In this Broker Review, ForexInfoBook team presents factual information about FOREX.com broker regulations, trading conditions and advantages of trading with them.
FOREX.com is part of is part of GAIN Capital Holdings which through its trading names and subsidiaries are regulated by:
- Australian Services and Investments Commission (ASIC)
- Financial Conduct Authority (FCA) in the UK
- Financial Services Authority (FSA) in Japan
- Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA) in the US
- Investment Industry Regulatory Organization of Canada (IIROC)
GAIN Capital ranked #44 in Fortune magazine’s 100 fastest growing companies in 2015. Click here for further details on Gain Capital.
FOREX.com is registered the Cayman Islands Monetary Authority (CIMA).
Forex.com is one of the few Forex brokers of international repute to be regulated by the very stringent US and Japan agencies enabling them to offer Forex trading to residents from US and Canada.
Clients may also be eligible for the Financial Services Compensation Scheme, which offers cover up to £50,000 in the event a firm becomes insolvent or ceases trading.
Click here to read more about why FCA (UK) regulated brokers is the best choice for Forex traders
Click here to read more about why ASIC (Australia) regulated brokers is a very popular choice for Forex traders
Negative Balance Protection
Retail Clients are covered under negative balance protection. This means that the trader’s account balance will never be allowed to go below zero, regardless of market conditions.
Competitive Spreads and Cash Rebates
Forex.com provides competitive spreads with out charging a commission on the trades. Typical spreads on Forex majors under the no commission account types would be about 2.0 pips. Click here to check Forex.com live spreads.
The DMA account type, where the execution does not have a Non Dealing Desk and the broker is able to offer lower spreads (typical spreads is less than 0.5 pip) and charges a commission of $5 per lot. Forex.com also offers rebates on the commissions charged depending on the volume of trading transactions. Traders can reduce trading cost by almost 15% using the rebates based on their trading volumes. Click here for details on Forex.com cash rebates .
Market Maker and DMA Model
Direct Market Access (DMA) link traders directly to the market where they can place trading orders with liquidity providers. DMA model is used for accounts with lower spreads and traders pay a commissions per trade.
Forex.com acts as a Market Makers for accounts with no commissions. They have a large trader base with high volumes and retail traders will be able to trade successfully without any issues.
Ease of Operations
- Simple account opening process
- AvaTrade offers a welcome bonus of 25% after making their first deposits into their accounts.
- Minimum deposits as low as $ 100
- Wide range of payment options for deposits/withdrawals: credit cards, bank wire transfer and E-payments (i.e. Skrill, Webmoney, Neteller).
- AvaTrade has a dedicated support department operating in almost 50 countries. Contact them via live chat, email and phone.
- AvaTrade has introduced its Islamic trading account, fully in line with Islam rules. Customers with an Islamic trading account will not be charged daily swaps. The swap fees are fully replaced in the MT4 platform by daily administration fees on all Forex trading products.
Limitations to be expected
- Demo accounts are valid for 30 days
- Accounts regulated by by US, UK and other agencies will have lower maximum leverages as per regulations.
- Relatively few Deposit and Withdrawal options available : Bank Transfer, Credit Card and Skrill
- 75-90% of retail investors lose money trading Forex and CFDs with Admiral Markets.
- No Islamic Account
- Due to Governmental (OFAC) restrictions and company policies, residents from the following countries cannot open accounts with Forex.com:
Afghanistan, Angola, Belarus, Burundi, Central African Republic, Chad, Congo Republic, Cote D’Ivoire, Cuba, Democratic Republic of Congo, Equatorial Guinea, Eritrea, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Lebanon, Liberia, Libya, Myanmar, New Zealand, Nigeria, North Korea, Sierra Leone, Somalia, Sudan, Syria, Turkmenistan, Uzbekistan, Western Sahara, Yemen, and Zimbabwe.
Forex.com is an excellent choice for residents of US and Canada.
The broker offers competitive trading conditions on par with other international brokers which is vital for any trader to be profitable.