Forex.com Review
Forex.com is currently one of the larger online brokers that is cornering the U.S online retail trading scene. The trading platform is owned and managed by a holding company known as GAIN Capital which is in direct competition with Oanda for the domination of the U.S market. Highly regarded by many traders for their integrity, Forex.com is definitely one of the better online forex brokers for traders to partner with.
Some of the benefits which traders can derive from their association with Forex.com include free education, Expert Advisors (EAs) hosting, tight spreads, free market research and 24/6 customer service.
Forex.com Reliability – Is Forex.com a Scam?
A brand name belonging to GAIN Capital Holding Inc, Forex.com is a leading online forex and CFD trading platform. Founded in 1999, Forex.com has over 16 years of experience of providing trading services to retail traders. In addition, the holding company GAIN Capital Holding Inc which is listed on the New York Stock Exchange (ticker symbol GCAP) is well capitalized with a total asset value of $1.397 billion. Their total customer equity as of 31st March 2016 is $876 million. With available cash and liquid assets holding amounting close to $200 million, traders at Forex.com never have to worry about their broker facing a liquidity problem.
Apart from having strong financial resources behind the brand, clients of Forex.com enjoy the benefit of a broker that is regulated in multiple jurisdictions and operates with a high standard of corporate governance. Principally, Forex.com’s main office is located in the United Kingdom at Park House, 16 Finsbury Circus, London. This puts the operation of Forex.com under the jurisdiction of the UK’s Financial Conduct Authority (FCA). For traders, one of the key benefits of being regulated by the FCA is the fact that the brokers under the FCA jurisdiction operate within strict regulatory guidelines.
Under the oversight of the FCA, brokers like Forex.com are required to release regular financial reports and conduct annual audits for an independent auditor. These reports are used to verify that the brokers keep their client funds in segregated accounts in FCA approved tier 1 banks. This requirement is to ensure the brokers do not abuse the clients’ funds and use the funds to cover the broker’s own operational expenses. In other words, clients of FCA regulated brokers such as Forex.com enjoy a higher level of protection for their money. In addition to all the above mentioned safety measures provided under the oversight of the FCA, by dealing with regulated brokers, traders also get to enjoy coverage under the Financial Services Compensation Scheme (FSCA) for up to 50,000 pounds. In short, with FCA regulated brokers such as Forex.com you get maximum protection for your money.
As mentioned earlier, Forex.com is also regulated in several other jurisdictions by several other regulatory agencies such as:
- Australian Securities and Investments Commission (ASIC)
- Canada’s Financial Services Agency (FSA)
- Commodity Futures Trading Commission (CFTC), the
- Investment Industry Regulatory Organization of Canada (IIROC)
- National Futures Association (NFA)
- Securities and Exchange Commission (SEC)
- Securities and Futures Commission (SFC) in HK
In conclusion, considering the tight regulatory oversight that Forex.com is under and their operational history spanning over a period of more than 16 years, traders can be confident that they are dealing an extremely reliable broker.
Trading Platforms
At Forex.com, there two main types of trading platforms:
Regarded as the industry standard platform for online forex trading, the MT4 platform is packed with features and tools and even allows traders to customize it for automated trading. With the MT4, traders also get to access more than 30 types of CFDs and 45 forex markets.
Account Types
As for the trading accounts at Forex.com, traders can open a standard
trading account or qualify for a professional account. The minimum initial deposit required for a standard account is £/$50.
Commission & Spreads
Like most online forex brokers, FOREX.com does not charge commissions for
trades, except for on equity CFDs. Instead, FOREX.com earns by adding a
spread on top of the prices that traders get from the market. The spreads charged
are variable and competitive. They start from as low as 1.2 pips for major pairs
like the EUR/GBP.
Customer Support
Committed to helping their clients succeed, Forex.com provide their clients assistance on a 24/5 basis. The support team can be contacted by means of:
- Email
- Fax
- Live Chat
- Telephone
Pros
- Global Market Leader
- Regulated Broker
- Solid Financial Backing With Listed Company Behind
- Superior Trade Execution With Reliable Platforms
- Tight Spreads
Cons
Conclusion
Forex.com is a well known broker in the forex retail market. They have proven themselves to be a broker who is dependable and reliable. Apart from being a regulated broker, traders are provided with superior quality services and products to work. In our books, this broker comes highly recommended.
