Forex.com is a leading broker that offers individuals worldwide access to different financial markets, including cryptocurrencies. The platform is owned by StoneX, renowned for connecting clients to global markets across various asset classes through institutional-grade platforms, end-to-end clearing and execution, and high-touch expertise.
Users of the platform have access to different financial instruments through commodities, cryptocurrencies, stocks, indices, and forex. Even though not available to every region, other services on offer include client account protection through stop-loss orders and negative balance protection. In this guide, we will examine all aspects of forex.com.
Forex.com Review Overview
Established in 2001, Forex.com is a global broker, which is part of GAIN Capital, a US-based company that provides online trading services and is listed on the New York Stock Exchange. As a global platform, forex.com is regulated in several countries, including USA – Commodity Futures Trading Commission (CFTC), UK -Financial Conduct Authority (FCA), Canada, Japan, and the Cayman Islands. This broker offers users access to forex and crypto products at low fees.
3 Reasons to Use Forex.com
Forex.com offers two trading platforms; its own and that of MetaTrader, a third party. Its own platform is available through the web, mobile, and desktop. Its web trading platform is quite welcoming, especially to new users, easy to navigate, very customisable, and you can place different types of orders. The trading dashboard is designed simply with everything clearly labelled, making it easy for anyone to use.
Access Top Cryptocurrencies
Forex.com offers users access to over 80 fiat currencies, making it one of the most compressive currency trading providers. Additionally, it allows traders to access the highly volatile and lucrative cryptocurrency market. You can trade four top cryptocurrencies; BTC, ETH, LTC, and XRP, and profit from them when the prices rise or fall through leverage trading. You don't have to own the tokens and deal with complicated exchange wallets or even experience exchange fees. Also, on the platform, you can access various risk management tools that you can use to lock in profits and minimise losses.
Access to educational materials
Forex trading is complicated and requires specific skills. It can be intimidating to beginners; that's why Forex.com has plenty of educational materials that can be accessed on its website where users can research and educate themselves no matter their expertise level. Thanks to these resources that range from video tutorials, advanced risk management courses, and live webinars, all one needs to do is open an account and head to the education section to learn all they need to know before starting their trading journey.
What is Forex.com?
Established almost two decades ago, Forex.com prides itself as a global market leader that helps traders worldwide take advantage of the global currency markets. Its parent company StoneX Group, Inc, is a publicly-traded company on NASDAQ: SNEX, which meets the highest corporate governance standards. As of the second quarter, StoneX has total assets of $10.9 billion and was ranked by Forbes No.100 in the 2020 Fortune 500 list of the US's largest companies by total revenue.
The company's services include risk management advisory, trading over 150 foreign currencies, market making, trading and hedging precious and base metals, and offering OTC products through various commodities.
The management is made up of Sean O'Connor, the CEO, William Dunaway is the CFO, and John Radziwill is an independent chairman of the board.
How Does it Work?
Forex.com offers three account types; standard account, commission account, and direct market access account. These accounts serve different trading needs. The standard account is ideal for traders who prefer traditional spread pricing and currency trading experience. The commission account is for those who seek ultra-tight spreads with fixed commissions, and the DMA account is for serious high-volume FX traders that seek maximum control over their trading.
The standard account is available through the broker's own proprietary software and a third party MetaTrader 5. But, the MT5 option isn't available for the commission and direct market access account.
The commission account will charge a fixed $5 commission for every 100,000 traded, and thanks to the active trader program, you can earn up to $10 in cash rebates per million FX trade in monthly volume.
The DMA account caters to traders that seek deep liquidity and charges no spreads, only fixed commissions. Also, users will enjoy discounts depending on the amount of volume traded.
How does Forex.com Make Money?
To be able to keep providing its services to traders worldwide, Forex.com charges small fees and commissions. Compared to other top trading platforms, the broker has some of the lowest fees in the market, and the charges are transparently displayed on the platform. These fees vary depending on the account you choose, how often you trade, and the average trading volume.
The first mode of revenue comes through spreads. This is the difference between the bid and the asking price. Spreads on Forex.com change daily with the markets, and they typically range from 1.9 pips to 0.84 pips.
But you can receive discounts on these fees if you hold a premium account and fund it with at least $10,000 and ensure you trade at least 30 standard lots per month.
There is an active trader program for the standard account and commission account traders that offer reduced fees for anyone holding at least $10,000 and trades around $25 million in volume.
Also, there are swap fees that are common within the forex industry. They are incurred for positions held overnight and may be subject to currency conversion charges if you happen to trade in a currency that isn't your base currency.
Finally, you will be charged $15 if you go over 12 months without trading on the platform. But, you can avoid this fee by asking the customer support to disable your account temporarily.
Pros & Cons of Forex.com
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Breaking Down Forex.com: Our Analysis and Review
So far, we have taken a look at various aspects of Forex.com, including who the owners are, how the platform makes its money, and the general pros and cons. Below we will take a more in-depth look at the broker, including how to trade cryptocurrencies, how secure is the platform, which nations it services, and more.
Regulation, Licenses, and Security
When it comes to money-making or handling platforms, the importance of regulation, licenses, and security can't be emphasised enough. And with online trading platforms, the risk is even higher since it's easy to lose your hard-earned cash, and those behind the scheme will go unpunished since you don't know them. People have lost millions of dollars through online scams, and due diligence is always required.
That said, Forex.com is regulated by at least eight organizations around the globe, including the FCA in the UK, FSA in Canada, SFC in Hong Kong, IIROC in Canada, NAF, SEC, CFTC, and CIMA in the Cayman Islands. All this points to the fact that the broker can be trusted.
Forex.com is also regulated and has operational licenses in many other nations like Singapore, Russia, Indonesia, China, Vietnam, India, etc. The CIMA regulation has been impactful in helping the brand grow in Africa, Middle East, South Asia, South, and Central America.
As for security, Forex.com keeps all user deposits in a separate operating account before distributing them across different custodian banks around the world. Sophisticated encryption is used to safeguard user's capital and data. And the platform adheres to guidelines outlined by the Risk Committee of GAIN Capital Holdings, Inc.
Supported Countries on Forex.com
Forex.com is available in many countries around the globe except for a few like Zimbabwe and Pakistan. You can check if your country is available by clicking on open a new account and searching through the drop-down menu on the account registration form.
Is Forex.com Secure?
As we mentioned above, Forex.com is regulated by different regulators around the globe. And to guarantee the security of funds and user information, the broker employs a two-factor authentication (2FA) and biometric authentication for its mobile app. Also, data on the website is encrypted using SHA256, TripleDes, and MD5.
Key Services and Additional Features
Forex.com boasts several unique features that help it stand out from the rest, including;
Access to many markets
On this broker, you will be able to access a range of trading markets with over 4,500 trading products on offer with competitive pricing and quality trade execution. Among the tradable assets is access to over 80+ currency pairs, popular commodities, thousands of stocks, cryptocurrencies, and indices.
Access to excellent services
By joining Forex.com, you can access world-class services, including flexible account types that cater to different trading needs. The market strategist is available to exclusive traders, which helps you develop the best trading plan and the active trader rebate program, which offers reduced fees for high volume currency traders.
Access to different trading platforms
As one of the top brokers globally, Forex.com offers a range of trading platforms that cater to traders of all skill levels. Whether you are a beginner or a seasoned trader, there is a trader that meets your unique needs.
Access to research tools
Trading requires one to conduct extensive research, and Forex.com makes this process easy by providing several unique tools for this job. You have access to real-time market insights, actionable trade ideas, and professional guidance on your trading on the platform.
Access to plenty of educational resources
The number of educational resources provided by this broker is vast. It caters to beginners, intermediate traders, and experts, and you can learn trading concepts, how to manage risk, and conduct technical analysis. What we found impressive in this section is the personality test you take at the start to determine your temperament, and then you are advised on trading styles that suit your personality.
Highly Secure and safe
This trader is regulated by many top bodies around the globe, which inspires confidence. There are measures to protect users if anything happens to the company. The broker is also highly secure, thanks to robust security measures that ensure user funds and information are safe.
Supported Cryptocurrencies on Forex.com
Forex.com supports four top cryptocurrencies. You can trade Bitcoin, Litecoin, Ethereum, and Ripple (XRP) on this broker with fixed spreads, low margins, competitive financing, and reliable trade executions. These coins are available on the Forex.com and MetaTrader5 platforms but not on its MT4 platform.
Forex.com has its own trading platform and also employs third party trading services through MetaTrader5. Its trading platform is available through the web, desktop, and mobile app. It's extremely customisable, boasting different order types—also very user-friendly, serving the needs of beginner traders and experts.
Forex.com Trading Platform at a Glance
You will be impressed with how pleasant the trading platform is to the eyes once you sign up. The trading dashboard is neatly arranged, with each aspect clearly marked. It's easy to add, remove, or even change the tabs' size and position, thus creating something unique to your liking.
There is also a light and dark theme which comes in handy, especially if you spend many hours on the computer. On the dashboard, you can search for different markets, and there are several order types you can use to place trades, including market, limit, stop, trailing stop, and one-cancels-the-other (OCO).
You can also set notifications and receive alerts when your orders are fulfilled or when an asset reaches a particular price target. Another awesome thing about this broker is the availability of reports on fees and your portfolio, which you can download from the "Reports tab."
Deposits and Withdrawals on Forex.com
Deposits and withdrawals can be made using credit/debit cards and wire transfers. For credit/debit cards, the broker accepts USD, EUR, and GDP, with the minimum deposit being 100 units of the base currency and the maximum 10,000 units. This mode will get the funds deposited in your account instantly, and there are no fees charged. There is no minimum or maximum amount for transactions using wire transfers, and the typical processing time is 1-2 days, and no fees are charged.
Payment Methods Accepted by Forex.com
Forex.com accepts the following payment methods:
- Credit/debit cards
- Bank transfers
Unfortunately, this broker doesn't accept other popular modes of payment like PayPal and Western Union.
Minimum Deposit Required by Forex.com
The minimum deposit on this platform is 100 units of your base currency. The base currency is offered in GBP, USD, and EUR.
Minimum Trade Size for Cryptocurrencies on Forex.com
The minimum trade size for cryptocurrencies on this broker is 1 unit of the crypto coin.
Forex.com Fees and Spreads
This broker charges different fees for different assets, and they are taken on spreads. Fees for EUR/USD, GBP/USD, and S&P 500, on average, are 1.4 pips, 2.1 pips, and 0.6 pips during peak trading hours. We found these fees to be lower during our research than those of other brokers on the same level as Forex.com.
The other type of fee on this platform is a non-trading fee. You will be charged $15 if you go without trading for a year. On the bright side, there are no deposit or withdrawal fees charged.
Forex.com Registration Process
The registration process on Forex.com is fast and straightforward. All one needs to do is visit the official website and click on "open an account". Choose the account that suits your trading needs and proceed to register. Enter personal details about yourself, like name, address, and trading experience. Then complete the process by verifying your identity and place of residence.
Documents needed for proof of address include:
- Bank statement
- Credit card statement
- Utility bill such as electricity, gas, water, or landline phone bill
Ensure the document displays your official name, and the address matches what you provided during account sign up. The document should not be more than six months old and ensure the picture you upload shows the entire document.
How to Trade Cryptocurrencies on Forex.com
There are five basic steps required to trade cryptocurrencies on Forex.com:
Step 1 – Open a Forex.com account.
Step 2 – Search for the crypto which you would like to buy.
Step 3 – Click on "Trade."
Step 4 – Insert your desired investment amount.
Step 5 – Click on "Open Trade."
Once your account is verified, and you have made the initial deposit, you will be taken to the dashboard where you can begin trading. But, use the demo account and receive $100,000 to practice different strategies and place orders. There is no risk of losing your actual deposit, so feel free to experiment until you are confident enough to place actual trades.
Our Forex.com Conclusion
While Forex.com doesn't try to offer every available tradable asset on its platform, the broker ranks high compared to other platforms. Users of this broker will love its low fees and commissions coupled with its many trading pairs and quality research tools. The tiered pricing and margin access can be confusing to new traders, but there is no need to worry since the platform offers compressive educational resources to help you along the way. If you opt for the mobile trading platform, you will be impressed by how the app matches every aspect of the web trader and gets the job done without much hassle.
The one thing that may disappoint you is the broker doesn't support many modes of payment, and its desktop trading platform can prove troublesome for beginners, so it's best you go with the other two available options.
Despite the few drawbacks, Forex.com offers a unique trading platform where fiat and cryptocurrencies can be traded with ease. It's easy to navigate and highly secured, guaranteeing users don't lose their funds. It's also highly regulated, and this offers the necessary confidence needed to get started on the platform.
No. You are not purchasing the crypto coins outright when you trade them on the spot; hence no need to have a virtual wallet to store them.
Given that cryptocurrencies are traded on several independent crypto exchanges, the diversity brought about by different exchanges can mean there are different prices for the same crypto coin at different times and different regions. Forex.com offers the most competitive pricing for coins based on different pricing models. The broker also uses the prices of leading crypto exchanges to come up with a weighted average price.
Yes. The option of trading cryptocurrencies on MT5 is available, but for those who may be using the older version of MetaTrader 4, this option is unavailable.
Since cryptocurrencies are relatively new, and the technology behind them is still finding its feet, they carry some risks. For starters, they are highly volatile compared to traditional assets. It's not uncommon to see price surges and drops within a short period. Another problem lies in that there is a limited number of reputable cryptocurrency exchanges, and there isn't a single reliable price source that, in theory, can mess with the prices. Also, the fact that regulation is a big issue within the industry, a decision to ban these digital assets by a government within a nation can severely affect the prices. But despite the high volatility, which represents a high risk, it also presents a significant opportunity for traders to make money if they can time the market right.