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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]m

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

easyMarkets

easyMarkets Review
Trader's rating 5
Editor's rating 3

Trading Accounts

  

Account type   Minimum deposit  Minimum trade size Maximum leverage Spreads
Standard $100 0.05 1:400 3 pips*
VIP $5000 0.1 1:400 1 pip

 

*Those Standard account holders who deposit $250 or more, get VIP spreads.

 

easyMarkets offers its clients two trading accounts to choose from, available on two platforms – the good old MetaTrader 4 and the broker’s proprietary web-based platform. Both account types offer commission-free trading, fixed spreads and leverage up to 1:400. Micro lots are available for trade only to Standard account holders.

 

There are a number of features available solely to VIP account holders, such as Personal Market Analyst, Loyalty Rebates, Express Withdrawals, Free trading signals, Free Breaking news, SMS Alerts, etc.

 

If you don’t need such extras or simply don’t want to invest 5 thousand bucks, you can get VIP spreads on your Standard account by depositing $250.

 

Islamic (swap-free) accounts compliant with the Sharia law are also available to clients who don’t want to earn interest for religious reasons.

 

The Company. Security of Funds

 

Company

Country

Regulation

Easy Forex Trading Ltd.

Cyprus

CySEC

EasyMarkets PTY Ltd.

Australia

ASIC

 

easyMarkets (previously Easy-Forex) is the trading name of Easy Forex Trading Ltd. – a Cyprus-based brokerage, established back in 2003. It provides its services in over 160 countries worldwide, offering trading in 175 products ranging from currencies, CFDs on indices commodities, metals and Bitcoin, as well as options and forward contracts. 

 

Easy Forex Trading Ltd, doing business as easyMarkets, is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC, license No 079/07), and its Australian subsidiary - EasyMarkets PTY Ltd. - is authorized and regulated by the Australian Securities and Investment Commission (ASIC).


CySEC applies certain rules to license holders, one of them being the requirement such firms to hold a minimum capital in order to conduct their business operations legitimately. The Commission requires Cyprus-based forex brokers to hold at least €730 000. As regulation of financial services providers usually involves such a requirement, Australian brokers are obliged to hold a minimum of $1,000,000 by ASIC.


Furthermore, the Cypriot financial watchdog applies a compensation scheme as additional guarantee to clients’ funds. All CySEC-regulated companies are members of the Investor Compensation Fund, the compensation fund of last resort for customers of authorized financial services firms. If the Company becomes insolvent or ceases trading, it is able to pay compensation to its covered clients, amounting to a maximum of 20,000 EUR.


Unlike many other EU-based brokers, Australian ones are not covered by any compensation scheme.

 

Focus on client protection 

 

 

 

 

easyMarkets is a broker that places a special focus on client protection. Apart from offering tight fixed spreads, which do not widen during news releases, easyMarkets is one of the few brokers that provide Negative Balance Protection. This means that you can never lose more funds than you have deposited, even though you are trading on margin.

 

Besides, it allows forex traders to cancel losing trades via its state-of-the-art feature dealCancellation, available on its in-house platform.

 

Trading Conditions

  

Minimum initial deposit

In order to open an account with easyMarkets, one has to deposit at least $100, which is a reasonable and competitive minimum initial deposit.

 

Spreads & Commissions

This broker offers fixed spreads, which allows traders to predetermine their costs. What is more, no commission fees are charged, as the broker generates revenues through the bid-ask spread paid by traders on each transaction.

 

Although fixed spreads generally tend to be wider that variable ones, this is not the case with easyMarkets – their spreads amount to 1 pips on EUR/USD and are accessible with a deposit of $250. In comparison, Exness and Plus500 (also regulated by CySEC) offer fixed spreads amounting to 2 pips for this currency pair.

 

Leverage

The maximum leverage level offered by this broker is 1:400, which is considered comparatively high, as CySEC has recently proposed the default leverage provided by brokers to be 1:50. The reason for such leverage limitations is that higher leverage involves higher risk of heavy losses. Nonetheless, many Cyprus-based brokers offer high leverage levels: XM – up to 1:888, FXTM – up to 1:500.

 

Trading Platforms

 

Clients of easyMarkets may choose from the broker’s proprietary web-based platform and the popular Metatrader 4 (MT4).

 

easyMarkets’ in-house platform offers advanced charts, live market news, technical analysis and sentiment all in one screen, one click trading (from the Market Explorer).

 

What is more, platform users get free Guaranteed stop loss and dealCancellation option, which are indeed two great risk management tools.

 

 

easyMarkets’ in-house web platform. Click to enlarge

 

 

In addition, easyMarkets offers the powerful MT4, allowing traders to fully automate their operations by choosing from a wide range of Expert Advisors (EA) and let the program do all the work. This is one of the reasons this platform to be preferred by most traders. Besides, it offers a number of useful technical indicators, extensive back-testing and advanced charting package, which includes the option to trade straight from the chart. Here is a list of more forex brokers offering MT4 platform.

 

Bonuses & Promotions

By the time of writing this review, there are two promotions offered (effective until March 31, 2016)

-        - First deposit bonus on initial deposit ranging from 30% to 50% (up to $2 000);

-         - Refer-a-friend bonus from $25 to $500 for new clients who deposit at least $250. 

 

Methods of Payment

 

easyMarkets offers a variety of payment methods, including credit cards (Visa, Mastercard, Maestro, Visa electron), bank transfer and e-wallet systems, such as, Skrill, Neteller, WebMoney, SoFortüberweisung, American Express, Giropay, Ideal and UnionPay.

 

For withdrawals to credit/debit cards and eWallets there is no minimum withdrawal amount. For withdrawals to bank accounts, a minimum amount of USD 50 is required. All deposits and withdrawals with easyMarkets are commission-free.

 

Conclusion

 

easyMarkets is a well-regulated broker that offers trading in wide range of financial products products worldwide through both its proprietary platforms and the industry’s standard MT4. This is a broker that places a special focus on client protection. To sum up the above, here are the advantages and drawbacks with regards to this broker: 

  

 

Pros

Cons

Well-regulated

No significant disadvantages

Tight fixed spreads, no commission fees

 

Variety of trading platforms offered, MT4 available

 

Negative balance protection, option to cancel losing trades

 

Promotions available

 

 

Headquarters: P.O.Box 53742, Limassol 3317
 

Country: Cyprus

 

Regulated by: CySEC – License Number 079/07

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