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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

EXNESS

EXNESS Review
Trader's rating 4
Editor's rating 4

Account types

 

Trading account Min. deposit Max. leverage Spread
Mini  $1  1:30  0.2-1.1 pips
Classic  $2 000 1:30  0.1-0.9 pips
ECN  $300 1:30  0.1-0.4 pips + $ 2.5 per standard lot


This broker offers a choice of three basic account types: Mini, Classic and ECN accounts. The Mini account is targeted at inexperienced traders, as well as such who do not wish to trade in large volumes. The Classic account is targeted at regular and professional traders and offers full range of tools and trading facilities. As its name suggests, the ECN account is designed for clients who wish to trade in Electronic Communication Network environment, which involves a commission fee.

 

Another important thing worth mentioning is that the Mini and Classic account offer market and instant execution option. Most traders prefer instant execution, since it allows greater control on slippage and traders are offered requotes, instead of executing the order at the next best price.

 

Keep in mind that Exness does not provide it services to residents and citizens of the USA and Japan.


The Company. Security of Funds

 

Company

Country

Regulation

Exness (Cy) Limited 

Cyprus

CySEC

Exness (UK) Limited 

UK

FCA

 

The EXNESS group is a global ECN broker, consisting of companies regulated by reputable authorities such as UK's FCA and Cyprus' CySEC a. The broker offers trading in more than 120 forex currency pairs under fairly good conditions through the popular MetaTrader 4 and MetaTrader 5 platforms.

 

EXNESS is the trading name of the EXNESS group, set up in 2008 and consisting several companies: Cyprus-based EXNESS (CY) Ltd., (which operates the website www.exness.eu), and EXNESS LTD., (which operates the website www.exness.com) - an International business company in Saint Vincent and the Grenadines. It also has set up a UK unit, which is licensed by the Financial Conduct Authority.

 

CySEC applies certain rules and procedures to brokerage firms, one of them being the requirement for a minimum capital. Cypriot financial watchdog requires forex brokers to hold at least €730 000 in order to operate legitimately. The same minimum capital requirement applies to brokers licensed in UK.

 

Furthermore, all CySEC-regulated companies are members of the Investor Compensation Fund, which serves to protect and secure the claims of covered clients and provide them with compensation of up to 20,000 EUR per person, where broker is at default. Similar compensation schemes apply in UK: FCA-regulated brokers fall under the Financial Services Compensation Scheme, where the maximum compensation cover is £50,000 per person. Such compensation schemes serve as additional guarantee to clients’ funds.
     

Trading Conditions


Minimum initial deposit
Most brokers require a certain amount of money to be deposited in order the client to start trading. Exness, however, requires none (for the Mini account). Cyprus-based XM, for instance, requires a minimum initial deposit, amounting to $5, while FxPro, also CySEC-regulated, demands $ 500 from its clients.


Average Spreads & Commissions
EXNESS offers trading with variable spreads, which are attractively low. Average spreads on the commission-free accounts amount to 0.9 pips on EUR/USD, while ECN account holders are offered average spreads of 0.4 pips on EUR/USD, however a commission amounting to $2.5 per standard lot is charged.

 
You may look up real-time spreads of 15 leading brokers here.

 

Leverage
Leverage levels offered by EXNESS are in line with current ESMA guidelines, up to a maximum of 1:30.

 

 

Leverage may both multiply their profits and lead to heavy losses. Due to investor protection concerns, limitations on leverage rates are set in many jurisdictions: 1:50 in the USA, 1:25 in Japan, and 1:30 throughout the EU and the EEA.


Trading Platform


EXNESS offers its services on two of the most popular platforms among traders - MetaTrader 4 and MetaTrader 5. The industry standard MT4 is available as desktop version, mobile apps and there is also a web-based version offered, called MT4 Web terminal. More brokers using the MT4 can be viewed here.

The MT5 was developed and marketed as an improvement on MT4, yet many brokers still prefer the earlier technology, since MT5 does not allow hedging, and what is more, MT4’s indicators and Expert Advisors (EA) are not supported on the MT5 platform.


More brokers offering the MT5 can be viewed here.

 

Promotions

EXNESS has partnered with forex rebate web site PayBackFX, and now offers its clients an option to receive cash back for each trade they make in the amount of 30% of the spread if they use Mini or Classic trading accounts, or $0.75 for each round-turn lot.

 

Methods of Payment


The broker accepts customer deposits and allows withdrawals via Wire Transfer, Neteller, Credit card and Internal transfer (available for withdrawals).


Skrill and PayPal are the only major e-payment systems missing.


Conclusion


EXNESS is a reliable broker with solid regulation, offering its clients a variety of tradeable instruments on two platforms under attractive trading conditions. To sum up the above, here are the advantages and drawbacks in relation to this broker:
 

Pros Cons
Solid regulation No proprietary platform
MT5 and MT4 both available Leverage capped at 1:30 (as required by law)
Attractive spreads  
No initial deposit required  
   

 

Headquarters: 46, Ayiou Athanasiou Avenue, Interlink Hermes Plaza, Office: 301 A, 3rd Floor, 4102, Limassol

Country: Cyprus

Regulated by: Cyprus Securities and Exchange Commission (Cyprus); Center for regulating OTC financial instruments and technologies (Russia). 

The EXNESS brand covers three companies:

 - EXNESS LIMITED (VC), registered in St. Vincent and the Grenadines

 - EXNESS LLC – a member of Russia's self-regulatory organization CRFIN

 - EXNESS (CY) LIMITED,  Cyprus-regulated, started operations in August 2013.  

The clients of the broker may count on 24/7 support in 23 languages.

 
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