FX Club is a forex broker and futures broker servicing traders online since 1995. As such it is one of the longest operating retail brokers out there. FXClub is different in some ways from your average forex broker, which I will show you in this review. If it s good or bad is up to you to decide and you could certainly make a case for either. So how is FXClub different from most other online brokers? First of all, let us look at the commission side of things. Forex brokers usually make money by adding a few pips to the real market price of a currency pair, also called ‘spreads’. These are usually within the range of 2-5 pips depending on your account type. FXClub also offers this commission structure, but unlike other brokers their standard commission base is a fixed fee pr. Transaction.
Why is this a good thing and why is it a bad thing? Most brokers proclaim they use fixed spreads, that is the the spreads stay the same during trading. In reality this is not the case. During hectic trading times, such as on the release of economic data or news, the price fluctuates wildly and so the brokers use much larges spreads in order to cover their bases. This is common practice, but none the less it is not something they usually tell new clients.
FXClub charges a fixed fee on the other hand for all trades. This is a good thing in my opinion because t implies that the broker will be interested in seeing you succeed. Brokers who use spreads also sometimes engage in illegal practices such as stop loss hunting and other ‘bucket shop’ strategies. With the fixed commission fee, you know what you will be charged. Or do you? Actually, there have been some complaints that the FXClub commission structure was difficult to figure out. I never thought so, but I thought I would mention it anyway.
If you do think this is the case, you still have the option of going for classic spread pricing by signing up for a classic forex account.
FXClub has a low minimum deposit of only $10. Of course you will never be able to make any significant trades with that amount so it’s not really an advantage, but you still get to check out the software with real money, so on that account it is a nice feature. There is of course also the free demo account to practice on before you take the plunge into deep waters.
FXClub has a good selection of educational material, guides, tutorials and interactive material. It’s a nice extra feature and I would recommend you take advantage of it, before trading serious money.
Personally, FXClub was the first broker I started out with when I was a new trader and completely green in the game. I only spent a few hundred bucks, but they were decent to deal with and I never had any problems with depositing or withdrawing.