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Forex.com review

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Enjoy competitive spreads and a low mark-up on a number of currency pairs with this trusted online forex trading platform from GAIN Capital..

warning iconImportant: This broker offers CFDs which are a leveraged product. Using leverage involves greater risk than using cash resources only and your responsibility to repay the borrowed money (and any interest) remains the same even if the value of the underlying asset declines.

Details

Available MarketsForex
Metals
Commodities
Indices
Shares
CommissionMinimum US$25
Minimum Opening DepositUS$100
PlatformsForex.com Desktop, Forex.com Web Trading, Forex.com Mobile Trading, MetaTrader 4

CFDs are leveraged products which involves greater risk than using cash resources only. You could lose all or more of your initial investment. Trade 80+ currency pairs and 220+ CFDs in equities, commodities and indices on Forex.com.

Forex.com‘s parent company, GAIN Capital is best known for its globally-recognized retail trading brands, Forex.com and MetaTrader. This review will focus on standard and premium accounts offered through Forex.com.

30-second take

  • Think about this online forex trading platform if you’re a seasoned trader and you want direct control of your portfolio.
  • Choose something else if you’re not very tech-savvy or you want more guidance on how to make trades.
  • You’ll be charged a mark-up on the spread of each trade for standard accounts and a commission for trades (with no mark-up) for high-volume accounts.

What types of accounts does Forex.com offer?

Forex.com lets you make self-directed forex trades through its proprietary trading platform. There are two main types of accounts you can sign up for with this platform, depending on the volume of trades you want to make.

  • Standard account. Forex.com Canada lets investors buy and sell currencies quickly and easily, with no commissions. That said, you’ll need to pay a mark-up on any currency spread you buy or sell. This type of account typically requires a minimum balance of US$100 to start trading.
  • Direct Market Access account. Direct Market Access accounts are for serious traders that need liquidity in their trades and the control to take advantage of rapid fluctuations in exchange rates. This type of account doesn’t charge a mark-up on the foreign exchange spread, but you’ll need to pay a commission for making trades.

What investments does Forex.com offer?

Forex.com offers a number of different trading options, depending on what you’re interested in. The main purpose of the platform is to do forex trading, though other investments are available.

  • Foreign exchange. Take advantage of fluctuations in global exchange rates and make money on the spread.
  • Metals. Buy into gold, silver, copper, platinum and palladium markets.
  • Commodities. Anticipate price movements for consumer goods like coffee, cacao and mined products like gold or oil.
  • Shares. Access to over 200 of the world’s largest companies.
  • Indices. Speculate on price changes in stock indices (which are baskets of individual company shares).

Who is Forex.com best for?

Forex.com‘s software is best for seasoned investors that want to trade primarily in foreign exchange and currency pairs. It’s best suited for regular traders who want to save money on commissions (or would prefer to pay no mark-up on the foreign exchange spread for Direct Market Access accounts). Platforms include Forex.com Desktop, Forex.com Web Trading, Forex.com Mobile Trading, MetaTrader 4.

Its trading platform is an ideal fit for investors who are relatively tech-savvy, since all trades are carried out online with little guidance. The benefit of this is that the user experience is data-driven, which means you can make use of a number of visual tools like graphs and charts to project your trades.

How easy is Forex.com to use?

Forex.com Canada offers proprietary software that’s easy to use once you get used to making trades and interpreting analytical data. You can sign up for a standard or Direct Market Access account in a matter of minutes with Forex.com. All you need to do is upload a handful of personal documents and load money into your wallet.

That said, you’ll only want to give this trading platform a try as a beginner if you’re willing to dedicate a significant amount of time and effort to learning how to use the software. You can get started by downloading a Forex.com demo account to learn how to simulate trades without having to actually move your funds around.

What research does Forex.com provide?

Forex.com offers a number of research options through its online trading platform.

  • Forex trade news. Get the latest on trade markets, economic trends, breaking financial news and expert commentary.
  • Market analysis. Make more-informed decisions about when to buy and sell your investments with real-time market data.
  • Charting tools. Access a number of advanced charting tools with over 80 technical indicators to help accurately project your trades.

Pricing and fees

Forex.com has different price structures for the two types of accounts it offers through the Forex.com software.

  • Standard accounts. You’ll get competitive spreads on currency pairs and you won’t have to pay any commission on your trades. Pricing is fairly transparent since you can access average and up-to-the-minute spreads on the company website.
  • Direct Market Access account. Direct Market Access accounts don’t charge a spread for trades, but you will have to pay a commission. That said, the commission is small compared to the amount of money being traded. This commission may go down with volume-based fee reductions as well.

Is Forex.com safe?

Forex.com Canada is as safe to use as any other online forex trading platform. The company is a licensed dealer and a member of the Investment Industry Regulatory Organization of Canada (IIROC). It’s also a member of the Canadian Investor Protection Fund (CIPF), which is a not-for-profit insurance program.

How does Forex.com keep my money safe?

Forex.com protects your investments using a number of different security features on all of its software and mobile applications. It’s also a publicly traded company which makes it a low-risk provider for forex and CFD trading.

As for data protection, Forex.com has a rigorous privacy policy and follows very prescriptive data-management protocols. This means that you don’t need to worry about your personal information or investment history falling into the wrong hands.

Customer reviews and complaints

Forex.com offers a long-established trading platform that’s well-known for offering reasonable fees and a user-friendly service. Its software gets decent reviews from several independent forex review sites and customers.

Positive reviews acknowledge that Forex.com is an easy-to-use platform with a low mark-up on foreign exchange spreads. Many customers also enjoy the customizable interface and the educational tools that are built into this software.

However, some customers complain about technical glitches in the software and the lack of negative balance protection. Others indicate that they’ve run into problems trying to close out their accounts and get their money back.

Pros and cons

Pros

  • Easy application. It’s easy to open an account in a matter of minutes using the Forex.com online application.
  • Functional software. This trading platform offers a seamless user experience on both the desktop interface and mobile app.
  • Low forex fees. You’ll pay a low mark-up on the foreign exchange spread for most currency pairs.
  • Many currency pairs. The platform lets you trade in over 80 currency pairs.
  • Diverse technical tools. There are a number of research tools built into the software to help you understand the market, predict trends and chart out your trades.
  • Demo account available. You can sign up for a 30-day demo account to try your hand at making forex trades without actually putting any of your money on the line.

Cons

  • Potential for financial losses. You risk losing money on your trades, especially if your risk appetite is high.
  • Powered by technology. You’ll need to be relatively tech-savvy to navigate the online trading platform.
  • Difficult to understand. It can be difficult for beginners to navigate the risks involved with trading on this type of platform.
  • No negative balance protection. You won’t be protected from falling into the red, though you may be notified if your balance dips too low.
  • Lack of IT support. Some customers complain that it’s difficult to get technical advice when there are glitches in the online trading platform.

How do I sign up?

If you think you meet all the eligibility criteria and you’re ready to start investing with Forex.com Canada, you just need to follow the steps below:

  1. Use the online application to provide personal information like your name, email address, proof of ID and relevant documents.
  2. Review and submit your application.
  3. Get verified and load funds into your Forex.com account to start trading.
  4. Set up a Forex.com demo account if you want to get used to the software before you dive into the deep end.

How do I contact Forex.com support?

You can contact Forex.com Canada and GAIN capital by calling its customer service line at 877-367-3946 or by filling out an online form on its contact page. The company doesn’t list a dedicated email address to deal with customer complaints. It also has no physical locations in Canada, so you won’t be able to visit in person.

Bottom line

Forex.com, whose parent, GAIN Capital markets a number of proprietary forex trading platforms that are designed for seasoned traders. Its most popular platform, Forex.com, lets you buy and sell currencies quickly and easily for no commission and a low mark-up on foreign exchange spreads. Learn more about how this platform works and sign up for your free account today to start investing.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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