FXCM vs Interactive Brokers 2026: Which Broker is Better?

Regulation & Safety

FXCM is headquartered in London and operates under the stringent regulation of the Financial Conduct Authority (FCA) in the UK, providing a strong layer of security and trust. Additionally, FXCM is regulated by the Australian Securities and Investments Commission (ASIC), ensuring compliance with international standards. This regulatory oversight includes client fund protection schemes such as segregated accounts, ensuring customer funds are kept separate from the broker's operational funds.

Interactive Brokers, with its headquarters in Greenwich, USA, is regulated by multiple top-tier authorities, including the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), FCA, Monetary Authority of Singapore (MAS), and ASIC. This extensive regulatory framework offers a high level of security and transparency. Interactive Brokers also provides investor protection through various schemes, including SIPC in the US and client money protection in the UK.

Fees & Spreads

FXCM offers competitive spreads starting from 0.2 pips on major forex pairs with zero commission, making it an attractive option for cost-conscious traders. The minimum deposit requirement is $50, and the broker provides a maximum leverage of 1:400. However, traders should note the presence of an inactivity fee, which can affect those who do not trade regularly.

Interactive Brokers also provides spreads starting from 0.2 pips but charges a commission of 0.005, which is significantly low, especially for high-volume traders. Notably, Interactive Brokers has no minimum deposit requirement, and its maximum leverage is 1:4, which may appeal more to those looking for lower-risk trading. Like FXCM, Interactive Brokers imposes an inactivity fee, primarily affecting small accounts.

Trading Platforms

FXCM offers the popular MetaTrader 4 (MT4) platform alongside its proprietary web and mobile platforms, known for their user-friendly interfaces and robust automated trading capabilities. Interactive Brokers, on the other hand, provides its proprietary web and mobile platforms, which, while comprehensive and feature-rich, may be more suited to experienced traders due to their complexity and advanced tools.

Who Should Choose FXCM?

• Traders seeking low-cost forex trading with zero commission.
• Individuals interested in using the Trading Station proprietary platform.
• Traders who value extensive educational resources.
• Automated trading enthusiasts using MT4.

Who Should Choose Interactive Brokers?

• Professional traders requiring access to 150+ global markets.
• Investors prioritising low commission costs for high-volume trades.
• Experienced traders needing advanced trading tools and analytics.
• Traders seeking robust regulatory security and diverse asset classes.

Our Verdict

For beginners, FXCM is the more suitable option due to its user-friendly platforms and educational support. Professionals and those seeking low fees will find Interactive Brokers advantageous, especially with its wide market access and low commission structure.