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Forex.com Review

securely through FOREX.com's website

1 Minute Review

FOREX.com is the is the #1 FX broker in the US by client assets and is also regulated in 7 other jurisdictions worldwide including the UK, Japan, Hong Kong, Singapore, Australia, Canada, and the Cayman Islands. The company educates the average retail investor with its client webinars and educational tutorials. By offering several desktop, mobile, and web-based platforms, FOREX.com caters to the needs of beginner, intermediate and advanced traders. Each platform contains many research tools for do-it-yourself investors, as well as third-party analysis that will do most of the heavy lifting for you. FOREX.com's trade execution is among the best in the brokerage industry with 99.85% of trades executed successfully with an average speed of 0.05 seconds. Learn More

Best For

  • Traders of all skill levels
  • If you need a great mobile experience
  • Those who like easy-to-consume data and research

Pros

  • Three platforms to choose from
  • Excellent trade execution
  • Positive customer service experience

Cons

  • No automated trading
  • Cannot trade basic equity or fixed income

When your friend talks about trading forex, they are referring to trading pairs of foreign currency. Trading foreign currency, including the U.S dollar, presents different opportunities to investors used to trading basic equity or fixed income assets. The forex market is the most liquid market in the world, representing approximately 170 countries and an average trading volume of $5.3 trillion dollars per day.

Forex’s daily trading volume is about 53 times that of the New York Stock Exchange and is the only legitimate market that is accessible 24 hours a day.

Depending on how well a broker can make a market will coincide with the exchange’s overall efficiency. We first have to understand that banks around the globe are the primary market makers and have lifelong relationships with each other based on creditworthiness. When a broker makes a market, it aggregates price quotes from dozens of multi-billion dollar banks and averages them in real time.

This creates an over-the-counter market, in which a specific number of price quotes creates a spread. After adjusting for the broker’s profit, the firm will pass the spread down to its retail investors at the most competitive prices. Depending on the capitalization of the brokerage will determine how efficient the spread. Not all brokers can make a market equal; therefore, will have different commissions based on the amount of volume they do with their banking partners. Luckily, Forex.com does a great job of this.

FOREX.com is a wholly owned subsidiary of GAIN Capital Holdings, which a publicly traded company on the New York Stock Exchange (NYSE: GCAP) and headquartered in New Jersey.

Platform overview

FOREX.com offers several platforms that provide easy to use interfaces, while offering most of the tools traders need on a daily basis. Trading. In addition to supporting third-party platforms such as MetaTrader and NinjaTrader, FOREX.com’s in-house team has developed platforms for desktop, mobile, and web-based trading.

1. Advanced Trading Platform (Desktop)

FOREX.com’s Advanced Trading Platform allows for complete customization of your workspace. All the essential trading information you require, including charting tools, social sentiment, economic calendars and trade ideas are placed according to your preference. The platform also features client webinars, educational videos for beginners, real-time forex news, and daily market commentary.

Sample buy and sell signals on the ForexTrader Pro platform. Source: Forex.com
Sample buy and sell signals on the Advanced Trading Platform. Source: FOREX.com

2. MetaTrader4

MetaTrader4, known to some as MT4, is a trading software developed by MetaQuotes Software. From the start of its foundation back in the year 2000, the company only licenses the software to brokerages, who open it up to their retail and institutional clients. The next generation of the software incorporates automated trading based on signals. The new program has yet to be included through Forex.com. MetaTrader is, perhaps, the most widely used tool to accompany foreign exchange trading professionals around the world.

3. Web Trading

The last option among trading platforms on forex.com is Web Trading. Within the last year, FOREX.com combined its main web-based trading platform with tools powered by Trading View. All charting tools, drawing tools, and indicators are at full capability; along with tradingviews.com signature RSS feed in the bottom right-hand corner. In addition to the unique Trading View features, you can also view your profit and loss statement, open orders, and account summary.

Research offerings

The number of research tools present on other platforms can be overwhelming at times. But, FOREX.com’s multiple platforms allow you to outsource most of the analyzing to third parties like Faraday Research, Autochartist, and Recognia.

Specifically, the Recognia Analysis Portal allows you to see key support and resistance levels while identifying short-term trade idea with pivot points. Overall, FOREX.com offers endless amounts of analytical tools for traders to do it themselves, or at the mercy of third-party intelligence.

Execution scorecard

In part, the timeliness and precision in trade execution are what defines a good brokerage from an average brokerage. FOREX.com claims to be the only brokerage in the U.S that discloses its execution quality to the public. The company has been doing this on a monthly basis since  2011.

The foreign currency exchange executes 99.65% of all trades in less than 1 second and has an average execution time of 1/20th of a second. With 59.14% of limit orders executed at a better price than requested, there are not many people that can talk down on this exchange’s execution.

Pros of Forex.com

The fact that FOREX.com offers its clients several different platforms to choose from is impressive. In today’s dynamic environment, traders seem to favor easy-to-use tools and customizable workspaces. The company has its own flagship platform desktop, mobile, and web platforms, along with MetaTrader and Nina Trader. Their flagship platform, Advanced Trading Platform, is great for its customizable workspace, MetaTrader is great for any algorithmic trading projects, and Web Trading is perfect for anyone in love with tradingview.com.

FOREX.com seems to be unbeatable in terms of trade execution. It is the only brokerage in the United States that advertises their execution scorecard on a regular basis; it’s quite impressive.  

The news is given in real time and FOREX.com features an economic calendar that every trader should follow. The calendar is always up to date and can be used to help identify pivot points.

Tight spreads also make for low fees, which is of the utmost importance. Here’s a sampling of FOREX.com’s spreads, which are all-inclusive. Please note, they do change daily.

 

A sampling of FOREX.com’s typical spreads. Source: FOREX.com

FOREX.com’s UK entity now offers trading in cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Ripple. Note that trading in these products is not available in the US at this time, but US residents can trade Bitcoin futures through FOREX.com’s FuturesOnline affiliate.

Cons of FOREX.com

Having so many choices in choosing a platform can be a negative for a new forex broker. I can foresee an issue where clients yearn for features from several platforms to be combined into one, integrated system. But, if you know what you want ahead of time and do your research, it will be much less overwhelming.

The only other negative aspect about FOREX.com is that the broker does not offer the trading of ETF’s, mutual funds, stocks, or bonds. But, investors can trade futures and options through the FuturesOnline affiliate, but this requires a different platform.Investors who wish to hedge their equity or fixed income portfolio on the same platform may want to look into a different brokerage.

Final thoughts

FOREX.com provides you the ability to trade wherever you are. You can download the app on the App Store or Google Play store and can place trades, view markets, and keep up with all the latest geopolitical crises.

The only thing that would make this app overly phenomenal would be the ability to utilize MetaTrader 5’s technology to schedule automated trades, based on certain indicators, patterns, etc.

Luckily, FOREX.com has been listening to its users. it looks like their platforms will support MetaTrader 5 in the near future.