Forex.com Editor’s Verdict
Forex.com, founded in 2001 and now part of US-based publicly listed StoneX, is the largest MT4 broker based on active servers as of April 2019 and offers active traders a competitive pricing environment. Traders may use MT4, MT5, or the high-quality proprietary web-based and desktop alternatives. I conducted an in-depth review to determine whether the trading costs and order execution offered are really as good as this broker claims them to be. Is Forex.com the right broker for you?
Lower minimum deposit
Islamic account available
Good reputation
Choice of account types
Withdrawal fee
Overview
Low trading cost and quality trading tools from a leading MT4 broker
| Headquarters | United States | |
|---|---|---|
| Regulators | ASIC, CFTC, CIMA, FCA, FSA, IIROC, NFA | |
| Tier 1 Regulator(s)? | ||
| Owned by Public Company? | ||
| Year Established | 2001 | |
| Execution Type(s) | ECN/STP, Market Maker | |
| Minimum Deposit | $100 | |
| Negative Balance Protection | ||
| Trading Platforms(s) | MetaTrader 4, Proprietary platform | |
| Average Trading Cost EUR/USD | 1.1 pips | |
| Average Trading Cost GBP/USD | 1.3 pips | |
| Average Trading Cost WTI Crude Oil | $0.035 | |
| Average Trading Cost Gold | $0.63 | |
| Average Trading Cost Bitcoin | $60 | |
| Retail Loss Rate | 73.00% | |
| Minimum Raw Spreads | 0.1 pips | |
| Minimum Standard Spreads | 1.2 pips | |
| Minimum Commission for Forex | $5.00 per round lot | |
| Funding Methods | 4 (bank wires, credit/debit cards, Skrill, and Neteller) | |
| Islamic Account | ||
| Signals | ||
| US Persons Accepted? | ||
| Managed Accounts |
Forex.com – at a glance:
- Ideal trading conditions for scalpers, high-frequency, high-volume, and algorithmic traders
- Select regulatory restrictions offer high leverage and fast order execution.
- The core MT4/MT5 trading platforms are available, alongside a cutting-edge proprietary trading platform.
- Transparent trading environment with low costs in the commission-based accounts.
- Expensive commission-free trading costs and limited funding options.
- StoneX ownership casts a shadow amid a history of regulatory fines and misconduct.
- Quality trading tools and performance analytics.
- VPS hosting for algorithmic traders.
- Research and education for beginner traders.
Forex.com Regulation and Security
Trading with a regulated forex brokers will limit the potential for fraud and malpractice. I always recommend traders to check for regulation and verify it with the regulator by checking the provided license with their database. Forex.com offers clients nine regulated entities.
Country of the Regulator | Name of the Regulator | Regulatory License Number |
|---|---|---|
United States | Commodity Futures Trading Commission & National Futures Association | NFA Number 0339826 |
Canada | Investment Industry Regulatory Organization of Canada | Undisclosed but confirmed |
United Kingdom | Financial Conduct Authority | FCA Number 446717 |
Cyprus | Cyprus Securities and Exchange Commission | License Number 400/21 |
Cayman Islands | Cayman Islands Monetary Authority | SIBL Number 25033 |
Australia | Australian Securities & Investments Commission | AFSL No. 345646 |
Singapore | Monetary Authority of Singapore | Undisclosed but confirmed |
Japan | Financial Services Agency | Undisclosed but confirmed |
Hong Kong | Securities and Futures Commission | Undisclosed but confirmed |
Reasons I prefer the Cayman Islands subsidiary:
- Higher leverage
- Negative balance protection
- Competitive regulator
- Segregation of client deposits from corporate funds
- Flexible trading conditions
What could be better?
- Third-party insurance
- Financial Commission membership
- Profiles of core management
Noteworthy:
- Some of the regulatory licenses are from StoneX, GAIN Capital, or CityIndex.
- Forex.com has a clean regulatory track record.
- StoneX remains publicly listed in the US.
- Some jurisdictions offer an investor compensation fund.
- Depending on the geographic location, Forex.com may direct traders to CityIndex, also owned by StoneX
Forex.com established itself as an industry leader and is an overall trustworthy broker. Traders should carefully consider which subsidiary they are allowed to trade with, as it will impact the quality of the trading environment.
Forex.com Fees
| Average Trading Cost EUR/USD | 1.1 pips | |
|---|---|---|
| Average Trading Cost GBP/USD | 1.3 pips | |
| Average Trading Cost WTI Crude Oil | $0.035 | |
| Average Trading Cost Gold | $0.63 | |
| Average Trading Cost Bitcoin | $60 | |
| Minimum Raw Spreads | 0.1 pips | |
| Minimum Standard Spreads | 1.2 pips | |
| Minimum Commission for Forex | $5.00 per round lot | |
| Deposit Fee | ||
| Withdrawal Fee | ||
| Inactivity Fee | $15 monthly after 12 months |
I rank trading costs among the most defining aspects when evaluating a Forex broker, as they directly impact profitability.
Forex.com offers traders three cost structures:
- Commission-free trading costs list a minimum of 0.3 pips, but the average spread is 1.2 pips or $12.00 per 1 standard lot.
- Commission-based accounts commence with a minimum spread of 0.2 pips and a commission of $5.00 per round lot for a final cost of $7.00, lowered by a maximum of 15% via the five-tier Active Trader Program to $6.25.
- The DMA account features Forex spreads from 0.1 pips for a minimum commission of $6.00 for a final cost of $7.00 but is lowered up to 67% via the volume-based rebate program to $3.00.
Noteworthy:
- Equity CFDs cost a minimum of 0.08% per trade or $0.018 per share per side for US-listed assets, 20% cheaper versus most brokers.
Which pricing environment should Forex traders select?
I recommend the following:
- The commission-based cost structure is 40%+ cheaper, and the minimum deposit is identical to the commission-free trading account.
- DMA accounts feature trading fees 75% lower versus the commission-free alternative, but the minimum trade size is $100K, or approximately 1 standard Forex lot.
What is missing at Forex.com?
- From a core trading cost perspective, Forex.com delivers across the board, but trading costs without volume-based rebates are moderately higher versus competitors.
Here is a screenshot of live quotes at Forex.com during the London-New York overlap session, the most liquid one, where traders usually get the lowest spreads.
The average trading costs for the EUR/USD in the commission based Forex.com account:
Average Spread | Commission per Round Lot | Cost per 1 Standard Lot |
|---|---|---|
0.2 pips | $5.00 | $7.00 |
Noteworthy:
- The Active Trader Program lowers commission to a minimum of $4.25.
- The DMA account features commissions between $6.00 and $2.00 per 1.0 standard lot with raw spreads of 0.1 pips.
One of the most ignored trading costs is swap rates on leveraged overnight positions. Depending on the trading strategy, it may become the most significant fee per trade. I always recommend that traders check them before evaluating the total trading costs.
- Forex.com offers a positive swap on assets where market conditions warrant.
MT4/MT5 traders can access swap rates from their platform by following these steps:
1. Right-click on the desired symbol in the Market Watch window and select Specification.
2. Scroll down until you see Swap Long and Swap Short.
Below is a list of trading cost examples for buying and selling the EUR/USD, holding the trade for one night and seven nights, in the commission based Forex.com account.
Taking a 1 standard lot buy/sell position, in the EUR/USD at the average spread and holding it for one night will cost the following:
Minimum Spread | Commission per Round Lot | Swap Long | Swap Short | Total Trading Costs |
|---|---|---|---|---|
0.2 pips | $5.00 | -$4.60 | X | $11.60 |
0.2 pips | $5.00 | X | -$0.60 | $7.60 |
Taking a 1 standard lot buy/sell position, in the EUR/USD at the average spread and holding it for seven nights will cost the following:
Minimum Spread | Commission per Round Lot | Swap Long | Swap Short | Total Trading Costs |
|---|---|---|---|---|
0.2 pips | $5.00 | -$32.20 | X | $39.20 |
0.2 pips | $5.00 | X | -$4.20 | $11.20 |
My additional comments concerning trading costs at Forex.com:
- $15 monthly inactivity fee after twelve months of dormancy.
- A 0.50% currency conversion fee applies.
- DMA accounts earn 1.00% APY interest on average daily available margin balance up to $50K, 0.50% APY on $50K - $100K, 0.00% above 100K.
- Requirements for the Active Trader program are either a $10,000 minimum deposit or a monthly trading volume of at least $25M.
What Can I Trade in Forex.com?
I like the 84 currency pairs Forex.com offers, ranking it among the top brokers in the choice of Forex category. Besides the eight cryptocurrencies, Forex.com maintains a high-quality and well-balanced asset selection, suitable for all types of traders.
With 4,500 equity CFDs, Forex.com is ideal for asset managers, but ETF brokers are not available, which is a shame. I also want to note that the choice for equity traders depends on the geographic location, with some jurisdictions reduced to 220+. Forex.com offers a competitive list of assets for those with access to all available instruments. Otherwise, the choice is certainly good enough for beginner traders.
What could be better?
- Small-cap alternatives in the equity CFD list.
- An offering of ETFs.
- A wider choice of cryptocurrencies.
Asset List and Leverage Overview
| Currency Pairs | ||
|---|---|---|
| Cryptocurrencies | ||
| Commodities | ||
| Crude Oil | ||
| Gold | ||
| Metals | ||
| Equity Indices | ||
| Stocks | 0 | |
| Stocks (non-CFDs) | ||
| Bonds | ||
| ETFs | ||
| Options | ||
| Futures | ||
| Synthetics |
Forex.com Leverage
Traders at the Forex.com Cayman Islands subsidiary can get maximum leverage up to 1:500. I recommend it for active traders as it presents more overall trading flexibility, directly influencing profitability.
- Most Forex.com branches limit maximum leverage to 1:30 on Forex currency pairs, in accordance with local laws.
- Negative balance protection exists, ensuring traders never lose more than their deposit.
Forex.com Trading Hours (GMT Server Time)
Asset Class | From | To |
|---|---|---|
Cryptocurrencies | Sunday 00:00 | Sunday 24:00 |
Forex | Sunday 21:00 | Friday 21:00 |
Commodities | Sunday 22:00 | Friday 21:00 |
European CFDs | Monday 08:00 | Friday 16:30 |
US CFDs | Monday 14:30 | Friday 21:00 |
- Equity markets open and close each trading day and are not operational continuously like Forex and cryptocurrencies.
- The asset selection varies between operating subsidiaries.
I recommend the following step for MT4/MT5 traders to access trading hours:
1. Right-click on the desired symbol in the Market Watch window and select Specification.
2. Scroll down until you see Sessions.
Forex.com Account Types
Traders may choose from three account types at Forex.com, but one requires higher deposits. I recommend traders carefully consider trading costs at each account, as the difference makes a notable impact on profitability.
Traders must decide between the following:
- Commission-free versus commission-based account.
My observations concerning the Forex.com account types:
- MT4/MT5 platforms are only available in the expensive commission-free Standard account.
- The commission-based alternative features marginally higher base costs versus many competitors, but for a minimum deposit of $10,000 or monthly trading volume of $25M, the Active Trader Program lower commissions.
- The minimum deposit is $100, but Forex.com recommends $1,000.
- The DMA account minimum trade size is $100K, and traders are recommended to deposit a minimum of $25,000 for this account type.
- Only Forex trading is available in the DMA account, where Forex.com offers notably fewer currency pairs.
- Equity traders seeking access to the 4,500+ assets must trade manually in the proprietary trading platform, MT5 offers 400+, and MT4 has none.
- The maximum leverage depends on the trading jurisdiction and asset type, ranging between 1:30 to 1:500 for Forex traders and a maximum of 1:20 for equity traders.
- Islamic accounts are not available but corporate accounts are.
- MT4/MT5 algorithmic traders must trade with the expensive commission-free Standard account.
- Equity traders must rely on the proprietary trading platform for access to all 4,500+ stocks and shares.
- Trading costs remain notably cheaper in the commission-based account, but it only caters to manual traders.
Forex.com Demo Account
Forex.com offers a 30-day time-limited demo account, does not allow multiple ones, and traders cannot request extensions to this time limit.
My recommendations:
- Competing broker offer unlimited demo accounts.
- MT4/MT5 offer flexible deposits, and traders should select an amount similar to what they plan to deposit in a live trading account.
Forex.com Trading Platforms
| MT4 | ||
|---|---|---|
| MT5 | ||
| MT4/MT5 Add-Ons | ||
| cTrader | ||
| Proprietary Platform | ||
| Automated Trading | ||
| Social/Copy Trading | ||
| DOM? | ||
| Guaranteed Stop Loss | ||
| Scalping | ||
| Hedging | ||
| One-Click Trading | ||
| OCO Orders | ||
| Interest on Margin |
Forex.com offers clients the out-of-the-box MT4 and MT5 trading platforms, best suitable for automated trading, plus its embedded social trading platforms. The well-designed Advanced Trading Platform, available as a desktop client and a web-based option, presents an excellent alternative. It supports algorithmic trading solutions and features 100+ templates and a Development Studio to create custom solutions. All trading platforms also come as mobile apps, popular among millennial retail traders.
The competitive choice of trading platforms receives an upgrade through Autochartist, and Recognia, a Trading Central company. Forex.com ensures that its clients access financial markets with a competitive edge.
What could be better?
- Forex.com delivers an excellent choice across the board with only API trading missing.
My observations:
- Traders with MT4/MT5 EAs must use the desktop client and the Standard account.
- The proprietary trading platform supports advanced algorithmic trading solutions coded in C#.
- VPS hosting is available.
Overview of Trading Platforms
MT4 | Yes |
|---|---|
MT5 | Yes |
cTrader | No |
Proprietary/Alternative Platform | Yes |
Automated Trading | Yes |
Social Trading / Copy Trading | Yes (MT4/MT5) |
MT4/MT5 Add-Ons | No |
Guaranteed Stop Loss | Yes |
Negative Balance Protection | Yes |
Unique Feature One | Cutting-edge proprietary trading platform |
Unique Feature Two | Well-balanced asset selection |
Forex.com Unique Features
Forex.com presents a series of quality trading tools. The Performance Analytics tool powered by Chasing Returns helps clients become better traders. The SMART Signals Engines scans 800+ price action patterns using more than 100,000 data points and delivers higher accuracy trading signals.
Forex.com also offers clients the Market Strategist service. It is a personalized service for trades that meet the requirements. VPS hosting is available, but unfortunately only for MT5 accounts, ignoring the market leading MT4 trading platform. A minimum account balance of $5,000 unlocks this service free of charge.
Research and Education
The four-member in-house global research team publishes quality market commentary, research notes, and trading ideas throughout each session. The presentation is professionally structured with well-described content, delivering value to readers. Research is accessible under Latest Research, Market Insights, Trade Ideas, and Week Ahead. A pivot point calculator and an economic calendar, plus a Popular Topics section, complete the competitive research section at Forex.com.
The same high-quality approach extends to education, where Forex.com provides beginner traders with seven themes, including risk management. Each category consists of YouTube videos, charts, images, and written content. Three trading courses, divided into Beginner, Intermediate, and Advanced, are also available, and webinars increase the educational value.
- Overall, the research and education remain among the most valuable industry-wide, as Forex.com maintains an excellent service.
My recommendations:
- Traders should evaluate copy trading features embedded in MT4/MT5.
- MT4/MT5 has thousands of EAs, and traders may explore them to determine if they suit their trading style.
Customer Support
| Customer Support Methods |   | |
|---|---|---|
| Support Hours | 24/5 | |
| Website Languages |
|
Customer support is available Sunday 10:00 through Friday 17:00, reached via live chat. A Service Updates and an FAQ section attempt to limit the number of phone calls and live chat requests, as Forex.com notes longer than expected waiting times.
Unfortunately, Forex.com does not list a phone number and e-mail address on the Contact Us page. Forex.com explains its products and services well and strives for operational excellence. It eliminates the need for customer support and reduces it to emergencies only.
My recommendations:
- Traders should read through the FAQ section before reaching out to a customer service representative.
- For non-urgent questions, I recommend live chat.
Bonuses and Promotions
At the time of writing this review, Forex.com neither offers bonuses nor hosts promotions. I want to note that a quality affiliate program is available with high payouts. It supports traders who seek a passive revenue stream to supplement their trading activities.
Forex.com Opening an Acoount
The online application at Forex.com remains lengthier and collects more personal details than at many competitors. The first section is straightforward and often suffices at other brokers, but Forex.com demands more information under the About You and Trading Experience sections. Account verification is mandatory, and new traders usually pass after sending a copy of their ID and one proof of residency document.
Minimum Deposit
The Forex.com minimum deposit is $100, but the recommended amount for the Standard and Commission accounts is $1,000. Forex.com recommends $25,000 for the DMA alternative due to the minimum transaction size of 100K.
Payment Methods
Forex.com offers bank wires, credit/debit cards, Skrill, and Neteller.
Supported Countries
Forex.com caters to most international traders from its nine subsidiaries, including the US, South Africa, the UK, Canada, and India.
Forex.com Deposits and Withdrawals
Traders will conduct all financial transactions from the secure back office of Forex.com, but the deposit and withdrawal options remain somewhat limited, typical for US-headquartered brokers.
My observations:
- Forex.com does not levy internal financial transaction costs, but third-party processing fees may apply.
- Not all deposit methods are available to all traders, dependent on the geographic location.
- Deposit processing times for bank wires are between one and two business days.
- Withdrawal processing times are between 24 and 48 hours.
- The minimum withdrawal amount is $100, or a currency equivalent unless less is available.
- Transaction limits for withdrawals apply.
- Cryptocurrency deposits and withdrawals are not available.
My recommendations:
- Traders should select the payment processor with the lowest fees.
- I also recommend checking the costs from the payment processor to the bank account unless a debit/credit card is available.
- It is ideal to use a payment option separate from the bank or credit/debit card used for day-to-day financial operations.
Bottom Line
I like the trading environment at Forex.com for high-frequency, high-volume traders, and scalpers, as they can lower trading costs via volume-based rebate programs. Forex.com offers clients a competitive trading environment starting with three trading platforms, which support algorithmic trading solutions. The well-balanced asset selection serves both beginner traders and professionals well. Research and education rank among the best-quality services industry-wide.FAQs
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