Is FOREX.com Legit?

Electronic and mobile trading platforms continue to democratize access to the foreign exchange (forex) market, fueling growth in forex retail trading. If you are ready to join the wave, you may be searching for a forex broker and wondering: Is FOREX.com legit? 

If that’s your first question, your journey into retail trading is off to a good start. The reputation and regulation of a foreign exchange broker are top considerations. Here’s an answer to “Is FOREX.com legit” and more information to help you decide whether the broker is right for you.

Quick Answer: Yes, FOREX.com Is Legit

FOREX.com, headquartered in Bedminster, New Jersey, with an office in Warren, New Jersey, is a legitimate global broker of forex and contracts for difference (CFDs). 

The forex broker has been in business for more than two decades, is heavily regulated in the United States and seven other countries and is wholly owned by StoneX Group Inc. (NASDAQ: SNEX), a New York, New York-headquartered company that provides institutional-grade financial services networking and holds more than $7.8 billion in assets.

Overview of FOREX.com

FOREX.com was founded in 2001 and is part of Gain Capital Group LLC, an early driver of online forex trading. StoneX Group Inc., a 100-year-old Fortune 100 company, acquired Gain Capital in 2020 and considers FOREX.com its flagship online trading platform.

In its March data (which Futures Commission Merchants [FCMs] and Retail Foreign Exchange Dealers [RFEDs] are required to give to the Commodity Futures Trading Commission [CFTC]), Gain Capital reported the highest retail forex obligations – the total of retail forex customer deposits of money, securities and property. 

With Gain Capital holding deposits of more than $226 million, FOREX.com touts itself as the No. 1 forex broker for U.S. traders.

FOREX.com offers access to more than 80 currency pairs and more than 300 products, including CFDs on stocks, commodities, cryptocurrencies and indices, depending on your location.

The broker also gives traders a choice of trading platforms, including its proprietary Web Trader, a mobile trading app and MetaTrader 4 (MT4) and MetaTrader 5 (MT5). FOREX.com is one of just a few brokers that makes MT5 available to U.S. traders. You can also use NinjaTrader or the application programming interface (API) to trade. FOREX.com provides advanced charts from TradingView and performance analytics.

Is FOREX.com Regulated?

As an FCM and RFED, FOREX.com is regulated by the Commodity Futures Trading Commission and the National Futures Association (NFA) in the U.S. Around the globe, FOREX.com regulation includes several top-tier regulators:

• The Financial Conduct Authority (FCA) in the United Kingdom
• The Canadian Investment Regulatory Organization (CIRO)
• The Australian Securities and Investments Commission (ASIC)
• The Cyprus Securities & Exchange Commission (CySEC)
• The Financial Services Agency (FSA) in Japan
• The Cayman Islands Monetary Authority (CIMA)
• The Monetary Authority of Singapore (MAS)

Government regulation can give you comfort that FOREX.com must abide by the laws of the jurisdictions it operates in. To give investors further protection, the broker segregates the money of clients from its own and holds the money in separate accounts. A risk committee from StoneX Group reviews FOREX.com’s counterparty risk monitoring procedures at least quarterly. 

The forex broker also offers retail traders in the U.K. and European Union negative balance protection, which means you can’t lose more than you deposit in an account.

Safety and Security Features

Following the lead of its parent company, FOREX.com hangs its good reputation on adhering to high standards of corporate governance, financial reporting, transparency, safety and security. It maintains and updates procedures for monitoring the security of trading platforms and safeguarding your information and company information.

All accounts are issued unique account numbers, User IDs and passwords. To help safeguard your personal, financial and trading information, a limited number of FOREX.com employees can access the data. 

Information that flows through the FOREX.com website and accounts is encrypted. The website, trading and applications are all authenticated and secured by certificate authority. This allows you to verify that you are connected to the legitimate FOREX.com website.

Who Is FOREX.com Best For?

FOREX.com is among a handful of forex brokers that meet the financial and licensing requirements to operate legally in the U.S. and it is one of the most trusted among traders of all levels. However, the broker is best for beginners.

With all that it offers, FOREX.com provides a lot of support for traders and inspires confidence, cutting a clear profile of a beginner in the United States as the ideal trader for the broker. FOREX.com charges relatively low forex fees, requires a minimum deposit of $100, offers access to 80 currency pairs, provides technical research tools, supplies comprehensive education and maintains a robust regulatory environment.

The MT4 and MT5 trading platforms are two of the most popular among forex traders, so users of those platforms will find trading on FOREX.com to be familiar. The mobile app is user-friendly, welcoming traders on the go as well as new forex traders.

Whether they are just beginning or experienced, U.S. traders are likely to feel comfortable trading forex on FOREX.com.

Customer Reviews & Complaints

Out of 2,003 reviews on Trustpilot, reviewers awarded FOREX.com with 4.7 stars out of 5 with 84% of reviewers giving the forex broker 5 stars. Just 11% of reviewers scored FOREX.com 3 or lower. According to Trustpilot, FOREX.com has responded to 100% of negative reviews, typically within 24 hours.

A scan of several reviews shows that FOREX.com traders have been pleased with the customer service they received, complimenting the knowledge and helpfulness of FOREX.com employees. Traders called, chatted or emailed customer support for help with setting up a server, using the MT4 and MT5 trading platforms or withdrawing money from an account through Coinbase.  

Potential Downsides to Be Aware Of

While FOREX.com ranks among the best online brokers, traders and reviewers warn of potential shortcomings. Traders would like to see the broker include popular asset classes such as real stocks and bonds. Others complain about trading just 600 instruments on MT4 when 5,500 instruments are available on platforms that aren’t MetaTrader.

FOREX.com also charges a monthly inactivity fee (USD$15, €15, AUD$15, £12, JPY1500) after a year of inactivity. Other potential downsides include high spreads on FOREX.com’s standard account, a $7 commission per $100,000 traded on the RAW account and the permanent end of your demo account 90 days after you sign up.

Final Verdict: Is FOREX.com a Good Broker?

Is FOREX.com legit? Now you know that it is. But is it a good broker?

Yes. Traders generally trust FOREX.com. The forex broker has been around for more than 20 years and is highly regulated. It offers financial stability as a wholly owned subsidiary of a Fortune 100 financial services company that has been in business for about 100 years.

FOREX.com also offers a wide range of currencies, a low minimum deposit, popular trading platforms, an easy-to-use mobile app, research tools, educational resources and solid customer support.

Get started in forex trading today by opening a demo account to try FOREX.com without any risk. Just remember that your demo account will close 90 days after you sign up.