Forex.com Review 2020 and Technical Opinions

Filippo Last Updated: July 2020 20 min read
security 98
cost 52
trading 60
education 100
Rated: Excellent
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Did you search Forex.com review to figure out Forex.com’s real value?

Would you like to fully understand if Forex.com is reliable or if it’s a scam?

Do you want to find out everything you can do with Forex.com, expert opinions, and user reviews?

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In this Forex.com review, you’ll find everything you need to dispel any doubt, including our feedback on Forex.com, both practical and technical, after years of experience on the platform.

The best thing you could is to open a free demo account to try out first-hand the Forex.com platforms, to be able to fully follow this review.

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Forex.com review
Security

The best place to start will be with giving some background to the company and ensuring that it is regulated, offers protection to your money and hopefully, we will find that it has plenty of awards for the wide range of its various services and products.

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Foundation and Offices

The broker was founded as a European company in 2001, now sporting two offices in both the UK and the United States of America.

  • UK offices are located at 16 Finsbury Circus, London, EC2M 7EB.
  • US offices can be found at 135 US Hwy 202/206, Bedminster NJ 07921, USA.

Regulations

Given its multinational locations, it has to adhere to different regulatory bodies depending on jurisdiction. The Tier 1 regulatory bodies should give you peace of mind that you are in safe hands and dealing with an upstanding firm which prioritizes looking after its customer’s interests first and foremost.

Forex.com actually works under the business names of GAIN Capital as follows:

  • UK entity: GAIN Capital UK Limited regulated by FCA (113942)
  • US entity: GAIN Capital Group LLC regulated by NFA (339826) and CFTC. It also offers services in Canada via IIROC
  • International Entity: GAIN Global Markets Inc. is regulated by the Cayman Islands Monetary Authority (25033).
  • AU entity: GAIN Capital Australia Pty Ltd regulated by ASIC (345646)

Money Protection

It is well known in the industry just how tough it is for a firm to obtain regulatory status in the United States of America’s financial industry. Given that the firm is trading on US soil with a clean bill of health and financial conduct, it is testimony to its trustworthiness.

One of the key features of its money protection services, is that it offers negative balance protection, so you can’t lose more money than you deposit. However, unfortunately, the company’s US customers do not have this feature.

As with any regulated broker in the UK or US, your money is held in segregated bank

accounts. In addition, ICF is available to UK traders. This is an insurance in case

something happens to your money with protections up to £85,000.

Awards

It is always a great sign to see so many awards from a broker’s profile and Forex.com is able to boast over 35 awards won since 2001. In fact, the broker has been voted multiple times as the best forex broker in the USA.

Not accepted clients

Forex.com accepts customers from over 150 countries. However, due to the different reasons, Forex.com can’t accept customers based within certain countries. These are the exceptions:

    • Belgium
    • Belarus
    • Afghanistan
    • DPR Korea
    • Cambodia
    • Iran
    • Iraq
    • Lebanon
    • Myanmar
    • Pakistan
    • Syria
    • Bonaire
    • Cuba
    • Nicaragua
    • Venezuela
    • Burundi
    • Eritrea
    • Ethiopia
    • Guinea
    • Libya
    • Nigeria
    • Somalia
    • Sudan
    • South Sudan
    • Tunisia
    • Yemen
    • Zimbabwe
    • Kiribati
    • New Zealand
    • Niue
    • Tuvalu
    • Wallis and Futuna
  • Pros
    • Award winning
    • Forex broker available in North America
    • Regulated and safe broker
    Cons
    • Only 2 offices

    Forex.com review
    Costs and Accounts

    Let’s make sure that the account opening process is not costly and an easy process. There is nothing more frustrating than before you even get to start trading, that you encounter complications in what should be an easy ABC step process to get set up with the broker. Well, you will not be disappointed with Forex.com. It is a very easy process to open a Live Standard Account. All you need to provide are the following statements:

    • ID/Passport.
    • Proof of residence.
    • Fill out a short questionnaire.

    Once you have completed the easy step paperwork requirements, you will then be requested to make a cash deposit.

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    Account Types

    Forex.com offers different kinds of accounts focused on each trader’s necessity. Check out all of it to identify what is the best option for you.

    Forex.com Demo Account

    Let’s go through the various account types, starting with the demo account. It is always a good idea to get familiar with the broker’s platform when you first sign up, as you want to iron out any problematic features of the platform where you could otherwise make easily avoidable mistakes before you start to trade live markets and with real cash. Unless you get lucky, every mistake leads to a financial loss.

    Forex.com offers 30 days trial demo accounts, giving you plenty of time to get familiar with its features and interface usability. At the end of the 30 days, you can go ahead and open another one if you need more practice time. This account is great for beginners or for testing strategies out before going live with them. The demo account is simple to open. You can do so just with an email and your full name, or sign in with Facebook/Google.

    Remember, the money you are trading is virtual, so there’s no risk involved. This obviously means that both earnings and losses are also virtual. And don’t worry, if after a period of time you feel this broker is not for you when signing for a demo account, you won’t be committed to depositing real money. You can stop trading with your demo account anytime and vice-versa, you can keep trading with a demo account as long as you wish to do so.

    Forex.com Retail Account

    Let’s move over to the live accounts, starting with the Standard trading account where you will have access to a wide range of asset classes and currencies. As with most brokers, you can start trading with small initial deposits. With Forex.com, you can start with a deposit as low as $50 with a maximum leverage of 200:1. This is essentially a way to transition from demo trading, having spent time getting used to the interface of the platform, to trading real money in live markets with market-maker execution.

    Forex.com Commission Account

    Now, let us take a look at the Commission Account. This account is suited for traders looking for very low spreads and fixed commissions. One of the features of this account is the very low spreads from 0.2 pips and $5/lot round turn commission, which is charged at the time the trade is executed. This account is only available on Forex.com’s proprietary trading platform.

    Forex.com DMA Account

    Forex.com says that the Direct Market Access account is for serious traders who demand deep liquidity and the control to take advantage of rapid price opportunities. The prices are sourced from global banks and top tier liquidity providers. The great thing is that there is no additional mark-up. The minimum deposit is $50, but it is recommendable to have at least a balance of $25,000. Spreads are very low and come with a $6/lot round turn commission. However, the greater is the number of your trades, the lower is the commission, and it could be cut down to $2/lot.

    Forex.com Swap Free Account

    The Swap Free Account offered by Forex.com has no rollover charge. However, additional fees may be charged when you keep the position open for more than a few days. Contact the Forex.com support if you want to know more.

    Forex.com Professional Account

    Now let’s get into the Pro Account. This is only going to be available to you if you register under the UK entity and in order to be eligible you will have to match at least 2 of these requirements:

    • The first one is that you will have to trade an average of 10 transactions of significant size per quarter in the past year.
    • Then, there must be a financial instrument portfolio of over €500,000 (in your bank or into the trading account).
    • You will have to have the relevant experience in the financial services sector for this account.

    After meeting the criteria and opening a professional account, you will be granted with higher leverages of up to 200:1 on Forex. Also, negative balance protection will be kept available.

    Account Base Currency

    One of the less appealing features is that there are not a very wide choice of base currencies. In fact, you can only be based in either EUR, GBP or USD which are usually available. The exceptions are the USA and China where only USD is always available.

    In any case, it is always a good idea to have your base currency matching the currency of your bank account or credit card is important because it keeps conversion fees away during deposits and withdrawals.

    Deposit

    Forex.com Minimum deposit

    So, it is time to make a deposit. Well, you will be pleased to know if you are just starting out, that the minimum deposit to open an account is just $50 for all 3 account types – Retail, Commission, DMA.

    However, if you are serious about trading, you want to be trading an appropriate amount of cash to get you started and forex.com suggests to deposit at least $1000, or up to $25.000 for DMA accounts. In that way, you will comply with all entry price requirements.

    Deposit Methods

    Meanwhile, it is easy to deposit money at the broker and you can deposit in USD, EUR, GBP, CAD and more currencies. You can do this via a standard and traditional bank transfer which are accepted worldwide. If you wish to use a cash card for simplicity sake, then you can use either a credit or debit card which are also accepted worldwide. These are the most flexible methods available providing low to no fees, and multiple currencies to deposit with. Alternatively, you can use eCheck and a Personal/Business Check which too are accepted, but only within the USA.

    Deposit Fees

    When it comes to making a deposit, they are generally fee-free. However, checks and bank transfers may be subject to costs. Also, a conversion fee may be applied in the case your base currency is not the same as the money you deposit.

    Withdrawals

    Withdrawal Methods

    Now, concerning withdrawing funds, you can do this in several ways as well. You can withdraw them in either USD, EUR, GBP, CAD and more currencies. Bank transfers and credit and debit cards are accepted. Cards are recommendable as they are more flexible and have low to no fees at all.

    Withdrawal Fees

    As for fees, when you withdraw funds, this is achieved free of charge for European traders.

    In fact, all withdrawals are generally fee-free, however, if you withdraw via Bank transfer, you may be charged a little fee. Also, a conversion fee may be applied if your base currency doesn’t match the currency of your bank account.

    Spreads & Commissions

    When it comes to spreads and commissions, Forex.com offers both Fixed and Floating spreads. This gives you the flexibility to choose what is best for you. Floating spread prices may vary depending on the market situation.

    Floating spreads start as low as 0.2 pips, and it may have a range that is lower than typical when the market is quiet and liquidity is high. Fixed spreads are offered on commodities including crude oil from 5 pips. However, they remain the same even though the prices are changing. As opposed to floating spreads, fixed spreads do not fluctuate because of market conditions.

    Finally, DMA commissions vary depending on the number of positions and standard lots traded. It can be as low as $2/lot.

    Fees

    Check the significant fees that you should know before opening an account with Forex.com and start trading in its platform.

    Overnight Fees

    Like with all brokers, there are fees associated with rolling or holding a position overnight. You can find the fees on the website so you can plan accordingly.

    That being said, the cut time for rollover in the Forex.com ecosystem is 5 pm ET, and the fee can vary depending on your position. In the case you are an Islamic trader, the broker offers a rollover free account. Contact them for more information.

    Inactivity Fees

    Some brokers will charge an inactivity fee and Forex.com is one of them, but only if you are in- active for 12 months. Forex.com will charge a monthly $15 inactivity fee if your balance is below $10.000 until you don’t log in back again. If the money on your account isn’t sufficient to cover this $15 fee, Forex.com may reserve the right to close your account notifying you. Demo accounts don’t apply.

    Pros
    • Low minimum deposit
    • Fixed and floating spreads available
    • Low spreads levels
    • Low commissions for active traders
    Cons
    • Inactivity fee

    Forex.com review
    Trading

    Going forward with our Forex.com broker review, let’s take a look at the critical trading features and markets available.

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    Trading Features

    Executions

    When it comes to getting your trades done, at Forex.com, you will enjoy the benefit of a hybrid STP Market Maker broker feature and this will be depending on the account, either STP for the DMA account of Market Maker for the Retail and Commission account. So, you’ll get one or the other execution.

    Regarding executions, it is essential to note that in an STP platform, you will have Direct Market Access to buy and sell assets on the international market. On the MM side, the broker will be the buyer and seller of any orders.

    Sizing

    At Forex.com, the minimum trade size is 1 micro lot (0.01 standard lots). It allows traders to open positions with as low as $1000 in non-leverage options.

    Techniques

    Whether you are a day trader, swing trader, investor or only wish to trade at certain times and volatility, you have the options to do so at Forex.com and the broker will allow you to scalp and hedge.

    If you wish to trade algorithmic strategies, you will be pleased to know that trading with EAs is allowed through MT4 and MT5 platforms as well. VPS, which is a service that helps traders to deploy their expert advisors on a dedicated server independently from the trader’s own computer, are legal to use as well.

    Risk Management

    This brings us to the most important aspect of your trade plan and how it can be applied at Forex.com. The broker offers 5 main risk management tools which include, Stop Losses, Take Profits, Limit Orders, Trailing Stops and Margin Calls. The following are a description of these features to remind you of how they work universally in the industry:

    • Stop losses and take profit are tools that allow you to protect yourself from losses and secure gains.
    • Limit orders is a tool that asks XM to open a trade once the asset reaches a certain price
    • Trailing Stop helps you to secure profits while the asset keeps moving in the right direction.
    • Margin Calls are also available. They warn you when your equity is below a certain level.

    Trading Hours

    The great thing about Forex.com is the trading hours which are the times where an asset is available for trading. If you do not know already by now, the FX market is a twenty-four-hour market which means you can trade from the moment Asia opens on a Sunday (or Asia Monday) right up to the close in New York on a Friday. At Forex.com, the Forex trading will be available around the clock so long as the market is open.

    For the cryptocurrency market, this is even open on weekends and so too is Forex.com, so you can take advantage of the weekend price action as well.

    The stock, index and the commodities/futures markets depend on the asset itself or on the local market hours of the stock exchanges or the indices, but so long as the markets are open, Forex.com will be there to offer you access, night and day, depending on where you are in the world.

    Leverage

    Leverage depends on the Forex.com entity you register with. For instance, if you are with the UK entity, then the leverage on forex is 30:1 (200:1 for professional traders). With the US entity, the leverage on forex is 50:1. With the Global entity, well, then the leverage on forex is 200:1.

    Platforms & Mobile

    As a key tool to implement your trading strategies, choosing the right platform is very important as it could either hurt your position or enhance your whole trading experience. Let’s take a look.

    Charting and Trading tools

    At Forex.com, you will enjoy great charting and trading tool software which are provided by MetaTrader 4 and 5. Metatrader offers the familiar 51 chart indicators. It also provides around 31 drawing tools from third-party platforms.

    Then, you have the luxury of one-click trading and you can even set orders directly from the chart. This is critical when you want to access the market and price with ease and precision and can make a real difference to the overall execution experience when trading volatility, especially if you are a scalper wanting to get in and out of the market.

    Finally, the Forex.com proprietary platform offers more than 100 trading tools though it is not as customizable as MetaTrader.

    MetaTrader 4

    MetaTrader 4 and 5 are similar, with 5 being the latest version of MetaTrader and it is taking a number of years for traders to move from 4 to 5, but depending on your preference, Forex.com makes both available to you to enjoy.

    However, MT4, for example, is only available with Standard Retail accounts but is considered the best third-party trading platform on the market. It is a powerful trading platform and is encrypted communications between you and the servers. There are over 50 indicators and charting tools to enjoy from the get-go.

    The platform even enables the trader to copy other traders. MT4 is accessible and compatible with Apple, iOS, Mac, Windows, Android and comes in the form of either a download desktop version or via Webtrader.

    MetaTrader 5

    MetaTrader 5 is only available with Standard Retail accounts and is an improved version of MT4. There are more indicators, it has an economic calendar, it features 6 more pending orders that can be available and market depth is shown across 21 total timeframes. You can also code, download and install trading robots for algo trading. Again, this is available for Apple, iOS, Mac, Windows, Android and is on Webtrader also.

    Forex.com Trading Platform Trader

    Now, let us get into the Forex.com trading platform. This platform is highly user friendly, for which some may prefer over MetaTrader.

    Also, another advantage is that there is a huge amount of charting, trading and drawing tools, for a total of around 130 tools. Again, this platform can be enjoyed on either Apple, iOS, Mac, Windows, Android and also is accessible on Webtrader as well.

    Markets

    Whether you trade forex, commodities, stocks and the indices or crypto, Forex.com has it all. So let’s break down the individual asset classes and get into them.

    Forex

    Firstly, if you wish to trade currencies, then you are in the right place with there being over 80 forex pairs to pick from which gives you great mobility around the forex industry. You will also be able to enjoy really competitive spreads on the majors from 0.2 pips. And again, forex will be available to trade so long as the market is open, which is 24/5, Asia’s open on a Monday (Asia) to the New York close on a Friday.

    Commodities

    If you want to trade commodities, this asset class will be made available to you through CFDs and Futures. Fixed and variable spreads will be available and up to 16 in total, consisting of 5 metals (Palladium, platinum, gold, silver, all traded vs USD), 4 energies (in Brent and WTI crude oil, Natural Gas, and Heating Oil ) and 7 agricultural contracts (Corn, Coffee, Cocoa, Sugar, Soybean, Wheat, and Cotton).

    Indices

    When it comes to trading global equities, Forex.com gives you a great variety to choose from so that you can have access to the action across world-wide markets depending on what is happening in the world. You will have 15 indices from all around the world to access with very low spreads during market hours.

    Stocks

    For trading individual stocks and shares, you will have access to over 4,500 of the most popular UK and US companies. However, these will not be available on MT4 and to US traders. Commissions will be charged from as low as 0.08%.

    Cryptocurrencies

    As for crypto, here are 5 cryptocurrencies to trade made available through Forex.com. These are the most common and liquid in the markets today and should be familiar to any observer of this expanding and growing marketplace: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple.

    When buying or selling these cryptos, you will be trading against the US dollar in the main, however, Bitcoin can also be traded with EUR, GBP and even AUD.

    Products

    Forex.com Active Trader Program

    For high volume traders, you have the Active Trader Program which means that you can qualify for it once you trade at least 25 lots in a calendar month and reduce your trading costs by up to 18%. You can also earn rebates up to 9 lots traded and get reimbursed of bank and wire transfer fees.

    Social Trading – Copy Trading

    While Forex.com does not have any Social Trading features or copy trading features, it’s still possible to enjoy copy trading thanks to MetaTrader.

    Don’t forget, MetaTrader offers the possibility to trade with EAs, which are basically algorithms that open and close assets automatically. These can be coded (with MQL Language) or downloaded from the MQL5 forum community, so you still have plenty of flexibility and all at your fingertips.

    Pros
    • Hybrid execution
    • Both MetaTrader and proprietary platforms
    • Great Active trader program
    Cons
    • Micro lots only
    • Max leverage is under the industry standards
    • No social and copy trading features

    Forex.com review
    Education and Support

    A vital feature of all brokers, especially for novice traders, is the education and support section of the broker website. Let’s see if beginners can find what they need with this broker.

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    Languages

    Forex.com is based in the UK and the US, which means it has limited accessibility for worldwide traders who do not speak English as their first or second language. However, China is a growing market for traders and Forex.com is available in Chinese.

    Research

    Market analysis and research is essential to traders and Forex.com provides market-leading research features through its services in both forex and stock markets which are made by the Forex.com research team. These are presented in various formats, including Webinars and their economic calendar. There is also market analysis on specific market situations such as Brexit.

    The economic calendar is a “reminder” of important events that will take place in the near future, that may cause an asset to rise or fall, so it’s always good to stay abreast with what is coming up, to either avoid or trade. Forex.com will give you the expected impact on the news to help you with your positioning in the markets around these key events.

    Customer Service

    When it comes to customer service there is a huge FAQ section with dozens of questions. You can access the sales team via a live chat facility, or by phone calls and of course by email. The only languages available for support are English and Chinese.

    Education

    Forex.com is a service for all levels of traders, whether you are a novice or professional with years of experience, there is something for everyone.

    You have tutorials for beginners, intermediate, and expert traders which are centred around such topics as risk management, trading concepts, technical and fundamental analysis and how to use their trading software. There are no video lessons so you may have to get your reading specs on.

    Pros
    • Good research section
    • Great FAQ section
    Cons
    • English and Chinese materials only

    Forex.com review
    Our Opinion

    Overall, Forex.com is one of the best companies in the industry when it comes to their brokerage services for any level of trader. It is definitely an excellent choice for US traders. However, this is not the right broker for you if you are looking for social and copy trading features.

    Given its registration with the CFTC, IIROC and FCA, its levels of trustworthiness and safety are high. A particular feature to take into account considering the broker can be the principal to the trade.

    The DMA account is a brilliant alternative to those who want low spreads and direct access to markets. In that framework, active traders would be happy with Forex.com as the $6/lot standard commission can be lowered to $2/lot.

    While professional traders may find the 200:1 leverage low in comparison with the standard 400:1 in the industry, its flexibility in prices and markets is a plus. It includes a significant advantage while investing in the commodity market, where traders can enjoy both floating and fixing prices depending on their necessities.

    Finally, this Forex.com review found that the broker is not the best choice for beginner traders as there are better options in the industry.
    Overall, Forex.com is one of the best companies in the industry when it comes to their brokerage services for any level of trader. It is definitely an excellent choice for US traders. However, this is not the right broker for you if you are looking for social and copy trading features.

    Given its registration with the CFTC, IIROC and FCA, its levels of trustworthiness and safety are high. A particular feature to take into account considering the broker can be the principal to the trade.

    The DMA account is a brilliant alternative to those who want low spreads and direct access to markets. In that framework, active traders would be happy with Forex.com as the $6/lot standard commission can be lowered to $2/lot.

    While professional traders may find the 200:1 leverage low in comparison with the standard 400:1 in the industry, its flexibility in prices and markets is a plus. It includes a significant advantage while investing in the commodity market, where traders can enjoy both floating and fixing prices depending on their necessities.

    Finally, this Forex.com review found that the broker is not the best choice for beginner traders as there are better options in the industry.

    Forex.com Pros and Cons

    Here is a list of the pros and cons overall followed by a description and overall opinion.

    Pros

    • Award-winning broker.
    • Available in the USA and Canada.
    • Low minimum deposit.
    • Low Fixed and floating spreads.
    • Great active trader program.
    • Hybrid execution.
    • Both MetaTrader and proprietary platforms.
    • Good customer service.

    Cons

    • Only 2 offices.
    • Inactivity fee.
    • No social and copy trading features.
    • Max leverage is under industry standards.
    • English and Chinese only.
    • Education material is not in video format.

    Forex.com FAQs

    How much is the maximum leverage at Forex.com?

    The maximum forex.com leverage is 30:1 if you are based within the UK or EU. This increases to 50:1 maximum leverage if you are within the US, and 200:1 if you register with the international Forex.com entity (GAIN Global Markets Inc.). For more information check our Forex.com Review.

    What is the minimum deposit on Forex.com?

    The Forex.com minimum deposit changes depending on the account type you choose. The lowest minimum deposit available is $50.

    What are the spreads applied by forex.com?

    Forex.com has both floating and fixed spreads. Floating spreads start from 0.2 pips. Fixed spreads from 5 pips are available, but only on commodities. For more information, you can check out our detailed Forex.com Review.

    What are the Forex.com customer support phone numbers?

    You can contact Forex.com with 2 numbers in the US. These are 908-731-0750 or toll free at 1-877-367-3946. There are also a variety of other numbers available which you can access depending on your location around the world. You can check the broker support section for your region for more information.


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    Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
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