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Forex.com Review

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Forex.com Trading Platform

  • Forex.com is regulated by the top tier regulators
  • Excellent desktop and mobile functionality
  • Charts for TradingView built-in
  • Easy to use trading platform
  • No protection for negative balance

In a nutshell

Forex.com is a well-established and regulated online broker.

It is focused on trading with currency pairs (forex) but it also offers a decent number of CFD financial instruments and cryptocurrencies.

Overall costs of trading on Forex.com are average and, in most cases, competitive with similar brokers. They offer different types of trading platforms and accounts, covering all levels of traders - from beginners to professionals.

Forex.com does not have any withdrawal or deposit fees. Their minimum initial deposit is set at $100 which is on par with other brokers.

The account opening process is fast and the verification is smooth.

According to our analysis, customer support is responsive and available through email and live chat.

Their research toolbox is rich with basic and advanced charts and indicators. The same goes for the educational segment that includes webinars, tutorials, blogs and instructional videos.

Good:

  • Different account types
  • Flexible trading
  • Reasonable spreads/commission
  • Suitable for all levels of traders
  • Well-regulated
  • Financial disclosures
  • Bad:

    • Under-average number of CFDs
    • Can’t trade with real stocks
    • No negative balance protection
    Overall score: 9/10

    Forex.com Review and Insights (2020)

    Forex.com is a popular online broker, originally founded in 1999.

    The company is well regulated in various jurisdictions while its parent company GAIN capital holdings is listed on the NYSE stock exchange. They serve hundreds of thousand users around the globe and are headquartered in the U.S. state of New Jersey. The company's largest retail Forex website is Forex.com, though it also offers white label solutions for dozens of online Forex trading companies, most of which serve the global market.

    Disclaimer: Please note that CFDs, which are available for trade on Forex.com, are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Forex.com offers several distinct accounts and a transparent and flexible pricing structure which makes the provider suitable for both beginners as well as experienced traders. In fact, we found the platform to be one of the most balanced and flexible online brokers out there.

    Beginners (8,5/10)
    • Lots of good educational resources
    • Easy-to-use platform
    • Clear tutorials
    • Demo mode
    • Mimimum deposit only $100
    • Poor email support
    Mid-level traders  (8,5/10)
    • Flexible platforms
    • Different account types
    • Technical tools
    • Advanced educational material
    • Limited number of non-forex assets
    • No protection for negative the balance
    Advanced traders (9/10)
    • Meta trader integration
    • Direct market access account
    • Advanced tools and charts
    • Decent market analysis
    • Limited number of non-forex assets

    Costs

    You PAY:

    • Spreads or/and commission
    • Inactivity fee
    • Rollover charge

    You Don't PAY:

    • Deposits
    • Withdrawals
    • Platform usage

    1. Fees and Spreads  

    Forex.com fees are average, with wider spreads on some instruments. Their fee structure is neither a big advantage or a disadvantage.

    Good

    Bad

    • No deposit fee
    • No withdrawal fee
    • Flexible fees (depends on the account) 
    • Inactivity fee
    • High stock CFDs fees

    Like most other brokers, Forex.com segments its fees into two categories.

    Trading fees are what you pay for trading. They can include spreads, commissions, conversion rates.

    Non-trading fees include various brokerage fees and charges that you pay not related to buying and selling assets. Typical non-trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.

    Trading fees

    As a market-making broker, Forex.com doesn’t give clients access to the raw prices offered in the market. Instead, their price is built in a spread. What is a spread you might ask? When a price for a market is quoted, you will actually see two prices. The first price, known as the bid, is the sell price and the second price is the buy price, known as the offer. The difference between the sell and buy price is called the spread.

    Forex.com also offers a commission account. There’s no mark-up on your spread, but you will have to pay a commission. It’s up to you to decide whether you want to pay the commissions or the fees.

    It’s not always easy to compare fees and commissions between brokers since they often deploy different pricing structures.

    But, generally speaking, Forex.com costs can be considered somewhere in the middle in comparison to similar brokers.

    Non-trading fees

    In terms of additional fees, Forex.com charges an inactivity fee of $15 per month in case there is no trading activity or no open positions for 12 months or more.

    FOREX.com does not charge data exchange fees but they do have financing or rollover charge (holding a position open overnight) and borrowing costs in some cases.

    Rollover charge

    depends on the position

    Inactivity fee

    $15 per month after 12 months of inactivity

    Borrowing costs

    check relevant market information sheet

    2. Withdrawals and Deposits

    Deposits and withdrawals are super straightforward and transparent. There are no fees attached.

    Good

    Bad

    • Credit/Debit card deposits and withdrawal 
    • No fees attacked
    • Minimum initial deposit only $100
    • None

    Deposit

    Forex.com has a minimum initial deposit requirement set at $100. They recommend, however, that you deposit at least $1,000 that would give you more flexibility and better risk management when trading your account. For deposits, you can choose from 7 base currencies: EUR, GBP, USD, AUD, CAD, CHF, JPY.

    You can fund your account via credit card, debit card, or wire transfer by logging in to MyAccount and visiting the Funding page. At the moment, Forex.com doesn’t accept payments through Western Union or Paypal.

    A bank transfer can take several business days, while payment with a credit/debit card is instant. It goes without saying that you can only deposit money from accounts that are in your name.

    MIN PER TRANSACTION VIA DEBIT/CREDIT

    MAX PER TRANSACTION

    ACCEPTED CURRENCIES

    TYPE

    TYPICAL PROCESSING TIME

    FEES

    $50 or currency equivalent

    $10,000 or currency equivalent

    USD, EUR, GBP

    Visa or MasterCard

    Immediate

    None

    MIN PER TRANSACTION VIA WIRE  TRANSFER

    MAX PER TRANSACTION

    ACCEPTED CURRENCIES

    TYPE

    TYPICAL PROCESSING TIME

    FEES

    None

    None

    USD, EUR, GBP

    Wire transfer

    Up to 1-2 business days

    None

    Withdrawal

    The minimum withdrawal amount is $100, or the remaining amount if less than $100. The withdrawals are free of charge.

    Deposited funds must be returned to the originating funding source in the following order:

    • Credit/Debit Cards
    • Wire Transfer
    • Excess funds may be withdrawn via Bank Transfer.


    Processing fee

    Max withdrawal amount

    Fees

    Credit/debit

    Up to 24 hours

    $50K or transaction up to the amount funded

    None

    Wire transfer

    Up to 48 hours

    Unlimited, once cards deposits are refunded

    Additional fees may be applied by receiving bank.

    3. Account opening

    The account can be opened in 10 minutes while verification can take longer than what we would have expected from an online broker.

    Good

    Bad

    • Different account possibilities
    • Fast and clear
    • No fees attached
    • Relatively slow verification

    Forex.com offers three account types you can choose between:

    Standard account

    Ideal for traders who want a traditional, spread pricing, currency trading experience. A nice feature that comes with the standard account is the so-called “active trader”. This means that you are able to lower your costs by up to 18% with cash rebates plus get access to other benefits.

    Commission account

    This account is most suitable for traders who are seeking ultra-tight competitive spreads with fixed commissions. For instance, the spreads on popular currency pair EUR/USD can go as low as 0.2. Be aware that you’ll have to pay an additional trading commission with this account - $5 per 100k traded.

    Direct Market access

    Direct Market Access is perfect for more experienced traders who demand deep liquidity and the control to take advantage of rapid price opportunities. With this account, you can trade on prices sourced from global banks and top tier liquidity providers – with no additional mark up.

    Account

    Pros

    Cons

    Standard

    No commission, savings

    Higher spreads

    Commission

    Lower spreads

    Flat $5 commission per standard lot, not available on Meta Trader

    Direct Market Access

    More control and transparency

    Minimum trade size 100k, not available on Meta Trader

    When it comes to account ownership, Forex.com has additional options:

    • Individual - owned by an individual
    • Joint - owned by two or more individuals
    • Corporate - owned by a legal entity

    Registration and verification

    Regardless of the account, you will be asked to provide certain information upon registration. This information includes name, address, date of birth, and tax ID number. In order to further verify your account, you might also have to submit additional documents such as:

    • Passports (national or international)
    • Driver's license
    • National ID Card
    • Utility bill
    • Bank, building society, credit or debit card statement
    • Council tax bill
    • Local government address registration certificates
    • Valid driving license if issued within the last six months

    4. Markets and products

    Forex.com excels with the forex catalogue but we would hoped for more CFDs and the possibilities of trading with real stocks or bonds.

    Good

    Bad

    • Above-average number of currency pairs
    • Deficiency of CFDs
    • No real stocks trading

    Forex.com is primarily a forex (foreign currencies) broker that later expanded its product catalogue  to CFDs (contracts on difference) and cryptocurrencies.

    And it shows; Forex.com provides an above-average number of currency pairs as seen in the table below. It also fares well in the indices, ETF, crypto, and commodity  selection. The stock CFD stock line-up is relatively thin, though.

    Additionally, Forex.com doesn’t support trading with “real” stock or commodities. 


    Forex.com

    eToro

    Plus500

    IQ Option

    Stock CFDs

    270

    1300

    1800

    168

    Forex

    84

    47

    50

    49

    Indices CFDs

    17

    13

    30

    -

    ETF CFDs

    26

    145

    80

    24

    Commodities

    26

    14

    25

    4

    Crypto

    8

    16

    12

    12

    Disclaimer: CFDs are also complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with Forex.com. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Learn more about CFDs from our dedicated series:

    5. Platform features

    Forex.com's web trading platform is user-friendly and extremely customizable, with lots of order types.

    Good

    Bad

    • Different trading mechanism
    • Meta Trader integration
    • Good customizability
    • Charts and indicators
    • Buggy at times

    Forex.com's suite of trading platforms is, generally speaking, suitable for all types of traders. Their proprietary system consists of three different ways of trading that are all accessible from one account:

    • Advanced trading for experienced traders
    • Web trading for casual traders
    • Mobile trading for both

    They also support MetaTrader4 (web and mobile), one of the world's most popular trading platforms with access to dedicated support and integrated trading tools that are exclusive to forex.com.

    Desktop Experience

    Forex.com’s trading platforms are designed to support both the new trader and the Forex trading professional.

    Web trading platform is generally more suitable for beginners. It has a nice intuitive design and rich features such as:

    • Smart trade ticket with advanced risk management options: You can set orders based on P&L, price or pips. This way you’ll know your pip value and margin requirement at a glance.
    • Pre-defined and customizable layouts: You can create layouts to suit your trading style and access them from any computer or browser for future use.
    • Powerful charts with integrated one-click dealing: a nice feature allows traders to create new orders directly from the charts or click & drag to edit the existing orders.

    The “Advanced trading platform” is, as the name suggests, built for more demanding and experienced traders.

    The charting, for instance, is much more interactive. Traders can access over 100 predefined indicators or create own indicators, toggle and zoom between 15-time frames and trade directly from the charts. The advanced settings also allow integrated trading systems and a customizable dashboard.

    Both modes of trading platforms are available on desktop or mobile. In both cases, you’ll also be able to access economic calendars, news and order histories. 

    There aren't many drawbacks to the platforms but there are loads of indicators and drawing tools, and it is functional enough to make rapid-fire trades if needed.

     Forex.com account can also be integrated with NinjaTrader, a popular third-party trading platform.
    forex-com-trading-experience

    Mobile app

    The mobile application is useful and easy to access too. It provides traders with an overview of all of their account information and allows for adding or withdrawing funds, viewing trade history, creating watchlists, accessing news, and viewing charts, among other things. You’ll also be able to easily navigate and set-up your systems.

    The charting feature isn’t a big benefit, however. There are a limited number of indicators available to choose from, and many technical tools are missing which is perhaps somehow understandable on a mobile phone. On the plus side, full order functionality is available, and you can place stop losses and profit targets when you’re trading too.

    A trader also has a full personalization set at disposal. This includes personalization of the navigation bar, dashboards, and the style of the execution.

    Another nice (and common to other trading apps as well) feature is the alert function that lets you know when an asset reaches a price target. You also get a notification when your orders get fulfilled. This is a push notification which is available on both web and mobile platforms.

    6. Education and research

    Forex.com is a market leader in the areas of research and education. Especially the latter is exceptional.

    Good

    Bad

    • 80+ tools and indicators
    • Good interactive chart
    • Rich educational library for all traders
    • none

    Research

    Forex.com has a decent suite of tools and charting possibilities. Their “Advanced trading” platform mode offers powerful charting tools, more than 80+ technical indicators and extensive drawing tools. It also includes some advanced analytical tools such as integrated trading strategies with 100s of predefined templates to choose from. Web trading additionally provides users with market commentary and analysis.

    The broker doesn't have a news feed that some other brokers have, but there is an economic calendar, which lists upcoming macro events and market analysis. You can find these articles under the 'Market Analysis' tab.

    Education

    Forex.com’s education section is rich and clearly structured. User can first take a short quiz and receive educational material relevant to his or her level of knowledge.

    The broker provides different types of learning mediums:

    • Demo account
    • Platform tutorial videos
    • Webinars
    • General educational videos
    • Quality educational articles
    • Trading glossary
    • Trading knowledge quiz

    We especially liked the way concepts are described and explained. You can tell that the team invests lots of effort in delivering clear and useful content.

    You can learn more by visiting their dedicated landing website with a library of education resources.

    forex.com

    7. Customer service

    The customer support is OK but we like to see more responsiveness.

    Good

    Bad

    • Detailed FAQ section
    • Service updates
    • Longer waiting times
    • No visible phone number

    If you need help with your Forex.com account, there are d ways to get in touch, including online chat. The company has been offering live phone support as well, but at the time of writing they haven’t published any phone numbers on their support site.

    However, you can access helpful service updates and FAQs on the Forex.com. It most of the cases, you’ll find a relevant answer there.

    Online support is available from 10am Sunday to 5pm Friday.

    Live chat is regulated by a bot, so you’ll be limited in the questions you can reasonably ask. It’s probably a good idea to contact the company via email if you have complicated queries – but this can take some time to receive a relevant answer.

    7. Regulation

    Forex.com is one of the oldest and most respected brokers. Parent company is listed on a stock exchange which shows a certain level of credibility.

    Good

    Bad

    • Regulated in several jurisdictions
    • Parent company listed on NYSE
    • Financial disclosures
    • No bigger scandals
    • None

    Forex.com is regulated in seven jurisdictions worldwide, supporting over 200,000 traders in over 180 countries. These jurisdictions include the US, UK, Australia, Canada, Singapore, Japan, and the Cayman Islands. Because laws and regulations vary according to country, the products you can access in each area will vary too.

    Their parent company, GAIN Capital Holdings, is a publicly-traded company which means they are obliged to meet relatively high standards of corporate governance, financial reporting and disclosure.

    Additionally, Forex.com claims to perform “robust bank/broker reviews and assess counterparty creditworthiness daily”.

    All customer deposits at FOREX.com are kept separate from their own operating funds and distributed across a global network of custodian banks and brokers. There isn’t any additional insurance provided for clients across the board. The level of protection depends on the country where the subsidiary serving you is located. As of time of writing only traders within the EEA (European Economic Area) and Canada are eligible for protection, up to £85,000 and $1,000,000, respectably.

    Unfortunately, it is possible for client accounts to go into a negative balance, with no safeguards offered here. The accounts are still monitored though. If you don’t have enough margin in your account, the site will automatically begin to liquidate certain positions, but this won’t always stop negative balances from taking place.

    AvaTrade Final Verdict

    Forex.com is a platform suitable for all kinds of traders but especially for those who want to trade on a reliable and well-regulated platform.

    It is specialized for forex traders, but their selection of other assets will also welcome those who are more familiar with stocks or cryptocurrencies.

    Fees and commissions are reasonable; you might find better deals on some areas but all-in-all Forex.com has a competitive fee structure.

    To sum it up: we recommend Forex.com for all traders

    What Is Next?

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