Review of Forex.com Broker

4.4/5
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Tap into Trading Numerous Liquid Markets with Forex.com

Forex.com is an online brokerage founded in 2001. The brokerage provides traders globally with access to the forex markets. Traders are also provided with access to other markets such as cryptocurrencies and equities through CFD trading. Forex.com is a subsidiary of the publicly listed Gain Capital which also owns the popular brokerage City Index. Gain Capital is listed on the New York Stock Exchange meaning that Forex.com benefits from the strict regulatory oversight and financial reporting standards which public companies are subject to.

The services Forex.com provides are regulated and authorised by the Financial Conduct Authority (FCA). This requires users funds to be segregated into top tier banks and also means that users are compensated for up to £50,000 if forex.com becomes insolvent. Forex.com happens to be one of the few online brokerages which service clients in the United States. Its services in the United States are restricted to only forex with no CFD trading available to US users. United States visitors of the City Index will be redirected to the forex.com website. Many other top brokerages including Think Markets and FXCM also do not serve US clients making forex.com an even more worthwhile consideration for visitors to these sites. Gain Capital owned entities are authorised by numerous regulators worldwide.

Forex.com Available Markets and Products

Forex.com provide their users with access to a wide variety of markets. Traders can access markets which they would struggle to find with other online brokerages. A high number of both equities and forex pairs are offered. The forex markets are available to be traded from 9 pm GMT Sunday to 9 pm GMT Friday each week. While most online brokerages refrain from providing access to Chinese shares, several can be traded with forex.com.

Traders can also speculate on the highly volatile asset class of cryptocurrencies. Leading cryptocurrencies Bitcoin, Bitcoin Cash, Ripple, Litecoin, and Ethereum can all be traded. The price of Bitcoin can be traded against USD, GBP, EUR, or the AUD. The spreads offered on Bitcoin are highly competitive compared to other brokers. Other assets such as gold can also be traded against multiple different fiat currencies.

MarketNumber
Forex89
Equities66
Indices17
Commodities9
Metals5
Cryptocurrencies8

Forex.com offer different leverage capabilities for both retail clients and professional clients. Professional clients must meet several requirements such as having a significant account size and knowledge of the financial sector. Professional clients earn rebates on the fees they pay and can also tap into greater amounts of trading leverage with a margin rate with only 0.25% required in some markets. For those who do not meet the professional client criteria, retail accounts are also available. Leverage will also be available on these accounts but to a lesser extent. Users also have the option to demo the platforms before deciding to set up a real account.

In terms of fees users pay, there are also several account types users can choose between. Fees on a standard account are charged completely through spreads. For more advanced traders who have a greater equity size, a commissions account would be more suitable. With this account, traders avail of significantly lower spreads but pay commissions on trades. For example, the spread for EUR/USD with a standard account can go as low as 1.1 whereas with a commission account the spread can go as low as 0.2. There is also a direct market access (DMA) account with even more attractive rates. However, this account type requires minimum trade sizes of 100k.

One drawback of forex.com accounts is the funds of users can go into a negative balance. Negative balance protection is not provided by forex.com. Although positions are liquidated if a client does not have sufficient equity in a position, there are still circumstances where clients can end up owing more than they deposited.

Forex.com Trading Platforms and Features

Forex.com provides numerous platforms which enable traders to access the markets from desktop, mobile, or directly through the browser. Desktop and web platforms are available for traders of all levels. The hugely popular MetaTrader 4 platform is one option that traders can use. This platform has a powerful suite of tools including charting analysis and a wide variety of order types. The platform is available on Android, iPad, and iPhone. MetaTrader provides traders with a versatile set of tools beyond the standard market analysis tools. Traders can run strategies in a virtual private server and can also automate strategies with expert advisor program.

Forex.com also offer their proprietary desktop software aimed at advanced traders. This allows traders to delve deeper into charting analysis and order types. The more advanced software allows traders to customise their strategies and also design their layout to design their optimal trading dashboard.

The web trading platform provided by forex.com is integrated with the widely used TradingView software. TradingView is the leading technical analysis software for retail traders worldwide. It has a vast library of technical analysis tools and is extremely intuitive for users to operate.

Forex.com mobile applications are available on both iOS and Android devices. The applications are integrated with a news feeds and have all the important trading functionalities that a trader requires to manage market positions directly from their mobile device.

What are the Forex.com fees?

Forex.com charge their fees through a mix of both commissions and spread. Standard accounts are charged entirely through variable spreads. Average spreads in different markets for this account type can be viewed on the forex.com website. Traders with larger account sizes can choose a commission account to avail of lower spreads.

What else does Forex.com do?

Forex.com has an extensive library of educational resources tailored for traders of all levels. The library is designed to help traders improve their knowledge in several fields which are important to investing success. Such fields include market concepts, technical analysis, and fundamental analysis. There is also a glossary for traders still getting accustomed to different terms.

Furthermore, forex.com have a team of analysts which produce research on the markets. The team of analysts produce research from numerous different angles. In the market analysis section of the forex.com website, reports can be found based on technical analysis, economic indicators, and fundamental analysis.

Why Trade with Forex.com?

Forex.com provides users with access to a wide variety of markets. The markets offered by Forex.com include more instruments than most competitor brokers. Users of the brokerage have several trading platforms at their disposal and can choose from numerous different account types. The account types have different fee structures suitable for traders of all levels. All-in-all, forex.com is a leading choice for traders of all sizes and levels.