How Does FXCM Software Work?

FXCM is one of the industry's leading brokerage services offering extensive options for the trade of CFDs and foreign exchange (forex) products. Markets for instruments facing the underlying asset classes of equities, commodities and currencies are all accessible via a demo or live FXCM account.

FXCM offers several distinct software trading platforms to clients, each with robust functionalities. Advanced features pertaining to market analysis, order entry and trade execution are readily available to users. Currently, three software trading platforms are supported by the FXCM forex trading ecosystem:

  • Trading Station: FXCM's flagship platform, Trading Station is designed to be a viable option for new and veteran traders alike. Some of the built-in capabilities include dozens of preloaded indicators, charting applications, automation and mobile trading applications.
  • MetaTrader 4 (MT4): Considered by some to be the industry standard, MT4 is an extremely popular choice among active traders. Free Expert Advisors (EA) and Virtual Private Server (VPS) hosting are unique features furnished to users courtesy of FXCM and MT4.
  • NinjaTrader: NinjaTrader is a software suite aiding in the trade of currency pairs as well as cryptocurrency, commodity and equity products. It gives traders the ability to build and test new ideas using the proprietary Strategy Builder, Market Analyser and Market Replay functions.

In addition to these platforms, an abundance of custom trading applications are available for purchase through FXCM Apps. For traders looking to integrate proprietary strategies and indicators into a preferred platform, FXCM supports custom coding and programming services.

With an FXCM trading account, you have access to an array of platforms, applications and third-party add-ons. No matter what type of trader you are—fundamental, technical, or hybrid—your desired functionality is supported. From the day's economic calendar to advanced indicators, we've got you covered.

Market Analysis And Trade Execution

The trading platform is a portal to the market, supplying traders and investors a means of directly observing and engaging price action. Price action is the movement of a security's price as determined by market participants. Upon buyers and sellers being matched to one another at the marketplace, price fluctuates according to current supply and demand forces.

Why Trade with FXCM

Commission free with fast, efficient execution.

FXCM's software infrastructure employs leading-edge technology to aid market participants in both the analysis of price action and trade execution within the marketplace. The technology is on display during the following progression of price discovery:

1. Transactions At Market

As bids and asks are submitted remotely by traders, a market for a specific security is being made. Buyers and sellers are matched using servers located at the exchange or marketplace, creating price action. In forex trading, price action is represented by bullish and bearish pip fluctuations. Accordingly, when the movement in pips becomes accentuated, pricing volatility increases.

2. Real-Time Streaming Data

The price action created at the exchange is collected, checked for inconsistencies, packaged and distributed to market participants around the globe in real-time. Whether trading the EUR/USD or crude oil CFDs, the accuracy and timeliness of a live data feed is crucial to entering and exiting the market efficiently. Through a vast network of liquidity providers, FXCM facilitates the delivery of world-class CFD and forex data.

3. Trading Platform

Lastly, the client's trading software receives and deciphers the data feed according to pre-programmed parameters inputted by the trader. The raw data is scrutinised by indicators and custom built strategies, as well as being presented visually in pricing chart format. Price action is analysed, and upon identifying an opportunity, orders are submitted to the market for execution.

Reducing Trading Latency

The amount of time that elapses between price action being determined at market and the data being made available to the trader often varies. As a general rule, faster is always better. FXCM provides several software-based options aimed to decrease trade-related latencies.

API Trading

An application programming interface (API) is the actual protocol for software function. API Trading offers clients the ability to connect directly to FXCM's price servers, streamlining the integration of the trading platform with market data, thereby substantially reducing latencies.

Virtual Private Server (VPS)

FXCM offers a VPS Hosting Service, enabling clients to link their trading platforms to a dedicated, private server. VPS can be an asset in the implementation of automated trading strategies providing 24 hour market access.

FXCM Account Types

At FXCM, we understand that one size does not fit all when it comes to the demands of individual forex traders. That's why we strive to provide a customisable trading experience for each and every one of our clients. In this pursuit, we offer the following account types and service suites.

Live Account

The live FXCM account furnishes retail traders with the utmost in market access. Live account holders are privy to free trading signals, multiple platform options and robust execution. Also, live account holders can trade a full slate of currency pairs and CFDs with low spreads and no order restrictions.

Demo Account

In trading (and most things in life), practice makes perfect. With an FXCM demo account, you are able to engage your favorite forex currency pairs or CFD products in real-time. All trades are simulated in live market conditions and are 100% risk-free. For fine-tuning trading skills or strategic development, the FXCM demo account is a fantastic tool.

Active Trader Account

Are you an active trader or high-volume investor? If so, the FXCM Active Trader account is designed with your trading preferences in mind. With Active Trader, you receive cash rebates, one-on-one support, expedited processing and free API access. These benefits and much more make the FXCM Active Trader account a great way to trade forex and CFDs.

In addition to the retail options above, FXCM also offers corporate and institutional account types. To learn more about these services, check out the corporate and FXCM Pro online gateways.

How To Open An FXCM Account

Perhaps the single greatest benefit to CFD and forex trading with FXCM is simplicity. Opening a live, demo or active trading account is quick and easy.

To become an FXCM account holder, complete the following steps:

  1. Visit fxcm.com/uk/open-account/.
  2. Select your country of residence.
  3. Complete the online application.
  4. After the application is completed, you will be issued a username and password.
  5. Login to the FXCM client portal, make a deposit and begin trading.

Summary

For active traders and investors, analysing, interpreting and capitalising upon market behaviour is a major part of day-to-day operations. Being able to observe a specific market, identify an opportunity and act accordingly are key elements of conducting trade. In order to complete these tasks efficiently, access to a powerful software trading platform is a necessity.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites are provided as general market commentary and do not constitute investment advice. FXCM will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

MT4 and NinjaTrader are not proprietary platforms and therefore developed by third parties.

FXCM Research Team

FXCM Research Team consists of a number of FXCM's Market and Product Specialists.

Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

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