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Forex.com

Forex.com Review
Trader's rating 2.9
Editor's rating 4

Trading Accounts

 

Account type Minimum deposit  Minimum trade size  Maximum leverage* Average Spreads
Standard $50  0.01 1:200  1.8 pips 
AciveTrader/Premium  $20 000/$10 000   0.01 1:200 1.3 pips **/1.5 pips
*Leverage in the US is limited to 1:50.
** Spreads can be as low as 0.7, based on the clients’ trading
volume.

 

FOREX.COM currently offers two account types: Standard, and Active Trader.  The ActiveTrader account was launched in November, 2016 in Canada and US and soon it will also be rolled out to the rest of the markets where the broker operates. 

 

An alternative to the ActiveTrader, Premium account (currently available in UK, Australia, etc.) is available with $10 000 and offers spreads averaged 1.5 pips. It also offers 2% interest on your account balance, up to $50,000.

 

The Active Trader account is accessible only via the broker’s proprietary FOREXTrader platform and will not be offered to traders using the MetaTrader 4 (MT4) or any Managed Accounts and accounts referred by an introducing broker (IB).

 

In addition, FOREX.COM offers swap-free accounts to investors of Islamic belief.

 

Trading Conditions

 

Minimum initial deposit

In order to open an account with FOREX.COM, one has to invest just $50, which is a low minimum initial deposit. In comparison, FXCM also demands $50 from its clients as a start.

 

Spreads & Commission

One of the main advantages of major broker FOREX.COM is that it offers commission-free trading. Of course, this means that the company gets remuneration for its services by a mark-up. That is why FOREX.COM’ variable spreads are not among the tightest in the industry – average ones amount to 1.8 pips on EUR/USD pair. Nonetheless, you get access to a selection of trading platforms with fast execution (average execution speed is 0.05 seconds), and most importantly, your funds are safe.

 

In addition, ActiveTrader account holders may benefit from an average 15% reduction on our standard spreads. Spreads on this account type can be as low as 0.7 pips on EUR/USD, plus, their holders get personalized support, priority service and no account fees on the FOREXTrader Platform.

 

In comparison, FXCM offers variable spreads, averaged 1.5 pips on commission-free accounts. For further information, you may check out and compare real-time spreads of 15 leading brokers here

 

Maximum leverage

The maximum leverage levels offered by FOREX.COM is up to 1:200, which is considered average. Of course, the maximum leverage provided to US clients is 1:50.

 

If you need higher leverage ratios, many FX brokers provide such. FXCM offers leverage up to 1:400 and you may also check out a list of brokerages providing leverage up to 1:500 or higher here. You should keep in mind, however, that higher leverage involves greater risk of losses.

 

The Company. Security of funds

 

Set up in 1999, Gain Capital now has a global reach. Being one of the largest brokers in the US, it is therefore in direct competition with FXCM for the domination of the US market. It is It offers trading in currency pairs, index & commodities CFDs, precious metals, as well as exchange-traded futures and options (US clients).

 

First of all, GAIN Capital Group, LLC is a registered futures commission merchant and retail foreign exchange dealer with the US Commodity Futures Trading Commission (CFTC) and is also a member of the National Futures Association (NFA).

 

Brokers that are registered with the NFA are obliged to comply with a stringent set of rules. US regulation is one of the strictest, which is a good thing in terms of investor protection, however some of the rules imposed are considered too restrictive.

 

For instance, NFA-registered brokers are required to maintain a net capital of at least $20 million to guarantee customers’ positions, which is the highest minimum capital requirement worldwide.

 

Besides, hedging is not allowed and leverage is limited to 1:50, while European brokers are free to provide leverages up to 1:1000 or even higher than that.

 

The parent company, GAIN Capital Holdings, Inc. (NYSE:GCAP), is a New Jersey-based forex and CFD broker. As a global publicly traded company, regulated in 7 jurisdictions, Gain Capital meets high standards of corporate governance, financial reporting and disclosure. Generally speaking, if you choose to invest in forex.com, you may trade without worries about your funds’ safety.

 

Company

Country

Regulation

GAIN Capital Group, LLC

US

NFA, CFTC

Forex.com UK Limited

UK

FCA

GAIN Capital FOREX.com Australia Pty Limited 

Australia

ASIC

Forex.com Canada Limited

Canada

ILLROC

GAIN Capital Group (Hong Kong) Limited 

Hong Kong

SFC

GAIN Capital Japan Ltd. 

Japan

FFAJ

 

Trading platforms

 

Forex.com offers its clients two basic trading platforms: its in-house FOREXTrader & and the popular MetaTrader 4. In addition, the brokerage also supports Tradable and its special ECN platform, GTX.

 

The fully-customizable FOREXTrader is equipped with advanced trading features, professional charting tools and integrated research and analysis. It comes in as web, PC varsions and full array of mobile apps (including iOS and Android devices). FOREXTrader PRO’s professional-grade trading tools include real-time charting, pattern recognition software by Autochartist, and custom-built automated trading software, called Strategy Center.

 

Among the FOREXTrader’s features is the Strategy Center with automated buy and sell signals, which allows traders to access 15 user customizable pre-defined trading strategies as well as build their own via the Strategy Wizard. The Strategy Center includes the ability to back test strategies against historical data and then activate them to generate buy and sell signals in real time.

 

Forex.com's inhouse FOREXTrader platform. Click to enlarge.

 

The comprehensive research and analysis includes round-the-clock updates from our expert in-house research team, real-time concise headlines from Reuters News, and professional technical analysis from industry-leading Trading Central.

 

With this platform, users are able to choose between instant and market execution (through the Execution Mode drop-down). Unfortunately, FOREXTrader does not allow hedging, as open positions are closed in compliance with the (First in First Out) FIFO accounting rule, applicable in the US.

 

Some of the new functionalities of the platform after a recent update include powerful charts with integrated one-click trading, smart trade ticket with advanced risk management option, pre-defined and customizable layouts, and more.

 

The most common forex trading platform - MetaTrader4 - is also supported by Forex.com. It offers competitive pricing on over 45 currencies, superior market execution and EA optimized environment. Furthermore, Forex.com’s MT4 is equipped with some unique trader tools & resources, such as live commentary from the company’s Global Research Team, real time technical analysis from Trading Central and actionable ideas from Autochartist. According to us, MT4, offered by forex.com has one significant disadvantage - it does Not offer a 3rd party bridge.

 

GAIN Capital’s GTX is an independent and innovative ECN designed for institutions and professional traders. It offers robust algorithmic trading capabilities that enable clients to develop and implement a wide range of trading strategies using GTX’s Java or FIX-based APIs.

 

Payment methods

 

Clients of Forex.com may use bank wire transfer, as well as debit/credit cards as payment methods.

US clients may also make deposits and withdrawals via Check and eCheck (U.S. bank accounts only), while EU clients can use Sofortbanking (online funds transfer available in the UK, Germany, Switzerland, The Netherlands and Belgium only).

 

Conclusion

 

Although its spreads are not among the tightest on the forex market, we highly recommend Forex.com, for it has earned its reputation of a reliable broker with strong regulation and transparent policy. It offers reasonable conditions for trading in forex, CFDs and stocks on a wide range of platforms. Here are, in a nutshell, the advantages and disadvantages with regards to Forex.com, the retail forex brand of Gain Capital:

 

Pros       Cons
Well-regulated & reputable broker Mediocre spreads
Commission-free trading  
Choice of trading platforms, MT4 available  
Fast execution speed  

                                                                                  

Company Name: FOREX.com

Website Address: www.forex.com

Headquarters: Bedminster One, 135 US Highway 202/206, Suite 11, Bedminster, NJ 07921.

Country: United States

Regulated by: NFA (USA), CFTC (USA), FCA (UK), FSA (Japan), ASIC (Australia), IIROC (Canada)

 

Languages: English, Chinese Traditional and Simplified, Arabic, Russian, German, and Japanese 

Phone: +1 908-731-0750

Fax: +1-908-731-0701

E-mail: [email protected]

Free Phone: Toll Free: 877-367-3946 (US & Canada)

Year of company's foundation: 1999 

Year of company's forex division foundation: 1999

Client base: Individuals (IBs, Money Managers, White Label partners, please visit www.gaincapital.com).

Services: Forex and Metals (UK and AU only). Trading 24 hours a day from Sunday 5pm ET – Friday 5:00pm ET. Commission Free trading (bid/ask spreads apply). Web-based trading platform requires no download or installation. No debit balance guarantee. Free access to charting, news and research. 24 hour customer support via phone, email and chat during trading hours. Mobile trading available. 24 Hour trading.

Languages: English, Chinese simplified and traditional, Arabic, Russian, Japanese

Crypto Facilities

Crypto Facilities Review
Trader's rating 5
Editor's rating 3.8

Trading accounts

 

Account type Minimum deposit Leverage Maker Fee Taker Fee
Standard Undisclosed 1:50* -0.03% (rebate) 0.05%

* Trading conditions at this exchange are more specific due to the nature of the products available for trading. For more details check the full review.

 

Crypto Facilities is a platform for cryptocurrency futures trading. This makes them one of the options for miners, looking to hedge their exposure. The most well-known other similar platform is BitMEX

Warning: Several other companies have used Crypto Facilities' FCA registration number. As far as we know, their original website is the only one at which they operate. Here is proof of their disagreement and frustration with these scammers:



 

 

The company, security of funds

 

Company Country Regulation
CRYPTO FACILITIES LTD UK FCA

 

Crypto Facilities is registered in the United Kingdom and more importantly overseen by the Financial Conduct Authority (FCA). This is very unusual as the British watchdog usually doesn’t look at companies dealing in the crypto-space. That being said, this is derivatives trading company, and the crypotocurrencies are only the underlying asset.

 

While the FCA oversees a lot of companies (like forex brokers) and enforces a lot of rules, there are a few specifics in regards to Crypto Facilities. You are probably familiar with the Financial Services Compensation Scheme (FSCS), especially if you have read some of our reviews on forex brokers. This is a mechanism, which guarantees client funds, in case their brokerage goes bankrupt. As point 3.2 of the Membership Agreement at Crypto Facilities states, the FSCS does not apply, as your account balance is kept in cryptocurrencies, which are not yet defined as either “money” nor a “Specified Investment”. 

 

That being said, all of the client accounts are held in segregated cold-storage wallets, backed by Elliptic, an industry-leading crypto-security company. Additionally the blockchain settlement is insured by an “A-rated, Fortune 100 underwriter”. Given the fact the company is based in the UK, you probably have a pretty good idea of which insurer they are referring to, presuming you have any knowledge of that market. 

 

With such major security claims, it probably wouldn’t surprise you to hear that Crypto Facilities has not been hacked yet. In general, this company appears to be much more secure than a lot of the traditional cryptocurrency exchanges.

 

Crypto Facilities partnered with the CME group in order to provide two Ethereum indices. They are the CME CF Ether-Dollar Reference Rate (Ether Reference Rate), which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and the CME CF Ether-Dollar Real Time Index (Ether Real Time Index), which will allow users access to a real-time Ether price in U.S. dollars. Price data is gathered from two of the most reputable exchanges: Kraken and Bitstamp.  Being connected with such an established derivatives trading institution, like the CME Group is a positive sign.

 

There aren’t that many user reviews on Crypto Facilities, which is understandable, given the relatively complicated nature of their offering. The few comments we found were all positive.

 

We feel the need to reiterate, trading on this venue is very different from other cryptocurrency exchanges. The company has even set-up a questionarie, which one must fill before being allowed to trade. This is done in order to protect unsophisticated enthusiasts from loosing their funds due to not understanding the nature of margin trading.

 

Trading conditions

 

Account types (cash and margin)

Before we begin discussing the trading conditions at Crypto Facilities, we must mention the accounts are only kept in Bitcoin, Ethereum and Ripple. Additionally, before you begin trading, you must transfer coins (internally) between your main (cash) account and one of your margin accounts. The latter vary by trading instrument. While all of this seems very complicated, in reality it isn’t. Here is how the wallet interface looks:

 

 

Each of your secondary wallets serves as your trading balance for that particular futures contract. This provides a form of risk management, which is always appreciated. 

 

Trading instruments (cryptocurrencies)

Crypto Facilities supports Bitcoin (with the newly agreed upon symbol XBT, instead of the more traditional BTC), Ethereum (ETH) and Ripple (XRP) futures trading. 

 

The currently available crosses can be seen in the previous screenshot, where three coins are traded against the USD and there is an XRP:XBT pair. 

 

In terms of maturity, contracts are weekly, monthly and quarterly (for some instruments).

 

Leverage

The maximum leverage ratio offered by Crypto Facilities is 1:50 for Bitcoin to USD trading. The conditions vary for different instruments and are a bit more complicated than the ones offered by other companies. Here is a preview:

 

 

Be sure to fully understand the meaning of all the terms listed here before you start trading. 

 

Margin netting, between long and short positions is available, presuming you trade from the same margin portfolio. 

 

We must mention, that there are other derivatives based on digital assets. These are the spot CFDs, available at some forex brokers. While Bitcoin and Ethereum are the most popular, Litecoin is also occasionally being offered. While these CFDs are linked to the current price of the asset in question and not the future value, they do have some further specifics. You can read all about them here, if you are interested.

 

Fees

The fees at Crypto Facilities are charged in XBT, ETH and XRP, in accord with the specific contracts. Here are the details:

 

We have to compare these fees with ones charged by the major competitor offering a similar service. The taker fee at BitMEX is 0.075%, while market makers get a 0.025% rebate, which makes Crypto Facilities the cheaper trading venue.

 

Summary 

 

While the above description of the trading conditions may appear complicated, here is a table, summarizing it all:

 

 

 

Trading platform

 

The trading platform at Crypto Facilities is web-based. While this shouldn’t come as a surprise to anyone familiar with cryptocurrencies, there is an argument to be made for desktop solutions.  The platform was updated to feature charting by TradignView (which is a top-tier third party provider) and have an interface which is generally cleaner.

 

 

The order book is arranged in two columns, which traders versed in traditional markets will prefer to the single column approach, used by many exchanges. 

 

Update: This section of the Crypto Facilities website is apparently taken down, but we will keep the following text. 

 

The “analytics” section off the website offers some extra features.. Here is how the index charting looks (The overall index allows comparison to the quotes provided by Bitstamp, Bitfinex, BTC-E, Coinbase and ItBit.):

 

 

And here is a preview of the futures curves, which allow one to see if the market is in a contango or backwardatiwon:

 

 

Our opinion of the Crypto Facilities platform is neutral. While it offers some futures-specific elements, the main trading window is less than ideal. Additional tools will probably needed for serious trading.

  

Methods of payment

 

The only way of transferring funds in and out of Crypto Facilities is the blockchain. Once you register an account, you are given Bitcoin, Etherum and Ripple wallets, to facilitate your trading. As mentioned above the control to specify how much to put into each margin wallet and how much to leave as “cash” is a neat feature.

 

Conclusion

 

Crypto Facilities is a London-based cryptocurrency futures trading platform, overseen by the FCA. While the they do not participate in the FSCS, they still follow other major rulings. The company’s overall security appears to be much higher than what is currently offered by other exchanges. That being said, trading at Crypto Facilities is not for everybody. The mere concept of futures trading is somewhat more complicated than the ordinary crypto trading. Add the volatility of cryptocurrencies on top of that and you get a potentially explosive combination. More experienced traders, as well as miners looking to hedge their “virtual crops” may find this to be one of their best options. Here are the pros and cons of Crypto Facilities:

 

Pros Cons
FCA-regulated (FSCS doesn’t apply) Complicated trading environment
Top-tier security features Accounts held in crypto
Blockchain settlement insured Only accepts blockchain transfers
Charts by TradingView  
Two-factor Authentication
 

 

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