Forex.com Review

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OREX.com is a subsidiary company of GAIN Capital Holdings Inc. GAIN is among the list of the NYSE GCAP and as a worldwide publicly traded company, it’s required to comply with the highest standards disclosure, financial reporting, and corporation control. Also, GAIN offers outstanding technology, liquidity, and service to access leverage global markets to individual traders and institutions. Taking into account GAIN’s superior quality of services and great reputation, they have established FOREX.com to be a strong, reliable entity.

This firm is governed by the CFTC and is a member of the NFA. Also, they are registered in seven other jurisdictions around the world. Their worldwide Research Team monitors the Asia, London, and New York sessions keeping traders on top of fundamental events and technical indicators that drive the market. Through live Q&A seminars, customers can get their real-world trading questions answered by experienced traders.

Pricing and Execution of Trades

Because FOREX.com offers spreads that are highly competitive, this helps keep trading costs low. Likewise, their pricing is fully transparent and accurate. When market moves or changes benefit you, their savings are passed directly to you. This organization has spent over 10 years investing in technology through building a deep liquidity network of partners participating in bank trade. Thus, their high-tech system enables clients to execute more trades and save money while doing so.

As a market maker, their mission is to provide traders with a model, enabling them to offer the ultimate combination of low trading expenses, superb trading executions along with quality customer service. Despite being a market maker, this firm avoids being discriminative when determining what traders to accept. Likewise, the trading desk is not free to adjust the price or the execution speed of customers’ trades. The environment which they conduct business within is highly regulated as their trading practices and execution methods are steadily watched. Hence, the price you’re quoted with is one that you can trade on. Likewise, your trades will be processed with great accuracy and speed with a level of price certainty that few other brokers can offer.

Additionally, FOREX.com makes a guarantee to stand behind every single trade (because they are market maker and they own the positions you take). Thus, as a trader, you can expect them to be responsible for each of your trades rather than an outsourced party since FOREX.com does not hire outside help for this purpose.

Ultimate Trading Tools

With their top-notch trading tools and world-class technology infrastructure, their clients are promised quality trading experiences. Regardless of market conditions, quick and optimal trading executions are assured since all aspects of the trading process are automated. Thus, it is these attributes which make FOREX.com a dependable to traders residing in more than 140 different nations.

So it goes, not all traders like to use the same platform. Therefore, FOREX.com offers four different platforms to ensure ultimate trading experiences for all. These are:

  • GTX Forex ECN – This revolutionary Forex ECN platform enables high net worth individuals and the pros to conduct FX trades on a commission-based, stand-alone platform that offers client-to-client trading capability.
  • MetaTrader 4 – With a version that is completely customizable, traders are able to use advanced order functionality, automated order rules, along with research and commentary from FOREX.com. All it takes is a single download to obtain this fully loaded MT4 version, which is always in sync.
  • FOREXTrader PRO – It is a state-of-the-art, proprietary platform that furnishes clients with cutting-edge technology tools and high performance. Users can choose this platform according to what equipment they use: desktop PC, a browser-based interface for Macs or PCs, or for portable iPhone, iPad, or Android.

FOREX.com furnishes additional high performance trading tools to enable clients to identify various types of trading opportunities. Every type of investor may find these other tools highly effective in trading:

  • Charting packages
  • Third party analysis tools
  • Streaming news
  • Expert research conducted by their global research team.

The FOREX.com Practice Account

For those who would prefer to practice before they trade, FOREX.com offers an account of $50,000 in virtual or fake trading funds. This tool can assist them as they become educated through its learning resources, all within a risk-free environment. Results attained from using the account are only hypothetical and thus, no guarantee is made that no specific trade techniques are likely to achieve profits or losses similar to those attained during practice sessions.

Rollover Rates That Are Competitive

Because some FX investors like to hold positions overnight, by using rollovers, they can make more profitable trades. Many of FOREX.com’s rollover rates have been proven to be the most competitive in the Forex trading industry. This helps keep rollover costs as low as possible as a client pays them along with maximizing the credit they earn on the rollover.

Clients also benefit in other ways as:

  • Obtaining access to some of the most competitive rollover/swap rates in the foreign exchange trading industry
  • Knowing how much each customer will earn and pay since rollover rates are updated and posted each day and are instantly available in the trading platforms

Low Trading Costs

Apparently, investors would prefer to trade with a firm that is financially strong and solid. With their great financial transparency, FOREX.com gives its partners and customers confidence that this firm is well managed and adequately capitalized. Its ample resources ensure much innovation and leadership in the foreign currency trade industry. Other reasons traders choose FOREX.com include:

  • The cost of trading depends on the bid/ask spread. This attributes to the fact that there are no hidden fees or commissions.
  • Access to streaming market analysis and commentary in addition to their premium trading tools.
  • Being publicly listed with the NYSE GCAP.

Competitively tight spreads as FOREX.com offers, help keep trading costs down. Traders can find out what they’ll pay with just a glance. Likewise, they’ll never have to deal with complex commission structures or figures hidden in small print. With competitive spreads traders:

  • Need not maintain minimum account balances or volume requirements.
  • Never have to pay commissions since their only trade costs are the spreads.
  • Will find an opportunity for price improvements on every trade they make.

To further understand costs of trading, traders can find a table of real-time spreads on FOREX.com’s website, including common spreads for each currency pair.

Through offering quick and precise trade executions, this also means low trading costs for their customers. They make the utmost efforts to guarantee that the execution process of trades is done as rapidly as possible. Clients are ensured to obtain trades at their expected costs or even less. Trades are executed in about 0.04 seconds, but rarely ever take more than one second. Price improvements are successful on about 60.4% of all limit orders.

As per what they claim on their site, FOREX.com will absolutely never intermix customer deposits with their own trading funds. Also, funds received by clients’ deposits are distributed across a worldwide network of custodian banks. Every bank involved possesses an investment-grade rating and is monitored according to the guidelines set by the Risk Committee of GAIN’s Board of Directors.

Obtaining an Account With FOREX.com

When joining any brokerage firm that interacts with Forex trading, it is crucial to become familiar with their terms and policies before opening an account. Likewise, you should know the entire process of placing and acting on trades. This section will go over the essentials on opening an account and conducting trades with FOREX.com.

Creating your own trading account with FOREX.com involves a few preliminary steps:

  • Complete the application – You can either apply online or download the forms and mail, email, or fax them in. See their site for full details.
  • Verify personal info – They will need to know if you’re a US resident or not. Non US residents will need to send in info as a copy of their passport, two forms of ID, and complete a W-8BEN (tax withholding form) as a link to download it is provided on their site.
  • Fund the account – Funds can deposited via credit or debit card, wire, eCheck, or paper check.

There is a minimum of $250 required to open an account, but in order to trade the full range of products FOREX.com offers, a deposit of $2,500 which is compulsory.

As mentioned before, FOREX.com does not charge its customers commissions. As for price quotes investors receive, they already include regular dealing spreads. They are determined by interbank dealing spreads on all frequently traded currencies such as the Australian dollar, British pound (sterling), Canadian dollar, the Euro, the Japanese yen, and the Swiss franc. Also, FOREX.com customers who maintain active accounts are granted access to free, quality research tools and services.

If an account remains inactive for more than 90 days, the customer is charged a monthly fee of $15 (which went into affect March 1, 2012). In order to avoid this fee, the trader must temporarily deactivate his or her account. An account can be deactivated and reactivated at no cost to the customer. However, once an account is deactivated, it will become inaccessible.

FOREX.com Services

Clients are free to trade during the hours FOREX.com is open: 5:00 pm eastern time on Sunday to 5:00 pm eastern time, Friday, 24 hours a day. Trading hours are also available during most major holidays. Illiquid market conditions do occur, especially towards the end of the trading week and thus, customers must be aware of this. Also, market liquidity often results in wider spreads for some currency pairs.

Trading can be done from any computer or certain portable devices providing they have an internet connection. Likewise, you can use a public computer as one found in a library or coffee shop. Simply go to www.forex.com and login to your account. If you happen to be traveling and don’t have access to the internet, just call the trade desk and conduct trades over the phone.

Account holders receive monthly statements and have access to account management tools. Numerous premium trading tools, including technical analysis and charting come with FOREX.com’s dealing software. This software also includes real-time profit and loss analysis, real-time news feeds, and full back office capabilities. FX commentary is provided on a daily basis by market professionals who are members of FOREX.com’s staff.

Once trades are made, they can immediately be confirmed online. Details in full can be found online such as the reference number, USD value, national amount bought and sold, rate, time, and the date the trade occurred. Also, you can find the confirmation of trades listed on your daily statement.

For traders who are looking to continue their education on foreign exchange trading, this site offers several resources including:

  • Introduction to the Forex market – This section goes over Forex basics in a Q&A format.
  • Webinars – Here you can find live and on-demand videos of live trading seminars which include techniques and demonstrations created for anyone who is considering Forex trading.
  • Online courses – They offer a self-study course for $99 or an interactive training course for $299. If within 15 days of purchase, you are not happy with the course for any reason, you can obtain an immediate refund.

GAIN Capital

Again, FOREX.com is a affiliated to GAIN Capital as a subsidiary. Hence, as one of their traders, you are free to partner with GAIN. GAIN offers partners additional resources as:

  • Financial strength and transparency – GAIN meets the highest standards of corporate control, disclosure, and financial reporting.
  • Outstanding pricing, execution, and liquidity – Through working with traders worldwide, GAIN has built strong relationships with tier one liquidity providers and prime brokers. This gave FOREX.com the ability to offer superior liquidity, quality, execution, and low spreads to clients.
  • Premium regulatory protection for all traders – Because GAIN is regulated in seven jurisdictions, they offer each business a premium level of protection.
  • Tried, trusted, and scalable solutions – With their technical expertise, GAIN has given over 900 clients the best possible solutions and service.
  • Exchange-traded markets and OTC specialists – GAIN provides an exceptional range of more than 12,500 financial markets including CFD, FX, options, futures, and spread betting to make it easy to access and trade on OTC and exchange traded markets.
  • Global support – Customer support is available in multiple languages through FOREX.com’s several offices in the US, Australia, China, Japan, the UK, and Singapore.

FOREX.com is a member of the National Futures Association and also a registered FCM and RFED with the CFTC. Forex trading can result in a significant risk loss and is not suitable for investors who cannot deal with such an issue. The U.S. Commodity Exchange Act does not regulate Spot Gold and Silver contracts.

FOREX.com is one of the largest forex brokers in the U.S. It is operated by GAIN Capital Holdings and is based in Bedminster, New Jersey. In addition to forex, you can also trade gold, silver and futures. This broker offers a desktop trading platform and mobile app, and it doesn’t charge commissions on its trade.

Our reviewers downloaded the available demo accounts for each brokerage and evaluated each of them on the ease of use and the features they offer. FOREX.com’s ForexTrader platform was rated below average, in part because its charting tools have few options for adjusting and manipulating the data. You also cannot compare different pairs with the charts. The platform does not include options for creating multiple watchlists.

FOREX.com’s mobile app is one of the better ones our reviewers testing. It allows you to place trade and add funds to your accounts, and it syncs with your account so any changes you make are reflected in the desktop platform and vice versa. The main drawback again lies with the charting tools; you cannot use technical indicators with the mobile app.

This broker offers more than 50 technical indicators, including Bollinger Bands and Stochastic Studies. This is about average for the forex brokers we reviewed, and these tools are useful way to plan your forex trading strategies. FOREX.com has over 50 currency pairs available. In addition the major and minor pairs, some exotic pairs, such as the Singapore Dollar and the South African Rand, are available for trading.

FOREX.com does not charge any commissions on the trades you make. The broker’s markup comes on the bid/ask spread. This is the difference in the buying and selling price. FOREX.com’s spreads are roughly average, but it’s important to know that spreads are volatile and subject to change depending on current market factors.

In order to begin trading with FOREX.com, you need to make an initial deposit of $250. Among the brokers that require a minimum deposit, this is the lowest amount.

FOREX.com provides some educational resources to investors. These include weekly webinars that offer commentary on the marketplace and provide insight on the forex market. Platform tutorials are also available as well as a user guide that provides a full breakdown on how to use the platform.

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