FOREX.com Review – Is FOREX.com a good forex broker?

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Company Information

FOREX.com is one of the major online brokers operating in the retail trading scene. It offers trading in currency pairs, index & commodities CFDs, precious metals, as well as exchange-traded futures and options (US clients).

Its parent company, GAIN Capital Holdings, Inc. (NYSE:GCAP), is a New Jersey-based forex and CFD broker. In fact, Gain Capital it is one of the largest brokers in the US and is therefore in direct competition with FXCM for the domination of the US market.

Set up in 1999, GAIN Capital Group is now a global provider of online trading services, active in North America, Europe and the Asia Pacific regions, serving both retail and institutional clients from more than 140 countries.

As a global publicly traded company, regulated in 7 jurisdictions, Gain Capital meets high standards of corporate governance, financial reporting and disclosure.

Except Forex.com, Gain Capital Group is operating the brands City Index, GTX, and Gain Capital, as well as the advisory CFD business Galvan and futures provider, Daniels Trading. It also offers white-label solutions for online forex trading companies.

Regulation & Safety

As a global publicly traded company, regulated in 7 jurisdictions, Gain Capital meets high standards of corporate governance, financial reporting and disclosure. Generally speaking, if you choose to invest in forex.com, you may trade without worries concerning your funds’ safety.

First of all, GAIN Capital Group, LLC is a registered futures commission merchant and retail foreign exchange dealer with the US Commodity Futures Trading Commission (CFTC) and is also a member of the National Futures Association (NFA).

Furthermore, all other subsidiaries of Gain Capital are duly regulated by the respective authorities around the world:

• Forex.com UK Limited and is authorized and regulated by the Financial Conduct Authority (FCA).
• GAIN Capital FOREX.com Australia Pty Limited is regulated by the Australian Securities and Investments Commission (ASIC). Following last year’s acquisition of City Index, GAIN Capital has consolidated its retail brand, FOREX.com, under City Index in Australia.
• Forex.com Canada Limited is a member of the Investment Industry Regulatory Organization of Canada and Member of the Canadian Investor Protection Fund.
• GAIN Capital Group (Hong Kong) Limited is a licensed corporation under the Securities and Futures Commission.
• Gain Capital Japan Ltd. is regulated by the Japanese Financial Services Agency and is also a member of the Financial Futures Association of Japan (FFAJ).

Trading Conditions

Here are the highlights of Forex.com`s trading conditions:

• Minimum initial deposit of $50
• Commission-free trading (FOREX.com is compensated for its services through the bid/ask spread);
• Variable spreads, averaged 1.8 pips on EUR/USD;
• Leverage up to 1:200 (1:50 for US clients);
• Micro lots available for trade for those unwilling to put much at stake;
• Fast execution: Average execution speed is 0.05 seconds;

In fact Forex.com’s trading conditions are quite good: minimum initial deposit is average for the forex market, there are no commission fees, and leverage is up to 1:200, which is also standard. As leverage in the US is capped to 1:50 by the Dodd-Frank Act, US clients may not utilize leverage higher than that.

Trading accounts

Clients of Forex.com are offered three account types, based on their initial deposit: Mini, Standard & Premium. The Mini account is designated for novice traders as well as such who don’t have much capital to spare. Micro tradable lots are available on all account types.

Clients of Forex.com, who open an account with $10,000 or more will be automatically enrolled in the premium account program. Premium account holders are offered lower spreads (averaged 1.5 pips on EUR/USD), and are also entitled to interest on their account balances (up to $500,000). What is more, they do not pay any fees for wire transfers and are offered More exclusive benefits, such as invitations to premium-only events and promotions.

Trading Platforms

Forex.com offers its clients a selection of trading platforms: FOREXTrader, MetaTrader 4, Tradable & GTX.

FOREXTrader is a fully-customizable trading platform available via web, download and full suite of mobile apps including for iOS and Android devices. The platform is equipped with advanced trading features, professional charting tools and integrated research and analysis.

FOREXTrader PRO’s professional-grade trading tools include real-time charting, pattern recognition software by Autochartist, and custom built automated trading software (Strategy Center).

Among the FOREXTrader’s features is the Strategy Center with automated buy and sell signals, which allows traders to access 15 user customizable pre-defined trading strategies as well as build their own using the Strategy Wizard. The Strategy Center includes the ability to back test strategies against historical data and then activate them to generate buy and sell signals in real time.

The comprehensive research and analysis includes round-the-clock updates from our expert in-house research team, real-time concise headlines from Reuters News, and professional technical analysis from industry-leading Trading Central.

With this platform, users are able to choose between instant and market execution (through the Execution Mode drop-down). Unfortunately, FOREXTrader  does not allow hedging, as open positions are closed according to the (First in First Out) FIFO accounting rule, applicable in the US.

The platform is available as a PC, web and mobile versions.

MetaTrader4 is also supported by Forex.com, the most common forex trading platform. It offers competitive pricing on over 45 currencies, superior market execution and EA optimized environment. Furthermore, Forex.com’s MT4 is equipped with some unique trader tools & resources, such as live commentary from FOREX.com’s Global Research Team, real time technical analysis from Trading Central and actionable ideas from Autochartist.

Tradable is yet another platform, offered by this broker. It operates as an app-store – when a trader installs the software, it is a blank canvas with only trading instruments quotes, and an actual app store, where you can buy various sorts of applications – charts, analysis tools, etc. This platform is adapted for traders of all experience levels and once you feel ready for the next step – you have complete flexibility to customize the platform to meet your individual needs.

GAIN Capital’s GTX is an independent and innovative ECN designed for institutions and professional traders. It offers robust algorithmic trading capabilities that enable clients to develop and implement a wide range of trading strategies using GTX’s Java or FIX-based APIs.

Methods of Payment

Clients of Forex.com may use bank wire transfer, as well as debit/credit cards as payment methods.

US clients may also make deposits and withdrawals via Check and eCheck (U.S. bank accounts only), while EU clients can use Sofortbanking (online funds transfer available in the UK, Germany, Switzerland, The Netherlands and Belgium only).

Conclusion

Although its spreads are not among the tightest on the forex market, we highly recommend Forex.com, for it has earned its reputation of a trustworthy broker with transparent policy and regulatory compliance. It offers reasonable conditions for trading in forex, CFDs and stocks on a wide range of platforms. Here are, in a nutshell, the advantages and disadvantages with regards to Forex.com, the retail forex brand of Gain Capital:

Pros                                                                                       Cons

Well-regulated & reputable broker                             Market Maker

Commission-free trading

Choice of trading platforms, MT4 available

Fast execution speed