100 of a selected base currency
Standard, Commission, STP Pro
0.1% to 0.15% commission per stock trade
FCM, RFED, CFTC, NFA, FCA
Forex.com is an industry household name. What are its strengths and weaknesses? What does this broker have to offer to inexperienced users, and do these benefits transfer to intermediate traders?
We’ll give our best to find the answers to all these questions in our Forex.com review.
So stay with us!
What Is Forex.com?
Forex.com is the biggest forex (foreign exchange) and CFD (contract for difference) trading platform on the market.
Now, one of the biggest challenges that all Forex.com reviews have to tackle is putting into perspective just how big and significant the forex market actually is. So consider this:
The FX market’s daily turnover is $5.1 trillion per day.
Note that the entire US stock market trades about $257 billion per day. While an impressive figure, this is only around 5% of the total value of the daily forex trades.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
How to Use Forex.com?
Traders often describe the Forex.com platform as intuitive and user-friendly. Let’s look into the account opening and trading processes to see what characterizes it as such!
There are three Forex.com account types:
- Standard account
- Commission account
- STP pro account
The choice depends on whether you’re looking for traditional or competitive spread pricing. One thing worth mentioning right away is that, at the moment, only the Standard account offers the Forex.com MetaTrader option.
Notably, you can also opt for a Forex.com demo account, which offers a 30-day risk-free trading experience.
The Forex.com minimum deposit is 100 (of the trader’s base selected currency). However, for more flexibility and better risk management, the platform recommends funding at least 2,500. And the advised balance on the STP Pro account is 25,000.
The information needed to register an account includes:
- Tax ID number
Also, Forex.com will need to verify your debit card details to adhere to anti-money laundering rules and regulations.
Trading on Forex.com
We can sum up the essential trading information in three major categories:
- Trading processes
Let’s delve a bit deeper into each!
There are three Forex.com deposit methods you can use to fund your account:
- Bank transfer (ACH)
- Wire transfer
- Debit card
With ACH and debit card, you have a minimum of $100 and a maximum of $10,000 per deposit. Nevertheless, the funds will be transferred immediately.
A wire transfer deposit may take between 1 and 5 days (depending on if it’s a domestic or international transfer), but there is no minimum or maximum deposit limit.
During our research of Forex.com reviews left by the users, bank transfer appeared as the most convenient deposit method.
When withdrawing funds from your account, you can use the same money transfer methods you used for depositing them. However, one more piece of information we need to stress out in this Forex.com review is that you should always withdraw the funds to the originating source of deposit.
Minimum withdrawal amount (per transaction):
- $100 across all three methods
Maximum withdrawal amount (per transaction):
- Bank transfer – $25,000
- Debit card – $50,000
- Wire transfer – no limitations
One more thing worth mentioning is that money deposited via bank transfer may not be available for five business days.
Forex.com pledges to provide execution at the best possible price at the moment the order is received.
When trading currencies, the smallest possible trade size is 1,000 units. This is essential information for a Forex.com broker review.
The order can be executed via a platform of choice (Forex.com web platform, MetaTrader 4, TradingView, etc.) or even via phone.
It’s also important to note that orders don’t expire. They can be executed EOD (end of the day) or until canceled. This is also what makes some people use Forex.com as a day trading platform.
Margin and leverage trading are also on tap. However, step margins are not available on MetaTrader 4.
The range of 4,500 tradable products is probably the most impressive piece of information in this entire Forex.com review.
The platform supports 80+ currency pairs, as well as thousands of stocks, popular commodities, and more. The biggest markets on Forex.com are:
Many potential traders will be interested in the fact that trading in cryptocurrencies is both available and quite convenient. Those looking for a platform to speculate on Bitcoin volatility while getting fixed spreads and low margins needn’t look further.
Disclaimer: Trading Bitcoin, on its own, is not available on Forex.com. The users of this platform can only trade Bitcoin futures. Still, there are more than enough crypto exchange platforms to make up for this.
Forex.com gets compensated via spreads and commissions. This allows it to have no:
- Withdrawal fee
- Deposit fee
- Account fee
However, Forex.com has an inactivity fee. This is why users often describe the platform as great for active traders.
Spreads differ based on assets and market. They also vary based on trading pair.
For instance, the minimal spreads for some of the most popular currency pairs are:
- EUR/USD: 1
- GBP/USD: 1.1
- USD/CHF: 1
- EUR/GBP: 0.7
When trading stocks, commission per trade depends on the market. For instance:
- European stock: 0.1%
- US stock: 0.15%
- Hong Kong Stock: 0.15%
Forex.com spreads for commodities are usually variable around the market spread, while spreads for metals are always capped variable.
Forex.com Mobile App
Mobile apps of this platform are described as functional by the majority of customer reviews. They are also available on both Android and iOS.
Users can easily navigate the platform, add or withdraw funds, and place orders. The mobile Forex.com app also offers quite a bit of insight, seeing as how it can be used to view trade history or create watchlists.
For those who enjoy the dynamic nature of these trades, it allows a real-time feed and tracking.
Forex.com Customer Service
Right off the bat, the platform has a well-organized FAQ section, which offers beginner users all the information they need to get started.
Forex.com also provides access to live chat and phone support (from 10 a.m. ET on Sunday to 5 p.m. ET on Friday). However, the biggest downside (in terms of the variety of customer support outreach options) is the current lack of social media support.
If we had to use two words to describe the customer service of Forex.com as a whole, those words would definitely be – available and responsive.
For our review of Forex.com to be accurate, we should compare it to some of its closest competitors. So here are the three most representative Forex.com alternatives:
Forex.com vs OANDA
OANDA has two more Tier-1 licenses, which may make it more credible in the eyes of some. Still, 4 to 6 is really not that impressive. Also, in terms of credibility, it’s worth mentioning that OANDA exists since 1996 — only three years longer than Forex.com.
Forex.com has far more CFDs — 4,500 compared to OANDA’s 55. In terms of forex pairs, Forex.com is ahead once again (91 to 70). While neither of the two platforms supports cryptocurrency trading in the traditional sense, both have crypto CFDs as an option.
Forex.com vs TD Ameritrade
In terms of credibility, TD Ameritrade has 5 Tier-1 licenses compared to 4 by Forex.com. Moreover, the platform was founded as early as 1955.
The Forex.com cost per trade is slightly higher than TD Ameritrade’s (1.065 pips on TD Ameritrade vs. 1.4 pips on Forex.com). When it comes to tradable forex pairs, TD Ameritrade offers 73, while Forex.com provides as much as 91. The most significant advantage of TD Ameritrade is the availability of a social trading option, which is absent from Forex.com.
Forex.com vs IG
IG has been around since 1974. This means that it has a quarter of a century of advantage over Forex.com (founded in 1999). Also, IG has 6 Tier-1 licenses, which is quite impressive and puts it ahead of Forex.com (with 4 Tier-1 licenses).
IG is one of the few platforms with more CFDs than Forex.com (19,537 compared to 4,500). However, neither of the two brokers has physical cryptocurrency trading options (only CFD). Also, IG has a social trading option, which Forex.com lacks.
One thing that gets pointed out in all Forex trading reviews is the versatility of the platform. Forex.com is just huge in every possible way. It has something to offer to traders of different interests and experience levels.
Its spreads and commissions are fair, the level of protection (for UK and EU traders) is formidable, and the number of tradable products is simply unparalleled. Still, it goes without saying that high-volume traders have the most to gain from using this platform.
- 4,500 tradable products
- Regulated across the globe
- Great protection for UK/EU clients
- Ideal for high-volume traders
- Competitive fees
- Charges inactivity fee
- No crypto trade (only crypto futures)
- Lack of account protection for US clients
Is Forex.com legit?
Yes. Forex.com is regulated by some of the most credible financial authorities, and has a long, positive track record. In addition, the platform’s parent company, (StoneX Group, is a publicly-traded company, which provides an extra layer of credibility.
Is Forex.com a good broker?
Forex.com is considered to be one of the best brokers online. While appreciated by traders of different interests and experience levels, the high-volume ones can make the most out of it.
Is Forex.com an ECN broker?
Even though it started as a market maker, currently, Forex.com is an ECN broker. As we’ve mentioned in our Forex.com review, the platform makes money through spreads and commissions. This allows it to offer competitive terms to its users.