How to start trading Stocks (Equities) on FXCM platforms? Table of Contents
Why trade stocks with FXCM?
- Precision
- Check and scale the size of your location in 1/10 action increments.
- Leverage
- Trade CFDs on major international stocks from the US, UK, Hong Kong, and Europe with low margin requirements. However, remember that trading on margin is risky as it can significantly increase your losses as well. Only a 20% margin will be required to enter the market.
- CFD Trading
- CFD traders can go long or short with the click of a button and speculate on both the gains and losses of stock.
- Platform of your choice
- Trade on Trading Station, MT4 or Via API.
Once you open an account with FXCM and log in, you can search for a specific stock CFD or browse the entire offer in the Symbol List.
If you know the company name or ticker you wish to trade, double click to subscribe and the instrument will appear in the trade price window.
How to start trading Stocks on FXCM?
- Open a live account by submitting the online account opening request.
- Deposit into your account and make your first trade.
- Explore FXCM’s stock offering on the trading platform.
Not ready to open an account?
Get familiar with the platform by signing up for a free trial account.
Invest in Stocks with a low cost
When trading stock CFDs with FXCM, trading costs are included in the spread and there are no extra fees charged when opening or closing positions and unlike many other brokers, there are no minimum commission levels, therefore on FXCM, you can avoid the additional costs when trading with small volumes.
Spread costs can be easily calculated on the Trading Station platform, as you can see real-time spreads and pip costs (in your account name) before opening any trade. To calculate the cost of the spread in your account currency:
(Pip cost) x (Number of contracts) x (Spread) = Total cost of the transaction
FXCM’s minimum trade size is the value of one-tenth of an actual share – entering a size of “1” on the FXCM platform will enter a trade size equivalent to 0.1 Stocks.
Please note that HK Shares can only be traded in increments of 1 Share.
Dividend adjustments will be applied on the eve of the ex-dividend date of the underlying stock. The correction will appear on your statement. Long positions will be credited with an adjustment and short positions will be charged.
For more information and to view upcoming dividends, please visit our dividend calendar.
Tax when trading US Equity on FXCM
There are no fees charged by FXCM when you open and close a CFD position.
However, under US taxation, a withholding tax on dividend adjustments applies to US equity derivatives traders. In accordance with FXCM’s obligation under these US tax rules, 30% of all dividend adjustments credited to SSCFD or equity baskets are retained and transferred by FXCM to the IRS.
This tax treatment is applied by default to all positions and may be subject to change in the future. Discounts may be available depending on personal tax and residence circumstances. Visit our CFD Product Guide for more information.
Contact FXCM Support Team for more
You can long-term trade on Stocks
As long as there is sufficient margin in your account, you can keep your position open indefinitely.
Any position opened beyond the closing time of a stock exchange may be subject to a “funding fee” which is reflected in an FXCM account as a “rollover”.
The funding adjustment will take place in the account shortly after the close of the relevant stock exchange. Visit our CFD Product Guide for more information.
Financing costs are updated daily and can be viewed in the trading platforms under Roll-B and Roll-S.
How much do you need to start trading Stocks?
Trading CFDs on shares with FXCM allows you to use only a fraction of the capital. For retail clients, leverage of approximately 5: 1 is available for individual stocks.
If you open a position worth $ 100, a margin of approximately $ 20 will be required. Margin requirements for each share are updated once a day and can be viewed on the Trading Station platform.
Be aware of Corporate Events when trading Stocks
Except for dividends and stock splits, FXCM does not process the majority of corporate shares. In the event of any corporate transaction, FXCM will determine, in accordance with market practice, any appropriate adjustment to be made to the current contract value or contract quantity of any open position in order to preserve the economic equivalent of the position or to reflect the effect of the event on the related underlying share.
Please click "Introduction of FXCM", if you want to know the details and the company information of FXCM.
IronFX
Comment by Diletta
March 26, 2024
Awesome bonuses, good leverage. A few hiccups, but support rocks!