Forex.com

Forex.com, one of the largest American Forex brokers, was founded in 2001 as a subsidiary of Gain Capital Holdings Inc., a company listed on the NYSE. It is experienced in the provision of Forex brokerage services and operates under high regulatory oversight. The company is based in Bedminster, New Jersey.

Regulation and Safety

Regulation

  • Forex.com is a member of the National Futures Association (NFA) and is registered with the Commodity Futures Trading Commission (CFTC).

Safety

  • This broker is safe. Its parent company, Gain Capital Group LLC, is listed on the New York Stock Exchange (NYSE). Also, it offers negative balance protection. This means that no matter how many losing streaks you have, you cannot lose more than your deposited funds. However, there is no protected amount policy.

Customer Support Service

  • Forex.com has a swift and reliable customer support service. You can easily reach them via telephone, email, and live chat using the chatbot on their website.
  • An important advantage is that the customer support service is almost always available. You have access for 24 hours a day for six days of the week – Sunday to Friday.
  • However, the email customer support system is slow and of relative poor quality. Therefore, you should rather stick to other means of contact.

Account Types and Account Opening

Account Types

  • Forex.com offers many account types. Depending on trading needs and religious inclination, there are individual, corporate, and sharia accounts.
  • The broker does not avail its American clients with CFDs accounts as a result of regulatory barriers.

Leverage

  • Forex.com’s leverage is fixed and default. It can be as high as 1:200.

Account Opening

  • The account opening process with Forex.com is digitized. Nevertheless, it can be a bit slow: sometimes, account approval takes days.
  • You will be given a short quiz to test your knowledge of finance in general and of trading in particular.
  • Account opening requires the presentation of KYC (Know Your Customer) documents. Thus, you will be requested to upload an official means of identification — national ID, passport, or driver’s license – and utility bill or bank statements for residency verification.

Minimum Deposit

  • Forex.com’s minimum deposit requirement is low. With just $50, you can open an account with this broker. This means that no matter your pocket size, you can start trading easily. You can choose to open an account with small capital just to have a feel of the market while also limiting your risk.

Charges and Rates

Brokers generally charge three types of fees which are trading fees, non-trading fees, and financing rates.

Trading Fees

  • Fees on Forex trades are cheap. However, for stock CFDs trading, they are reasonably high.
  • Forex.com charges its Forex fees together in spreads which are competitive. The spread cost for the EUR/USD pair, for instance, is as low as 1.3 pips.
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Non-trading Fees

  • Non-trading fees are the arbitrary charges brokers charge for non-trading related reasons such as deposit, withdrawal, and currency conversion.
  • The broker doesn’t charge withdrawal fee. However, there is an inactivity fee, a charge of $15 per month following one inactive year.
  • When you fund your account in any currency different from the USD, the currency of denomination of your account, the broker charges a currency conversion fee. To prevent this, it is advisable to always fund your account with the currency in which it is denominated.

Financing Rates

  • Financing rates are the costs you incur when you trade on margin and hold your positions overnight. With this broker, the financing rates are low, even lower than the average for the industry.
  • Specifically, financing rates on Forex pairs are relatively cheap. However, for stock CFDs, they are a bit higher. PS: CFDs are not tradeable in the United States.

Markets, Products and Investments

Markets

  • Forex.com has a limited market portfolio. You can only trade Forex, cryptocurrency, spot metals and CFDs. Other financial markets are not supported by the broker.

Products

  • The broker offers over 90 currency pairs, 4 cryptocurrencies, and almost 250 stock CFDs products. However, as an American investor or trader, you will be able to trade only currency pairs and cryptos.

Investments

  • Forex.com does not provide fund. The broker does not offer investment management services.

Trading Platforms, Educational Resources, and Research Tools

Trading Platforms

  • Forex.com provides web, mobile and desktop trading platforms. The web-based platform is offered in two forms: Web Trader and MetaTrader 4. The Web Trader is its proprietary web-based platform. It has a nice interface and easily-customisable functionalities.
  • The easy-to-use mobile trading platform is available in both iOs and Android versions and has a variety of order types. However, both the Web Trader and the mobile trading platforms support only one language: English.
  • The mobile and desktop trading platforms are similar in design and functionalities. However, the update time for the desktop platform is higher.  Thus, its functionalities lag. Nevertheless, it is highly customisable and available in a variety of languages.
  • The broker offers the MT4 as the alternative to its proprietary desktop platform, the Advanced Trading Platform. A notable downside of all the three trading platforms – web, mobile, and desktop — is the single-step login process. A double-step one would have been more secure.

Educational Resources

  • The broker provides a demo account and a wide range of educational videos and articles.
  • Also, there is a trading glossary and a quiz for testing the depth of the financial knowledge of new clients.

Research Tools

  • This provider also offers great research tools. On its platforms, there are interactive charts, sound trade recommendations, and an economic calendar which highlights essential fundamental data which can help you make more informed trading decisions.

Methods of Payments

Forex.com’s methods of payments are easy to use. Also, you incur no fees when you use them. However, the withdrawal period, for both bank transfer and credit/debit cards, is long – up to 3 to 5 days.

Deposit

  • Bank transfer
  • Credit/debit cards

Withdrawal

  • Bank transfer
  • Credit/Debit card

Forex.com does not support electronic wallets.

Bonuses, Promotions, and Prospect

The broker does not offer any bonuses and promos for now.

Bonuses

  • Nil

Promotions

  • Nil

Prospect

  • Forex.com is a solid, standard online Forex brokerage company. Its parent company, Gain Capital, is publicly listed. The prospect is sound.

Conclusion

If you are looking for a duly regulated Forex broker, Forex.com is. Owned by Gain Capital, a publicly listed multinational company, the online Forex brokerage service provider is registered with the Commodity Futures Trading Commission (CFTC).

It offers a proprietary platform which makes the trading of multiple asset classes, from Forex to cryptocurrencies and indices, easy to do. Plus, the platform is available in web, mobile and desktop-based versions with excellent research and analysis tools and other options. Nevertheless, it also allows the use of the popular, industry-standard platform, the MT4.

Moreover, if you are a beginner looking for a broker with vast educational resources to set you on the path to becoming a successful trader, Forex.com might be the right one for you.