Forex.com International Review 2024

Trust

In our trust category, we place the most importance on how a broker is regulated. Here we’ll cover how the different entities of FOREX.com across the globe are regulated and how this impacts you. (We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

Entities of FOREX.com are regulated by the following authorities:

• StoneX Financial Ltd. is authorized and regulated by the UK Financial Conduct Authority (FCA), with FCA Register Number: 446717. We rate FCA as a Tier 1 regulator.
• StoneX Europe Ltd. is authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. We rate CySEC as a Tier 1 regulator.
• FOREX.com Canada Ltd. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund. We rate IIROC as a Tier 1 regulator.
• StoneX Financial Pty Ltd. is regulated by the Australian Securities and Investments Commission (ASIC), ACN: 007 389 059. We rate ASIC as a Tier 1 regulator.
• GAIN Capital Group LLC (DBA FOREX.com) is a registered FCM and RFED with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA # 0339826). We rate the CFTC and NFA as Tier 1 regulators.
• StoneX Securities Co. Ltd. is regulated by the Japan Financial Services Agency (FSA). We rate the Japan FSA as a Tier 2 regulator.
• StoneX Financial Pte. Ltd. is regulated by the Monetary Authority of Singapore (MAS). We rate Singapore MAS as a Tier 2 regulator.
• StoneX Financial (HK) Ltd. (BCQ152) is regulated by the Hong Kong Securities and Futures Commission (SFC). We rate Hong Kong SFC as a Tier 2 regulator.
• GAIN Global Markets Inc. is authorized and regulated by the Cayman Islands Monetary Authority (CIMA) with license number 25033. We rate CIMA as a Tier 3 regulator.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, FOREX.com clients in the United Kingdom benefit from the oversight of the FCA. The FCA requires that clients have negative balance protection, which means they cannot lose more than their deposit. Client funds must be held in segregated accounts, which are protected in case a broker goes bankrupt.

In addition, when trading with a broker authorized by the FCA, client funds are protected by the Financial Services Compensation Scheme (FSCS). The FSCS protects investments of up to £85,000 if a firm becomes insolvent.

In the table below we break down the protections and benefits by the entity.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is.

Founded in 2001, FOREX.com is a pioneer in retail forex brokerage. FOREX.com is part of StoneX, a NASDAQ-listed company with assets of $10.9 billion that provides institutional-grade financial services networks. StoneX must disclose financial reports as a publicly traded company, allowing for greater insight into the company’s stability.

In our research, FOREX.com showed good transparency in regulatory status, fees, and background information. Information and materials are available on the website. The company’s history, background, and regulatory status are covered on the Why Us page. Traders can stay on top of costs by looking at the Pricing page, which covers spreads, commissions, and swap fees. The important Terms & Policies documents, including the Client Agreement and Order Execution Policy, are linked to the website’s footer.

In summary, we rated FOREX.com as having an above-average level of trust and stability due to the following factors:

• Regulated by multiple top-tier agencies.
• Operating history over more than two decades.
• Ownership by a multi-billion dollar, publicly traded company.
• Good level of transparency.

Fees

Trading Fees

Spreads at Forex.com are variable, meaning that they fluctuate slightly. The spread’s size depends on the market’s level of liquidity. Liquidity describes how much an instrument can be bought and sold quickly without moving the market. Traders typically experience tighter spreads when there is greater liquidity in the market.

Using the Web Trader platform, we measured the spreads at FOREX.com across different asset classes in a Standard account. We tested at 8:00 a.m. GMT and 3:00 p.m. GMT on 3 February 2023. 8:00 a.m. GMT is the London open when there is high liquidity in the forex market and tighter spreads in currency pairs. 3:00 p.m. GMT is a quieter time, shortly before the opening of the New York stock exchange.

Shares are the only asset class where clients must pay a commission. Shares CFD commissions vary by market; for UK and most European and Asian shares, the charge is 0.08% of the consideration. For most US Shares, it is 1.8 cents per share. The minimum commission rates are £10, $10, €10, or 10 SGD.

Swap Fees

Swap fees (the cost of holding a position overnight) were about average at FOREX.com.

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of holding a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). We recorded the data on 2 February 2023.

Non-Trading Fees

FOREX.com charges an inactivity fee of £12 (or currency equivalent) per month if there is no trading activity or open positions for 12 months or more.

Are Fees at Forex.com Competitive?

We judged that the spreads in the standard account are mixed with some instruments such as the Dow 30 Index having competitive spreads, while others such as crude oil are less competitive. Our assessment showed that overnight swap fees are roughly average for the industry.

Platforms and Tools

Web Trader

Traders can elect how they want to use the following components to customize their workspace:

• Watchlists. This tool allows traders to follow their favorite instruments in a single list.
• Charts. The Web Trader platform uses industry-leading TradingView charts.
• Newsfeed. Headline market news from Reuters.
• Open Positions. A list of your open trades.
• Pending Orders. Orders that are waiting to be executed.
• Price Alerts. Your list of alerts to let you know when an instrument has reached a set price level.
• Analysis from Trading Central. Trading ideas and market analysis from the award-winning third-party research provider.
• Position History. A list of your closed trades.
• News and Analysis from FOREX.com. The latest stories from the FOREX.com research team.

In addition, traders can set up multiple workspaces and toggle them between using tabs. Day traders and scalpers can switch to 1-click trading to execute their trades as fast as possible.

All basic order types, such as market, limit, and stop loss, are available. Traders can apply time-in-force conditions such as Good ‘Til Canceled (GTC) to pending orders. Trailing stop orders and guaranteed stop loss orders are also available. Guaranteed stops can protect traders from black swan events and unexpected market swings, but they incur an additional cost.

Advanced charts from TradingView are built into the Web Trader platform. Key features include:

• Trading from the chart.
• 88 technical indicators, from the Accumulative Swing Index to the Zig Zag indicator.
• 32 drawing tools, including Fibonacci retracement and Pitchforks.
• 14 time frames ranging from 1-minute to monthly charts.
• 11 chart types, from Japanese Candlesticks to Renko charts.

Mobile Trading

The FOREX.com mobile app is intuitive and feature-rich, allowing traders to trade effectively while on the go. The app enables traders to:

• Manage account activity, including open positions, trade history, and account balance.
• Use advanced TradingView charts in landscape or portrait view.
• Take advantage of push notifications for orders and price alerts.
• React quickly to market moves with 1-click trading.
• Stay on top of market news with a feed powered by Reuters.

MetaTrader 4 Desktop

Via the MT4 account type, FOREX.com offers MetaTrader 4 for desktop, which includes advanced functions such as copy trading and automated trading.

MetaTrader 4 is available in 39 languages, from Arabic to Vietnamese. The platform provides popular features such as:

• Alerts. This feature allows traders to be updated when an instrument reaches a specific price level. The platform can deliver alerts via audio, email, or push notification to a mobile device.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation. This feature enables traders to operate faster and is especially useful for short-term traders.
• Trading from the Chart. MT4 also allows users the convenience of trading directly from the chart.

MetaTrader also delivers when it comes to the range of available order types. The platform offers the following order types:

• Market Order. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. Trailing stop orders allows traders to secure profits when they are in a winning trade while not having to exit the position.

Charting features are robust. MetaTrader 4 offers:

• 30 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 23 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 9 Time Frames. Traders can choose nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 4 allow users to copy other traders’ activity in real-time.
• Automated Trading. MetaTrader 4 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

The MetaTrader 4 desktop platform is one of the most feature-rich and popular trading platforms. It does not have the most beautiful interface and requires some time and effort to learn, but that is typical of advanced platforms.

MetaTrader 4 Web

MT4 account holders can also access the MetaTrader 4 Web Platform – a slightly stripped-down version of the desktop platform. It allows you to trade without additional software, only an internet connection is required. The Web Platform allows users to trade directly from any browser and operating system.

Popular features include:

• One-click trading.
• Trading from the chart.
• Watchlists with real-time quotes.
• Trade History.
• Advanced charting with 30 indicators for technical analysis.

Copy and automated trading are also available only on the MT4 desktop platform.

MetaTrader 4 Mobile App

FOREX.com also offers MT4 account holders access to the Android MetaTrader 4 app. It offers popular features such as alerts, 1-click trading, and trading from the chart. The MetaTrader 4 mobile app also provides various order types, including pending and stop orders. However, trailing stop-loss orders are only available from the desktop. To change the language of the MT4 app, you must change the language for your entire phone. As with desktop and web, the interface could be more intuitive, but the MT4 app offers an above-average range of features.

Order Execution

In the case of a Standard account, FOREX.com is a market maker broker, meaning that they set the bid (buy) and offer (sell) prices internally and automatically take the other side of a client’s trade. In the case of a DMA account, clients pay a standard commission, and FOREX.com routes trades directly to liquidity providers.

Tradable Instruments

Clients can access trading in CFDs on forex, commodities, indices, stocks, and cryptocurrencies. FOREX.com goes above and beyond by offering CFDs in ETFs, bonds, sectors, and thematic indices.

CFDs (Contract for Difference) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at FOREX.com include the following:

• 84 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 26 Commodity CFDs. Commodities are raw products, such as gold and oil.
• 5,500 Global Stock CFDs. A stock is a security that represents partial ownership of a corporation. Keep in mind that when trading stock CFDs, you are speculating on the price of a stock without actually taking ownership of the underlying company.
• 38 Index CFDs. An index is a basket of trading instruments used to gauge a market sector, stocks within an exchange, or a country’s economy.
• 12 Cryptocurrency CFDs. Cryptocurrencies, such as Bitcoin, are digital currencies secured by cryptography.
• 26 ETF CFDs. Exchange-traded funds (ETFs) are financial instruments that track an index or sector and trade like a stock on an exchange.

Note: The UK FCA banned the sale of crypto derivatives to retail clients in 2021. Retail clients in the UK cannot trade cryptocurrency CFDs, but the market is open to clients classified as professionals.

Below is a sampling of instruments across the various asset categories.

Overall, we judged that FOREX.com has an impressive range of tradable instruments, well above average for the industry.

Customer Support

When contacting support via chat, users must first navigate questions from a chatbot, but if it cannot address their concerns, they are transferred to a live agent. We experienced short wait times, and support took care to answer queries thoroughly.

By phone, again, there are some automated questions that clients must answer before reaching a live agent. Operators could answer complex inquiries relating to regulation in different countries. Finally, we received fast and satisfactory responses via email, sometimes on the same day.

Overall, our assessment reflected that FOREX.com has better customer support than the average for the industry.

Deposits & Withdrawals

FOREX.com offers a solid range of deposit and withdrawal methods. Processing times are fast, and the broker does not charge any deposit or withdrawal fees.

FOREX.com clients can make deposits and withdrawals via bank wire, credit/debit cards, or PayPal.

Deposits

Deposits are typically available instantly, except for bank wire. Bank wires can take up to 1-2 days to be processed.

Note: FOREX.com does not charge any fees for incoming card deposits. Your card-issuing bank may charge you a cash transaction fee if it treats your transaction as a cash transaction. FOREX.com does not charge incoming wire fees. However, your bank may charge a service fee.

Withdrawals

Withdrawals via credit/debit card and PayPal are immediate. Bank wires take 1-2 business days to process.

Note: The normal processing time is typically up to 1-2 business days. However, if further information is required, the processing time may be extended. Also, keep in mind that your bank may take additional time to credit the funds to your account.

Account Types and Terms

Standard Account

The Standard Account uses the proprietary Web Trader platform and FOREX.com mobile app. Tools such as Trading Central and Performance Analytics are available via the Standard account.

When opening a Standard Account, clients must provide the following information:

• Country or region of residence.
• Email address.
• First name, last name, and date of birth.
• Phone number, and address.
• Citizenship, and country and town/city of birth.
• Country of tax residency.
• Employment status.
• Trading experience (Shares or bonds, Futures, options or ETFs, CFDs or margined FX).
• Total annual income, total savings & investments, source of wealth.
• Planned initial deposit, and source of funds.

MT4 account

This account provides clients with access to the popular MetaTrader 4 platform. Reuters news and Trading Central are integrated. Traders can use Expert Advisors (EAs) – programs to automate trading and analysis. Free VPS hosting is also an option for qualifying clients. MT4 account holders can also access over 20 apps with custom indicators, Expert Advisors, and chart-in chart view via FX Blue. Trading in micro-lots is available, allowing new traders to start trading small and minimize their risk.

Note: CFDs on shares are not available on the MT4 account.

DMA Account

The DMA (Direct Market Access) account is designed for advanced, high-volume FX traders seeking direct pricing from top-tier liquidity providers. It gives traders access to multiple levels of liquidity displayed in real-time. Clients can trade on prices sourced from global banks and top-tier liquidity providers. Traders pay a commission and can earn discounted commissions based on their trading volume. The DMA account uses the Web Trader platform.

Corporate Account

FOREX.com offers corporate accounts that enable multiple authorized traders for one account.

Leverage

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is using borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

A standard account offers a maximum of 1:30 leverage. An account funded with $1,000 and 1:30 leverage allows traders to control up to $30,000 worth of positions in the market. Traders can apply for a professional account, which offers higher leverage, but the costs and platform are the same.

Investors with a professional account can trade with a maximum leverage of 1:400. With this degree of leverage, you can control up to $400,000 worth of positions in the market with just $1,000. To qualify for a professional account, traders must show a financial portfolio of over €500,000 and relevant financial experience.

Leverage is often described as a ‘double-edged sword’ because it can amplify your profits and losses. Leveraged trading comes with a high level of risk and can often result in significant losses.

Demo Accounts

A free 30-day demo account allows you to hone your skills without risking any money.

Islamic Accounts

FOREX.com also offers a swap-free Islamic account that adheres to the principles of Sharia law.

Supported Countries

FOREX.com accepts clients from the majority of countries globally. However, residents of Belgium, France, Czech Republic are restricted. FOREX.com also does not take clients from FATF (Financial Action Task Force) countries North Korea and Iran.

Research

FOREX.com provides high-quality research covering major news stories and market themes. Coverage is mainly from a fundamental perspective, but the analysis also touches on technical levels and chart patterns. The ‘Week Ahead’ report is a valuable reference, keeping clients updated on key upcoming events and how they may impact the markets. The analysis is in-depth and insightful, and we judged that it is better than average.

Analysis from Trading Central, within the Web Trader platform, has three major categories:

• Technical Insight provides actionable technical analysis, educational guidance, and customizable alerts.
• Market Buzz helps traders see what is driving markets with compelling data visualizations.
• Analyst Views combines proprietary pattern recognition with the expertise of senior market analysts.

We rate Trading Central as a valuable tool with plenty of actionable ideas for traders to draw from.

Education

FOREX.com provides interactive courses within its Trading Academy that cater to beginners and advanced traders. The Trading Academy also features platform tutorial videos, individual lessons, and webinars.

Courses within the FOREX.com Academy are broken down by experience level: beginner, intermediate and advanced. The courses are accessible via the website, and Progress tracking and test questions are built in. Material ranges from the basics of CFD trading to advanced topics within technical analysis. Course material combines text and video, and we judged the quality to be very good overall.

The video-based platform tutorial section is an excellent resource for guiding clients through making the most of the Web Trader platform, MetaTrader 4, and the FOREX.com mobile app. Live webinars round out the educational offerings with presentations covering dynamic topics like trading the Non-farm Payrolls economic release.

The Bottom Line

If you’re looking for a solid all-around broker that can cater to various trader profiles, FOREX.com might be for you. Very few forex and CFD brokers can compare to its level of stability, platforms, instruments, and educational and research resources. The range of additional tools, such as Trading Central, FX Blue, and Trading Analytics, is also impressive.

Nevertheless, we judged that there is room for improvement in two areas. Firstly, the spreads in the Standard account are not highly competitive in some cases (for example, an average spread of over five pips in GBP/JPY in our tests). Secondly, while the Web Trader platform is robust and feature-rich, its design could be more intuitive and user-friendly to accommodate casual traders or beginners better. Overall, we rate FOREX.com as a strong broker, with an offering that reflects the wealth of experience it has gained from over two decades in the industry.

FAQ