FXTM Account types: what are the differences between all types?

The broker FXTM offers different types of accounts. The first difference is between demo and real. Then, among the real accounts there are the following types:

• FXTM ECN accounts
• FXTM Standard accounts
• FXTM Pro accounts

A demo account is a fund with virtual money. Its goal is to help traders learn how to trade and test new strategies without risking any money.

A real account is a fund with real money. In this case the trader wants to invest in the market and make a profit.

Let’s see now the differences between all types available.

 

The Demo Account

The demo account offered by FXTM has $ 100.000. This is virtual money that can be used until it is finished.

Every trader has a free demo as soon as he signs up on the platform. The demo account is totally free and there is no need to make a first deposit to receive it.

The FXTM demo works on the MT4 platform. The Metatrader 4 is a professional trading platform where you can find all the market and proceed with your investments.

Every market available on a real account is also available on the demo.

Also the spreads, fees and swaps are the same.

What is important to mention is the fact that the money in the demo type is not withdrawable. This is because it is not real money, but virtual money offered by the broker to test your strategies and learn how to invest.

Even if you open a FXTM real account, the demo is always available on your profile, and you can swap between the 2 modes anytime.

Finally, once you have finished all the $100.000 available, the account will not be refunded by the broker. This isn’t a problem anyway, because $100.000 is a very big sum and allows you to open many positions within the time.

 

FXTM ECN Account

An ECN account is a type of account where traders can access to the best prices in the market.

ECN stands for ‘Electronic Communication Network’.  This means that on this type of account the traders have direct access to the market.

Thanks to this aspect, the prices available on a ECN account are very close to the real prices, and the spreads are very low.

Also the execution of orders is very fast, and this is an other advantage of this type of account.

The way FXTM earns some money is by applying a commission for each trade.

In the past years, ECN types became very popular among traders because they are seen as the most transparent ones.

All brokers are usually Market Makers. This means that the prices they offer on their platform are already additional of a fee (spread). Also the execution of an order happens through the broker and sometime the process is not fast.

On an ECN account the broker doesn’t add any spread to the prices, but offers them to traders as they are in the real market. The order execution is instant, and the investment is done directly in the market, skipping the middle step of the broker.

The FXTM ECN account is available for the MT4 and MT5 platform. This type of account is available on Euro, American Dollars and British Pounds.

The types of assets available are Commodities, CFDs, Currency pairs, Stocks and indexes.

The spreads are from 0.01 pips and the broker applies a standard commission of $2 for each lot traded.

Finally, to open an ECN type of profile, the minimum deposit is $500.

 

FXTM Standard Account

The FXTM standard account offered by the broker is a Market Maker type.

In this case, the assets offered in the platform are the same as the other types of account. We have CFDs, Currency pairs, indexes, commodities and stocks.

The prices available are offered by the broker which applies a small fee called a spread. This means that all the prices are slightly higher than the real ones.

Also, the execution of an investment is done by the broker first and then it will be applied into the market. The broker acts as middle man. This doesn’t affect the process speed, which will be instant.

A big difference from the ECN account is that a Standard one is commission free.

For instance, there isn’t any commission applied to your investment because the broker already applies a spread.

For all major currencies, spreads are from 1.3 pips, getting higher for less common currency pairs. Also for stocks, commodities and Indexes there are some spreads.

The FXTM Standard is available only for the MT4 platform and the currencies available are Euro, American Dollar and British Pound.

What makes it the most common one in FXTM is the low minimum deposit required. In fact you can start trading with only $10 for the Cent account and $100 for the standard, instead of $500 for the ECN one.

 

FXTM Pro Account

The last type we analyse is the FXTM Pro account. As the name says, this type of account is mainly available for professional traders.

The minimum deposit required is $25.000, which is an high entrance point compared to the other 2 types.

The FXTM Pro offers to traders the opportunity to invest using the MT4 and the MT5 platform.

The assets offered are CFDs, and the markets available are currency pairs, stocks, commodities and Indexes.

A trader can decide the currency by selecting one of the options available between Euro, American Dollar and British Pound.

FXTM Pro is an ECN account. This means that all prices available are the real prices of those assets. Also, the order execution is done directly in the market and not via the broker.

This means that the whole process is very transparent and there aren’t any spreads applied.

What makes this type unique is that it is commission free and spread free.

This means that all types of assets do not have fees, but their prices are exactly the same as in the reality at that moment.

This is the best offer available from all types of accounts in FXTM, and this is also the reason of the high minimum deposit required to open it.

For more information about FXTM you can read here our review.