FXTM Social Trading Review
- Low spread ECN accounts
- Low fees on deposits and withdrawals
- $100 minimum for FXTM Invest social trading account
|Minimum 1st Deposit||$100|
|Free Demo Account||Open Demo|
|US Traders Allowed|
FXTM Broker Review – What is FXTM?
ForexTime (FXTM) is a forex broker and a social trading platform that launched in 2011. It was founded by the Russian entrepreneur Andrey Dashin, who is also the founder of the financial brand Alpari, with the goal to bring the most innovative products and services to the forex market.
FXTM is regulated in four jurisdictions by:
- Cyprus Securities and Exchange Commission (CySEC) under the 310361 registration number.
- Financial Conduit Authority (FCA) in UK under registration number 600475.
- Financial Services Board (FSB) in South Africa under 46614 registration number.
- International Financial Services Commission (IFSC) in Belize, under license numbers: SC/60/345/TS and IFSC/60/345/APM Belize.
The broker has corporate offices in Limassol, Cyprus, and since 2016 in London, UK as well.
FXTM website is mobile-friendly and easy to use, and it is available in 18 languages.
Read our FXTM broker review below and find out why this is one of the best brokers available to retail clients.
FXTM social trading explained
One of the reasons why FXTM is so popular is their social trading platform, also known as FXTM Invest. This is an innovative solution by FXTM where you can select a forex trader, called Strategy Manager, based on their performance, and you can invest funds in their strategy by automatically connecting your account and the manager’s, to copy their trades.
The social trading platform is easy and straightforward to use. All you need to do is create an FXTM’s web-based account called myFXTM, and then you need to open a, so-called, Investment Account. You do not need to open a MT4 trading account for this purpose. Opening an investment account can be done with a few clicks through your myFXTM account. Next you need to select strategy managers based on several criteria like: all time profit, monthly profit, age (how long is the manager active in days), and by number of investors that follow the manager. Usually, the age should be one of your main selection criteria as it means the manager has been around for a long time without blowing up the account.
Once you select the manager you want to follow, you can click the green invest button from where you can review the manager’s risk level, profitability, which instruments they trade, pip gain and loss, duration of trades, etc.
After that comes the verification of your profile. Once this is done, you can deposit funds through any of their available methods, which, for your convenience, are listed below in our FXTM broker review.
Is FXTM social trading expensive?
You can start FXTM Invest with as low as 100 USD, or currency equivalent in GBP and EUR. This is a good way to test their platform without risking too much money. However, even if you do decide to start FXTM Invest with larger amount, there are two available options to protect your account from losses: Protection Level and Safety Mode.
Protection level is the limit you set on your investment. If your account reaches this level, all positions are either automatically closed, or you are notified to close them manually.
Safety mode reduces exposure by limiting trading activity from the strategy manager by approximately half. This option reduces risk as well as potential profits.
Is it possible to earn money as a FXTM strategy manager?
FXTM social trading platform is designed to be mutually beneficial for both the strategy manager and the investor. The strategy manager trades their own account and, for a fee, trades the funds of investors.
The fee is basically a percentage of the profits that are awarded to the strategy manager with a high-water mark rule. This means that if a manager incurs losses and the investor’s account drops below their initial deposit, the manager will not get paid. The strategy manager is paid only when the investor’s account is in profit. Fees are collected on a monthly basis.
Everyone can become a strategy manager and earn money trading on FXTM. But first, the trader has to open an ECN or ECN Zero account, then verify their profile, and finally deposit funds. Once you complete these steps, you get a dedicated page where potential investors can monitor your performance and invest in your strategy.
You will need a minimum of $200 to become a strategy manager, and you will get up to 50% commission on trades, which is not bad.
A strategy manager can have more than one trading strategy, but they only have access to forex pairs, metals, and Index CFDs, and not company shares or cryptocurrencies. For some, this may be a good thing, as cryptocurrencies now are very volatile.
FXTM copy trading explained
FXTM offers another version of the social trading, called copy trading. The concept behind it is the same as FXTM Invest, with only one difference – copy trading is provided by the MQL5 community. This type of copy trading is supported by MetaTrader 4 and Metatrader 5 platforms natively, so you will need to open a trading account if you are to use this service. Unlike FXTM’s social trading, their copy trading does not require you to have an investment account.
There are both free and paid traders to select from.
FXTM trading instruments
FXTM is one of the rare brokers that offer more than 250 trading instruments to their clients, including:
- 57 currency pairs with a leverage up to 1:1000. These include liquid pairs like EUR/USD and GBP/USD, but also exotic pairs like EUR/HKD (Hong Kong dollar), USD/ZAR (South African rand), USD/TRY (Turkish lira), USD/MXN (Mexican peso), USD/PLN (Polish zloty), USD/HUF (Hungarian forint), USD/CZK (Czech koruna), and USD/CNH (Chinese yuan).
- Gold and silver as spot metals.
- 180 company shares CFDs (Contracts for Difference). These include companies like Alibaba, Amazon, American Express, and many more.
- 3 CFD commodities. These are the three most-traded commodities such as US Natural Gas, UK Brent, and US Crude.
- 11 Indices CFDs. These include the larges indices worldwide like Dax 30, UK 100, SPX500, etc.
- 3 cryptocurrency CFDs; bitcoin, ethereum, and litecoin.
It is worth noting that when you invest in CFDs on FXTM, you do not own the stocks, the commodities, or cryptocurrencies. Instead, you agree to pay the price difference (either negative or positive), between the price of the instrument at the moment of buying it and the current price, to the broker.
FXTM deposit and withdrawals
Whether you plan to trade manually or use robo advisors, or simply looking to open a social trading account, FXTM has you covered. They offer three major ways for depositing and withdrawing funds:
- With credit/debit cards, such as Visa, MasterCard, China Union Pay.
- Through bank transfer. Unfortunately, they only accept SettleGo transfer in EUR currency.
- With e-wallets. These include Skrill/Moneybookers, Dixipay, Neteller, Payza, OKPay, Alfa-Click, WebMoney, Perfect Money, Bitcoin, and Bitcoin via Skrill, and they have the lowest fees.
FXTM deposit/withdrawal commissions and fees
The best way to transfer funds with FXTM is through Skrill/Moneybookers and Netteler as they have no commission for both deposits and withdrawals.
FXTM trading accounts
Once you open a web account at FXTM, you can select between seven types of trading accounts (3 standard and 4 ECN accounts), depending on your needs and preferences. They all have demo versions to try first.
In case you need an Islamic account, all seven types have SWAP-free option.
If you want to use the MQL5 copy trading, you can select either of these accounts, but for FXTM Invest social trading, you do not need any of these accounts.
If you want to become a strategy manager, your options are to use the ECN and ECN Zero accounts. No other account allows the option to connect with investors.
FXTM trading platforms
Unlike other brokers that offer their own proprietary trading platforms, FXTM offers only MetaTrader 4 and MetaTrader 5 platforms and their web-based and mobile-based versions.
FXTM has a dedicated mobile app which acts mostly as a news aggregator, but through the app you can also monitor chart prices on instruments you select, without being able to manually trade. For trading you will need the MT4 and MT5 mobile apps. However, you can use this app for monitoring your social trading FXTM Invest account.
FXTM Customer Support
FXTM is one of the rare forex brokers and social trading platforms with so many ways to contact their support. And it’s not just that, but their support response is unbelievably fast and their answers are to-the-point, although sometimes it does seem as if you are talking to a robot with pre-defined answers. Also, their live chat is available in 17 languages.
They have 2 UK phone numbers, available 24/5, and a call back option; they also have a web-based enquiry form, which should be used only if the issue cannot be resolved by the live chat representatives; and five live support contact options, such as Viber, Live Chat, Whatsapp, Telegram, and Facebook, for quick inquiries.
Because of all these options, there is basically no waiting time on either of their channels.
FXTM account restrictions
FXTM has regional restrictions for clients that are residents of the USA, Belize, Japan, British Columbia, Quebec and Saskatchewan, and some other regions.
FXTM offers a vast number of trading instruments and low spread accounts that can be alluring to many traders. Their social trading platform may not be one of the best, compared to other brokers, but it is undoubtedly good enough with a number of successful trading managers to select from. This can be a great opportunity for the best traders out there to show their skills and earn money, and for the investors who do not have the time, nor the desire to personally trade.
Also, the fact that FXTM has one of the lowest fees for deposits and withdrawals in the forex industry, make this a good option for investors to often withdraw their profit.