The noise increases as the modulating frequency increases with FM, so broadcasters increase the high frequencies at the broadcast transmitter (pre-emphasis) and the receiver is expected to perform a mirror-image reduction of high frequencies (de-emphasis) which also reduces the noise. A switch is often provided to select between 50 microsecond (European) and 75 microsecond (North American) de-emphasis time constants.
The antenna you have goes across the 300 ohm terminals.
Not only that but there are defects in sound quality with recording FM.