without credible regulatory licensing, and likely have a history of legal or financial issues. Before considering an account with a high-risk firm, we recommend checking our country guides for your country of residence to see if a more trusted broker is available.
  • "Do Not Trust" (<59) - We do not recommend opening an account of any kind with a broker that earns a โ€œDo Not Trustโ€ rating.

Can I trust FXCM?

FXCM has a trust score of 96, giving it a "Highly Trusted" trust label.

Is Interactive Brokers a good broker?

Interactive Brokers is a long-standing and highly-trusted broker that holds numerous regulatory licenses across the globe. We've rated IBKR as the best broker for professional traders, and it provides traders with access to over 100 markets, including forex and CFDs. IBKR's recently introduced web-based platform caters well to beginners, and its powerful research and extensive educational content makes for a balanced experience for newcomers and professionals alike.

Is FXCM a good broker?

FXCM, a Jefferies Group company, is a long-standing brand that caters to global forex and CFD traders. It offers multiple trading platforms for alogrithmic trading and social copy-trading alongside it's flagship platform suite. The range of markets available at FXCM has increased following the addition of its share trading feature, and its known for providing robust market research โ€“ though pricing at FXM is just average.

What tier-1 jurisdictions is each broker regulated in?

Tier-1 regulators go above and beyond by requiring additional capital requirements, checking in on brokers more frequently, and putting brokers through a tougher screening process. Interactive Brokers is ASIC Authorised (Australia), IIROC Authorised (Canada), SFC Authorised (Hong Kong), CBI Authorised (Ireland), FSA Authorised (Japan), MAS Authorised (Singapore), FINMA Authorised (Switzerland), FCA Authorised (U.K.) and CFTC Registered (USA), while FXCM is ASIC Authorised (Australia), IIROC Authorised (Canada) and FCA Authorised (U.K.)., neither have FMA Authorised (New Zealand)

What tier-2 jurisdictions is each broker regulated in? What about tier-3?

Tier-2 and tier-3 licenses are still important in evaluating the overall trustworthiness of forex brokers. As far as tier-2 licenses go, Interactive Brokers is SEBI Authorised (India), while FXCM is CySEC Authorised (Cyprus), ISA Authorised (Israel) and FSCA Authorised (South Africa)., neither have CBRC Authorised (China), CBR Authorised (Russia), SEC Authorised (Thailand) and DFSA / Central Bank Authorised (UAE). When comparing tier-3 licenses unfortunately, neither Interactive Brokers nor FXCM are SCB Authorised (Bahamas), IFSC Authorised (Belize), BMA Authorised (Bermuda), FSC Authorised (British Virgin Islands), CIMA Authorised (Cayman Islands), FSC Authorised (Mauritius) and VFSC Authorised (Vanuatu)., neither have VFSC Authorised (Vanuatu).

Which broker offers more trading platforms?

For trading platforms Interactive Brokers supports a Proprietary Platform and Desktop Platform (Windows), whereas FXCM supports a Proprietary Platform, Desktop Platform (Windows) and ZuluTrade., neither have cTrader and DupliTrade

Does Interactive Brokers offer MetaTrader? Does FXCM offer MetaTrader?

For MetaTrader Interactive Brokers provides neither of these, while FXCM provides MetaTrader 4 (MT4). If MetaTrader is a must for you, read our guides on the best MT4 brokers or best MT5 brokers., neither have MetaTrader 5 (MT5)

How do Interactive Brokers and FXCM differ in terms of minimum deposit? What about average spreads and funding options?

Interactive Brokers requires a minimum deposit of $0, while FXCM requires a minimum deposit of Starts from $50. From our testing we found Interactive Brokers offers spreads of 0.6 (Aug 2022), while FXCM offers spreads of 1.38 (Q2 2022). Interactive Brokers supports Bank Wire (Deposit/Withdraw) for popular funding options, where FXCM supports Bank Wire (Deposit/Withdraw), Visa/Mastercard (Credit/Debit) and Skrill (Deposit/Withdraw)., neither have PayPal (Deposit/Withdraw)

Which brokers offers more tradeable asset classes, Interactive Brokers or FXCM?

Interactive Brokers offers a more diverse selection of investment options than FXCM allowing you to trade Forex Trading (Spot or CFDs), Metals, Energies, Agriculturals, ETF and U.S. Stocks (CFD). Looking at total tradeable symbols, Interactive Brokers has 8500, compared to 441 from FXCM.

Can I trade cryptocurrency with Interactive Brokers or FXCM?

Crypto trading is popular with forex traders. Most crypto assets are offered either as the underlying physical asset or as a CFD or other derivative โ€” including spot forex contracts. In terms of trading physical cryptocurrency neither Interactive Brokers nor FXCM allow you to trade physical cryptocurrencies.

Who offers more research tools, Interactive Brokers or FXCM?

In terms of research and research tools Interactive Brokers gives traders the following tools: Daily Market Commentary, Stock Charts, Forex News (Top-Tier Sources) and Trading Central (Recognia). In comparison FXCM has the tools listed here: Autochartist, Daily Market Commentary, Stock Charts, Forex News (Top-Tier Sources), Trading Central (Recognia) and Social Trading / Copy Trading.

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