Forex.com is a United states US based international Forex and CFD broker that is licensed by the US Commodity Futures Trading Commission, which was awarded the No. 1 Broker for Forex Trading based on client assets per the Jan 2019 Retail Forex Obligation published by the CFTC. The people behind Forex.com define the operation as the “No. 1 FX broker in the US,” a definition which carries further-reaching consequences than one would think at first glance. It also means that this Forex.com review will be somewhat outside the mold we generally use for our reviews.
First of all, having been defined as such, Forex.com can rely on a single federal regulator, like the CFTC, which is not just convenient, but also highly experienced and competent.
Well above and beyond the scope of Forex.com itself, the setup the operation has managed to build up over the last couple of years – according to most: against all odds – is one that might potentially open the floodgates to proper institutional involvement in the world of Forex. That would obviously explain $1.332 billion in total asset being controlled by this broker.
Still, there’s more up the sleeves of this shrewd operator. The draw that the platform already represents for institutional investors, on account of its solid regulatory status, and straightforward interface, cannot be denied. Any asset management company, hedge fund or trading advisor, will find that a completely safe and regulated foray into the world of Forex trading makes perfect sense through Forex.com. Not only that, but actually making that move has been simplified too.
Forex.com is powered by GAIN Capital Group LLC (dba FOREX.com) 135 US Hwy 202/206 Bedminster NJ 07921, USA. Gain Capital Group is a subsidiary of GAIN Capital Holdings, Inc. (NYSE:GCAP). GAIN Capital Holdings, Inc is a global, publicly traded company with listing in the New York Stock Exchange. FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826).
- 1 Forex.com Review
- 1.1 Forex.com Market Maker
- 1.2 Forex.com Banking
- 1.3 Forex.com Financial Strength
- 1.4 Forex.com Popularity
- 1.5 Trading Platform
- 1.6 Forex.com Broker Analysis
- 1.7 Opening & Funding an Account with Forex.com
- 1.8 Forex.com Active Trader Bonus
- 1.9 Forex.com License
- 1.10 Compare Forex.com
- 1.11 Forex.com Review Conclusion
Forex.com is currently one of the largest Forex trading brokers, which specializes in trading Forex, CFDs and Crypto currencies. They were founded in 20o1 and are owned and operated by Gain Capital Group, a USA based company. As it stands, Forex.com has the largest volume out of all other Forex brokers. They have held the title of the largest broker by volume based on client assets per the Jan 2019 Retail Forex Obligation published by the CFTC. This obligation subsequently and immediately ended the ability of US Forex brokers to report artificially inflated trading volumes.
The reason we have mentioned Forex.com having the largest volume is that this can play an important role in your overall trading experience. Having the largest volume indicates a tighter spread, meaning the difference between buying and selling prices on Forex.com is expected to be the lowest. Additionally, having the largest volume makes it prone to having the best liquidity. Most importantly though, it will generally lead prices across most other brokers, so even if you do not intend to register with them, it would be a good idea to regularly monitor their market prices.
Besides the advantages stemming from its nature and its regulatory status, Forex.com brings a number of other important strengths to the table.
Forex.com Market Maker
Market maker is another crucial aspect of the operation. Because everything is built in-house and nothing is outsourced, LedgerX offers unparalleled flexibility and speed in the execution of trades and its clearing operations.
As said, LedgerX’s is much more than an exchange. It is a clearing house as well, meaning that it is fully capable of guaranteeing derivatives trades on its own. This clearing house/exchange combination gives it a superb edge integration- and cost effectiveness-wise. It never has to deal with the whims of an outside clearing operation – like other exchanges- and that fact alone is a major advantage indeed.
One such obvious strength stems from the relationships the broker has developed with some high-profile banks. Given that the institutions working with Forex.com in this vertical possess combined assets in excess of $1.332 billion, it is safe to say that the broker is the world’s top Forex trading operation in this regard.
Why is the banking aspect so important for an operation like Forex.com? It makes the operation of the clearing accounts much faster, and more cost-effective, advantages which get passed right down to the client-base.
Forex.com Financial Strength
The financial robustness of the operation cannot be questioned either. Having ridden some very healthy financing to its launch, the operation is indeed in a position to work for many years. Forex.com has a minimum regulatory capital requirement of $99.0 million.
Through its CFTC regulation, Forex.com has also come to global reach. The fact that the CFTC has struck up agreements with a number of international regulators concerning the harmonization of the regulatory frameworks used, certainly places it within arm’s reach.
When this review was posted on June 27, 2019, Forex.com was already a slightly popular website with a global SimilarWeb rank of 49,863. Most of Forex.com’s traffic seems to originate in the United States, as can be expected from a US regulated trading platform.
Forex.com offers their own in-house trading platform as well as the Metatrader4 platform. The Forex.com platform is available in desktop, mobile and web version. Whether you’re new to the game or a seasoned trader, FOREX.com’s suite of trading platforms are designed to deliver exceptional speed and performance and ensure you have total control of your trading experience:
It Allows you to personalize and organize workspace according to your preferences. Customization includes switching between more than 100 predefined indicators, as well as the option to create some of your own, Integrated trading strategies, which are also customizable, custom trading strategies (in C++), compose the trading sidebar and choose its side (left or right), manage back testing excel panel and signals. API integration which is an easy means of building digital asset trading applications and tools.
Forex.com has integrated TradingView charts. A great offer as it comes with plenty of technical analysis tools. Below is a preview of their chart, which is provided by Forex.com.
Massive collection of reporting options are available free to users. These include summaries of trading, fees, volume and login history. As well as reports on 2016 & 2017 order history, trade history, balances in all supported currencies, deposit & withdrawal reports, and funding reports in different variations. Forex.com is unsurpassed when it comes to reports offered to its users.
Forex.com offers a vast array of order types. Currently these include; Entry, Limit, Market, Stop, Trailing Stop. They also offer One Cancels Other (OCO) which is an algorithm order.
Forex.com offers MT4 platform as well. Metatrader4 is the most widely used trading platform, with over 50 customizabel market indicators and also customizable trading robots, with the help of which one can easily run algorithmic trading sessions. And MT4 has an excellent selection of advanced charting tools as well.
Forex.com Broker Analysis
Headquarter: United States
Minimum deposit: $50
Spread: The average ones on EUR/USD amounting to 1.4 pips with no commission
Leverage: As low as 1:50
Assets: 80 Forex pairs, CFDs on stocks, Indices and Crypto currencies.
Deposit Method: Debit Card, Wire Transfer, ACH and Checks.
Support MT4: Supported
License: Solid license (CFTC).
Leading US broker Forex.com offers 3 account type on several trading platforms. The broker provides commission-free trading with variable spreads and the option to use micro lots.
Opening & Funding an Account with Forex.com
The signup process with Forex.com is ridiculously easy. All you need to do is fill in your personal data, provide a valid email address and create a username and password. That is it. Once you have done that you will receive an email verification, usually within a minute. If you do not receive a verification link to your email, be sure to check you spam or junk folder. When you have the verification email, click on the link provided. Once you have verified your email, you will have full access to all of Forex.com’s features only if you plan to deposit funds, trade and withdraw in any of the accounts they offer; Standard account, Commission account, and Direct Market Access (DMA) Account. The Standard account is Ideal for traders who want a traditional, spread pricing, currency trading experience. The Commission account is for traders who are seeking ultra-tight competitive spreads with fixed commissions. DMA Account is designed for serious high-volume FX traders looking for maximum control. Recommended balance is $25,000.
To fund account, Forex.com support several convenient payment methods, and namely Debit Card, Wire Transfer, ACH and Checks. What is even more important from a client’s point of view, withdrawals are processed pretty fast – within 48 hours.
Forex.com Active Trader Bonus
The more you trade, the more you earn. Forex.com (US) offers cash rebates for high volume traders. The latter are able to get rebates up to $10 per million traded.
FOREX.com is registered with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). Its subsidiaries licensed in different jurisdiction include:
- Financial Conduct Authority (FCA) in the UK
- Financial Services Authority (FSA) in Japan
- Investment Industry Regulatory Organization of Canada (IIROC)
- Cayman Islands Monetary Authority (CIMA)
- Australian Services and Investments Commission (ASIC)
- Monetary Authority of Singapore (MAS)
Comparing between different Forex brokers is actually very easy, once you know what to look for. The first thing to check for, is a valid license from CFTC, ASIC or the FCA. A legitimate broker is licensed and regulated, while a scam broker is not.
If you were solicited by a phone call from a broker offering to manage your money, you can be sure that they are a scam.
Forex.com Review Conclusion
This Forex.com review may not be a conventional one, but then again Forex.com is not a conventional operation. It is a fully licensed US broker and market maker. Its unique products and its ambitions paint a very promising picture of the operation and its financing is testimony to the fact that it has managed to impress high-profile investors too. Its parent company GAIN Capital Holdings Inc.’s quarterly and annual financial statements are available for review on GAIN Capital’s Investor Relations Website.