FOREX.com Review.
FOREX.com is a leading forex broker with advanced technology. The platform is best suited for active, high-volume traders.
Tim Fries.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University .
Reviewed by.
Shane Neagle.
Shane Neagle.
Meet Shane. Shane first starting working with The Tokenist in September of 2022 — and has happily stuck around ever since. Originally from Maine, .
Updated January 09, 2023.
All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.
Are you an active forex trader?
If so, you probably already know exactly what you want: fast, reliable trade execution which is capable of handling high trade volumes — and no extra fees.
If that’s the case, some would say FOREX.com was built with your investor profile in mind. The platform facilitates CFD and Forex trading, and offers more than 80 currency pairs. It has grown a solid reputation among active Forex traders.
Forex.com, which was founded in 2001 and is completely owned by Gain Capital Holdings since 2010, an NYSE-traded firm, has a slew of devoted followers worldwide.
Is FOREX.com what you’re looking for? Let’s find out.
FOREX.com offers transparent pricing that varies depending on your account. The broker caters mostly to active and high-volume traders, and offers a couple of advanced platforms to suit different activity levels. Traders will have the option to choose between several account types, and over 80 currency pairs, in addition to unleveraged gold and silver in the U.S., and hundreds of CFDs for non-U.S. traders.
Fast Facts.
Account Minimum: $100 Demo Account: Yes Best for: Active traders Asset coverage: CFDs, Forex, More Regulation: Fully regulated.
Ratings.
Visit FOREX.com on FOREX.com’s website.
Investor Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. 73% of retail investor accounts lose money when trading with this provider. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
The products and services available to you at FOREX.com will depend on your location, and on which of its regulated entities holds your account.
What is FOREX.com? ����
FOREX.com was launched in 2001 and is part of parent company StoneX Group, Inc., along with sister company City Index.
Today, FOREX.com is one of the leading forex brokers in the U.S. and globally, with $10 billion in total assets as per the company’s GCAP key financial data in Q3 2021, and a total customer equity of $3 billion.
The company oversees over 200,000 retail traders across the globe, from the U.S., UK, and Canada to Japan and Australia, with the tools needed traders advance in the financial markets.
Pros.
Excellent desktop and mobile functions Considered safe and highly regulated Account options benefit high traders.
Cons.
Spreads are higher than other international brokers No negative balance protection offered to U.S. clients U.S. traders cannot trade cryptocurrencies.
Is FOREX.com Safe? ��
FOREX.com is considered a safe company and is regulated by four tier-1 regulators, zero tier-2 regulators, and one tier-3 regulator in the following countries: U.S., UK (FCA UK), Canada (IIROC), Cayman Island (CIMA), Japan (FSA) and Hong Kong (SFC). The broker is a member of National Futures Association (NFA) since 2004.
The company offers varying products from country to country, as laws vary. For example, CFDs are illegal in the U.S. therefore the company does not offer CFDs to U.S. traders, but it does offer CFDs to traders outside of the U.S.
FOREX.com maintains level capital well above what’s required by the regulator to help ensure it is capitalized in times of economic uncertainty.
In addition, the broker has a global liquidity plan in place that provides access to significant resources from StoneX Group, Inc., and an external revolving credit facility.
With this, FOREX.com keeps all customers funds segregated from its own operating funds, which further helps to protect traders money in the event of any financial issues with the company.
There is no negative balance protection offered by the company. The company does automatically monitor client’s accounts and if there is not enough margin in an account, the firm will automatically liquidate positions.
However, this isn’t a fail safe way of preventing negative balances, and you will be left more open to the risk.
Overview and Summary.
Here are the most notable features of FOREX.com:
FOREX.com is considered a safe company and is regulated by four tier-1 regulators, zero tier-2 regulators and one tier-3 regulator in the following countries: U.S., UK, Canada, Cayman Island, and Japan (sister company City Index is regulated in Australia and Singapore). Its fees are competitive overall and the broker generates most of its revenue from spreads. The online broker offers a suite of fast trading platforms to help traders of all levels succeed, including advanced trading, web-based trading, a trading app for those who never want to miss a move, and MetaTrader4 (MT4) Research is one of FOREX.com’s strong-points and users can access very centralised, organised, and up-to-date material on everything from Brexit analysis to forex webinars for beginners. The customer support is easily accessible and overall pretty standard in comparison to other brokers Most clients will choose between a standard account and a commission account, but margins will vary by region (50:1 in the U.S.).
Fees & Spreads ��
FOREX.com generates revenue mostly from its spreads. Customers signing up to FOREX.com will have two pricing options based on the account you choose. The standard account uses spread-based pricing, and doesn’t charge commissions.
But spreads can be larger, starting from around 1-2 pips for the most popular assets and increasing higher than 100 on less in demand currency pairs. That said, all spreads are variable, meaning they can go up or down at any time.
If you choose to create the standard account on FOREX.com, commission-free trading is available.
The STP Pro account is recommended for traders with a balance of $25,000 and a really high trade volume. This account doesn’t mark up spreads, but is commission based and is available to traders in the U.S. as well as other jurisdictions.
The commission account meets both of these in the middle and is suitable for higher volume traders with a focus on spreads. It offers low spreads, and charges $5 commission per 100k of trades.
Fees and commissions are not FOREX.com’s strong-points in comparison to other brokers, as its spreads and commissions are a bit high, especially for those with smaller accounts.
Traders can benefit from joining the Active Trader program, and is available to those with $25,000 or more in an account or those making $50 million trades per month.
This account will give you interest on available margins up to 1% APY and as much as $10 in cash rebates per $1 million trades.
Traders with a STP Pro account cannot avail of the Active Trader program however, because it already offers fee reductions based on volume.
Leverage ��
The leverage offered depends on your account type and activity. FOREX.com offers a margin calculator on their site to help you figure out how much leverage you can get.
EU traders will be offered a stricter leverage due to new EU regulations introduced in 2022. Professional traders can operate with higher levels of leverage however.
�� Quick tip: Leveraging your trades could possibly lead to bigger winnings. Leverage trading can be dangerous and it can amplify your potential investment losses. This guide should help you understand how leverage works in forex market.
Other Fees ��
Traders who have not traded in 12 months or more can be charged a $15 in activity fee per month.
FOREX.com does not charge additional fees for deposits. There is also no charge for withdrawals and checks. Wire transfers over $10,000 are free, but anything under this incur a fee: U.S. wire transfer will incur a fee of $25, and all transfers outside of the U.S. will be charged $40.
Overall, FOREX.com’s pricing is transparent and easy to understand, and offers traders of different levels accounts.