IS FOREX.COM A RELIABLE BROKER? FIND OUT IN OUR FOREX.COM REVIEW
Forex.com is a renowned online broker that offers forex and CFD trading. This brand is owned and operated by Gain Capital Holdings Inc. with head office in New Jersey, USA. Gain Capital was founded in 1999 and has grown to become a global brand with a total of 12 offices located in North America, Europe and Asia Pacific. It is a publicly traded company on the New York Stock Exchange (NYSE) with the ticker symbol; GCAP. As at the 3rd quarter of 2018, GCAP reported total assets of $1.442 billion, Total customer equity of $887.3 million and Available liquidity of $351.5 million. A 2018 report states that Forex.com is the largest broker in the United States and that report seems correct because with such amounts of financial security, they are indeed giants in the brokerage business.
79% of retail investor accounts lose money when trading CFDs with this provider.
Forex.com Regulatory & Global Presence
Forex.com is regulated in the United States by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). The brand is also regulated in six other countries across the world. Forex.com is regulated by the FCA in the UK, ASIC in Australia, MAS in Singapore, FSA in Japan, IIROC in Canada and CIMA in Cayman Islands. The brand is therefore fully compliant with the stringent regulatory standards that are demanded by these regulators. These include verifying the identity of every customer and segregating broker funds from traders’ funds. With very strong financial strength and multiple regulations, Forex.com is a very strong and reliable broker with full safety of investors’ funds.
Forex.com Account Terms and Conditions
Three types of accounts are offered to Forex.com’s clients. The “Standard Account” is designed for regular traders who like to trade using the spread-based model trading cost model without commissions. Spread for the popular EURUSD is as low as 1.1pips. The minimum account opening balance is $50 but Forex.com recommends $1,000. 82 currency pairs and 2 metals can be traded on all the platforms using the standard account. The maximum leverage is 1:50. Forex.com uses the “Market Maker” model to execute orders made from the standard account.
“Commission Account” is for traders who desire tight spreads with fixed commissions. This account features low spreads with the benchmark EURUSD going as low as 0.2 pips. This account gives access to trade 82 forex pairs and 2 metals. $5 is charged as commission for every 100,000 traded. MT4 trading platform is not available for Commission account holders. A minimum balance of $1,000 is recommended by Forex.com for this account.
High volume traders who love to take control should open the “Direct Market Access” (DMA) Account. The DMA account can trade 60 currency pairs and 2 metals. Forex.com states that they use the Direct Market Access (DMA) and Straight Through Processing (STP) models to execute orders emanating from this account type. Traders can access multiple levels of real time price on the broker’s order book. DMA account holders only pay a small commission for every trade. Only Forex.com’s ‘Advanced Desktop Platform’ is available to DMA accounts. Forex.com recommends a minimum balance of $25,000 for this account.
A Demo Account is available on all platforms. The purpose of the demo account is for prospective clients to test the market, platforms and familiarize themselves with Forex.com’s trading system in a risk-free market environment. A virtual fund of $10,000 is provided in the demo account for trading. Unfortunately, the demo account is only available for 30 days.
High volume traders are rewarded with cash rebates, interests and waived bank charges. Active Traders can get up to 15% savings each month with these rebates. Additionally, he gets one-on-one support from an experienced Market strategist.
Forex.com’s Trading Platforms
The “Advanced Trading Platform” is Forex.com’s sophisticated trading platform with cutting edge tools for analysis, order management and execution. It has advanced charting, trading strategies and enhanced analytical tools. It comes with over 100 in-built indicators and a user can also create a new indicator. There are 15 timeframes, drawing tools and multiple charts. You can create your own strategies in the integrated development studio or from over 100 templates. The dashboard is fully customizable; you can set your watch lists and create your trading styles using the ‘drag and drop’ features. The software is built for the Windows Operating System and is downloadable from Forex.com’s website.
The Forex.com’s “WebTrading” Platform runs on all operating systems and on all devices that has a web browser. It has advanced order management, customizable layouts and advanced charting tools. You can easily place a trade from the charts.
The MT4 is the most popular trading platform among forex traders. The MT4 is offered by Forex.com in all its versions. The desktop version is downloadable as a desktop application on Windows computers. MT4 is also available as a web version that runs on the browser. It is also available on mobile devices. The MT4 has sophisticated tools for trading and analysis including support for Expert Advisors (EAs) which automates forex trading.
For traders who prefer to trade on the go, the “Forex.com mobile” and “MT4 mobile app” are available on android and iOS devices and they are downloadable from their respective stores. The apps feature order management tools as well as advanced charting and analysis tools. Traders can follow the market news, view live quotes and place trades anytime and anywhere.
To fund a Forex.com account, you can use any of the following methods: debit or credit card, bank transfer, e checks (ACH) or a bank paper check. Bank deposits are unlimited but other payment methods range from $50 to $10,000. Forex.com do not charge deposit commissions no matter the method used. But for bank transfer withdrawals, $25 is charged for local transfers within the United States. $40 is charged for international transfers. Bank transfers take up to 48 hours to process. If the withdrawal amount is up to $10,000 the withdrawal fee is waived. The limit is $50,000 per transaction. When compared to other brokers, these options are very few and grossly insufficient.
Customer support on Forex.com is available 24/5 via instant Web chat, email, phone lines and an online form accessible from the website. The support representatives are fast, knowledgeable and courteous. On the Social Media, Forex.com is on facebook, twitter and YouTube. The social media channels are updated regularly.
Forex.com has a well organized Educational suite arranged in order of difficulty from beginner to intermediate and finally to advanced level. The training is made up of short training videos with high quality pictures and audio. The videos are interesting as they are fully animated, direct to the point and professionally made.
In the area of research and trading tools, Forex.com comes top with powerful tools to assist the trader. They provide a MetaTrader Apps from FX Blue. The app is basically an MT4 plugin to extend its features. It contains over 20 apps bundled together in one download. It has 15 custom indicators and 9 Expert Advisors (EAs). Forex.com also provides other tools like an economic calendar, pivot points, advanced charting and platform tools.
Final Thoughts on Forex.com
Forex.com focuses on transparency, technology, and quality execution of every trade. They want to help every trader succeed by providing powerful tools, trainings and platforms. The combination of the MT4 and Forex.com’s Advanced Trading Platform is a perfect blend of trading technologies. Their consistent technological research for tools and strategies is commendable. They are fully regulated and have put in place many policies to ensure that investors’ deposits are safe.
However, they should have expanded on the scope of trading instruments offered and not just focus on forex. Their payment options should be expanded to accommodate e-wallets payment gateways like Paypal, Neteller, FasaPay, Skrill etc.
Conclusively, Forex.com is a very reliable and recommended broker.