Forex.com Review

Author By Jeffrey Cammack Author Information Updated: November 9, 2020
Overall Rating
4.49 4.49 / 5
Rated #4 of 49 Recommended Brokers
Min. Deposit
USD 100
Regulators
Trading Desk
Trading CostTrading Cost Information
USD 8
Website Language
English, Arabic
Support Language
English, Arabic
AlertAccepts South African Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & MT5 platforms supported. Gain Capital is regulated by the FCA, ASIC, MAS, and CIMA.

Summary

Forex.com was founded in 2001 and is part of the NYSE-listed GAIN Capital Group. Trading conditions are competitive with other large market makers and regulation is excellent, as you would expect from a publicly listed company.

A huge range of assets is available to trade, including 80+ Forex pairs and 5 cryptocurrencies. Platform choice is good, with Forex.com’s proprietary platform offered alongside MT4 and MT5. For beginners, education and market analysis are best in class, though the demo account does expire after 30 days of use.

Reviews

Regulation
111115/ 5
Trading Conditions
111115/ 5
Trading Platforms
111104/ 5
Deposit & Withdrawal
11110.54.5/ 5
Education & Research
11110.54.5/ 5
Assets Available
11110.54.5/ 5
Customer Service
1110.503.5/ 5
Beginner Friendly
Excellent
Bonuses
None

Account Information

Base Currencies
USD, EUR, CAD, JPY, CHF, AUD, GBP
Number of FX Pairs
80+
Copy Trading
Yes
Hedging Allowed
Yes
Scalping Allowed
Yes
Islamic Account
Yes

Trading Conditions

Min. Spread
0.80 pips
Commission
Fees Included in Spread
EUR/USD
0.8
GBP/USD
1
USD/JPY
1.6
Max. Leverage
200:1

Company Details

Company Name
GAIN Capital UK Ltd
Founded
2001
Office Locations
United Kingdom, USA

Is Forex.com safe?

In operation since 2001, Forex.com is a subsidiary of the GAIN Capital Holdings, an NYSE-listed provider of online trading services founded in 1999. GAIN Capital has total assets of over 1.2 billion USD and has owned the rival brokerage firm City Index since 2014.

GAIN Capital’s subsidiaries are regulated by 8 national and regional authorities depending on their geographic location:

  • US: GAIN Capital are regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA)
  • Canada: GAIN Capital is regulated by the Investment Industry Regulatory Organisation
  • UK: GAIN Capital UK is regulated by the Financial Conduct Authority (FCA)
  • Australia: GAIN Capital Australia is regulated by the Australian Securities and Investment Commission (ASIC)
  • Singapore: GAIN Capital Singapore is regulated by the Monetary Authority of Singapore (MAS)
  • Japan: GAIN Capital Japan is regulated by Japanese Financial Services Agency (FSA)
  • Cayman Islands: GAIN Global Markets is regulated by the Cayman Islands Monetary Authority (CIMA)

Forex.com clients in South Africa will be trading with GAIN Global Markets, regulated in the Cayman Islands. While CIMA is not the best regarded regulator in the world, it does allow Forex.com to offer higher levels of leverage and deposit bonuses to new clients.

Forex.com ensures that client funds are held with top-tier banks and segregated from the assets of the brokerage. In addition, robust bank review and monitoring guidelines are set by the Risk Committee of GAIN Capital to ensure fund security.

With the additional financial reporting required from GAIN Capital’s listing on the NYSE, and oversight from some of the toughest regulatory authorities in the world (NFA, FCA, MAS and ASIC), we are confident that Forex.com is a safe broker to trade with.

Forex.com Trading Conditions

In 2011, Forex.com was the first broker to introduce an Execution Scorecard and today remains the only US-based broker to disclose execution quality. The most recent data shows that Forex.com’s average execution speed is 0.04 seconds and 99.79% of trades are executed in under 1 second. This is exceptionally fast in the Forex industry and is a real benefit to scalpers and algorithmic traders.

Forex.com offers three account types: A Standard Account with no commission and a wider spread, a Commission Account which charges a commission per lot traded but has much tighter spreads and a Direct Market Access Account. Both the Standard Account and the Commission Account are available as demo accounts, but demo accounts will expire after 30 days and you will be required to open a live account.

Alongside Forex, Forex.com also offers trading on indices, shares, commodities, precious metals, cryptocurrencies, and oil. Cryptocurrencies available to trade are Bitcoin, Bitcoin Cash, Litecoin, Ripple and Ethereum.

Maximum leverage differs according to trading platform, market, asset class and position size. Smaller trades on major pairs will generally be offered 200:1 leverage, but leverage can be increased by contacting Forex.com customer support.

Forex.com Accounts

Account Types

Scroll for more detailsPreviousNext
Display Name
Min. Deposit
Max. Leverage
Min. Spread
Commission
Commission
USD 100
1:200
0.2
5USD/lot
Account Details
DMA Account
USD 100
1:200
0.0
Variable
Account Details
Standard
USD 100
1:200
0.8
None
Account Details

Standard Account: The Standard Account has a minimum deposit of 100 USD, variable spreads (as low as 0.8 pips on the EUR/USD but more typically around 1.3 pips) and no commission. This account is available on the Forex.com platform, MT4 and MT5 and gives you trading access to over 80 currency pairs, 4 crypto pairs, and hundreds of equity, index, and commodity CFDs.

Commission Account: The Commission Account also has a minimum deposit of 100 USD and variable spreads, but also charges a commission of 5 USD per lot traded. Spreads on the EUR/USD can be as low as 0.2 pips with this account. Like the Standard Account, the Commission Account is available on the Forex.com platform, MT4 and MT5.

Forex.com Commission Account

Direct Market Access Account: The DMA Account is specifically for high volume traders and requires an account balance of 25,000 USD. This account is commission-based only, with no mark-up on the spread. As the name suggests, this is a market execution account and uses STP execution methods with no broker intervention. This account is only available on the Forex.com trading platform and only allows trading on 58 currency pairs.

Spreads and Commission

Forex.com spreads are competitive across the board. Average spreads close to 1 pip on the EUR/USD are standard for the industry and a commission of 5 USD per lot on the Commission Account is cheaper than many of Forex.com’s competitors.

Forex.com Spreads

Deposit and Withdrawal

Unusually for a large broker, Forex.com only accepts deposits and withdrawals via credit/debit card or bank transfers. Like most brokers, Forex.com operates a “return to source policy” meaning that withdrawals can only be returned to the original funding source.

  • Deposits via credit/debit card and bank transfer are not charged a fee and will be processed immediately for card deposits and within 1-2 business days for bank transfers. Forex.com will convert all funds in USD upon receipt.
  • Withdrawals are not charged any fees by Forex.com and are processed within 24 hours for card withdrawals and 48 hours for bank transfer withdrawals. The minimum withdrawal amount is 100 USD.

Be aware that while Forex.com will not charge a fee for bank transfer deposits or withdrawals, your bank may do so.

Forex.com for Beginners

Beginner traders will find Forex.com a welcoming environment, with comprehensive and well-structured education and frequent and detailed market analysis from the experienced in-house research team. The major downside for beginners is the limited demo account, which will expire after 30 days on all platforms.

Education Material

The education section at Forex.com has obviously been designed by an experienced team of Forex educators. It is intended to slowly build confidence and helps beginners learn how to trade forex with a wealth of educational tools and online resources.

The first thing new traders will find is a Trade Type Quiz, which will help beginners identify what trading strategies will best suit their personality. From here you can link off to three different sections of educational material: Beginner, Intermediate and Advanced. You can also check out individual themes, such as technical analysis and risk management.

Each section is clear, concise, and carefully tailored to the experience level of the trader. All the educational resources are free to all visitors of Forex.com’s site.

Analysis Material

Forex.com has one of the best market research and analysis sections we have seen. Posts by the in-house research team and detailed and cover all aspects of the financial markets. Full of trading opportunities and insightful analysis, it is no surprise that the Forex.com twitter feed has 170k followers.

Posts can be filtered by author, market, theme or trending topics and the site is updated multiple times a day.

Also in the analytical section, you can find a good economic calendar and a very helpful pivot point calculator, very useful for on the fly technical analysis.

Forex.com Research

Customer Support

Like most brokers, customer support is available 24/5 via phone, email, and chat. You can also interact with the Forex.com teams via Facebook and Twitter.

Forex.com Trading Platforms

Forex.com offers three platforms to choose from, its own Forex.com platform, MetaTrader 4 and MetaTrader 5.

Forex.com Trading Platform

Forex.com Platform: The most powerful version of the Forex.com platforms is the downloadable desktop client which offers professional analytics tools, over 100 predefined indicators, 15 time frames and trading directly on charts. This version of the platform is better suited to more experienced traders. The Forex.com platform is also available in your browser, with slightly decreased functionality, sacrificing customisability for simplicity.

MetaTrader 4: The MT4 trading platform is the most widely used Forex trading platform and can also be used to trade other instruments like commodities, cryptocurrency, stock index, and stock CFDs. Though it is now showing its age, MT4 is still very popular for its auto trading features that enables algorithmic trading and strategy backtesting with expert advisors (trading robots).

Unlike most standard MetaTrader 4 platforms you will find at other brokers, Forex.com’s MT4 comes with fully integrated Reuters news, Forex.com’s research and analysis, AutoChartist and Trading Central.

MetaTrader 5: The MT5 trading platform is being adopted by more Forex brokers all the time, it has a more modern interface, allows for an unlimited number of charts to be used, shows Depth of Market and has a built-in Economic Calendar. It also has a larger number of pending order types than MT4 and features an embedded chat system. In addition, the MQL5 scripting language is more efficient than its precursor and MT5 has more advanced charting tools than MT4.

For traders with a minimum 5000 USD balance, the Forex.com also supplies free MT5 VPS hosting, allowing for a more complete automated trading strategy.

All three platforms are also available on mobile for both iOS and Android devices, though there will be a corresponding loss of functionality.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the Forex.com offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

Risk Statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. Forex.com would like you to know that:  Foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Overview

Forex.com benefits from being part of the publicly-listed GAIN Capital Group and is able to offer excellent education and market research alongside competitive trading conditions. Though there is nothing too exciting on offer here, the wide range of platforms and tradeable assets makes Forex.com a tempting option for traders looking for a serious market maker broker. While beginners will love the education and analysis available, they will be disappointed by the limited demo account.

AlertAccepts South African Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & MT5 platforms supported. Gain Capital is regulated by the FCA, ASIC, MAS, and CIMA.
Scroll for more detailsPreviousNext
Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
11110.54.49/ 5
USD 100
Market Maker
Forex, Equities, Commodities, Cryptocurrencies
80+
8
  • Well regulated
  • Wide range of assets
  • Excellent education
  • Expensive withdrawals
  • Limited demo account
111115/ 5
111115/ 5
111104/ 5
11110.54.5/ 5
11110.54.5/ 5
11110.54.5/ 5
1110.503.5/ 5
74% of retail investor accounts lose money when trading CFDs with this provider
200:1
0.80 pips
Yes
Yes
Commission, DMA Account, Standard
Yes
MT4, MT5
Paypal, Bank Transfer, Visa
Fees Included in Spread
1110.503.33/ 5
USD 200
Market Maker
Commodities, Cryptocurrencies, Forex, Equities
47
16
  • Well regulated
  • Good for beginners
  • Innovative trading tools
  • Limited education
  • Wide spreads
11110.54.5/ 5
110.5002.5/ 5
111104/ 5
110002/ 5
10.50001.5/ 5
111104/ 5
111104/ 5
71% of retail investor accounts lose money when trading CFDs with this provider
400:1
1 pips
Yes
Yes
Professional, Standard
Yes
etoro
Mastercard, Neteller, Skrill, Paypal
Fees Included in Spread
1110.503.73/ 5
USD 500
Market Maker
Commodities, Forex, Equities, ETFs
48
0
  • Good range of accounts
  • Wide range of assets
  • Wide spreads
  • Limited education
  • Limited market analysis
  • High minimum deposit
111104/ 5
1110.503.5/ 5
11110.54.5/ 5
11110.54.5/ 5
10.50001.5/ 5
11110.54.5/ 5
111003/ 5
69.7% of retail investor accounts lose money when trading CFDs with this provider
400:1
2 pips
Yes
Yes
Gold, Islamic, Mini, Platinum
Yes
MT5, Sirix
Mastercard, Maestro, Skrill, Neteller
Fees Included in Spread
Visit Broker
AlertMost retail CFD accounts lose money. Your capital is at risk.

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