Forex.com Review 2020 and Technical Opinions

Filippo Last Updated: July 2019 20 min read
security 93
cost 53
trading 61
education 100
Rated: Excellent
74

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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.

Forex.com

security 93
6
0
0

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.  Its UK offices are located at 16 Finsbury Circus, London, EC2M 7EB and the 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.

The US entity is also regulated by IIROC, allowing it to offer its services within Canada.  International Entity: GAIN Global Markets Inc. is regulated by the Cayman Islands Monetary Authority (25033).

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. The process is long and costs millions of USD and the company has to comply with the strict US financial laws. 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.  This means that in case of bankruptcy or insolvency, your money will remain untouched. 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 brokers 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

 

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 that 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.

Forex.com

cost 53

Account Types

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 with real cash. Unless you get lucky, every mistake leads to a financial loss.

The FBS 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 practise 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 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. This is an account that is offered worldwide. In this account, the minimum deposit is $50. The account can give you a max leverage 200:1 under CIMA.

However, within other areas, the leverage may be lower. The great thing about this account is that it gives you a good amount of forex pairs and assets. It is definitely a good account for getting trading confidence with Forex.com. Also, this account type has a market maker model execution

Forex.com Commission Account

Now, let us take a look at the Commission Account. This account is not offered by the UK entity. The minimum deposit is still $50, but Forex.com suggests making a deposit of at least $1000.

One of the features of this account is the very low spreads from 0.2 pips and $5/lot round turn commission. This account is suited for traders looking for very low spreads and fixed commissions.

Unfortunately, this account is not available with Metatrader, but it can be used on the Forex.com proprietary trading platform. This account type also has the market maker model execution feature.

Forex.com DMA Account

The next account we will look at is the Direct Market Access account, or DMA. This has a minimum deposit at $50, but Forex.com suggests making a deposit of at least $25,000 for traders who want to exchange directly on the international markets.

The great benefit to this feature, given you will enjoy trading at Top tier liquidity providers, is that spreads will be kept very low – in other words, there will be no spread mark-ups. $6/lot round-turn commissions will be paid but the more you trade, the lower will be the commission. There are multiple brackets, and the last bracket can be reached with 20 monthly lots traded, which will reduce the trading commission down to only $2/lot.

Forex.com Swap Free Account

The Swap Free Account offered by Forex.com has no rollover charge, but the broker may apply additional fees on each of your open trades. Contact Forex.com for more information if you’re interested in this account type.

Forex.com Professional Account

Now let’s get into the Pro accounts. 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.

However, once you meet these criteria, you will be allowed to use higher leverage on all assets, up to 200:1 on forex. Not only that, but the negative balance protection will be kept available  also.

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. Another reason is that some markets (for example futures and indices) often have an entry price of a few hundred USD, so, depositing $1000 you will have a better trading experience.

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. The great thing here is if you deposit via Check or Bank transfer, you may be charged a little fee. However, a conversion fee may be applied if your base currency doesn’t match the currency you make the deposit with.

Withdrawals

Withdrawal Methods

Now, with respect to withdrawing funds, you can do this in a number of ways as well and you can withdraw them in either USD, EUR, GBP, CAD and more currencies. Again, bank transfers are accepted worldwide and so too are credit and debit cards. Again, this is the most flexible method available providing low to no fees, and multiple currencies to deposit with.

Withdrawal Fees

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

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. The Fixed Spreads are offered on commodities. For instance, crude oil is from 5pips. As for floating spreads, these vary from very low 0.2 pips on forex and other assets.

The commission charged on Forex is $5/lot on the commission account and $6/lot on DMA account. However, on the DMA account the commission can be lower depending on the number of standard lots traded. In the best scenario, the commission will be $2/lot.

Fees

Overnight Fees

At any broker, interest and servicing have to be taken into account with leaving trades open overnight and overnight fees are charged on basically every asset on Forex.com. This broker is a derivative products provider so these fees are charged every day on open trades at 5pm ET.

However, this fee can be higher or lower depending on the asset chosen. To help you keep track of these costs, they are fully displayed with transparency on the Forex.com website. However, if you are an Islamic trader, you may be interested in the forex.com rollover free account.

Inactivity Fees

Now, what you don’t want to do is open an account with a broker and leave it there as some brokers will start applying fees to inactive accounts. So, when you open a real account with Forex.com, and you’re inactive 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, in order to maintain the broker’s costs for hosting your money.

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. Please note that this fee won’t be applied if you’re a demo account holder and if you haven’t opened a real money account with forex.com.

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

Forex.com review
Trading

Forex.com

trading 61

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 MM for the Retail and Commission account. So, you’ll get one or the other execution.

With the STP execution, since you have Direct Market Access, you buy and sell on the international market while with the MM execution, the broker receives the prices by the liquidity providers but the broker itself will be the buyer and the seller of any order you make.

Sizing

At Forex.com, the minimum trade size is 1 micro lot (0.01 standard lots) which means that, on forex, with a Forex.com account you will be allowed to open positions as low as $100 (non-leveraged).

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. There 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 are 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

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. When it comes to drawing tools, thanks to the third party platforms which are more customizable from this point of view, it offers 31 tools.

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.

While the Forex.com proprietary trading platform is less customizable than Metatrader, it offers a huge amount of indicators and drawing tools, more than 100.

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.

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 standard 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 of via Webtrader.

MetaTrader 5

MetaTrader 5 is only available with Standard Retail accounts but is considered to be 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 on Webtrader.

Forex.com Trading Platform Trader

Now, let us get into the Forex.com trading platform, (FBS Trader). FBS Trader is the proprietary platform of the broker and is highly user friendly, for which some may prefer over MetaTrader.

Also, another advantage is that there are 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 or Android and also is accessible on Webtrader.

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 from 1pt 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 Forx.com. These are the most common and liquid in the markets today and should be familiar to any observer of this expanding and growing market place: 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 Social Trading features, or inbuilt 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

Forex.com

education 100

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, Website sections, where there is market analysis on specific market situations such as Brexit and their economic calendar.

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 centered 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

In an overall opinion, this is one of the best of the industry leaders when it comes to their brokerage services for any level of trader.  Forex.com is definitely a great choice for US traders

Which is a compliant broker regulated by the CFTC, IIROC and FCA.

The Commission and Standard accounts provide Market Maker execution, thus the broker is both who sells the products, and the counterpart that buys them back to you. The DMA account, on the other hand, is way better since it provides direct access to the market with very low spreads and forex commissions from $6/lot.

Forex.com is a really great choice for very active traders, since with the DMA account it is possible to lower the commissions down to $2/lot.

Another great reason why forex.com is a good choice is the commodities and futures markets. Not a huge number of commodities and futures, but very flexible pricing with both fixed and variable spreads. Professional traders may find the max 200:1 leverage limiting, since it’s the half of the average professional market leverage of 400:1.

However, this is not the right broker for you if you are looking for social and copy trading features. Beginners may still find Forex.com services good, but there are better options for them.

Forex.com Pros and Cons – Overall

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 Review 2020 and Technical Opinions

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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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