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Forex.com Review

Published by Usman Ahmed, MBA (Researcher)

Reviewed by Bowen Khong, ACCA

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

Forex.com is one of the most trusted names known for its offering of high quality trading platforms. Ensuring transparency, the multi-regulated broker holds competitive pricing schedules with an instant trade execution facility. Flexible account types, premium trading resources, and convenient signing up procedures make it a perfect choice for both beginners and seasoned traders.

In this forex.com review, I’ll discuss some of the promising features of the broker and highlight areas that the company needs to improve. 

Overview

Forex.com is a brand name of Gain Capital limited. The company started its operations in 1999. The broker offers forex and CFD trading access to more than 140,000 retail and institutional clients across the globe. In 2010, the company decided to go public on the New York Stock Exchange. With 800+ employees, the company has its headquarters situated in New Jersey, United States. At present, the NYSE listed company is being operated under the supervision of Glen Stevens (CEO – Gain Capital Limited).

Forex.com owns assets worth over 1 billion USD and a total equity of customers worth more than 800 million USD, according to the company’s GCAP data in Q3 2019. 

Given below is a quick summary of the main pros and cons of the brokerage company:

ProsCons
A wide range of forex crosses available
Backed by multiple regulations
FSCS funds protection plan
Intuitive trading platform
Availability of DMA accounts 
Limited products available
Higher CFD trading fee
No funds protection for the US Clients
Average customer support

Who Forex.com is for? 

Being a regulated broker that offers a wide range of tradable assets, Forex.com is suitable for all types of forex traders. With its advanced trading platforms, multiple risk management tools, and secured web encryption protocols, the broker remains a top priority for high volume traders. The broker is particularly more suitable for US clients due to its NFA regulation. 

Sign up bonus: Forex.com doesn’t promote any bonus campaign at present. The broker, however, offers cash rebates to high volume traders.

Is Forex.com Safe?

Trust Score: 100 (read more)

Forex.com is a registered foreign exchange dealer and futures commission merchant with Commodity Futures Trading Commission. Since 2004, the broker has also been a member of the National Futures Association under the membership number 0339826. The broker holds clients funds in segregated bank accounts and maintains market capitalization well above the required regulatory threshold. 

Forex.com keeps NFA updated on routine changes in equity of its customers that makes the broker even more reliable. In addition to NFA membership, the broker holds regulations from seven regulatory authorities, including ASIC, CIMA, FCA, FSA, SFC, MAS, and IIROC. 

The company also offers investors protection plans under the Financial Services Compensation Scheme to clients from the UK and European Zone. Under the FSCS investors protection plan, clients reserve the right to claim compensation of up to £85,000 in case the company goes bankrupt or runs out of money due to any unforeseen economic event. 

Canadian customers are also protected under the Canadian Investor Protection Funds. Unfortunately, the company doesn’t offer any funds protection plans to customers residing in the United States of America (USA). 

Year founded:1999
Publicly traded: Yes 
Licenses: FCA, FSA, ASIC, MAS, SFC, IIROC, CIMA
Backlist: 

Offering of Investments 

Supporting around 90 forex pairs and more than 200 equities, Forex.com has a rich portfolio of tradable instruments. However, the accessibility to the financial derivatives is dependent on traders’ geographical locations. For example, the broker offers more than 4500 CFDs in general, however due to NFA regulatory guidelines, the US clients cannot trade CFDs at Forex.com. Similarly, knockout options that were unavailable in certain jurisdictions of the world are now available in countries like Japan, Australia, and Singapore. 

Forex: Spot TradingYes
Currency Pairs (Total Forex pairs)80+
Social Trading / Copy-TradingNo
CFDs instruments4500+

Commissions & Fees 

Originally Forex.com started its operations as a dealing desk broker, but later on the broker switched into a pure ECN trading company. The broker makes money through spread markups as well as commissions. The company has a variable spread charging mechanism depending upon the type of account selected. For example, the broker charges a spread of 01 pip on EUR/USD pair in a standard account type, while the STP account type carries spread as low as 0.1 pips. High volume traders can also sign up for a DMA account with forex.com. Clients do not have to pay any markup on DMA accounts, however, a fixed commission may apply. 

With a minimum deposit as low as $100, forex.com is an ideal choice for low-budgeted traders. However, clients with enough funds available should start with at least $2000 deposit to enjoy lower spreads and better risk diversification. Clients may need to pay a fee on positions held overnights. An inactivity fee of $15 per month may also apply to clients who remained dormant for more than twelve consecutive months. The company does not provide any information regarding the minimum amount allowed for withdrawal at Forex.com.

Minimum Initial Deposit100
Average Spread EUR/USD – Standard1.5 (September 2020)
All-in Cost EUR/USD – Active1.5 (September 2020)

Platforms & Tools 

Forex.com offers state-of-the-art trading platforms with advanced trading tools to accommodate the needs of both long term trading professionals and day traders. In addition to the custom-developed web trader, Forex.com also leverages the facility of a desktop and mobile-based trading platform. On-the-go users can download the supported version of the mobile-based trading platform from Google Play Store or App Store. 

The web trader’s advanced charting options and trend indicators make the platform ideal for advanced level traders. Access to detailed market insights with a dedicated news corner and economic calendar keeps clients stay ahead of the market. Using drawing tools, clients can make charts look convenient to understand. Employing negative balance protection, the broker allows traders to trade with increased confidence.

The intuitive trading platforms at Forex.com are easy enough to navigate around or place trades. The charting frames give traders an overview of the price movement of the underlying asset in different time slabs. To enter a position, traders can either right-click to access the trade options directly from the chart or press the buy or sell button available on the top of the charting window.   

Provisioning four basic order types, including Limit, Stop, Market & OCO, Forex.com enables clients to employ take-profit and stop-loss features for a safe trading experience. 

Virtual Trading (Demo)Yes
Proprietary PlatformYes
Desktop Platform (Windows)Yes
Web PlatformYes
MetaTrader 4 (MT4)Yes
MetaTrader 5 (MT5)Yes
Charting – Indicators / Studies (Total)130+
Charting – Drawing Tools (Total)27
Charting – Trade From ChartYes
Order Type – Trailing StopYes

Research  

The research section of forex.com seems well organized. The automated pattern recognitions modules, economic calendar integration along with news feed, and the blog section make the research area worth exploring. With a variety of daily posts of articles covering different topics from the latest trading trends to information on upcoming events, forex.com manages to offer a top class research area. However, the broker lacks in video tutorials to help clients digest information in a more convenient way

Education  

Forex.com offers rich educational resources under its education section. The available material caters to the needs of both beginner level as well as seasoned traders. Traders can access a wide range of resources, covering basic information and how-to guides on technical and fundamental aspects of the financial markets. Teaching basics about charting tools and guiding how to develop a trading strategy, Forex.com provides a comprehensive range of resources to its clients. 

Mobile Trading 

Forex.com facilitates on-the-go users via its proprietary mobile trading app compatible with both android and mac based hand-held devices. Transforming the design of the app, the broker introduced a better version of mobile trading platform in 2020. The new mobile trading app allows users to access all premium services at one place. The modern app has all the features available that are deemed necessary for effective one-touch trading experience. Tools such as economic calendar and market updates help clients to make informed trading decisions. The mobile trading app supports all types of orders like trailing stops and OCOs. Using the (close all) button, traders can exit multiple positions simultaneously. 

Mobile devices Apple & Android
FeaturesWatchlist, Price alerts, Economic Calendar 

Final Thoughts 

Forex.com is a good broker that offers premium trading services with a competitive pricing structure. The broker is suitable for both novice and professional forex traders. However, seasoned traders might like it more due to instant trade execution and low-cost trading options that consequently help them in profit optimization. The strong regulatory framework, intuitive trading platforms, availability of demo accounts, and round the clock customer support are some reasons why the broker is worth opening an account with. 

Usman Ahmed, MBA (Researcher)
Usman Ahmed, MBA (Researcher)
Usman Ahmed is a currency trader and financial market analyst with more than 7 years of active trading experience. Besides holding a Masters degree in Business Administration, he has worked for some of the most renewed companies in the forex industry including FXCM, IQOption, MetaQuotes, Alpari, FXStreet, DailyFX and several others. Usman possesses strong technical analytical skills and is famous for his very own, informative and entertaining, writing style. He believes in naked chart trading analysis that is commonly known as price action trading. He follows global financial news and macro-economic events very closely.
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