That is a good looking FM. The other members advice is good. They prefer sand, I have kept them in gravel tanks for what it's worth and they have been OK.
He is schooling with the barbs because they are pretty much "schooling cichlids", like to be in groups more than most species do. I do think yours will be OK without a group, and don't have room in the tank for any more.
My advice is rinse the sand well before putting it in especially if using play/home depot sand.
I would probably wait a couple days and let him settle in before swapping the gravel, it will be stressful for the fish in the tank.
Best of luck