FXGM review and test – Is the broker legal or not?
- FXGM review and test – Is the broker legal or not?
- What is FXGM?
- What can FXGM offer its traders? – Trading conditions
- Testing the FXGM Trading Platform
- How to trade with FXGM
- Special offers of FXGM
- Conclusion of the review – FXGM is a professional trading platfom
If there are two words to describe FXGM, they are probably practical and functional. They are a forex broker that don’t go in for form over substance.
Don’t let your first impressions of their website put you off. Yes, it looks a bit dated and old hat. But a pretty face is the least of your concerns when trading forex. What you want is a reliable, frill-free platform that gets the job done without any unnecessary distractions.
And that’s precisely what you get with FXGM.
What is FXGM?
They are, first and foremost, a forex broker. They may offer other instruments, but these are the supporting acts.
They offer services to both retail and corporate clients through their international operations in Cyprus, South Africa, Spain, and Bulgaria.
FXGM is operated and owned by a Cypriot investment firm, Depaho Ltd. The brokerage provides clients with online trading in forex, commodities, and CFDs on major stocks.
FXGM is based around their PROfit trading platform, a user-friendly solution that’s simple enough for rookie traders but featured enough to appeal to more advanced traders. As Depaho Ltd. is licensed in Cyprus, it is subject to all the strict European Union-wide financial regulations regarding transparency and investor protection.
When you sign up for an account, FXGM will assign you a personal account manager to assist you. FXGM provides an array of services and tools to help traders make the most of their trading opportunities.
Key to this is information. FXGM realizes that only informed trading decisions are likely to succeed over guesswork and speculation. To this end, they bring a range of tools to help traders get the big picture and the intel they need to see patterns and make moves ahead of the curve.
The personal account manager plays another crucial role. They help clients with guidance and training on using the FXGM platform and provide general customer support on any issues you may encounter.
While the account manager will provide market updates, news, and facts on the financial markets, the ultimate trading decisions rests solely with the client.
FXGM claims to be beginner-friendly, but this is not borne out by what’s available on their website. Compared to other forex brokers geared up for new forex traders, the FXGM offering is decidedly weedy-looking.
Among the CFD asset classes you can trade are:
- ETFs (Exchange Traded Funds)
- synthetic derivatives
Regulation and safety of FXGM
FXGM is a brand of Depaho Ltd, which is registered in Cyprus as an investment firm. Regulation is conducted by the Cyprus Securities and Exchange Commission (CySEC), and the company holds license number 161/11.
FXGM is also authorized by the FSCA (the South Africa Financial Sector Conduct Authority). Their authorization number is 47709.
They also have an established branch office in Spain which is overseen by the National Securities Market Commission (CNMV). The branch holds the license number 123.
The main office address for FXGM is in the Cypriot capital of Nicosia within the Artemisia Business Centre. The office telephone number is +357 22 300 500, and the fax number is +357 22 766 333.
You can find the parent company’s website at depaho.com.
Depth Ltd. keeps client funds segregated with various European banks in line with locally applicable laws.
As the funds are deposited in European Union banks, they are protected by the EU-wide deposit guarantee scheme.
This is a partial safety net in the event that the bank fails, not the broker, though. This is an important distinction and begs the question of which is more likely to go bust; the broker or the bank?
If the bank in which your deposits were held goes belly up, you are covered for EUR 100,000 per deposit per bank.
FXGM is signed up to the European Investors’ Compensation Fund. However, should they go insolvent, you are only covered for a maximum of €20,000.
What can FXGM offer its traders? – Trading conditions
FXGM does not charge a commission over and above their spreads. So that keeps everything much simpler and straightforward.
Neither do they deduct nor pay tax on your behalf. Traders have to sort that one out themselves.
FXGM is an excellent place to trade a wide range of CFDs on forex, cryptocurrencies, stocks, commodities, indices, and more.
But it’s not as simple or functional as all that. For FXGM back their trading platform with tools that keep you in the financial market loop and able to see emerging patterns.
We all know about the value of knowledge. So does FXGM. They serve up plenty to ensure all their traders can make trading decisions based on the best possible information.
You can trade using their web browser-based app for big-screen convenience. The real kicker here is that it’s widely compatible, and there’s no need to worry about updates or installing any more software on your computer.
Equally, you can have the same robust functionality echoed in their mobile app so you can trade on your tablet or smartphone while on the go. There’s no reason, therefore, to miss a great trading opportunity simply because you were temporarily away from your home or office.
Plus, no matter where you are at the time, you can always keep up to date with breaking news.
Testing the FXGM Trading Platform
As you read through this review, it becomes evident that FXGM likes to do things their own way. Not that this is in any way a negative thing, of course.
The same applies to their choice of trading platforms. Jog on if you are looking for MetaTrader, cTrader, or anything else of that ilk.
With FXGM, you get the choice of two platforms: WebPROfit and MobilePROfit.
Yes, me neither. But pressing on.
FXGM claims WebPROfit – probably a rebadged effort – is a fast and user-friendly web-browser-based platform.
It is compatible with most of the leading names in browsing, including Google Chrome, Mozilla Firefox, and Microsoft Edge. Though FXGM quaintly still refers to it as Internet Explorer.
The key features of WebPROfit are:
- trading forex, CFDs, and commodities
- no download is required
- no app updating
- Financial news is streamed directly into your account profile
- Real-time charts and analysis
Charting and analysis
News and up-to-the-minute charts and analysis get streamed directly to your profile view. You, therefore, are forearmed with all the intel you need to make informed trading decisions and spot trends and price movements as soon as they emerge.
FXGM also provides all their clients – web or mobile – with Autochartist. This iconic market technical analysis tool has become a standard-issue piece of kit nowadays.
Alarmingly, FXGM’s Autochartist web page still describes the software as “brand new”. This really is a bit of a stretch, considering Autochartist debuted in 2004. (Time for a long-overdue content refresh, guys.)
The main benefit for traders is Autochartist’s ability to make sense of tons of data and present it in a meaningful way. By processing it and presenting the information in chart form, it identifies patterns quickly, saving trader masses of time.
The key features are:
- automatic technical analysis of patterns, price predictions, support and resistance levels, etc.
- probability filters for significant events impacting the markets
- volatility analysis
- daily market updates
Mobile Trading (Mobile PROfit app)
This, as the name suggests, is the mobile app version. It pretty much mirrors everything you can do with the web browser-based client and is available for Android and iOS.
You can therefore trade anywhere you like on a smartphone or tablet.
The apps both enjoy the same functionality as their web counterpart, receiving live forex quotes, up to the minute graphs, and the ability to place trades and edit positions. The only real difference is the screen size. The app supports multiple languages.
Android users need 5.0 or later and 19 MB of storage space to accommodate the app. There have only been just over 740 ratings at present on Google Play, giving the FXGM app a score of 3.4 out of five.
Meanwhile, iOS users need to be running iOS 12.0 or later and set aside 74.4 MB of storage space. The app also works with macOS 11.0 or later on a Mac with an Apple M1 chip.
The App Store rates the iOS app five stars. But don’t get too excited, that’s based on just one review.
How to trade with FXGM
FXGM makes a lot of noise about being beginner-friendly, but judging by their website resources, this is somewhat misplaced.
They have an optimistically-entitled Trading Academy, but when you go in, there’s not much there. Indeed, nowhere near enough to get a complete novice up to speed with the highly risky and volatile nature of forex trading.
Granted, they do underwrite your first ten trades (see the Demo Account section of this review). But that’s precious little time to get your head around the platform, the charts, and graphs, let alone figuring out forex trading.
In all honesty, other brokers are much better geared up for beginners. Just take a look at the FXGM Trading Academy, for example. It comprises a glossary of forex terms, a 279-word history of forex trading, and a one-page drive-by shooting about charts. And that’s it.
To be entirely charitable, though, they do have a FAQ page. But this is just as skeletal. It covers only a few queries regarding deposits and withdrawals, one question each about commissions and tax, and a query about their partnership program that links to a page about their tied agent in Bulgaria.
If you are anything but a seasoned trader, you would be better served looking elsewhere. There are plenty of forex brokers that go the proverbial extra mile with multi-level courses, seminars, webinars, how-to guides, videos, and the rest. FXGM, however, is not one of them, despite what they may say.
Okay, their apps may be user-friendly and intuitive, but you still need to know what you are doing. Without a proper grounding in forex trading, it’s almost inevitable you will be blowing up your account in a rapid fashion.
How to open an account
- Retail accounts
There is a choice of six accounts for retail customers: Basic, Discovery, Silver, Gold, Diamond, and VIP.
They all feature the following:
- free e-book
- personal account manager
- one-click trading
- pop up alerts
- and all but the Basic account have price and rollover discounts
Account equity, which corresponds to withdrawal equity, varies significantly. From $200 – $1,999 on the Basic account to $30,000 and upwards on the VIP tier. You can see an at-a-glance comparison of the six accounts here to gain a better understanding.
To open a retail account, click or tap the Register Button at the foot of each account profile. This button takes you to a web registration form. The Login and Deposit buttons on the FXGM home page will take you to a login page with a New User link that redirects you to the registration form.
This form asks for your full name, your email, and country of residence. If you can’t find your country in the drop-down menu, you are out of luck and can’t open an account.
- Professional account
If you are a seasoned and active trader, you can open a professional account to obtain better trading conditions. A pro account gets you better leverage – up to 1:200 for currencies and commodities – zero margin close-outs and promotions.
But the trade-off is losing your eligibility for investor compensation and Financial Ombudsman protection. The assumption is also that you have relevant experience and fully appreciate the risks involved.
If better leverage sounds attractive, you do, though, have to meet at least two of the following criteria.
- You have made substantial trades in a relevant market on average ten times per quarter over the previous year.
- Your portfolio, including cash and instruments, is worth more than EUR 500,000.
- You work or have been employed in finance for at least 12 months in a professional capacity requiring the envisaged transaction or service knowledge.
When you sign up, you can let FXGM know your preference through your platform profile or via the professional clients’ request form on the website.
That said, you can also ask FXGM to treat your retail account as though you were professional if you convince FXGM you meet their criteria.
Free demo account is possible
They call it a demo account, but it’s not what most people understand by the term. FXGM’s possibly unique hybrid solution is underwriting your first ten trades.
If you are new to their platform, FXGM will take the hit for any losses on your first ten trades. But if you hit pay dirt, you get to keep the profits.
Either FXGM is completely bonkers or a pure genius. It’s difficult to tell at first glance. Either way, you get to jump in at the deep end with a lifebelt. The offer applies only for 30-days from the date of the first trade.
Is there negative balance protection?
Yes. But you need to dig into the Service Agreement and Appendices to find any word of negative balance protection.
This is odd. Given that negative balance protection is such an essential risk management tool for traders, it’s strange that FXGM and others don’t shout about it more on their websites. No doubt they have their reasons.
In FXGM’s case, negative balance protection is available for forex and commodities. There is no specific mention of negative balance protection for any other instruments.
Deposit and withdrawals
FXGM offers multiple ways to deposit into your account.
- Visa and Mastercard with 3D Secure*
- Wire transfer
The minimum deposit is €200 or equivalent.
* 3D Secure is a credit/debit card authentication system to prevent unauthorized use of your card. You need to set this up with the card provider so that each time your card is used for an online transaction, you have to enter a pre-set Secure Code. When the Secure Code is entered, your bank/card provider must verify the code to approve the transaction.
If you choose to deposit using a credit card, you must first inform FXGM’s back office team. You will then have to present them with a copy of a recent card statement and a scan of the front and reverse of the card.
Your card will be restricted until FXGM approves it.
Bank wire transfers also need to be approved by your bank, and this can take up to five business days.
You can make withdrawals in one of two ways.
You can log in to the FXGM platform and take money out via the Withdrawal page and have FXGM contact you, or you can complete the online withdrawal form.
Withdrawals are credited to whichever payment you used to make the deposit. If you deposited via a credit card, then the funds will go back to the card. Any monies above the initial deposit sum get sent to your bank account.
Support and service
Customer service operates from 07.00 to 19.00 GMT Monday to Friday. The primary customer service number is +357 77 788 388. Their email address is email@example.com.
Meanwhile, the Contact Us button on the FXGM home page menu goes straight to an online form to request assistance.
However, you do have the option of getting a reply via email or by phone. With the latter option, you can select a half-hour time slot in which to be contacted on your preferred telephone number.
In addition to conventional landlines, FXGM also uses Voice over Internet Protocol (VoIP) to route calls over the internet. These lines are prefixed for Germany, Poland, Sweden, Spain, the UK, Finland, Denmark, and Italy.
You can also raise the Customer Support team on WhatsApp using +357 97758027. The company uses software that allows the app to be installed on their company computers.
Unusually, FXGM does not offer Live Chat to website visitors. However, registered users can access Live Chat when they log in.
Accepted countries and forbidden countries
FXGM accepts clients from the following:
- Czech Republic
- Saint Barthelmy
- Saint Martin
- South Africa
FXGM does not accept traders resident in :
- Hong Kong
- New Zealand
- Saudi Arabia
- United Arab Emirates
- United Kingdom
- United States of America
Special offers of FXGM
There are no special offers on the table in the form of deposit bonuses or other promotional incentives for retail customers.
FXGM does, however, offer an affiliate scheme for professional traders and brokers with attractive Cost Per Acquisition rates.
In term of other resources that they make available, FXGM supply:
- an economic calendar via Investing.com
- Trading Insider, a real-time snapshot of open positions on the FXGM platform
- free SMS newsflashes and daily updates
- charts that measure the market sentiment regarding specific forex pairs
Where FXGM fails in a big way is in its almost total lack of credible learning or training materials. Aside from a glossary and a tiny FAQ section, there’s really nothing to get your teeth into to up your forex trading game.
If you are a forex newbie or want to learn more about forex trading, FXGM isn’t the place for you. There are far better places for that.
FXGM is plainly aimed at experienced and advanced traders who don’t need a lot of input.
Conclusion of the review – FXGM is a professional trading platfom
FXGM is flawed, for sure. It has a number of shortcomings. But none that are necessarily deal-breakers unless you are a forex beginner.
What you get with FXGM is what you see. It’s a no-nonsense platform that’s lean and streamlined for trading forex. You won’t get whistles and bells. Or anything flashy.
FXGM is minimalist and functional. Their website is a case in point. It’s a tool, not a marketing showcase.
This stance is good if slick and sexy websites do not entice you. What you get are less clutter and more forex trading.