FOREX.com Review 2023

Who is FOREX.com?

FOREX.com was launched since 2001 and has been providing traders access to the most popular financial markets. It is the #1 FX broker in the US based on client assets (per 2021 monthly Retail Forex Obligation reports published by the CFTC). The platform has over 80 FX pairs and nearly 3000 global stocks and other markets (CFD indices, commodities). FOREX.com does an excellent job providing trading educational resources and an advanced trading platform to leverage profitability of forex traders in the foreign exchange market.

Note: 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

FOREX.com and CityIndex were acquired by StoneX Group Inc. (NASDAQ: SNEX) in 2020 and the latter is a Fortune 100 company with a 100-year track record.

As of September 2022, StoneX Group and its 3600+ employees serve clients in 21 countries across 5 continents and has $8.6B in client assets, with over $4.4T in volume traded

Forex.com Accounts Standard, Commission, STP Pro, Corporate, and MT4 Accounts.

General questions about Forex and FOREX.com

What is a Spread?

Market pricing is typically represented by two distinct quotes – the bid and the ask. The bid represents the selling price, while the ask represents the buying price. The difference between these two prices is referred to as the spread.

How is my spread cost calculated?

The National Futures Association defines a spread cost based on the “mid-point spread cost.” In typical market conditions, this is the difference between the rate at which your order was executed and the mid-point of the bid/offer spread at the time your market order was received. Keep in mind that conditional orders become market orders once they are triggered. Mid-point spread cost typically reflects the cost of your trade outside of any commissions.

During extreme conditions, the time period from when a market order is received as compared to when the order is ultimately executed may increase. This increase in time period can result from many factors including but not limited to: market volatility, available liquidity, pre-trade available margin check, and price validation etc.

The delay in order execution during extreme market conditions may cause wide variations of your spread cost at time of execution measured as the difference between bid/offer vs. the mid-point at time of execution.

For example, these variations may result in a smaller than normal cost figure, or even a positive cost figure, in the case of limit orders filled at a better rate than the rate at which your limit was triggered.

Conversely, these variances may reflect a larger than normal cost if your stop order rate was executed worse than the rate at which it was ultimately triggered. As noted above, these variations can result from many factors, including but not limited to market volatility, available liquidity, pre-trade available margin check, and price validation, etc.

Where can I find my cost per trade?

For WebTrader accounts information about your ‘Cost per trade’ is available directly on the online brokers trading platform under “Trade History”. Cost per trade is comprised of Spread Cost and Commissions. The ‘Spread Cost’ value displayed on the platform, is the “Mid-Point Spread Cost” as defined by NFA.

The MetaTrader 4 platform provides access to your account history through the Account History tab. Additionally, a ‘Cost per Trade Report’ can be found in the Company tab of the MT4 platform.

What is a financing/rollover fee?

Rollovers, also referred to as financing fees, are incurred when you maintain an open position overnight. A daily financing fee is automatically added to your account each day that you keep the position open, including weekends.

Is there a currency conversion charge?

Trading in markets that have a different settlement currency from your account’s base currency can result in currency conversion charges. For instance, if your account base currency is USD and you trade USD/JPY, your profits or losses along with any relevant fees, charges, and commissions will be automatically converted from JPY to USD before being credited to your account.

The standard charge for this conversion is a variance of +/-0.5% from the market rate at the time of conversion. However, this charge will not apply if you only trade products that settle in your account’s base currency, such as EUR/USD in a USD-based account.

Can someone else trade on my account?

FOREX.com’s policies prevent any person other than the account holder from accessing or trading an account unless the trader has been reviewed and approved as a Money Manager.

To obtain additional information about our Money Manager program please contact our Global Institutional Sales Team.

How is FOREX.com Regulated?

FOREX.com is a member of the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). Other regulators of our affiliates include:

• Financial Conduct Authority (FCA) in the UK
• Financial Services Authority (FSA) in Japan
• Investment Industry Regulatory Organization of Canada (IIROC)
• Cayman Islands Monetary Authority (CIMA)
• Australian Services and Investments Commission (ASIC)
• Monetary Authority of Singapore (MAS)
• Cyprus Securities & Exchange Commission (CySEC)

The financial transparency provided by FOREX.com helps assure their customers and partners with confidence that the company is well managed and well capitalized, with ample resources to continue to innovate and lead the industry forward.

Can I Trust FOREX.com?

FOREX.com is considered reasonably  safe because it has a long track record, it is regulated by top-tier financial authorities, and its parent company is listed on a stock exchange.

Disclaimer: CFD trading are complex instruments and come with a high risk of losing money rapidly due to leverage if you choose the City Index. It is targeted towards high volume traders, with effective risk management tools and systems.

What Broker Should I Use To Trade Forex?

Other brokers besides forex.com have some potential positives, but no U.S. broker can compete with FOREX.com.

FOREX.com offers a standard account, STP (Straight Through Processing) accounts, Web trading platform, free investment advice, online brokers, a desktop platform, currency trading, complex instruments, free market analysis, 80 forex markets, free research tools, low minimum deposit ($100), and excellent technical analysis tools.

How do I download FOREX.com’s desktop platform?

Click here to download the advanced FOREX.com desktop application. The MT4, Web trading systems, and mobile trading app are all advanced trading tools with $25 withdrawal fee, no fees for withdrawals greater than $10,000.

How can I learn forex for free?

The School of Pipsology is a free online course that helps beginners learn how to trade forex. If you’ve always wanted to learn to trade but have no idea where to begin, then this course is a good option for you.

Forex Trading

How long does it take to be approved for Forex?

Most applications are processed in in 1-2 days. Forex will reach out if they need more information, or you can call or email for a status check anytime. Forex trading and CFD (Contract for Differences) are both high risk financial activities so make sure you are sufficiently liquid before you embark on trading either financial instrument.

Can You Cancel Forex Trading at Any Time?

Yes, you just have to wait for the the entire portfolio cash settles into cash. If you’re a little more patient you can transfer your account cash by wire for $25 fee, no fees for withdrawals greater than $10,000.

Can I see P&L across multiple account types?

Yes, equities, options, and futures will all be displayed in your Positions Window on Forex Trader intraday and will be combined for your not P&L calculation.

What happens if FOREX.com goes out of business?

If a brokerage fails, another firm may agree to buy the firm’s assets and accounts will be transferred to the new custodian with little interruption and you may not lose anything or take a small haircut.

The SIPC will try to recover the account value held at the time of the failure, and does not make up for losses due to price declines in individual securities.

In order to receive SIPC coverage, account holders that have witnessed a brokerage failure must file a valid claim with the Securities Investor Protect Corporation (SIPC). They will reimburse you up to $500,000 in brokerage securities or $250,000 cash. In order to receive SIPC coverage, account holders that have witnessed a brokerage failure must file a valid claim.

Dividends Offered

Forex Trading does not pay a dividend on its own equity.