Forex.com Review (2021 update): Is this a good Choice?
|Operating since Year:
|135 US Highway 202/206 Bedminster, New Jersey, 07921
|MT4, MT5, Web Trader, Mobile Trader
|Trading Platform(s) Timezone:
|Other Trading Instruments:
|Currencies, Indices, Commodities, Stocks, Cryptocurrencies
|Minimum Deposit ($):
|Maximum Leverage: (1:?)
- Introduction to forex.com review
- Regulation and safety
- Trading Products
- Forex.com Trading Platform
- Account types
- Active trader program
- Customer support
- Forex.com review summary
- Final Thoughts
- Last But Not Least
Introduction to Forex.com Broker Review
Forex.com’s website may appear to be less fancy than other online forex brokerages with flashy designs and complicated programming. But don’t get fooled by appearances. Forex.com has a lot of factors that other online brokerages would envy.
This broker is one of the biggest retail online forex and CFD brokers. Started in 2001, the broker allows traders to access more than 180 global markets, such as:
Aside from that, there’s a lot to learn and admire about Forex.com. Let’s dig deeper into this brand and see whether this may be the best broker you can use to trade. In this forex.com review, we will examine the most important aspects of trading with this broker.
Forex.com Review: Regulation and Safety
To get things started, let’s answer the nagging question in your head currently: is it safe to trade with Forex.com?
That’s easy to answer.
Forex.com is a brand name of GAIN Capital. Those with experience in finance will know GAIN is a publicly listed company under the New York Stock Exchange.
This feature is a big plus-point for safety since the company must release financial statements regularly and transparently.
At the same time, the company is under the regulation of several financial authorities. Among them is the top-tier Financial Conduct Authority (FCA) in the United Kingdom. Moreover, in the United States, it’s under the watchful eyes of the US Commodity Futures Trading Commission (CFTC).
As for the funds, they are indifferent accounts (segregated). For traders, this means their funds will be safe even when the company stumbles upon financially hard times.
So, yes, without a doubt, this broker is safe.
Forex.com Review: Trading Products
Forex.com also has a wide selection of tradeable products from which traders can choose. We’re talking more than 4,500 trading products here, all with competitive pricing.
Among the products you can trade are:
The forex offering here is the crowning glory, apt since it’s called Forex.com. It offers super-low spreads, with the spread in EUR/USD coming as low as 0.8. Tight spreads are beneficial for active traders who don’t want to pay so much for every trade. They also make risk management simpler since they take less of your funds.
You can also trade the most popular equity indices around the world. Diversification becomes more manageable this way, broadening your trading opportunities.
And if you’re a fan of companies, you can also trade their shares. You have access to more than 4,500+ popular equities with tight spreads. You can even go long or short in the companies you choose.
If you want to go further and trade commodities like oil and precious metals, you have some options at Forex.com. You have options such as:
- UK and US crude,
- heating oil,
And lastly, if you want to trade crypto, but you don’t want to take actual ownership, Forex.com has you covered.
Our review of Forex.com found that the number of products you can trade with the broker is superb. Although other brokers may offer more choices, the assets from Forex.com are simply the best ones of the bunch.
Forex.com Review of Trading Platform
Having a properly working and efficient trading platform is extremely important for those who want to profit from the markets. Forex.com addresses this by offering superb trading platforms that come with advanced tools.
Once you open a trading account with Forex.com, you get to choose from three ways of trading and trading platforms.
This choice is suitable for traders that need sophisticated trading features and analytic tools. You can customize the dashboard as well as access some extra features. You can trade preferences, use charting tools and technical indicators, and take advantage of great drawing tools.
If you want, you can trade using the web with the broker’s web trading offering. The platform focuses on “high performance, reliability, and speed across all browsers.”
You get to use the integrated trading tool as well as read market commentary and analysis. There are more than 70 technical indicators, 50 drawings tools, and more advanced charting features. Earlier in our Forex.com broker review, we emphasized the importance of that sort of functionality.
You can enjoy the full trading capabilities of the platform, get news, commentary, analysis, and receive real-time alerts and notifications.
Now, those are just features of the bigger, better trading platform—the MT5.
Using MT5, you can trade multiple asset classes. That means you can trade forex, indices, shares, and other assets using only one account.
This feature of the MT5 provides you clear visibility of trading across different markets. This platform is available on the web or mobile devices, regardless of the operating system you’re using.
To review Forex.com, we had to look at its different branches. As such, we noticed that some had MetaTrader4 instead of MT5. The two have tons of similarities, although MT5 is slightly more modern. Choosing between the two comes down to a matter of preference.
Forex.com Account Types
Apart from the many choices in trading products and platforms, you also get to choose from three different account types.
Forex.com offers flexible account types. They are:
- Standard Account
Clear, transparent pricing and superior trade executions
Opportunity to reduce costs by up to 15% with cash rebates
Sophisticated, state-of-the-art trading platforms
- Commission Account
$5 commission per 100K traded
Exceptional quality trade executions
Powerful, state of the art trading platforms
Not available on MetaTrader
- Direct Market Access Account
Trade on prices sourced from global banks and top tier liquidity providers – with no additional mark up
View multiple levels of real time pricing on FOREX.com’s order book
Split the spread, place orders within the top of book spreads
Not available on MetaTrader
The standard account is more suitable for traders who want the usual way of trading: spread pricing and currency trading. For those who prefer fixed commissions and tight spreads, the commission account is better. And for those who want maximum control in a high-volume market, the direct market access account is the best choice.
Active Trader Program
With the trading account, Forex.com also has the Active Trader Program, where high-volume traders can get cash rebates on trade. There are also other benefits, such as professional guidance from a market strategist. You also get reimbursement of any bank fees on all wire transfers.
You can get support via both phone calls and live chat on the broker webpage. The FAQ section is also available, along with service status updates that indicate the current state of platform pricing, etc.
Email: global.[email protected]
Research and Education
Market research and education offerings are also quite impressive.
Forex.com’s market analysis section lets traders keep abreast of the latest happenings in the market. It’s without a doubt a huge advantage for a trader to know what’s happening in real-time and without delay. Of course, it doesn’t come as daily news. Instead, the report is mixed with analysis and incisive commentary, letting traders draw up strategies and insights.
Education-wise, beginners will find it easy to navigate the market with ample knowledge after learning the fundamentals from Forex.com. The broker ensures that all traders under their brand are armed to the teeth with knowledge and wisdom. That will let them deal with the market correctly.
Forex.com Review Summary — Is it Good?
For those who want reliability, efficiency, and safety, Forex.com sure ticks all the boxes. It’s a highly regulated broker, and it’s also owned by a publicly traded company, adding another layer of safety.
It sports user-friendly platforms that beginners will find pleasing if they’re just starting. There’s a lot of educational materials and research.
All in all, Forex.com is providing everything you need for forex trading, including:
- Plenty of technical research tools,
- Low forex fees,
- Many currency pairs.
Moreover, the broker is delivering an excellent trading experience for CFDs and forex traders around the globe. Forex.com cater to traders of all experience levels as it offers:
- Competitive pricing,
- A robust mobile app,
- Full-feature trading platforms,
- Comprehensive market research.
In terms of the fees, they apply to any account with less than 10,000 US dollars and no trading activity for more than a year. They get charged a $15 inactivity fee per month. Besides, accounts with over 10,000 US dollars do not pay inactivity fees.
Although the broker offers several account types, pricing is transparent. For example, in one kind of account, traders pay the spread on every trade. Other types of accounts are charging a commission.
Besides, the range is smaller. The broker provides average spreads for all these types of accounts.
For MetaTrader platform users, EUR/USD typical spreads were 1.3 pips using October 2019 data from Forex.com. When comparing the broker’s US offering with its pricing available outside the US to the rest of the world, average spreads at FOREX.com only vary slightly.
FOREX.com is offering an Active Trader program with five tiers of pricing. Level one starts with 1.2 pip spreads on the EUR/USD pair for traders with a balance of 10,000+ USD.
As traders surpass specific MTD (month-to-date) trading volume thresholds, with each next level, spreads are further reduced. For instance, $500 million in MTD volume (level five) reduces it to 0.84 pips on the EUR/USD pair. Thus, after clients are rebated, spreads are effective.
Forex.com offers two desktop platforms, MetaTrader 4 and the Advanced Trading Platform. We tested the Advanced Trading Platform because it is the platform of Forex.com. Nonetheless, MT4 is a third-party platform.
As already said, it has the same functionality as the platform of web trading. For instance, you can use the same price alerts or order types. Besides, the platform design through desktop feels outdated. It is challenging to navigate the platform and feels it is too crammed with functions.
Sadly, the broker does not have a news feed. However, there is an available economic calendar. This can be considered an asset.
If you remember, we mentioned CFDs. Just in case you do not know, CFDs are complex instruments and are come with a high risk of losing money rapidly. This is due to leverage.
When trading CFDs with this provider, 69% of retail investor accounts lose their money. Thus, you must consider whether you know how CFDs work. Moreover, you must find if you can afford to take the high risk of losing your money.
There are also low trading fees and fast execution times. The advanced tools and flexible account types are also, without a doubt, going to appeal to even the most professional traders out there.
Last but not least:
Finally, Forex.com is a well-rounded online broker that’s able to serve any, if not all, types of traders. For beginners, it’s a good starting point. Moreover, it wouldn’t be a bad idea to grow into a professional and maintain your relationship with the broker.
We hope this forex.com review will help you make the right choice. Happy trading!