Forex.com is an online trading site open for all types of traders seeking exposure to a wide array of products and asset classes. The broker’s financial instruments vary by region but it emphasizes fast and reliable execution, a variety of platforms, and account security.
Discover the advantages of trading with Forex.com as this broker review guides you through its services, offerings, and features.
Forex.com Background & Safety
Established in 2001 as part of GAIN Capital Holdings, Forex.com is a fixture in the global online brokerage scene that caters to individuals who want to trade in the FX and CFD retail markets. In February 2020, StoneX Group Inc. acquired Benefit Capital Holdings, a conglomerate that includes City Index, an online CFD and spread betting provider, and Daniels Trading, a futures advisory trading firm.
Forex.com is an FCM and RFED registered with the CFTC and a member of the NFA. Additionally, the Financial Conduct Authority authorizes and controls GAIN Capital UK Ltd (FCA). United Kingdom/E.U. Customers also have extra asset coverage, up to £ 85,000, through the Financial Services Compensation Scheme (FSCS).
Delving into the broker’s safety, Forex.com provides its U.K. /E.U. clients with Negative Balance Protection as required by ESMA and assured stop loss orders (GSLO) for customers (for an additional fee), which protects against the risk of market gap. These rules probably resulted from the January 15, 2015 SNB event that roiled the markets, especially the highly leveraged retail forex market.
However, the Negative Balance Protection is not offered to non-EU clients. Hence, these clients’ accounts outside the EU bloc can go negative. Another setback is that U.S. clients are not offered guaranteed stop loss orders.
In terms of fund security, Client funds are kept segregated from the funds of the company, which helps safeguard clients’ money in the event of insolvency.
Lastly, trading transactions held in the broker’s trading system are protected with two-factor authentication (2FA) and biometric authentication for its mobile application. Forex.com also encrypts data using SHA256, TripleDes, and MD5.
Forex.com Features & Fees
On a global scale, Forex.com provides access to a wide selection of financial instruments across several asset classes which include over 80 currency pairs, more than 220 equities, commodities, indices, bonds, ETFs, sectors, cryptocurrencies, gold & silver, and futures & futures Options – U.S. (FuturesOnline).
Forex.com offers three account types: Standard Account, Commission Account, and Direct Market Access Account. Let’s have each account type in detail.
Standard Account – ideal for traders who want a traditional, spread pricing currency trading experience. Average spreads are higher at 1.4 pips on the EUR/USD, based on the typical spread data provided to us by FOREX.com.
Commission Account – this account is for traders looking for the flexibility of trading significant reductions on spreads – EUR/USD as low as 0.2 pips – with low commissions ($5 commission per 100K traded).
Direct Market Access Account – this account is perfect for serious traders who demand deep liquidity and the control to take advantage of rapid price opportunities. Using this account, you can Trade on prices sourced from global banks and top tier liquidity providers – with no additional mark up.
Standard Account and Commission Account users may also benefit from the Active Trader Program. The service is available to anyone who opens an account with a minimum of $10,000 or trades a month with a volume of $25 million.
With Forex.com, traders can make a deposit via debit card, wire transfer, eCheck or check. The minimum initial deposit is $100 or currency equivalent. Withdrawal options include credit/debit cards and electronic wallets. The minimum withdrawal amount is 100 of your account’s base currency or the remaining amount if less than 100.
There are no withdrawal fee charges for any of the given transaction method.
Forex.com Trading Platforms & Tools
The trading platforms offered by the broker satisfy both novice and experienced traders. For a desktop experience, customers can choose between the downloadable advanced trading platform and MetaTrader 4 (MT4). You can opt for the Web Trader for a browser-based trading experience. You can also choose the Forex.com or MT4 smartphone app for portable smart device trading.
Within the platforms, traders can access charts, economic calendars, news, positions, and trade/order history, and access trade signals and research reports, as well as market analysis from Forex.com analysts.
Forex.com provides leveraged access to over 80 currency pairs with attractive spreads across various account types for U.S. customers. Forex.com is in the upper echelon of online brokers with a well-organized and navigable website with fully-disclosed services and fees, various user interfaces, education and analysis resources that are on par with industry standards, and regulatory oversight.