March 3

Forex.com Review 2021| Broker Breakdown

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Founded in 2001 FOREX.com offers clients access to forex, equities, commodities, indices, bonds, ETFs, industry sectors, cryptocurrencies and more. U.S based customers are offered leveraged access to 90 currency pairs with competitive spreads across multiple account types. In terms of customer funds FOREX.com is the #1 in the U.S. FOREX.com boasts good security for their clients funds, they are registered with the CFTC (U.S.), NFA (U.S.), FCA (U.K.), IIROC, ASIC, MAS, FSA, and CIMA .

  • Web Address: www.forex.com
  • Country of regulation: UK, USA, Canada, Japan, Cayman Islands
  • Trading Fees: Low
  • Withdrawal fee amount: $0
  • Minimum deposit: $50
  • Number of base currencies: 6
  • Platforms: MT4, MT5, FOREX.com Platforms
  • Demo Account: Yes
  • Customer Support: 24/5
  • Available Leverage: US (1:40), EU (1:30), AU (1:400)
  • Instruments: forex, equities, commodities, indices, bonds, ETFs & more

What countries is FOREX.com available in?

FOREX.com is available in almost every country (even the US) except Hong Kong & New Zealand. Australian residents will have to choose their sister site called City Index.

Account types at FOREX.com:

FOREX.com offer 3 account types:

FOREX.com account: This is their standard account that comes exclusively with their own trading platform. There is a higher spread but no commissions on this account type.

MetaTrader account: This is the only account type that gives you access to the popular MetaTrader 4 platform. Similar to the FOREX.com account the spread is higher (can be 1.4 pips on the EUR/USD). If MetaTrader is a deal breaker for you, then you'll want to choose this option.

DMA account (known as the STP PRO account in the US): This account is tied to FOREX.com's proprietary Advanced Trading platform suite. The spread is is smaller with this account but you pay a commission of $2 of per lot per trade.

When it comes to account ownership, these accounts can be owned in 1 of the following 3 ways:

  1. Individual
  2. Joint (one or more people)
  3. Corporate (A legal entity)

FOREX.com Fees:

Asset

Fee Level

Terms

EURUSD

Low

The fees are built into the spread, the average spread is 1.4 pips during peak trading hours.

GBPUSD

Low

The fees are built into the spread, the average spread is 2.1 pips during peak trading hours.

S&P 500 CFD

Low

The fees are built into the spread, the average spread is 0.6 points during peak trading hours.

Inactivity fee

Low

$15 or JPY 1500 per month, but only after one year of inactivity

Forex fees:

Forex.com forex benchmark fees of a $20,000 30:1 long position held for one week

Asset

Fee Level

EURUSD benchmark fee

$6.2

GBPUSD benchmark fee

$5.6

AUDUSD benchmark fee

$7.6

EURCHF benchmark fee

$6.3

EURGBP benchmark fee

$7.5

CFD fees:

Forex.com CFD fees for a $2,000 long position held for one week

Asset

Fee Level

S&P 500 index CFD fee

$1.4

Europe 50 index CFD fee

$1.8

Apple CFD fee

$21.3

Vodafone CFD fee

$27.6

Non trading fees:

FOREX.com are very competitive here, they charge no deposit or withdrawal fees and they only start charging a month fee ($15) after one year of inactivity.

Is FOREX.com Safe:

In a nutshell, yes, it is.

FOREX.com is listed in the NYSE and thus discloses publicly its financials, which are seen favorably by industry analysts.

It also has gained approval from several major regulators, including the NFA, CFTC, FCA, FSA, IIROC and CIMA.

It has a solid history of close to 20 years without any major liquidity events and only a few minor fines, including a $50,000 fine plus account adjustments due to a technical issue with their platform.

Their track record is solid and fair. In the few instances when they had technical issues, the trades/errors were reversed.

Customer Service:

FOREX.com offers phone support, live chat, and email support.

Phone support was fast to answer and is available 24 hours a day, 5 days a week. Email support was slower to answer but provided complete and relevant answers. Live chat wasn’t easy to find, but once we found it, it provided complete answers in a timely manner.

Overall, support was good, but not great. We’d recommend improving phone support availability to 7 days a week and making email support faster.

FOREX.com Pros & Cons

Pros
  • Wide range of instrument offerings
  • TradingView charts integrated into web platform
  • Regulated by FCA (U.K.) & CFTC, NFA (U.S.)
  • Provides protection for U.K./E.U. client accounts
  • Discounts for high-volume traders
Cons
  • Account protection not available for U.S. clients
  • No guaranteed stop losses for U.S. clients

To read our terms of service click here.


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