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Forex.com Review 2020

4 Stars

Forex.com is an international CFD and forex broker founded in 2001. It operates under the company GAIN Capitals which is publicly-traded and has a listing on the New York stock exchange under GCAP. It is considered a trustworthy option by brokers due to its regulation in 4 Tier-1 jurisdictions; under FCA, CFTC, and other major regulatory authorities. 

Brokers can expect a comprehensive CFD and forex trading experience with competitive pricing, a full host of features for trading platforms, and a user-friendly mobile application. This Forex.com review will show how it is known to work for traders at all levels.

3 Steps to Sign Up on Forex.com

The sign-up process of Forex.com is quite straightforward and should only take you up to 10 to 15 minutes. It does require account confirmation which may take up to 2 business days. Here are the 3 steps to open an account:

1. Choose Your Trading Platform: To get started, you will have to choose between Forex.com’s own trading platform or a third-party platform, for example, MetaTrader 4. Generally, beginners choose the proprietary platform, however, seasoned investors who want greater control over their orders and trading may want to opt for MT4.

2. Fill in Your Details: You will be prompted for some details including your personal and financial information. These details may include your employment status, annual income and your place of residence. You will certainly have to provide detailed information on your name, email address and telephone number as well. 

3. Answering a Few Questions & Verification: At this final stage, you will be asked a few questions regarding your financial knowledge and experience in trading. It also requires a photo ID and proof of residency. Upload a national ID card, driver's license or passport to verify your identity. For proof of residency, you can submit your utility bills and bank statements.

Pros & Cons

Pros

Decent mobile and desktop app functionality
The platform has TradingView chart built into it
Highly regulated by leading authorities authorities
Comprehensive educational resources
A wide selection of assets
Users can make a demo account
Great customer service

Cons

Higher spreads as compared to international brokers
Cryptocurrency trading not allowed in the US
Negative balance protection not available

Forex.com Compared

Forex.com is a popular Forex trading platform that is highly useful for active traders trading in CFDs and Forex. It may also benefit those who trade less frequently as the spreads are a bit higher when compared to other international brokers. The platform has garnered considerable popularity due to its good regulation and reputation in the Forex industry.

If however, you feel that you would be better suited to a different platform, there are some that we would recommend. 

History of Forex.com

Forex.com belongs to the parent company GAIN Capital holdings that was founded in 1999 and is listed on the NYSE under GCAP. The company now has different trading names and subsidiaries in multiple countries and is regulated by relevant authorities in the UK, US, Canada, Japan, and Australia.

GAIN Capitals is quite a large company with international offices having over 800 employees and over 200,000 retail and institutional clients. The broker is considered a pioneer in the forex trading industry in the US and is one of the largest FX brokers in the world. It has over $1.3 billion in assets as of the second quarter in 2019 and more than 71,000 traders registered on the platform as of August 2019.

Regulation and Security

Forex.com is regulated by the relevant authorities in the US, UK, Japan, Australia, Singapore, and the Cayman Islands. The products offered are subject to change according to the laws of each country. CFDs are not available for trading in the US but are available for other countries outside of the US.

The online broker is publicly traded and regulated and authorized by major Tier-1 banks which makes them highly trustworthy and low-risk. Some of the regulatory authorities include the Financial Conduct Authority (FCA), Commodity Futures Trading Commission (CFTC), and many more.

KYC and AML regulation allow financial institutions and trading platforms to prevent money laundering, fraud, and other similar activities.

Is Forex.com Safe?

Forex.com safeguards clients' funds by segregating them from the company funds. For Canadian clients, there is extra protection under the Canadian Investor Protection Funds. Other clients do not receive any additional insurance from the company. However, it has built a good reputation and is heavily regulated by heavyweight authorities such as the FCA. This has established it as low-risk and trustworthy among many forex clients.

Since negative balance protection is not offered, client accounts may go in the negatives. However, the accounts are monitored and in case a client fails to have a sufficient margin in their account the positions are automatically liquidated. This does not guarantee the prevention of negative balance and may pose a slight risk to traders if they are not careful. The platform does offer guaranteed stop losses at a cost.

It is transparent about its pricing which can easily be found on the platform. There are even functional demo accounts so clients can assess the pricing structure and platform before making any actual investment.

The broker heavily encrypts their data, however, additional security such as fingerprint technology or 2-factor authentication is not included.

Reputation

Forex.com has established itself as a major player in the FX and CFD trading landscape. Best known for its excellent trading experience, the broker offers many redeemable features such as competitive pricing, well-developed mobile app, and great security practices, and solid regulatory compliance.

Its popularity can be proved by all the awards under its belt. In 2020, it won the top 7 awards in a number of categories including those for Professional Trading, Commissions & Fees, Education, Crypto Trading, Ease of Use, Offering of Investments, and Best Overall Trading Platform.

Is Forex.com for Me?

Choosing the right forex broker can be a challenge for beginners and advanced users alike. The most common question for beginners is whether the platform will be easy to use, and will it contain educational resources needed to learn and to grow as a trader. For more experienced users, the concern is whether the platform has enough advanced features that allow them to put their expertise to good use and maximize their returns. Here we will examine the platform for both these categories and find out if it is able to strike the perfect balance that caters to all skill levels.

I’m a Beginner

As a beginner, you have a variety of resources and opportunities to learn about forex and CFD trading. Here are some of the ways you can learn as a beginner:

  • Create a fully functional demo account to test the platform out before investing. 
  • Watch platform tutorial videos to familiarize yourself with it 
  • Find general educational videos and articles on forex and CFD trading 
  • Go through the trading glossary
  • Participate in the trading quiz to test your skills

In addition to all these educational features, it also offers a very easy to understand website that beginners should have no trouble navigating. 

I’m an Expert

It also caters to the seasoned trader through a wide range of features, including the advanced trading option. Advanced trading is ideal for veteran traders and includes features such as technical analysis tools, automated technical analysis from AutoChartist, and the ability to develop customised automated trading systems. The robust features allow more advanced traders to make the most of their expertise while trading on the platform. 

In short, the trading platform is quite suitable for traders at all skill and experience levels.

What Are the Benefits of Trading in Forex.com?

Some of the major benefits you receive are:

  • Wide Range of Currencies 

Forex.com allows the buying and selling of over 80 currencies. This makes the online broker one of the most diverse and comprehensive currency pairs trading providers around the world.

  • Large List of Indicators 

The platform offers the trader access to over 90 individual indicators and the ability to add more to a currency chart with just a click. Traders can even add multiple indicators to a single chart to create highly detailed and informed views. This allows investors to make the most out of technical analysis to inform their position.

  • Great Educational Resources 

It simplifies forex trading for newcomers with a comprehensive set of educational tools. With trading being a complex subject to understand, the online broker provides a well-rounded educational section with a wide range of research and educational tools for traders at all skill levels. This includes live webinars, articles, economic calendars, videos, and tutorials for both beginners and more advanced traders.

Fees and Costs

As a market-maker, Forex.com generates revenue through slightly higher spreads instead of connecting client orders with raw prices on the market. The markups in the pricing can be noticed when you compare the standard account and the Direct Market Access (DMA) account. For the DMA account, it offers no markup on spreads but does take a commission. For the standard account, on the other hand, it takes no commissions but does feature larger spreads. In the middle lies the commission account which has reduced spreads with a slight markup and a lower commission than the DMA account.

It’s pricing lags behind when compared to other international brokers which offer tighter spreads and lower commissions to traders. It also has an Active Traders program that is open to everyone who opens an account with at least $25,000 or trades $25 million a month. This program is only open to standard and commission account holders and is not offered to DMA accounts as it already has volume-based fee reduction.

Accounts with less than $10,000 and no trading activity for more than 12 months are charged a fee of $15 per month as the inactivity fee. All accounts with more than $10,000 are not charged an inactivity fee. The platform does not charge additional fees for deposits and for withdrawals, ACH payments and checks are also free. Wire transfers in the US under $10,000 have a $25 fee and other wire transfers require $40. Over the $10,000 limit, wire transfers are also free.

In terms of other fees, any account with less than $10,000 and no trading activity for more than 12 months are subject to a $15-per-month inactivity fee. Accounts over $10,000 are exempt from inactivity fees. There are no additional fees charged by Forex.com for deposits. 

For withdrawals, checks and ACH payments are free. U.S. wire transfers under $10,000 incur a $25 fee, and all other wire transfers are $40. Wire transfers over $10,000 are free.

Payment Methods and Limits 

Accepted Deposit Methods

  • Credit or debit card
  • Wire Transfer 

Minimum Deposit and Withdrawal Limits

  • Minimum deposit of $50
  • Minimum Withdrawal limit of $100

Performance Features and Functionality

Forex.com offers a standard trading account and the active trader account. For the standard account, the minimum deposit is $50, and for the active trader account, a $20,000 deposit is required. Active traders will receive a relationship manager to help them with their trading needs. Demo accounts are also provided with $50,000 in virtual funds. 

Forex.com gives traders the option of choosing its own trading platform, ‘Advanced Trading’, or choosing the popular MetaTrader. Its own trading platform offers a host of features for seasoned developers and a lot of opportunities for automation.

Trading Platforms 

Forex.com gives traders access to 3 main trading platforms:

Advanced Trading: This is the flagship platform and is ideal for veteran traders who can utilize the tools provided to apply their expertise in forex trading. It comes with an impressive charting package with a large selection of 139 technical indicators and drawing tools. It also comes with technical analysis tools including automated technical analysis provided by Autochartist that scans markets for emerging patterns and trade information.

Web Trading: The web trading platform is ideal for casual traders with an easy to use interface to browse through markets, analyze charts, conduct research, and place trades. It also means that whether you are a beginner in this field or a professional trader, you can access your account from anywhere on any device may it be a PC, Mac, laptop, tablet, or even your smartphone.

MetaTrader: In addition to the award-winning flagship platform suite, Forex.com also offers a whole suite of MetaTrader which includes both MT4 and MT5. These platforms are specially designed for professional trading experts who want granular control over their orders and want to keep a close eye on all the data. Access to MT4/MT5 provides them with the functional versatility and data insight they need to maximize their profitability.

Educational Resources

Forex.com offers a whole range of educational resources for beginners and advanced level traders alike. Traders can educate themselves with their Learn to Trade Forex course which takes a deep dive into the ins and outs of Forex trading with seven dedicated lessons that cover pips, margin, charting, and much more. In addition to the course, traders can apply their skills and knowledge to the platform through a risk-free demo account with $50,000 of virtual funds.

The interactive courses come with tools and videos that teach traders how to manage risk, anticipate market movements, and chart patterns. The courses come with quizzes and workbooks that can be printed.

It also provides instructional video tutorials on their FOREXTraderPRO and MT4 Platforms. The educational section also contains interesting online webinars which can be joined by all traders after pre-registration. 

Trading Options

US clients can access 83 forex pairs, unleveraged gold, and silver. Outside the US, clients have access to all the trading pairs, CFDs on stocks, indexes, and commodities. Crypto trading is only available in the UK at the time of writing.

Account Types

Forex.com provides three main account types that have different pricing structures and platforms:

Forex.com Account

  • Pricing: Higher spreads, no commission 
  • Platform: Forex.com’s platform

MetaTrader Account 

  • Pricing: Higher spreads, no commission 
  • Platform: MetaTrader Platform

DMA Account 

  • Pricing: Lower spread, $2 commission per lot per trade 
  • Platform: Forex.com’s platform

It also provides account ownership options including:

  • Individual: Account owned by individuals
  • Join: Account owned by two or more people
  • Corporate: Account owned by a legal entity

Final Thoughts

Forex.com is the leading FX trader in the world with over 71,000 clients and a plethora of awards in multiple categories. The broker is the ideal fit for active traders as active trading means lower trading costs. It is also a viable option for infrequent traders because a few trades per month would reduce the costs incurred due to high spreads and associated fees.

The broker has managed to create a well-rounded forex and CFD trading experience with a responsive, user-friendly website, and a rich knowledge base for traders of all experience levels. The demo account has a generous offering and is a good way to test out the platform before investing in it.

FAQs

  1. You can open an account online through their website.

  2. Forex.com will ask you for your name, address, and necessary documents to verify your identity to complete the process.

  3. Yes, the platform offers a demo account with $50,000 in virtual funds. The demo account expires after 30 days of sign up, after which you cannot log in using the demo account. You cannot renew the demo account.

  4. The minimum initial deposit is at least 100 of your selected base currency. However, Forex.com recommends that you deposit at least 1,000 to allow for better risk management and flexibility while trading.

  5. Withdrawals are processed in the order of funds received. The order for returning funds to the originating account is: 1. Credit/debit card 2. Fund transfer

Company Information

Company Name
FOREX.com

Account Information

Minimum Deposit
$50
Email Support
Yes
Phone Support
Yes
Live Chat Support
Yes
Free Demo Available
Yes
Payment Options
Debit Card, Bank Wire, ACH, Credit Card, PayPal