CMS Forex Broker Review

November 1, 2010 – 4:33 pm

Online Forex Broker Rating: ★★★★★★★★☆☆

Year Founded: 1999
Location: London, New York, Tokyo
Average Spread: 2 pips
Minimum Account Size: $25 USD
Leverage: 100:1
Accepts US Clients: Yes
Regulated By: CFTC, FSA
Dealing Desk: Yes

Broker Overview

In 1999, Capital Market Services (CMS) Forex was created by a consortium of software developers, currency traders and experienced brokers. Over the years, it has gained a solid reputation for providing high-quality service, good customer support and a top-notch proprietary software trading platform, called “VT Trader,” licensed by Visual Trading Systems. CMS has major offices in London, New York and Tokyo with Capital Market Services International in Bermuda, Institutional Clients Services out of Boston and additional offices in Saint Petersburg and Shanghai.

CMS serves more than 6,000 clients (individual traders, money managers, corporations, and financial institutions) in more than 165 countries around the world. Its VT Trader software has become very popular. CMS makes opening an account very easy – an online application can be filled out in minutes. No commissions are charged; fees are generated from bid/ask spreads.

Trading Conditions

CMS has a direct dealing desk with phone and online access for its customers. Spreads vary on the 40 currency pairs available for trading, but there is an average spread of 2 pips on the most popular currency pairs -EUR/USD and USD/JPY. The typical leverage is 100:1. CMS permits trailing stops for currency traders. Customers can deposit funds via check, online payment services, credit cards or wire transfers. CMS provides basic Forex currency trading services (translating quotations, documenting positions and charting results) with variable spreads as low as 1.4 pips in a retail Forex trading environment. The signature trading product for CMS is the intuitive, user-friendly “VT Trader.” CMS permits customers to use VT trader on the Web site, downloaded onto a computer (Mac or PC) or as a mobile application. VT Trader is a “top-of-the-line” powerful, flexible and reliable, fully customizable interface with more than 100 technical indicators, charts, and risk management tools. The most sophisticated features include chart pattern recognition, risk management tools and Forex Autopilot.

CMS has the following account types: demo, individual, joint, trust, managed, company and universal (this allows for trading mini and standard lots). Potential customers can use the demo (practice account) to test their currency trading skills without risking any real money. Institutional clients (brokers, professional asset money managers, and banks) are offered another trading platform, “FXTradePort,” alongside the VT Trader. White Labeling and Strategic Partnerships are also offered to these institutional customers.

Education

CMS is tailored to traders from all different experience levels; thus, it has provided a plethora of different educational tools to help customers learn what they need about Forex currency trading. Its Web site includes “Multimedia” and “News & Commentary” sections from world-renowned markets experts that keeps customers aware of the latest market trends. A “Forex Capsule” discusses the week’s most important stories.

The CMS Web site has a list of common Forex trading terms, along with an explanation of basic trading principles for beginners in a document written by a trading expert. Free online “Webinars” offer continued education to customers, as well as, an online Forex course. Advanced coursework includes technical analysis articles and a bibliography of recommended books to read about foreign exchange currency trading. More specific video demonstrations discuss how to use the “VT Trader” software effectively.

Customer Support

CMS provides customer support via phone, chat, e-mail and online for 24 hours during market hours; it is closed on weekends and during holidays. Customers can call 1-866-51-CMSFX begin_of_the_skype_highlighting              1-866-51-CMSFX      end_of_the_skype_highlighting begin_of_the_skype_highlighting              1-866-51-CMSFX      end_of_the_skype_highlighting begin_of_the_skype_highlighting              1-866-51-CMSFX      end_of_the_skype_highlighting or 1-866-512-6739 for customer service. There is e-mail support at “customersupport@cmsfx.com”. The Web site supports Arabic, Chinese (Cantonese and Mandarin), English, Japanese, Russian and Spanish languages. The company also has staff that provide translation services for customers who speak the following languages – French, German, Italian, Korean, Polish, Portuguese and Chinese (Taiwanese).

Customer reviews have praised the VT Trader software as being very sophisticated with superior charts. But the complexity of the software generally requires higher broadband speeds. A common complaint is that the currency spreads are a bit too high compared to other Forex traders. Some clients expecting immediate customer support responses, have been disappointed, especially during high-intensity news periods. All in all, reviewers believe that CMS is one of the best Forex trading Web sites for new traders.

Safety

CMS is well-known, professional, reliable and reputable. In 2006, “Inc. Magazine,” listed CMS as the fastest growing Forex dealer in America. It is located at the following well-known address:

Empire State Building
350 Fifth Avenue
Suite 6400
New York City, NY 10118

CMS is registered with these government regulatory bodies:

  • Futures Commission Merchant (FCM)
  • Japanese Finanial Services Agency (FSA)
  • National Futures Association (NFA) ID # 0313199
  • United States Commodities Futures Trading Commission (CFTC)
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FXCM FOREX Broker Review

November 1, 2010 – 1:31 pm

FXCM is one of the largest FOREX brokers in the world. They have clients in nearly 200 countries, execute millions of trades every month, and have over $600 million in customer funds. If you are searching for an established, financially string FOREX broker, FXCM is worth a look.

Online Forex Broker Rating: ★★★★★★★★☆☆


Year Founded: 1999

Locations: New York City, NY

Average Spread: Variable – 1 pip and up

Minimum Account Size: Mini-Account: $25.00

Standard Account: $2,000.00

Leverage: Up to 100:1

Accepts U.S. Citizens: Yes

Regulated By: CFTC, NFA, and several countries.

Dealing Desk: No

Broker Overview

FXCM was founded in 1999 and has grown into one of the largest FOREX brokers in the world. The company’s main location is in New York City and is regulated in the United States, England, Dubai, Hong Kong, France, and Australia. FXCM has a vast global client base, high trading volume, strong financial backing and has won numerous awards from the investment community. FXCM made an unprecedented release of their balance sheet in 2010 and has asked for other FOREX brokers to do the same. FXCM was named on Inc magazine’s list of the 500 fastest growing private firms in 2004, 2005, and 2006. Since its start, the company has added over 600 new employees in all areas of operations.

FXCM’s trading platform is called FX Trading Station, and needs to be downloaded to your computer. It is user friendly and can be customized to fit your needs. This platform is easy to use as all information needed to trade is arranged logically and fits on one screen. A toolbar can also be downloaded to your browser which allows you instant access to market news, currency rates, and other important information. Charting tools and other data can be added to the FX Trading Station platform with plug-ins. This trading platform is good for novice and experienced trades alike.

Trading Conditions

FXCM is a no dealing desk broker, which means that they fill your orders from the best price available. Without a dealing desk, there is no conflict of interest between you and the broker. FXCM works with up to ten of the largest banks for pricing information which contributes to competitive pricing and low bids. For traders who desire some variety, FXCM has over 45 currency pairs available to trade. The spreads are variable and can be as low as 1 pip. Average spreads tend to be between 2 and 4 pips. A sample of a few of the typical spreads are: EUR/USD 1 to 2.3, USD/JPY 1 to 2.4, GBP/USD 1 to 3, USD/CAD 1 to 3.7. These are extremely competitive spreads and offer traders a good opportunity to make money with their trading. FXCM offers flexible leverage with the maximum leverage being approximately 100:1. Though traders are able to set their own leverage amounts, the majority of traders utilize the default amounts which are based on various default margin settings. FXCM recommends that traders use lower leverages to minimize their risk. However, the amount of leverage used is up to each individual trader. One way that traders are protected at FXCM is that there is no risk of a debt balance; your maximum loss is limited by the amount of money in your account.

FXCM offers several different account types for you to choose from including a standard account, an active trader account, and a micro account. To open a standard account, a minimum of $2,000 is required. For the micro account, one can be opened with as little as $25.00. With the standard account you receive twenty-four hour customer support; with the micro account customer service is limited to e-mail and forums. The active trading account requires a minimum of $25,000 and provides up to ten levels of market depth and is ideal for scalping and short term trading. You can also set up an account in the name of a corporation, trust, IRA, or other entity. For those who want to check out their system, a free $50,000 demo account can be opened. With this demo account, you can trade from charts, get live streaming prices, and have access to around the clock customer support.

Education

FXCM offers educational tools for novice and experienced traders. They have developed several training courses that cater to the beginner and the expert. A visitor to their website is able to view free instructional videos to learn more about trading in the FOREX market. On the website you can sign up for the FX Power Course which provides traders with a lesson per day for eight days. In this course, you can learn to read charts, time the market, identify trends, and more. In addition, you will have unlimited access to the alumni forum where you can discuss FOREX trading with thousands of other traders.

Customer Support

FXCM has live customer support, 24 hours a day, 7 days a week. You can contact them through the live support, instant messaging, phone, or e-mail. Their online chat is very quick and responsive and one of the representatives can usually answer most questions. From reading the online forums, it seems that most traders are happy with customer support. As with any FOREX broker you often find some negative reviews, but overall the satisfaction level with FXCM customer support seems to be reasonably positive.

Safety

Safety of all accounts and transactions is important to FXCM. To ensure that every transaction and client account is kept confidential and secure, FXCM uses authentication protocols, top-of-the-line encryption procedures, and the best firewall protection. The broker uses back up systems to protect your open trades, stop orders, and accounts in case of any system failure. For UK clients accounts are segregated; in the event that FXCM ever files for bankruptcy, individual client accounts could not be used to pay off other creditors.

FXCM is registered and regulated in several different jurisdictions around the world and adheres closely to all rules and regulations. In the US they are regulated by the Commodity Futures Trading Commission (CFTC) and National Futures Association Member (NFA). In the United Kingdom they are registered with the Financial Services Association (FSA). They are also registered and regulated by the proper authorities in Australia, Dubai, Hong Kong, France, and Italy. FXCM meets the minimum capital requirements of the CFTC. With more than ten years of FOREX experience, strong financial backing, and an international presence, FXCM is a secure and reliable choice for all types of FOREX traders.

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Deutsche Bank FX – A Review

November 1, 2010 – 1:28 pm

Online Forex Broker Rating: ★★★★★★★★☆☆

Deutsche Bank FX Basics

Deutsche Bank FX is the online foreign exchange trading service of Deutsche Bank AG. The service was developed and designed for individuals and small institutions. The bank itself was first founded in 1870, originally specializing in foreign trade for Berlin. DbFX was founded in May 2006 in response both to the rapidly growing global foreign exchange market and growing client demand for streamlined, easy access to the products of capital markets. In addition, the bank believed that an established institution entering into the foreign exchange market would benefit all participants by deepening the value of foreign exchange as an asset class.

DbFX is billed as the world’s preeminent provider of liquidity in the foreign exchange market. It is headquarted in London, operates in seventy-six countries, with over eighty thousand employees and an asset base of over two billion Euros. Deutsche Bank was named the number one foreign exchange house in the world by Euromoney for four consecutive years (2005-2008) and still holds the title of number one bank in foreign exchange. The daily foreign exchange notional trading volume of dbFX is larger than the value of the major US, European and Middle Eastern equity markets combined. Trading activity focuses on the major currency pairs (the dollar/euro being a prime example). The daily notional trading volume of the USD/Euro currency pair is greater than the volume of the New York Stock Exchange.

Most Popular Features

For clients, traders and speculators, dbFX is very attractive because the bank offers access to the forex market at a higher level than most brokers. Since the foreign exchange market is so decentralized, different markets offer access at different levels. Individuals at foreign countries are at the lowest level, and since their access to the market is through one or more intermediaries, they are likely to receive less favorable transaction prices. Corporations tend to have better access and better prices, but they also have to go through middlemen, in this case, banks. Small banks, in turn, must deal through larger banks. The large banks trade with each other and therefore have access to the best prices. Deutsche Bank is not only one of the largest banks in the world; it has been ranked as number one in the world’s foreign exchange markets for 2009 by Euromoney. This means that dbFX gives everyone access to the best prices at the highest level of the market.

Clients have twenty-four hour access to the service via dbFX’s online trading platform. Deutsche Bank AG clients have the extra advantage of trading on streaming quotes, helping to lower risk to individual traders. The spreads can be as low as two percentage points. DbFX also offers professional support in nine languages at all hours of the day or night.

Trading Tools

One prominent tool that dbFX offers is integrated real-time charts that are embedded into the trading platform. This allows traders to monitor and analyze trends, track positions and make trades all from a single screen. It also eliminates the need to toggle from chart to chart while simultaneously keeping track of open positions. Since the charts are integrated with your trading account, you can easily see open positions, entry orders, stops and limits. In addition, dbFX’s integrated charts are fully customizable, allowing traders to create a layout that suits their personal trading style best. The features include the ability to set time frames, change the color of size of any chart area, and change any setting for the different indicators of dimension, time, location or appearance.

Since dbFX is a margin trading platform, you can control a large position with a relatively modest-sized trading account. Margin trading lets you leverage your capital to a great degree, which means you could generate large profits relative to the original invested amount. There is a high risk involved, however. Margin trading also means that small market movements can result in huge losses. Since a highly leveraged account sets this risk, the dbFX Trading Platform has several features built in that helps reduce potential losses. It calculates margin requirements automatically and also monitors available funds before you are allowed to enter a new position. If the equity, the total floating market value, in the account falls below the minimum requirement a Margin Call will be issued immediately and all positions closed at once.

Education

DbFX holds regular scheduled live seminars and webinars for advanced traders seeking to add to their styles. These events provide the opportunity to hear from official Deutsche Bank traders and market experts with question-and-answer sessions in real time. DbFX also offers online free video tutorials about using the trading platform as well as free online video interviews with experts from the trading floor.

Regulation

Deutsche Bank AG is fully authorized under German banking law by the Federal Financial Supervisory Authority, an independent federal institution under the Federal Ministry of Finance. It is also regulated by the Financial Services Authority for its business operations in the UK. Deutsche Bank AG is listed on the London Stock Exchange and it is also a stock corporation in the Federal Republic of Germany.

The minimum amount required to open a trading account with dbFX is $5000.00 USD (or the foreign currency equivalent). Average spreads range from as low as 1.5 percentage points (EUR/USD under normal market conditions) to as high as sixty percentage points (USD/ZAR, again under normal market conditions). The maximum leverage offered by dbFX is 100:1. DbFX has a dealing desk.

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