Read on to find out more about this innovative trading experience!
Forex.com Review 2023: Pros, Cons & Key Features
However, you have likely come across many other trading platforms providing similar services, which may make you conflicted in identifying which platform is the best.
To help you discover if Forex.com is the best platform for you, we have devised a Forex.com review that covers all of the platform's latest features, pros, cons and essential information.
Why Should I Consider Trading?
If you're here to read our Forex.com review, you're likely already considering trading. But, if you have reservations about going through with your trading ideas and need further clarification on why you should consider trading, we are here to offer you this advice and information.
Trading is a great way to generate an extra source of income with little time and effort needed to make a profit. When market trends fluctuate, you can invest depending on value increases and decreases, buying and selling financial instruments according to these movements.
Whilst acting on the above may sound intimidating to beginners, platforms such as Forex.com make it easier for novices to get involved with trading by using a demo account or jumping straight into trading.
You will be provided with educational resources that ensure you have what it takes to make educated trade decisions and learn about trading instruments.
Trading has the most benefits for low-income workers who need a quick and straightforward way of generating extra income. Most online brokers have a minimum deposit fee, which is the most challenging step to getting into trading if you are on a low income.
However, once you have paid your minimum deposit, you can trade forex, CFDs, stocks and shares whenever you want to.
When using trading platforms to pursue your trading needs, you can trade as and when you want to. The freedom attached to trading is great because if there is a period where you are too busy, you can take a break, or when you need some extra income, you can jump straight back in.
So, as long as you educate yourself, understand the risks, and analyse market trends accordingly, there are many reasons that you could consider trading if you want to generate extra income. If you think this sounds like something you'd like to do, it is time to consider which platform to use.
What is Forex.com?
Forex.com is an online broker designed for those who want to trade in CFD and FX markets.
The platform was created back in 2001, giving Forex.com 20 years of experience to back up their claims, ensuring users they are credible, reliable and experienced.
Although the platform started trading in 2001, Forex.com only launched in Europe in 2021 after being acquired by the StoneX group in 2020. StoneX is a NASDAQ-listed company, with admirable assets of $8.6 billion that ensure the provider can deliver top-quality institutional-grade financial services to connect people and companies to the global markets.
For Forex.com, joining forces with a financial service with the power of StoneX has increased resources and relations to improve the platform's innovative approach, enhancing users' experience with using the platform to open a trading account.
As it stands in 2023, Forex.com has over 1 million traders using the platform, further offering insight into why this online broker is building a more solid reputation globally. You can access thousands of markets when using Forex.com, whether you choose to use the app or the desktop trading platform version.
Regarding customer funds, Forex.com is considered the top FX broker in the United States, validated as of 2020 by CFTC Retail Forex Obligation. Although this may not affect the region you are based in, it further adds to the platform's appeal, indicating why many traders are choosing Forex.com over other brokers.
Who Should Use Forex.com?
An excellent element of Forex.com's platform is that it is suitable for a range of users. Whether you have been trading forex for years or have only just learnt about trading CFDs, Forex.com will have an account type and trading solution that suits your needs.
Overall, we recommend high volume traders using Forex.com due to the features provided. However, beginners and those starting out can use the platform's educational resources to get started in trading.
How Does Forex.com Work?
Forex.com operates as a web trading platform with everything users need to build trading opportunities successfully. You can trade with a single click, directly from Trading Charts, for a simple and efficient solution that is beginner-friendly.
With 80 technical indicators, 50 drawing tools and 14 time intervals, traders who enjoy technical analysis can get a lot out of the platform with data to back up their decisions.
The platform is designed to allow traders to trade how they want to and prefer, with various workspaces and watchlists that enable you to see your favourite markets quicker than ever. Additionally, performance analytics help you to look into past trades, offering a better understanding of how your trades have performed.
Overall, the platform works to leverage the traditional trading experience, with masses of knowledge packed into one powerful interface with various account types to ensure users can find the best trading portfolio that works for them.
Forex.com Key Features
With Forex.com claiming to be an advanced trading platform, we can assume that the broker has an exciting range of features for traders to get involved in using.
Assessing these features before creating an account is essential to ensure you know which trading strategies and features will become available to you when being a registered forex broker on Forex.com review.
Let's take a look at the platform's notable features and how they will elevate your trading experience;
Range of Markets
Forex.com offers users access to various financial markets through its innovative trading platform. To give you a better understanding of each market, let's take a look into each of them;
- Forex Trading – Forex trading sees traders act on speculations of price movements. These movements can increase or decrease, and traders have extensive opportunities on a 24-hour scale. Forex.com offer valuable trading tools such as a currency converter and a margin calculator to ensure users can estimate spreads more effectively.
- Gold and Silver – Traders can benefit from deep liquidity and tight pricing in Forex.com's spot metals markets. Additionally, viewing TradingView advanced charts provides analytical data and insights into this market, ensuring users can trade with the necessary knowledge to succeed.
- Futures – Futures and stocks allow users to diversify forex trading options with manageable pricing, values and expirations. The vision of futures and small exchanges is to simplify the world of trading for users, ensuring that Forex.com is beginner friendly and easy to use for those new to trading.
Range of Accounts
To ensure that Forex.com is a versatile platform that is accessible to a range of users, the broker must have a variety of account types available. These accounts will reflect each user's different experience levels and needs to ensure the platform delivers on what is necessary. Let's take a look at each account type;
- Standard Account – The standard account type is best for traders searching for traditional FX trading strategies and experiences, with the platform offering spreads with no hidden costs. With these account types, traders can enjoy using the Forex.com website with advanced charting tools and commission-free FX, indices and commodity markets.
- MT4 Account – Forex.com provides users access to the world's most popular trading platforms and tools with the MT4 account. With this account type, users can access competitive spreads with no commission and integrated Reuters for an elevated trading experience.
- DMA Account – For more experienced traders, Forex.com provides the DMA account. This account type is designed for high volume traders and offers direct pricing from top-tier liquidity providers. However, this type of account cannot access the active trader program.
- Corporate Account – As the account name suggests, this profile is made for businesses that are looking for global market access. With a corporate account, companies can authorise multiple traders to use one account.
Financial Market Insights
Those using Forex.com must have the necessary information they need to trade, as this will help to ensure fewer accounts lose money due to having a better level of knowledge and awareness surrounding the climates of financial markets.
The platform has an entire section dedicated to the latest global financial market news and insights, offering users masses of information to make better decisions.
Within the Forex.com platform, there is an entire academy section that includes courses, learning resources and other tools to help traders learn more about their industry. The categories of educational resources are separated into three sections; beginner, intermediate and advanced.
Having different categories ensures all traders can continue to learn and grow their skillset, again helping to lower the risks of losing money and making risky trades.
Advanced Trading Charts
Technical analysis is a considerable part of trading, and Forex.com have ensured that the platform reflects this element through clear, consistent and easy-to-use trading charts. Users can view this analytical and chart information on either the website or app trading platforms, ensuring the process of finding analytical information is quick and stress-free.
You can make new trades from directly within the charts, with over 8o technical indicators to help you with your decision. The trading charts aim to help you identify market trends more efficiently, with trading patterns and intervals indicating which trades would be best.
Additionally, the trading chart feature is fully customisable, allowing you to save your chart as a template, edit indicators and use drawing tools to highlight specific information that aligns with your trading style.
The SMART signal feature of Forex.com analyses dozens of major global markets based on years of historic market data. This data provides traders with indications of how well different signals performed the previous ten times they were triggered to get transparency into their previous performance.
The engine's algorithm provides access to insights across 36 global markets across thousands of price data points, ensuring that traders can make better short-term trading decisions. Recurring price patterns are provided, indicating signals for traders to invest, which can be done via the app or web trading platform.
Forex.com recognises that for traders to make the best decisions, they need access to all the necessary information. Therefore, the platform provides an economic calendar that offers insight into pivotal economic events that will impact financial markets, such as elections, company earnings reports and unemployment figures.
Pros and Cons of Using Forex.com
Now that we have assessed the primary features that the platform offers traders, it is time to consider one of the essential parts of our Forex.com review; the pros and cons.
Identifying the positives and negatives of opening a trading account with Forex.com will ensure you know if the platform suits you and will meet your needs.
Below, we will take you through all the benefits and disadvantages you can expect to encounter;
Pros of Using Forex.com
First, let's take a look at the benefits of using Forex.com and how these points will elevate your trading experience.
✔️ Technical Analysis and Research Tools – With charting tools and trading tips provided by Forex.com, forex traders and investors stand a better chance of making educated trading decisions that have positive results. Another significant element of these research tools is that they are interactive and allow traders to complete trades within charts.
✔️ FCA and CFTC Regulations – Forex.com is regulated by the Financial Conduct Authority and US Commodity Futures Trading Commission (CFTC), helping the platform become more trusted and dependable to its users. Another layer to Forex.com's reliability is that users have asset protection of up to £85,000 provided by the Financial Services Compensation Scheme (FSCS).
✔️ Account Protection for EU & UK Users – Negative balance protection is offered to all EU & UK traders using Forex.com, protecting against market gap risks and implementing stop loss orders.
✔️ Rebates for High Volume Traders – Forex.com's DMA account ensures that high volume traders have great options that reflect their experience and needs. This helps the platform stand out, as many trading platforms focus on simple features that are beginner friendly and easy to use.
✔️ Direct Market Access – Account types with direct market access allow users faster-trading execution and Forex market transparency. This fast and snappy approach is favoured by those wishing to make commissions.
✔️ Customer Service – Trading platforms and providers must deliver ways their users can get in touch when they need support. Forex.com has multiple forms of contact, including live chat, phone and support from 10 am – 5 pm through Sunday to Monday. While clients can use FAQ and support sections to find general information, it is best to contact them via phone for more specific and urgent needs.
Cons of Using Forex.com
When there are pros, there are also bound to be cons to using Forex.com. Let's consider the negative elements to ensure our review is unbiased and offers a well-rounded view of the platform;
❌️ Limited Portfolio Choice – When using Forex.com, traders are limited to predominantly forex and CFD trading. Whilst these are the most popular types, and the account offerings are suitable for buying and selling currency pairs, some traders may wish to expand further, which may be difficult when using Forex.com.
❌️ Desktop Platform Inaccuracies – Forex.com is a modern trading provider with both an app and a desktop platform. Whilst both platforms are intuitive and innovative with many features, there are some inaccuracies and outdated information that professional traders would pick up on immediately. As an online web trader, it is essential to have an updated website with accurate information.
❌️ U.S. Clients Miss Out on Protection – Negative balance protection and stop loss orders aren't available for U.S. clients, meaning that traders based in America are much more at risk of having issues regarding trading.
When you use any platform, it is essential to ensure you know the costs involved in your account and how much you will need to put into your trading to get something out of it. At Forex.com, the platform sources institutional rollover rates and passes them to you at a competitive price.
Therefore, if you are a short-term trader, you have the freedom to trade the amount you want without paying rollover interest rates. The only exception to this rule is ensuring that you have no open trades at 11 pm European time, as this is the end of one 24-hour trading day and the start of the next in the global forex market.
The way that Forex.com prices itself benefit traders by having great competitive rollover rates without paying on intraday trades. Additionally, the transparency of their rollover rates is readily available and posted within the trading platform daily via the Market 360′ feature.
Forex.com have a minimum initial deposit of at least £100 (or whichever currency you use). However, they recommend a deposit of £2,500 so that traders implement their own level of risk management, which leads to better flexibility in their trading.
Of course, Forex.com offers more than just spread betting.
Therefore, different pricing strategies are devised for direct market access. In this instance, traders are charged a standard commission fee based on trading volume.
The deeper the trade, the bigger the discount you will receive next month. For example, at a monthly volume of up to $100M, you receive a commission of $60 per million dollars traded.
Another critical element of Forex.com's pricing is that there are inactivity fees of $15 per month if a user doesn't conduct any trading in the period of 12 months.
How to Start Trading with Forex.com
Forex.com ensures that the platform is easy to use, with users only needing to set aside a few minutes to open an account and get started. The first task you need to do is select which account you would like to open (standard, MetaTrader 4 or DMA).
Once you've chosen your account type, all you need to do is fill in your personal details to open your account.
Aside from your personal details, you must provide an ID, such as a passport, to verify your identity. Then, you are ready to get using your account and start trading!
What are The Risks Involved with Forex.com?
You shouldn't go into trading without spending extensive consideration, as you are putting your finances on the line and entering risky areas. Whilst Forex.com is a highly dependable platform that offers users excellent security, 72% of retail investor accounts lose money when trading.
Forex.com provides the above figure to be transparent with users and ensure that anyone considering trading knows the risks involved. You should only start trading if you can afford the possibility of losing money from your bank account, and there is no surprise that the above figure is enough to put many people off the notion entirely.
To better gauge the trading industry and the types of brokers you could use, it is crucial to consider the variety of platforms available.
Whilst Forex.com is a clear frontrunner in the industry, other brokers provide users with similar services. Therefore, it is helpful to note these types of trading platforms and see which aligns best with your needs.
Let's take a look.
FXCM is another broker that enables users to start trading CFDs and Forex. Similarly to Forex.com, FXCM provides quick setups at a low price, ensuring beginners and traders of all levels can get started on the platform efficiently.
Additionally, FXCM is FCA regulated and UK-based, which is similar to Forex.com.
Whilst both platforms are dependable due to their regulations, FCXM has a 71% investor account money loss rate. This is only 1% less than Forex.com's percentage loss, showing that they have similar success rates in this regard.
FXCM's platform is easy to use but not quite as clear and innovative as Forex.com. We can assume this is because Forex.com has better financial backing for its assets due to being a part of the StoneX group, giving it an extra edge over competitors such as FXCM.
IG (review) is regarded as the UK's number 1 trading provider, offering 18,000 markets to pursue CFD trading and spread betting. The investor account money loss rate is higher than the other competitors on our list, coming in at 76%.
However, the higher percentage could also reflect the number of users on the platform, with IG being regarded as the top provider in the UK.
With innovative web and mobile platforms, IG is creative and easy to use, similarly to Forex.com.
The platform's educational resources are some of the best we have seen, even offering traders the chance to speak to other, more experienced traders for the ultimate supportive environment that establishes industry connections and considerations.
Disclaimer: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
With over 300,00 global customers, CMC Markets is a considerable competitor to Forex.com. In 2022, the platform won several awards that indicate its success and reflect the brand's growth, which is expected to continue.
CMC Markets is UK-Based and offers tight spreads on over 12,000 instruments. Additionally, there are no hidden fees, ensuring users are happy with the platform whilst having access to different trading types such as CFDs, spread betting and Forex.
CMC has the same money loss percentage as IG at 76%, making it slightly worse than Forex.com.
Forex.com is an excellent option for anyone that wants to start trading and offers an easy route into the industry. Since the platform is now part of the StoneX group, Forex.com will continue to grow and evolve with more innovative features included.
Currently, both the app and desktop versions of the platform are modern and easy to use, but there are always ways to improve and make user experiences even better, which we are sure will continue to happen with StoneX's support.
When assessing competitors, it is clear that traders can use other financial brokers that offer similar features and services. However, Forex.com has one of the best reputations and has over twenty years of experience, which gives the platform an extra edge.
There aren't many cons to using Forex.com that wouldn't come with any trading platform. For example, there will always be high risks involved with trading, as that is the nature of this industry.
Luckily, Forex.com provides users with information regarding these risks, ensuring everyone who uses the platform is aware that there is a high likelihood that they will run into losses at some point in their investment journey.
However, these risks become less common due to the features Forex.com implements throughout the platform. Having educational resources and tools that provide traders of all knowledge and experience levels with information ensures that Forex.com's users can make better decisions that reflect trading markets more accurately.
As well as being quick and easy for beginners to start using, Forex.com ensures the platform is accessible through the mobile trading app.
The minimum deposit is also an affordable step, but again, users should put more than the minimum deposit amount to give themselves a level of protection from losses.
Overall, Forex.com is one of the best options you could choose to start trading. As always, we recommend assessing competitors and using the demo account options before investing in an actual account to guarantee you find the best option suited to your own needs.
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