Forex.com Review

Forex.com Review

About Forex.com

What does Forex.com do?

FOREX.com is a broker that connects traders to the foreign exchange (forex) market. The company is a global leader when it comes to bridging the gap between independent traders and the global currency markets. Since 2001, the company has taken care of clients from across the globe. FOREX.com does not engage with proprietary traders.

What products does Forex.com offer?

FOREX.com offers traders access to the global currency markets. This means traders can engage in going long and shorting currency pairs. Also, the company offers access to Contracts for Difference (CFDs), cryptocurrency, indices, and global equities.

What type of accounts are available to Forex.com Traders?

There are three types of FOREX.com accounts available. The Standard Account is available to typical traders who do not have access to high liquidity. Such traders have access to wider spreads. On the other hand, the Commission Account is ideal for traders who prefer tighter spreads but are willing to pay a commission in their trades. Lastly, the Direct Market Access (DMA) account is available to traders who move high trading volumes per single trade. The higher the trading volume the lower the standard commission charged per trade.

What is Unique about Forex.com

Pros

Fast execution of orders–FOREX.com has a 99.99% success rate in terms of order execution. This is because of the swiftness of the broker. In 2011, FOREX.com introduced an Execution Scorecard that monitors the execution transparency and quality. As such, traders can keep abreast of the broker’s capabilities to facilitate better profit-making trades. According to the Execution Scorecard, 99.81% of trades by FOREX.com are executed in less than one second. Besides, it only takes 0.05 seconds from the receipt of market order to its execution.  

Simple and straightforward pricing – FOREX.com maintains a live pricing regime. This means traders have access to reliable and competitive pricing in the market.

Tight spreads –FOREX.com maintains varying spreads to ensure that traders exploit favorable market conditions. The broker updates the spreads regularly and it ensures that traders access the lowest possible figures in the market. 

Powerful trading platforms– FOREX.com users can access the market either through proprietary trading platforms (web-based, Mobile App, or Desktop-based) or through MetaTrader. 

Active Trader program – FOREX.com maintains the Active Trader program the highest reward for its loyal clients. Through the program, FOREX.com’s clients can earn rebates on trades as well as getting personalized professional support. 

Financial strength–FOREX.com’s parent company is GAIN Capital Holdings, Inc. that is listed on the New York Stock Exchange. This implies that FOREX.com has access to a stable line of funding and capable management. As such, traders have nothing but their trading activities to worry about. 

What are some disadvantages of Forex.com?

Cons

Some brokers offer tighter spreads than FOREX.com

The margin requirements for some markets i.e. AUD/CNH, EUR/CNH, EUR/DKK, USD/RUB, and more are too high

FOREX.com does not offer on-platform futures.

Does Forex.com offer any Unique Features?

FOREX.com offers unique features like the Active Trader Program. This program targets high volume traders who place orders frequently. Members of the program have access to unique benefits like cash rebates and personalized professional guidance. In addition, FOREX.com reimburses Active Trader members any bank fees incurred during transfer of funds. The Active Trader Program is open to FOREX.com’s most valuable clients.

Is Forex.com friendly to novice Traders?

FOREX.com is the perfect platform for beginner traders because it includes an education portal for the purposes of enlightening them. The portal categorizes information in three classes. On the one hand, traders have access to Trading Themes. These include trading concepts necessary for a successful experience in the currency markets. Other themes include how to manage risk, how to conduct successful technical and fundamental analysis, and an introduction to useful trading strategies. 

The second class of information in the education portal is Trading Courses. Here, all types of traders are equipped with the knowledge necessary for informed trading activities. Thirdly, the education portal compiles popular topics in Forex for the benefit of the traders. This information keeps users up to date with the latest developments in the market. 

Does Forex.com offer Market Analysis services?

Market analysis is another feature that makes FOREX.com a useful platform. Under the Market Analysis tab, traders can find the latest market research for all the trading products on offer. In addition, FOREX.com offers daily, weekly, and monthly pivot points that should help traders to develop winning strategies. Other offerings under the Market Analysis feature include an updated Economic Calendar and a regular Webinar covering crucial events in the economics calendar like Non-Farm Payrolls.

How do i contact Forex.com?

FOREX.com has a support feature that offers various channels for contacting and communicating with company representatives. The primary contact channels are through calls and a chat function on the website. However, if there is huge traffic on these two options, then users can access the “Service Updates” tab where the broker has answers to numerous frequently asked questions. 

Is forex.com regulated?

FOREX.com’s primary regulator is the Cayman Islands Monetary Authority of the Cayman Islands. Besides, the parent company is regulated in eight jurisdictions. By extension, FOREX.com can be assumed as being regulated by these authorities.

Are CFDs on Forex.com available Globally?

For FOREX.com users, contracts for difference (CFDs) are available everywhere in the world except the United States. Therefore, traders in the US who would like to use FOREX.com can trade all other products but CFDs.

Are margin requirements for FOREX.com uniform across all platforms?

FOREX.com maintains different margin requirements across different platforms, asset classes, position size, and markets. Each product has its own margin requirement as indicated here. However, there is an easy way through which traders can anticipate the margin requirements for the particular product in which they have interest. What you need to do is take the notional value of your trade and multiply it by the margin factor. Better yet, you can make use of the margin calculator on all of the FOREX.com’s trading platforms.

What kind of information does FOREX.com require from me?

FOREX.com collects and holds relevant information in accordance with anti-money laundering and data protection legislation. This information includes personal and account details.FOREX.com relies on the information to administer the relationship with their clients. Also, FOREX.com can disclose your personal and account details to regulators if so required as well as to third parties licensed to operate on behalf of the broker. 

What are the costs of transacting (depositing and withdrawing funds) with FOREX.com?

Traders can fund their accounts via bank transfers and debit cards, and all of these transactions are free of charge. However, wire transfers may attract a fee. For bank transfers and debit card transactions, the minimum amount per transaction is $100 while the maximum is $10,000 per transaction. On the other hand, withdrawal of funds is free of charge.

How does FOREX.com charge fees?

FOREX.com charges trading fees differently depending on the type of account you open. For Standard Account holders, the trading fees are charged through spread pricing. On the other hand, Commission Account holders are charged trading fees through commissions. The advantage of this pricing strategy is that traders experience tighter spreads. In particular, a Commission Account holder will pay a $5 commission for every $100,000 traded. In return, the trader will experience spreads as low as 0.2. Lastly, the Direct Market Access (DMA) account holders pay a standard commission of $60 for a trading volume of between $0 and $100,000. However, the amount of commission paid reduces as the trading volume increases. For example, a trading volume of $2 billion and above attracts a standard commission of just $20.

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