In the dynamic realm of Forex and CFD trading, one name that resonates prominently is Forex.com. In this in-depth review, we dissect the merits and demerits of aligning your trading endeavors with one of the largest players in the field. Our exploration spans across diverse facets, including trading accounts, spreads, fees, leverage, and safety protocols. Additionally, our experts scrutinize the trading platform and mobile app, uncovering the hidden gems that set Forex.com apart.
Navigating the Financial Landscape: Assets & Markets
Forex.com boasts an impressive array of trading products, encompassing thousands of instruments across major asset classes. Notably, the currency pairs selection stands out, surpassing most competitors. Traders can delve into a diverse range, including:
- Indices: Over 15 indices, featuring the US 100, FTSE 100, and CAC 40.
- Stocks: 5,500+ popular share CFDs, including heavyweight names like Adidas, Tesla, Amazon, and Meta.
- Forex: A robust offering of 80+ major, minor, and exotic currency pairs, such as EUR/USD, GBP/USD, and EUR/GBP.
- Commodities: 10+ spot and futures options for precious metals, energies, and agricultural products, encompassing gold, crude oil, and coffee.
- Cryptocurrency: 8+ digital currency CFDs, including Bitcoin and Ethereum (subject to regional restrictions).
For prospective traders, Forex.com presents two live account options: Standard and Raw Spread.
- Standard Account: Ideal for those seeking traditional spread pricing with no commissions.
- Raw Spread Account: Tailored for active day traders in pursuit of the tightest spreads coupled with low commissions.
A noteworthy entry point is the accessible minimum deposit of $100, making Forex.com an enticing choice, especially for beginners. High-volume traders may explore the DMA account, offering pricing directly from tier-one liquidity providers without additional markups.
Opening a live account with Forex.com is a straightforward process, accomplished through a user-friendly online registration form. The steps include:
- Providing personal details: Country of residence, email, username, password, title, name, date of birth, and telephone contact number.
- Adding full address details, confirming country and town of birth, and providing tax details.
- Sharing financial history and trading experience, including current employment status and expected investment value.
- Reviewing account details and submitting the application.
A Cost-Effective Trading Experience
In our extensive broker evaluations, Forex.com consistently stands out for its competitive fee structure. While pricing varies across account types, notable highlights include:
- Raw Spread Profile: Spreads as low as 0.0 on the EUR/USD with a $5 commission per $100k.
- Standard Solution: Competitive pricing with spreads as low as 1.0 on the EUR/USD, averaging 1.2.
Active day traders may find solace in the DMA account, offering tight spreads and potential commission reductions based on monthly trading volume.
Unveiling Additional Charges: Non-Trading Fees
While Forex.com impresses with low trading fees, it's crucial to be aware of non-trading fees. These include:
- Inactivity Fee: A $15 charge after one year of no trading activity (avoidable by temporarily disabling the account).
- Rollover Rates: Applicable for positions held overnight from 5 PM (ET).
- Currency Conversion Fee: +/-0.5% from the current market price for trades settled in a currency other than the account base.
Streamlined Fund Transfers
Forex.com offers a streamlined approach to fund transfers, though it trails some competitors in terms of deposit options. Notably, there are no deposit or withdrawal fees, with the ability to fund your account through:
- Neteller/Skrill: Immediate processing, maximum $50,000 funding, USD, EUR, and GBP currencies accepted.
- Credit/Debit Card: Immediate processing, maximum $99,999 funding, multiple currencies accepted.
- Wire Transfer: Up to two days processing time, no maximum funding limits, multiple currencies accepted.
Deposits and Withdrawals
Seamless Transactions via the Client Portal
Funding your Forex.com account is a seamless process via the client portal. Follow these steps:
- Select 'Funding' and then 'Deposit'.
- Follow on-screen instructions to complete the payment.
For withdrawals, log in to the trading platform, select 'Add Funds,' and navigate to the 'Withdraw Funds' option. Notably, transfers may take up to 48 hours to process, and wire withdrawals incur a $25 fee up to $10,000.
A Suite of Robust Platforms
Forex.com offers a diverse suite of trading platforms catering to various trading styles and preferences.
The Forex.com Web Trader stands out as a proprietary platform, lauded for its user-friendly design, compatibility with most browsers, and an array of analytical tools.
Providing access to TradingView, Forex.com enhances the trading experience with intuitive charting tools, dynamic alerts, and a vibrant community forum.
MetaTrader 4 (MT4)
Dominating the FX and CFD trading scene, MetaTrader 4's popularity owes to its in-depth tools, customization options, and ease of navigation. Forex.com stands as a leading MetaTrader broker with a rich ecosystem of servers and add-ons.
MetaTrader 5 (MT5)
For advanced users, Forex.com introduces MetaTrader 5, offering enhanced tools and features, including a wider range of analysis tools and faster operations.
How To Place A Trade
- Use the dashboard icon under 'File' to choose from the list of supported assets.
- Select the page icon with the plus in the top left menu.
- An order window will appear, allowing customization of instant or pending orders, stop loss, take profit levels, position size, and more.
- Confirm the trade by selecting sell or buy.
Forex.com's platform offerings cater to a wide spectrum of traders, from those engaged in complex market analysis to those seeking quick and easy web trading. In comparison with competitors like thinkorswim, Nadex, or similar systems, Forex.com's diverse platform offerings shine.
Opening a Forex.com account unlocks the opportunity to download apps for Android and iOS devices. The app experience impresses with:
- Full trading capabilities.
- Advanced charts and integrated trading tools.
- Alerts, economic calendar access, and integrated Reuters news.
- 26 indicators and 13 drawing tools.
- Quick navigation between live quotes, charts, and current positions.
Regulation & License
Forex.com stands firm with robust regulation across multiple jurisdictions through its global entities. Regulators include the US NFA, CFTC, CIRO in Canada, CySEC in Cyprus, SFC in Hong Kong, FCA in the UK, and CIMA in the Cayman Islands. This extensive regulatory coverage assures traders of a trustworthy environment.
Leverage on Forex.com can vary based on location, account type, and trading volume. While leverage up to 1:200 is available, traders are cautioned to exercise prudence, given the potential amplification of losses associated with margin trading.
Forex.com generously provides two free demo accounts, allowing traders to hone their skills without risking real capital. Demo accounts are funded with $10,000 in virtual cash, offering a realistic simulation of live trading conditions.
Tracking progress, understanding chart patterns, and refining strategies become seamless with Forex.com's demo accounts. However, traders should be mindful that slippage experienced in live accounts may not be fully reflected in the practice environment.
Bonuses & Promotions
Forex.com sweetens the deal with a 20% welcome bonus, capped at $5000. To qualify, a minimum deposit of $250 and trading a minimum of 200 micro lots of currency pairs is required. Traders should note regional restrictions may impact bonus availability.
Forex.com stands out by offering an array of additional features to enrich the trading journey. Notable inclusions are:
- Learning Center: In-depth educational material, including the 'Learn to Trade Forex' course.
- Interactive Courses: Chart pattern tutorials, risk management guidance, and interactive videos.
- Webinars: Engaging sessions under the 'Foundations of Forex Trading' series, providing insights and analysis.
- Comprehensive Reports: Quarterly outlooks, economic calendars, and technical reports.
Forex.com's customer support operates 24/5, accessible via telephone, email, and live chat. The live chat function stands out for its swift response, providing resolutions in less than a minute.
Founded in 1999, Forex.com is now part of StoneX, a renowned financial services organization serving over a million customers globally. StoneX, listed on Nasdaq under SNEX, operates under the international City Index brand for spread betting. The rich legacy of Forex.com, coupled with StoneX's reputable standing, instills confidence in traders.
Safety & Security
Forex.com prioritizes the safety of user funds, keeping deposits separate from operational funds across a global network of custodian banks. Encryption technology adds an additional layer of security, and adherence to guidelines set by the Risk Committee of Stone X reinforces trust. Notably, negative balance protection is extended to retail customers.
Forex.com opens up FX trading 24 hours a day from 22:00 GMT on Sunday to 22:00 GMT on Friday. Traders should be mindful of potential market illiquidity at the start of the trading week, leading to widened spreads. Spot gold and silver market hours follow a slightly different schedule.
Forex.com emerges as a compelling choice, offering competitive pricing, diverse platforms, automated trading tools, and a rich educational repository. With reliable customer service and access to a wide range of assets, Forex.com caters seamlessly to both novice and experienced traders. In the realm of Forex.com vs. OANDA, FXCM, and other competitors, the former consistently ranks among the top, garnering acclaim from expert traders.
Pros and Cons:
- Respected and trusted broker regulated by tier-one authorities.
- Excellent trading tools, including Trading Central, SMART Signals, and MetaTrader 4.
- Competitive pricing starting from 0.0 pips on popular forex assets.
- Beginner-friendly web platform and mobile app.
- Up to 15% cashback rebates for active traders.
- Fast execution speed of less than 1 second.
- Free demo account for prospective traders.
- VPS hosting for automated strategies.
- Low minimum deposit of $100.
- Investment offerings vary between countries.
- $15 monthly inactivity fee.
- No copy trading platform.
In summary, Forex.com stands tall as a reliable partner in the intricate world of trading, offering a holistic experience that aligns with the diverse needs of traders across the globe.
Forex.com Broker Details
Disclaimer: - We at forexoverflow do not endorse neither refer anyone to trading broker websites. The information is for educational purpose and source of information is from the broker website.