Forex.com, established in 2001, is a well-known global online broker which caters to FX and CFD market traders.
Gain Capital Holdings Inc, a publicly-traded company, owns the platform.
Forex.com has an extensive customer base worldwide with 200k customers.
The advanced trading platform offered by Forex.com ensures a seamless trading experience, combined with strict regulatory compliance.
Traders can benefit from the wide array of markets available, including the opportunity to trade cryptocurrencies.
Forex.com prioritises customer satisfaction by providing continuous 24/7 customer support.
Moreover, it’s integrated with advanced research tools that aid UK traders of all levels in making well-informed decisions.
Forex.com has garnered numerous accolades like The Best Online Forex Brokers 2023 and Investment Trends UK Leverage Trading Report Awards.
If you want to learn more about Forex.com, stick with me because I have extensive experience with the platform and will include it all in this Forex.com review.
Table of Contents
Account Setup Process
Forex.com has a pretty straightforward and fast registration process.
However, your account may take up to two working days to be fully operational.
To open an account:
- Choose an account to open, such as Standard Account, MetaTrader 4 DMA Account, or Forex account.
- Provide your personal details, including your name and address.
- Answer some questions testing your knowledge related to trading.
- Verify your account by uploading legal documentation, such as a Driving license, etc.
Types of Accounts on Forex.com
Forex.com offers flexible account types to suit the unique needs of every trader.
It has five different types of accounts, namely the Standard account, DMA account, corporate account, MT4 account, and Demo account.
Let’s delve deeper into the features of each account.
Standard Account
This account is best suited for those new to trading. It only requires an initial deposit of $50. Being a beginner-friendly option, users can enjoy competitive spreads and gain access to a vast selection of over 1000 markets.
Some significant benefits of this type of account include No Stop or Limit levels and more precise quotes. Moreover, you get access to a high leverage ratio of up to 1:1000.
Some drawbacks include no compounded annual rate and potential delays in the order execution.
Furthermore, not all brokers and trading platforms facilitate transactions within the interbank market with the Standard account.
Direct Market Access Account
Direct Market Access (DMA) account meets the needs of seasoned traders engaging in high-volume fx trades. There are no initial investments required for account opening.
One aspect I loved about the DMA account was the tiered commission structure. This means that higher trading volumes will result in lower commission rates, providing cost savings for traders.
Additionally, there are no spreads, which eliminates the spread costs and preserves your profits. Moreover, you also get personal support from a market strategist to get expert guidance.
Corporate Account
It’s an account that caters to the specific trading needs of institutions and businesses dealing with sales.
One notable advantage I observed was the ability for numerous users to use it. This allows for seamless collaboration with your team.
Moreover, this account allows for corporate cash placements, which provides businesses with secure means to manage their funds.
Raw Spread Account
This is your go-to account if you’re looking for extremely low spreads (as low as 0.0 on major pairs).
This account offers up to $5 commission / 100k traded. Your trading expenses are reduced by up to 15%.
Just like the DMA account, you get exclusive access to Relationship managers for one-on-one expert guidance.
Mediums for Deposits & Withdrawals
At Forex.com, I liked how you have the flexibility to choose from multiple base currencies.
This means you can make a bank transfer to your account in the same currency as you’re trading with.
This effectively cuts down currency-exchange costs and simplifies the funding process.
The following deposit methods are available:
Bank transfer: You can initiate a deposit by transferring funds directly from your bank account to your Forex.com trading account. It’s not the fastest withdrawal method and may take up to a few business days.
Credit/debit card: A faster alternative is to use a credit or debit card to fund your account.
Electronic wallets: For an added layer of security, you can choose to use E-wallets.
It’s worth noting that Forex.com does not impose a minimum account balance requirement.
However, it does require a deposit requirement of £100. This low minimum deposit makes the platform accessible to a broader range of traders, even those who are just starting.
There are no withdrawal charges, so you retain your maximum earnings.
The withdrawal period varies depending on the method of payment you opt for.
In my testing, I found the estimates listed below:
Bank transfers: Withdrawals typically take a maximum of three business days to reach your bank account.
Credit/debit card withdrawals: The processing time is typically less than six business days.
Fees Structure
Forex.com boasts competitive trading fees. Trading fees vary from one account to another.
Let’s take a look at each account with the fees associated with it:
Standard Account (MT4 Traders)
The standard account is available exclusively for MT4 traders.
While you get access to the popular MT4 platform, the average spreads on this account tend to be slightly higher.
For example, the average spread on the EUR/USD currency pair is 1.1 pips.
DMA Account (Advanced Trading Platform)
Traders on the DMA account get access to Forex.com’s robust Advanced Trading Platform.
This platform offers more favourable rates. The typical spreads are as low as 0.03 pips for popular currency pairs like EUR/USD.
However, bear in mind the additional commission fee associated with trading on the DMA account. You can eliminate it by trading in bulk.
Furthermore, you will incur an additional $15 inactivity fee monthly if you don’t engage in any trading activity. The deductions start after one year of opening your account.
Diverse Product Offerings on Forex.com
Forex.com stands out as a reputable broker offering a diverse range of trading options across multiple asset classes.
Let’s examine each of the available options:
Forex
Forex.com is renowned for its extensive selection of currency pairs – 80 pairs, to be exact. However, their availability is limited. You can trade these pairs only on weekdays.
Worried about commissions? There are none! Plus, the spreads are extremely low, typically around 0.8 pips.
Shares
Forex.com currently does not facilitate the purchase of physical shares.
However, you can trade Contracts for Difference (CFD) instruments on UK and US stocks.
You can choose to trade from among 4500 share CFDs. Below are the requirements you need for it:
- UK share CFDs require eight basis points.
- US stocks require $0.018 per share.
Indices
Trading indices allow investors to gain exposure to broader market trends without being affected by the performance of individual companies.
Forex.com offers trading opportunities on popular indices.
You can find the list of these indices below:
- FTSE 100, with a minimum spread of 1 point
- The S&P 500 with a minimum spread of 0.4 points
- The DAX with a minimum spread of 1.2 points.
Traders have the flexibility to go long or short on these indices and employ leverage.
Commodities
Forex.com provides the ability to trade both long and short positions.
You don’t have to worry about commission charges as they are non-existent.
Plus, you can employ leverage. This allows traders to capitalise on price movements in commodities like oil, natural gas, etc.
Gold & Silver
Recognised as safe-haven assets, gold and silver are popular choices for diversifying portfolios and navigating against market volatility and inflation.
Forex.com provides an extensive range of liquidity, competitive pricing, and the opportunity to trade various valuable metals.
Traders have the flexibility to choose long or short positions, enabling them to increase their investment returns.
Quality of Customer Service: The Good & The Bad
Customer service is pivotal to ensuring an excellent experience.
The effectiveness of assistance is contingent upon the availability of various communication channels and the quality of responses.
You can contact Forex.com support through the following mediums:
- Phone
- Live Chat
The Good
I was pleased with their phone support as there were no long queues. Additionally, they were able to provide me with detailed and relevant answers.
If you prefer real-time conversation, select the ‘Chat’ option. This will open a live chatbot that addresses basic inquiries such as “How can I make a deposit?”.
If you desire to speak with a human representative, simply type “agent.” This will provide you with the option to connect with either a sales or support agent.
Overall, the experience was smooth and responsive with the phone and in-built chatbot.
The Bad
I was not too fond of their email support. When I emailed them, I got an automated reply stating it might take four business days to answer. Eventually, I received the answer after a couple of days.
Another thing I miss is the availability of 24/7 customer service support. It’s only available from Sunday to Friday.
Trading Platforms & Tools
Forex.com provides a range of trading platforms for active day traders and longer-term traders.
Forex.com facilitates trading on numerous mediums that include the following:
- To access on desktop: Use the advanced trading platform or MetaTrader 4 (MT4).
- To access browser-based trading: Utilise the web trader, or open up Forex.com.
- To access on mobile: Use the MT4 mobile app.
These platforms offer various features. Here are some valuable features I liked:
- Charts
- Economic calendars
- News, positions
- Trade/order history
- Trade signals
- Research report
- Market analysis.
Forex.com provides over 200 technical indicators and drawing tools for technical analysis enthusiasts, enabling swift trading execution when necessary.
The web-based platform stands out with its impressive charting package powered by TradingView.
Placing trades on the web trader or downloadable advanced trading platform is user-friendly. Clients can execute trades directly from charts by selecting the “trade” option or using the “buy” and “sell” buttons at the top. This action opens an order window, which allows you to set entry, stop loss, and profit target levels.
Forex.com’s platform supports four order types. Additionally, you can attach “take profit” or “stop loss” orders to them. Traders can also choose to use a trailing stop loss order.
My mobile app experience was also excellent. It’s super easy to navigate. Traders have the option to manage various aspects, including fund additions or withdrawals, effortlessly.
Moreover, you can view trade history analysis, create a watchlist creation, see real-time news updates, and chart visualisation.
Safety & Security
Forex.com operates under regulations imposed by various jurisdictions, leading to product variations depending on the country.
It’s duly registered as an FCM and RFED with the CFTC and holds membership with the NFA. Moreover, GAIN Capital UK Ltd. is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. The firm is also globally regulated by IIROC, ASIC, MAS, FSA, and CIMA.
To ensure the safety of client funds in case of financial difficulties, Forex.com keeps them separate from its funds. Additionally, U.K./E.U. clients receive additional asset protection through the Financial Services Compensation Scheme (FSCS), which covers up to £85,000.
Forex.com complies with ESMA rules implemented in 2018 and provides negative balance protection as mandated. Moreover, it offers guaranteed stop losses to its U.K./E.U. clients at an extra cost.
Furthermore, FOREX.com incorporates two-factor authentication (2FA) and biometric authentication in its mobile application. The data is encrypted using SHA256, TripleDes, and MD5 algorithms for enhanced security.
Educational Resources on Forex.com
Forex.com has a wide collection of educational resources. You can filter them according to your experience level.
Here are some key features of the educational resources at Forex.com:
Interactive Learning: The platform provides numerous courses and lessons covering a wide range of topics. It allows traders to develop their trading skills and strategies effectively.
Platform Tutorials: Forex.com offers tutorials specifically designed to guide traders through the utilisation of the tools and features available on their trading platform. These tutorials provide step-by-step instructions to help traders navigate the platform efficiently.
Other Useful Educational Resources: Traders can access various educational resources, including a trading glossary, educational articles, webinars, and a performance analytics tool. These resources provide comprehensive information and insights to enhance traders’ understanding of the markets and trading techniques.
Demo Account: For a hands-on experience, traders can use the demo account. It allows traders to practice their trading strategies and explore the platform’s functionalities in a risk-free environment. It is beneficial for beginners to test out the platform.
Quiz: To test your learning, Forex includes various quizzes. It helps traders discover their shortcomings and overcome them.
Pros & Cons of Forex.com
Pros:
- Diverse range of currency pairs
- Wide array of sophisticated research tools
- Low fees
Cons:
- Desktop platform is hard to navigate
- Limited product portfolio (only forex and CFDs)
- Inactivity fee + high stock CFD fee
Alternatives to Forex.com
While Forex.com is an excellent platform for trading, it might not be the best fit for everyone. Here are some alternatives to consider.
FXCM
FXCM is a UK-based trading platform. It offers CFD trading on shares, cryptos, commodities, and stock indices. If you’re looking for low fees and excellent research tools, this is your go-to platform.
Oanda
Oanda is a US-based forex platform. If you only want to trade FX and CFDs and want a user-friendly platform, this is your choice. Additionally, it houses some of the most amazing research tools, which makes it an amazing alternative to Forex.com.
Pepperstone
Pepperstone is an Australian forex trading platform. If you want a hassle-free account opening experience and customer support values to you the most, Pepperstone is your choice.
IC Markets
IC Markets is another Australian forex broker. It’s best suited for traders looking for a convenient and fast account registration process, along with free deposits and withdrawals.
Forex.com Review – Final Thoughts
Forex.com is an internationally recognised broker specialising in forex and CFD trading.
This platform offers competitive fees, an extensive range of currency pairs, and an array of advanced technical research resources.
However, it might not be the best fit for everyone. It falls short in certain popular asset categories, such as traditional stocks or bonds, with high fees for Stock CFDs.
Additionally, it has a somewhat less intuitive desktop trading platform.
Hopefully, my Forex.com review has given you some more insight into what the platform has to offer and whether it’s the right choice for you.
FAQs
Is Forex.com a good broker for beginners?
Yes, Forex.com is considered a good broker for beginners. It offers user-friendly platforms, educational resources, and customer support to help beginners navigate the forex market with ease and confidence.
Is Forex com regulated in the UK?
Yes, Forex.com is regulated in the UK. It is authorised and regulated by the Financial Conduct Authority (FCA), providing a level of oversight and protection for UK-based traders.
