What Is Forex Time (FXTM)?
Forex Time, commonly referred to as FXTM, is a forex and CFD broker founded in 2011 by Andrey Dashin. The company is headquartered in Limassol, Cyprus, with additional offices in the United Kingdom, South Africa, Nigeria, and other regions. FXTM offers trading in over 60 currency pairs, including majors (EUR/USD, GBP/USD, USD/JPY), minors, and exotics, as well as CFDs on commodities, indices, shares, and cryptocurrencies.
The broker is known for its competitive trading conditions, educational resources, and customer support. It provides access to the global forex market through the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, as well as its own mobile and web-based trading interfaces. With an estimated client base exceeding 2 million traders worldwide, FXTM is one of the more prominent retail forex brokers in operation.
Key Features and Offerings
FXTM provides a broad range of features designed to accommodate traders of all experience levels. Below are the most notable aspects of the broker's offering.
Trading Platforms
FXTM supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), the industry-standard platforms known for their advanced charting, automated trading (Expert Advisors), and extensive library of technical indicators. Both platforms are available as desktop applications, web-based versions, and mobile apps for iOS and Android.
Account Types
FXTM offers several account types to suit different trading styles and capital levels:
- Standard Account: Commission-free trading with floating spreads starting from 1.0 pips. Suitable for beginners and traders who prefer a simpler fee structure.
- ECN Account: Raw spreads starting from 0.1 pips with a commission of $4 per lot (round-turn). Ideal for scalpers and high-volume traders who seek tighter spreads.
- Islamic (Swap-Free) Account: A Sharia-compliant account with no swap or rollover interest charges. Available for both Standard and ECN account holders.
Leverage
Leverage at FXTM ranges from 1:1 up to 1:2000, depending on the jurisdiction and the client's classification. Retail clients in Europe are limited to 1:30 under ESMA (European Securities and Markets Authority) regulations, while professional clients and those in other regions may access higher leverage. Leverage amplifies both potential profits and potential losses, and should be used with caution.
Educational and Research Tools
FXTM provides a comprehensive educational suite, including daily market analysis, webinars, video tutorials, and a trading glossary. The broker's research team publishes regular technical and fundamental analysis, which can be valuable for staying informed about market-moving events.
Customer Support
FXTM offers multilingual customer support via live chat, email, and telephone. Support is available 24/5 during the forex trading week (Monday to Friday). The broker also maintains an extensive FAQ section and a knowledge base on its website.
Understanding Trading Costs and Fees
Trading with FXTM involves several costs that vary by account type and transaction. Understanding these costs is essential for calculating your net profitability.
Spreads
The spread is the difference between the bid (buy) and ask (sell) price of a currency pair. FXTM offers floating spreads that fluctuate based on market conditions. Typical spreads for major pairs are:
- Standard Account: EUR/USD from 1.0 pips, GBP/USD from 1.2 pips.
- ECN Account: EUR/USD from 0.1 pips, GBP/USD from 0.2 pips (plus commission).
Spreads widen during periods of high volatility, low liquidity, or major news events.
Commissions
The Standard Account does not charge a commission on trades. Instead, the cost is embedded in the spread. The ECN Account charges a commission of $4 per lot (round-turn), meaning $2 per side. This is competitive with other ECN brokers in the industry.
Swap / Overnight Financing
When a position is held overnight, a swap (or rollover) fee is applied. This reflects the interest rate differential between the two currencies in the pair. Swap rates can be positive or negative, depending on the direction of the trade and the interest rate environment. Islamic (swap-free) accounts are available for traders who wish to avoid these charges.
Other Fees
- Inactivity Fee: FXTM charges an inactivity fee of $5 per month after 6 months of account inactivity.
- Currency Conversion Fee: If the base currency of your trading account differs from the currency of your deposit or withdrawal, a conversion fee may apply.
- Withdrawal Fees: Certain payment methods may incur processing fees. Bank wire transfers may have intermediary bank charges.
Regulation and Safety
Regulation is one of the most critical factors when evaluating a forex broker. FXTM is regulated in multiple jurisdictions, each with its own standards of client protection.
Regulatory Authorities
- Financial Conduct Authority (FCA) β UK: FXTM is registered with the FCA under the firm name ForexTime UK Limited (FRN 777911). The FCA is known for its stringent regulatory standards, including mandatory segregation of client funds and access to the Financial Ombudsman Service.
- Cyprus Securities and Exchange Commission (CySEC) β Cyprus: The main operational entity, ForexTime Ltd, is authorized and regulated by CySEC under license number 185/12. CySEC oversight includes compliance with the MiFID II framework, investor compensation schemes, and robust reporting requirements.
- Financial Sector Conduct Authority (FSCA) β South Africa: The South African entity is authorized by the FSCA (FSP 46614), providing regulatory coverage for clients in the African region.
Client Fund Safety
Under FCA and CySEC regulations, FXTM is required to hold client funds in segregated accounts separate from the company's operational funds. This ensures that client money is protected in the event of the broker's insolvency. Additionally, the Investor Compensation Fund (ICF) in Cyprus provides coverage of up to β¬20,000 per eligible client in the event of a member firm's failure.
Verification Checklist
Before depositing funds, you should verify the regulatory status of the specific FXTM entity you are dealing with. Check the regulator's official register using the firm's registration number and legal name. Be wary of clone firms that use similar names to deceive traders.
Comparison: FXTM Account Types
The table below compares the two main live account types offered by Forex Time. Use this to determine which account structure aligns with your trading strategy and cost expectations.
| Feature | Standard Account | ECN Account |
|---|---|---|
| Commission | None (no commission) | $4 per lot (round-turn) |
| Spread Type | Floating | Raw (floating) |
| EUR/USD Spread (Typical) | From 1.0 pips | From 0.1 pips |
| Minimum Deposit | $100 (or equivalent) | $500 (or equivalent) |
| Maximum Leverage (Retail) | 1:30 (EU), up to 1:2000 (other regions) | 1:30 (EU), up to 1:2000 (other regions) |
| Execution Model | Market Execution | Market Execution with ECN |
| Islamic Account Available | Yes (swap-free) | Yes (swap-free) |
| Best For | Beginners, traders who prefer simplicity | Scalpers, high-volume traders, professionals |
Tip: For most retail traders, the Standard Account offers a straightforward fee structure. However, if you trade frequently or use large position sizes, the ECN Account's tighter spreads may offset the commission cost, resulting in lower overall trading expenses.
Practical Checklist for Choosing a Forex Broker
Before opening an account with any broker β including FXTM β use this checklist to protect yourself and make an informed decision.
- Verify regulatory status β Check the broker's registration on the official regulator's website.
- Read the full terms and conditions β Understand the fee structure, margin policies, and withdrawal conditions.
- Compare trading costs β Evaluate spreads, commissions, swap rates, and any hidden fees.
- Test the platform β Use a demo account to evaluate execution speed, platform stability, and available tools.
- Check withdrawal processes β Verify the broker's withdrawal methods, processing times, and any associated fees.
- Review client feedback β Read independent reviews and forum discussions to gauge the broker's reputation.
- Confirm negative balance protection β Ensure the broker offers protection against losses exceeding your deposit.
- Understand leverage risks β Choose a leverage level appropriate for your risk tolerance and experience.
- Assess customer support β Test the support team's responsiveness and helpfulness before you need them.
Example Scenario: Evaluating FXTM for a New Trader
Sophia is a retail trader based in Germany with 6 months of demo trading experience. She has a β¬2,000 budget to start live trading and is considering FXTM.
Step 1: Sophia visits the FXTM website and confirms that the entity she would be trading with is ForexTime UK Limited, regulated by the FCA. She cross-checks the registration number (FRN 777911) on the FCA's register.
Step 2: She opens a demo account to test the MT4 platform. She evaluates execution speed, charting tools, and the ease of placing orders. She also monitors the spreads during different market sessions.
Step 3: Sophia reviews the account options and chooses the Standard Account because she prefers a no-commission structure and her trading volume is moderate. She confirms that the minimum deposit is $100 (well within her budget) and notes that Islamic accounts are available if needed.
Step 4: She deposits β¬1,500 via bank transfer and begins trading EUR/USD with a 1:10 leverage to manage risk conservatively. After one month, she evaluates her trading performance, considering the spreads she paid, and decides whether to continue or explore the ECN account for tighter spreads.
Key takeaway: Sophia performed thorough due diligence β verifying regulation, testing the platform, and choosing an account type that matched her trading style and risk tolerance. This systematic approach helps her avoid common pitfalls and trade with confidence.
Common Misconceptions About Forex Brokers
- βAll brokers are regulated the same way.β β Regulation varies significantly by jurisdiction. FCA and CySEC are more stringent than offshore regulators. Always verify the specific regulations that apply to the broker entity you are using.
- βThe advertised spread is always what I pay.β β Spreads are variable and can widen during volatile market conditions. The advertised spread is a typical minimum, not a guarantee.
- βHigh leverage is always beneficial.β β While leverage can amplify profits, it also multiplies losses. Novice traders should start with lower leverage and increase it only as they gain experience and confidence.
- βNegative balance protection is universal.β β Not all jurisdictions require negative balance protection. The ESMA regulation in the EU does, but it may not apply to all clients. Always confirm the policy.
- βForex brokers make money only from spreads.β β Brokers may also profit from commissions, swaps, and other fees. Some use B-book models that act as a counterparty to client trades, potentially creating a conflict of interest.
Risk Controls and Important Warnings
Trading with any forex broker involves inherent risks. Understanding and managing these risks is essential to long-term success and capital preservation.
Market Volatility
The forex market is highly volatile, with prices influenced by geopolitical events, economic data releases, and central bank policies. Sudden price movements can trigger slippage, where your order is executed at a different price than expected, particularly during news events or low-liquidity periods.
Leverage and Margin
Leverage magnifies both gains and losses. Even a small adverse price movement can result in a significant loss if you use high leverage. It is crucial to understand margin requirements and maintain sufficient equity in your account to avoid margin calls and forced liquidations.
Broker Solvency and Fraud
Although FXTM is regulated in multiple jurisdictions, the forex industry has seen instances of broker failures and fraudulent schemes. Always trade with a broker that is transparent about its regulatory status, financial standing, and operational practices. Be cautious of unregulated clones that use similar branding.
Technology and Execution Risks
Technical issues such as platform outages, connectivity problems, or order execution delays can impact trading performance. It is advisable to have a backup internet connection and to monitor your trades actively, especially during volatile periods.