Forex.com Review 2020

May 14, 2020 09:30 AM ET
Forex.com Review 2020

Established in 2001, Forex.com is an International-grade Forex and CFD broker. It is the brand name of GAIN Capital, a company which is listed on the New York Stock Exchange. The company has a proven track record, amassing over 200,000 traders under its platform, providing them access to over 300 global markets. They are known for providing favourable trading conditions and fast execution speeds. 

Forex.com

RATING

7.5

YEAR FOUNDED

2001

LOCATION

United States, Japan, United Kingdom

REGULATION

ASIC(Australia)
CFTC(United States)
FCA(United Kingdom)
IIROC(Canada)
JFSA(Japan)
NFA(United States)

US AVAILABLE

Yes

TRADING INSTRUMENTS

Forex, Cryptocurrencies, Commodities, Stocks, Shares, Metals, Indices, Energies, CFDs

TRADING PLATFORMS

MetaTrader 4, Forex.com, Web, Mobile

MINIMUM DEPOSIT

$50

DEPOSIT METHODS

Wire Transfer, Credit Cards

Base currencies

7

Inactivity fee

Yes

Withdrawal fee amount

$0

Max. Leverage

1:50

Min. Spread

0.1 pips

Currency pairs

84

Demo account

Yes

Social / Copy trading

No

Forex.com Pros and Cons

Pros

Cons

  • Available for US Clients

  • No Fixed Deposits

  • Strict Regulations

  • Very Limited Methods for Deposits and Withdrawals. 

  • Autochartist and Recognia

 
  • Dedicated Market Strategist 

 

 

In-depth Forex.com Review

Forex.com is arguably among the top trading brokers operating globally, with a track record that proves its consistency and efficient service over an extended period of time. As mentioned before, it has over 200,000 users under its platform, with access to over 80 forex pairs and over 220 commodities, shares, equities, cryptocurrencies and indices. In 2011, it became the first online broker  to issue an “execution card” for increased transparency, as it discloses the quality of their execution. 

According to the forex.com Execution Scorecard(US), the platform executes about 99.96% of all trades, under one second. The average speed indicated is about 0.03 seconds. This ensures that there is minimal slippage on the platform.

Regulations: In the UK, Forex.com is regulated and authorised by the FCA or Financial Conduct Authority. This is a helpful aspect for clients as they can rest assured that their funds would be duly protected by the Trading platform. Forex.com is also regulated by other regulatory bodies such as the Financial Services Authority(FSA) in Japan, the Australian Services and Investment Commission(ASIC), the Commodity Futures Trading Commission (CFTC) in the United States, the Investment Industry Regulatory Organization of Canada(IIROC) and the Cayman Islands Monetary Authority (CIMA). It is also a member of the National Futures Association (NFA) in the United States. 

To give utmost protection to client funds, Forex.com holds the funds in separate top tier bank accounts. To ensure that client funds remain segregated, trust letters are available. They do not engage in proprietary trading and use their funds only for hedging.

Additionally, clients may be eligible for receiving a coverage of up to €50000 under the Financial Services Compensation Scheme, in the event a firm ceases trading or becomes insolvent. Forex is a part of the NYSE-listed company, GAIN Capital Holdings, which serves clients in over 140 countries worldwide. 

Account Types and Opening

Forex.com accommodates several users with varied preferences by offering a myriad of flexible account types. Minimum deposits start at $50. Along with live accounts, Forex.com also offers demo accounts for users. 

Types of Accounts

Forex.com offers their users a choice between 5 types of accounts to choose from. The availability of some account types may vary according to the user’s country of operation. These are listed below. 

For Users of United Kingdom:

  • Forex.com UK Account:  This account is available only for users in the UK, offering competitive spreads and no commissions. The spread is considered as the trading cost. This type of account offers exclusive in-platform market insights and analysis and can be used in the desktop, web and mobile trading platform. 

  • MetaTrader UK Account: Forex.com users can also open a MetaTrader UK account and use one of the world’s most popular trading platforms, MetaTrader 4. Through MT4, users can trade CFDs, forex and cryptocurrencies directly from one trading account. 

For Users of the United States of America: 

  • Forex.com Standard Account: Forex.com’s Standard Account is based on the market maker model. In this account, spreads can be marked up, although the spreads include the costs. 

  • Forex.com Commission Account:  In the Forex.com Commission Account, costs are included with the spreads which are usually ultra-tight. However, users are required to pay a separate commission charge. 

  • Forex.com Direct Market Access Account: The Direct Market Access or DMA account tends to provide much lower spreads as they use spreads directly from liquidity providers. It is a commission only account which is ideal for professional traders who require the tightest possible spreads with the lowest overall trading costs.

How to open an account at Forex.com?

Forex.com offers joint, corporate and individual ownerships of accounts. It offers a very simple and streamlined process for opening accounts, with the whole process requiring somewhere between ten to fifteen minutes to complete.

Steps to Follow:

  • The user first has to click on the “Open an Account” tab found at the top right-hand side of the website. They will be then redirected to a page where they are required to select the account type of their choice. They can either use Forex.com’s proprietary platform, or MetaTrader 4. 

  • They are then required to fill in their financial and personal information. 

  • They will be asked a couple of questions from Forex.com to prove level of financial knowledge, as well as the user’s trading history. 

  • The next step requires the user to verify their identity and residency.  As part of KYC requirements, users are required to upload a national ID, a driver’s licence or a passport to verify their identity.  For proof of residency, utility bills and bank statements are accepted. 

Forex.com opening accounts

Deposit and Withdrawal

Forex.com provides multiple options when it comes to deposits and withdrawals including Bank transfers, credit cards and certain electronic wallets. However, withdrawals are not permitted through certain credit cards.  Users can choose from 7 base currencies including EUR, GBP, AUD, USD, CAD, CHF and JPY. Offering users multiple choices, when it comes to base currencies, can help them avoid any currency conversion fee. They can do this by opening a multi-currency bank account at a digital bank. 

  • Deposit Fees and Options: There are no deposit fees charged by Forex.com. Besides using bank transfers, users can also use their own debit or credit cards, as well as PayPal for depositing. Payment via a debit or credit card is almost instantaneous, while bank transfers can take several business days to complete. 

  • Withdrawal fees and options: Withdrawals are also free of charge at forex.com.  It usually takes about 2 to 3 business days for bank transfers to be processed. Withdrawals via Credit/Debit cards can take up to 5 business days. 

How does a user withdraw money from Forex.com?

The process of withdrawals is also as streamlined as the account opening process. Some steps have been mentioned below. 

  • Users have to login to “My Account” 

  • They should then click on “Funding” and select the “withdraw” tab. 

  • The required amount is to be filled in by the user. 

  • Finally, the user can confirm their withdrawal and finish the process. 

Commissions and Fees

Compared to some other brokers in the market, the fees for trading forex and stock index CFDs at forex.com is pretty low. However, the stock CFD fee can be considered High. Additionally, there are also inactivity fees charged. The average spread costs for some of the assets are mentioned below. All of them have fees which are built into the spread.

  • For GBP/USD: 2.4 pips

  • For EUR/USD: 1.3 pips

  • S&P 500 CFD: 0.4

Forex.com charges an inactivity fee of $ 15 on a monthly basis after an initial one-year period of account inactivity. 

Fees for Trading 

To examine the fees for forex trading at forex.com, a $20000 position and a $2000 position is considered for forex and stock index trading respectively. For forex, we have considered the EUR/USD, AUD/USD, EUR/CHF, GBP/USD and EUR/GBP, while SPX and EUSTX50 is considered for Stock index CFDs. Leverage used for forex and stock index CFDs is 30:1 and 20:1 respectively. 

Fees for Forex Trading

When it comes to fees charged for forex trading, Forex.com charges relatively low fees. Forex fees are built into the spreads and the benchmark fees for some of the currency pairs are briefly listed below. Here, a $20000 long position with leverage 30:1 is held for a week. 

  • For GBP/USD: $10.5

  • For EUR/USD: $12.6

  • For EUR/CHF: $4.9

  • For AUD/USD: $12.0

  • For EUR/GBP: $9.9

Fees for CFD trading

Compared to other brokers, forex.com charges low stock index CFD fees. However, fees for stock CFD is quite high.  The CFD fees for the following are based on a $2000 long position, which is held for a week. The fees for stock Index CFDs are built into the spreads, while fees for stock CFD are charged through a commission. 

  • For Europe 50 Index CFD Fees: $1.6

  • S&P 500 Index CFD fees: $1.9

  • Vodafone CFD fee: $26.0

  • Apple CFD fee: $21.8

Commissions for US Stocks is calculated at $0.018 per share while commissions for UK Stocks is fixed at 0.08% of the trade value. 

Other Non-Trading Fees

Forex.com does not charge any account or withdrawal fees. However, it does charge an inactivity fee, which is levied on a user after one year of inactivity. It is charged at $15 per month. 

Commissions

For every 100k traded, commissions are fixed at $5 for users using a commission account. The commissions for a Direct Market Access Account can be variable, starting from $60 per million worth of trades. 

It should be noted that Forex.com does not charge any commission when trading forex, as the trading costs are built into the bid or ask spread. However, as a result of this, the marked up spreads may appear larger than that of other comparable brokers because of the in-built commission charge. For using non-marked variable spreads directly from liquidity providers, users can use a DMA account. 

Trading Instruments and markets

To cater to the needs of the different classes of traders on their platform, Forex.com offers access to over 300 global markets in the form of Forex. Commodities, Stocks. Shares, Cryptocurrencies, Indices, Energies, Metals and CFDs. 

  • Forex trading: Forex.com offers a total of 84 forex pairs including major, minor and exotic currency pairs. These include AUD/USD, EUR/GBP, EUR/JPY, EUR/CHF. EUR/USD, USD/CAD, XAU/USD and NZD/USD, just to name a few.
    Forex.com Trading Instruments

  • CFD Trading: When it comes to CFD trading, Forex.com provides users with 17 stock index CFDS, 270 stock CFDs, 26 Commodity CFDs and 26 ETF CFDs. Examples of each class of CFD trading are mentioned below. 

    • Stock Index CFDs: Australia 200, France 40, China 50, Japan 225, UK 100, US SP 500 etc

    • Stock Share CFDs: Amazon.com, Netflix, Tesla Motors, Facebook etc. 

    • Commodities CFDs:  UK Crude Oil, US Crude Oil, Corn, Coffee, heating oil  etc. 

  • Cryptocurrency Trading: Due to the overall growth in popularity of the cryptocurrency market in the last 2 to 3 years, forex.com also offers cryptocurrency trading to their users. It offers a total of 8 cryptocurrency markets including Bitcoin Cash, Bitcoin, Ripple, Litecoin and Ethereum. 

Forex.com Cryptocurrency Trading

Unlike many other brokers, forex.com allows their users to change the default leverage level of any of the products. This allows users to lower the risk of their individual trade. 

Trading Platforms and Tools

Forex.com recognises the need to cater to the individual needs and trading preferences of each trader and provide them with options of choosing several professional trading platforms. Along with MetaTrader 4 compatibility, forex.com offers its own app for desktops, web and mobile. 

  • Forex.com Advanced Trading Platform for Desktop: Forex.com’s advanced desktop trading platform offers both flexibility and speed, and is built for the ultimate trader’s performance. It provides an intuitive, user-friendly interface which is capable of meeting the needs of almost every type of active trader. It provides a full set of fully customizable layouts, professional analytics tools, integrated trading strategies, trade preferences, one click trading and advanced features for charting. It also provides a “build your own indicator” feature which allows users to create their own indicator which they can use for trades. 

Forex.com Trading Platforms

 

  • Forex.com Web trading Platform: The web trading platform from Forex.com focuses on providing reliability and speed, through a simple, intuitive and user-friendly platform. It offers features such as the advanced charting, smart trade ticket with advanced risk management options, powerful charts and pre-defined and customizable layouts. It also has both integrated trading tools as well as one-click dealing functionality. Many users prefer the web trading platform over the advanced trading platform because it does not require any additional downloads or plugins to be installed in any device. The App can be easily accessed from all browsers on both PC and Mac systems.
    Forex.com Web trading Platform

  • Forex.com MetaTrader 4 Platform: MetaTrader 4 is arguably the world’s most popular trading platform used by a lot of brokers. It is renowned for its user-friendly interface, dedicated support team and integrated trading tools. It caters towards both novice as well as experienced traders in the market.
    MetaTrader 4 offers the reliability of a trusted broker, with exceptional trade executions and ultra-tight spreads. Among the broker specific and unique trading tools it provides, the Forex.com research, integrated Reuters news, Autochartist Trade ideas, account management tools and trading central technical analysis, are worth mentioning. Additionally, the MT4 platform supports almost all Expert Advisors or EAs. They can easily be integrated onto the platform without any third-party bridges. The free expert advisor hosting services allow users to run their EAs on a 24/6 basis during trading hours. 

Trading Tools

When it comes to trading tools, Forex.com provides their users with the most powerful trading tools required for a memorable trading experience. These include advanced charting tools that help users spot trends and capitalise on various trading opportunities. Trading view provides all of Forex.com industry leading charts. It allows users to personalise their own workspace, according to their trading habits and preferences. Some of the functions that these tools provide are mentioned in brief below.

  • Trading from charts allows users to create and modify trade orders directly from the charts. 

  • Forex.com provides more than 70 technical indicators for trading. It can be further customised to suit the individual needs and trading styles of the users and helps them to identify potential trade setups. 

  •  Users are provided with over ten time intervals. They can use them to identify both short and long-term trends as they need. Time intervals range from a tick to monthly charts. 

  • Forex.com also provides a range of different chart types and several charting styles to choose from. All these styles can be further customised by the user to control what information they want to receive. 

  • Forex.com additionally provides over 50 customisable drawing tools for traders to plan their next trade and analyse markets. 

Forex.com Trading Tools

Forex.com Trading Tools

 

Forex.com recognises the need for users to personalise the platform according to their own unique style. Thus they have provided several features for the customization of technical indicators, drawing tools and others. The industry leading auto-chartist and Recognia tools provide forex.com users with real-time trading signals and analysis tools. 

  • MetaTrader 4 VPS Hosting: For clients who qualify, forex.com offers them a free virtual private server or VPS. Clients who wish to operate their EAs on a 24/6 basis can use a VPS to keep them active without the need for running them on computers. It comes with a dedicated Unix server for EAs which provides the maximum uptime. Users can easily upload and manage their EAs, using an account manager. 

User Experience

Mobile Trading

Forex.com provides mobile trading capabilities to users through their Mobile Trading platform. Additionally, users can also use the MT4 mobile trading app for MetaTrader. 

  • Forex.com Mobile Trading Platform: Forex.com’s mobile trading platform is the ultimate when it comes to trading on the go, providing an efficient user-friendly interface that almost mimics the web and desktop platforms. It provides access to full robust trading features, advanced trading view charting, risk management options, integrated fund management and real-time analysis. This app is available for both Android as well as iPhone on their respective app stores.
    Forex.com Mobile Trading

  • MetaTrader4 mobile App: MetaTrader 4 has a dedicated mobile app which is available for both Android and Apple devices. It provides 3 types of charts including bars, broken line, Japanese Candlesticks, nine time frames, 30 technical indicators and 24 analytical objects. 

Research

  • Educational Resources: Forex.com offers an impressive collection of educational resources covering a host of topics for users to go through. This can be especially useful for beginner traders to get a grip on all the concepts. They provide educational materials, trading videos, webinars and more, covering diverse topics in the world of trading. 

  • Highly Trained Market Strategist: Users who are qualified can request the services of a dedicated, highly trained market strategist that works on an individual user level.  The market strategist would help users to produce a trading plan which caters to the user’s   trading style and other requirements. They can help the user by demonstrating tools, trading platforms, fundamental and technical analysis etc. 

  • Demo Account:  Forex.com provides a demo account for users to test out the platform in a real-time environment. Demo accounts can be a great way for novice beginners to test out the platform, and trade without any worry, using virtual funds which are made available. Demo accounts can also be useful for experienced traders to try out new strategies on the platform before they apply them in a real market.
    To open a Demo account, users can click on the “test drive with demo” option available on the home page. 

Customer Service

Forex.com offers a prompt and dedicated customer support service to all their new and existing clients. Support is available via email, phone and online chat, on a 24/5 basis. 

Safety and Security

When it comes to questions regarding safety and security, such as the legitimacy of the company in question or other security protocols, Forex.com fairs quite well. It is regulated by international-grade financial regulatory authorities such as the FCA in the UK. Additionally, GAIN Capital, which is the parent company of  Forex.com, is a regulated entity, listed on the New York Stock Exchange. Customers based in the UK are also protected for an investor protection scheme which funds upto £85000.

Final Thoughts

Forex.com is a very well established broker with proven track records and strict regulations in place. Apart from offering multiple trading platforms and a diverse selection of trading instruments, it also takes great care in providing security to client funds. Additionally, many traders may be interested in forex.com because of its low commission rates on different accounts.


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