FXTM (Forex Time) is a financial intermediary for CFDs, an online broker recognized worldwide. Range of assets focused on the foreign exchange market (Forex). Although it also allows trading, through CFDs, on other instruments that we will see in this article.
The company was created in 2011 and currently provides its services with very competitive conditions. FXTM allows flexible leverage (offers a specific level of leverage depending on the knowledge and experience of the trader) and variable spreads that can be as low as 0.1 pips depending on the type of account and the conditions of the market to trade. But we will get to this point.
FXTM is characterized by not having its trading desk. In other words, it is a No Dealing Desk (NDD) broker. The trading accounts it offers its clients segmented into two groups:
These two types of accounts will be seen in more detail when we get to the corresponding section. For now, it suffices to say that neither FXTM acts as a counterparty to the client's transactions. This is a guarantee of extra reliability against other Market Maker brokers (who do act as counterparty to trades), and this avoids potential conflicts of interest that may arise with their clients.
At the beginning of this text, the two main segments of trading accounts of the FXTM broker mentioned.
A priori, the difference between the two is that while one uses instant exchange servers (the Standard accounts). This means that execution is performed immediately against other participants. While in ECN accounts orders are placed directly on the market. In no case does FXTM act as a counterparty for the user. However, it guarantees liquidity and instantaneous order execution.
ECN is the automated trading network that connects brokers with their liquidity providers (such as banks, other brokers, Market Makers, etc.). Having access to the most favourable price offered and transmitting to the trader these best conditions. For this reason, the spreads are usually variable when we work with a broker without a trading desk (not Market Maker).
FXTM does not allow for scalping on standard accounts; in this, it is similar to a Market Maker. You must open an ECN account if you want to perform this style of trading.
Let's take a look at the account types offered by FXTM, starting with the Standard accounts:
It is the only account where the minimum deposit is only 10 euros. Although it also allows you to work with dollars and pounds.
It guarantees instantaneous execution of trades, allows a maximum of 300 orders at the same time and only allows a total of 27 assets to be traded (25 currency pairs and two metals).
The minimum spread it charges is 1.5 pips, which can be increased depending on market conditions. It is possible to open micro-lots (0.01).
For this type of account, we require a minimum deposit of 100 euros, dollars or pounds.
It allows you to have a maximum of 100 orders open at one time, open micro-lots and offers a maximum of 76 instruments to trade (57 currency pairs, five metals and 14 stocks). The charged spread is a minimum of 1.3 pips.
It has the same conditions as the Standard Account, only, in this case, the minimum spread is 0.1 pip, and it offers more than 180 CFD shares to trade (funny thing because we have counted a maximum of 176 shares in its listing).
Let's go now to the ECN accounts.
The minimum deposit for this account is 200 euros; it also works with dollars and pounds.
There is no limit to the number of operations opened at the same time (this is true for all ECN accounts). It also allows you to open micro-lots and you can trade 47 currency pairs, five metals and 14 stocks.
The spread is a minimum of 0.5 pips per trade.
This account requires a minimum opening capital of 500 euros. In addition to the spread, which is a minimum of 0.1 pips, a fee of $2 per lot. This commission applies when opening and closing the deal. In other words, a trade will cost $4 just for opening and closing it.
In our opinion, FXTM is relatively transparent in terms of the commissions charged, with the latter being clearly and concisely outlined in your account specifications.
The instruments allowed to trade are 45 currency pairs, three metals and 14 stocks. It will enable you to open micro-lots.
ECN MT5 account
This account has the same conditions as the previous one; the only differences are observed: The spread is 0.2. The assets allowed to trade are 34 currency pairs and two metals.
Otherwise, you have Level II Data. This means that you can see better market depth data.
FXTM Pro Account
This trading account is intended for professional traders. This is demonstrated by the minimum capital required to open an account, which amounts to 25,000 euros. They do not charge any commission and the spread can be as low as 0 pips.
It allows trading with 44 currency pairs and two metals and the possibility of opening micro-lots.