Gain Capital PLC a FTSE 250 and NYSE listed company, has been around since 1983, but the launch of their new brand Forex.com has brought to the table an excellent mix of Direct Market Access (ECN) & Instant Execution.
Platforms include MetaTrader 4 & Virtual Private Server (VPS) hosting and, in addition, their own innovative advanced trader suite of tools.
Add to this, clear and transparent pricing + tight spreads and low share trading commissions, and you have the best U.K. based Forex & CFD broker.
|Forex.com Review Summary||Pro’s||Con’s|
|Trust Pilot Rating (% Avg or Better) 92%||★ Instant Execution, STP & ECN||✘ No ETF’s or Bonds|
|Trustpilot Stars ★★★★||★ Good Platforms MT4 + VPS|
|FPA Rating ★★||★ Integrated Alerts, Signals, Strategies|
|Visit Forex.com UK||★ Large Established Broker|
Forex.com Review Summary
Forex.com is a well-established market-leading CFD broker with a good reputation, which is essential in this industry. They have a good selection of tradeable instruments, including Shares, Indices, and a vast selection of Fx pairs and Cryptocurrencies. The system and platform are designed for simplicity and ease of use from the highly-rated WebTrader software to the tight spreads. If you are looking for direct ECN market access or the MetaTrader suite, then you may they may be your broker.
Forex.com Rating & Reputation
Trusting the broker you are using is critical. You need to be sure that the broker is reputable, efficiently run, and well regulated. To be able to assess the quality of a broker, we have chosen to use two sources of ratings, because some brokers may be unfairly discriminated against on one rating website, and have great reviews on another website. We have chosen what we believe to be the best for sources for impartial customer ratings. Firstly we use Trustpilot; it is a well established independent website where customers can rate brokers. Secondly, we use ForexPeaceArmy (FPA), which is a very well run community-driven rating site focused on fairness. One of the issues with review sites is that sometimes unhappy customers form the majority of reviews as they are an outlet for complaints, the happy customers feel no need to review the service as they are content.
Forex.com UK is a relatively new offering, so there is not a large body of reviews on Trustpilot. Alternatively, on the ForexPeaceArmy (FPA) website, the reviews are mixed with delighted customers, and some not so happy. The overall FPA rating is two stars. Taking this into consideration, we assume Forex.com is a reputable broker. My interactions with the company have always been first class. Always do your own research before deciding.
Forex.com Instruments & Leverage
|All Platforms||FOREX.com Platform||Metatrader Platform|
|Accounts||Retail||Pro Account||Pro Account|
|Major Indices (15)||20:1||400:1||2000:1|
Table 1: Instruments & Leverage Per Account – Forex.com
Forex.com offer market maker (dealing desk) services but also provide straight-through processing (STP) and electronic communications network (ECN) order execution. I would recommend selecting the STP or ECN options as they remove any doubt of conflict of interest, which is the biggest complaint that most dealer desk brokers receive.
I spoke with representatives of Forex.com to get clarity on this and to confirm which type of trading is allowed. The sign of a poor broker is they do not enable High-Frequency Trading, Arbitrage, or Scalping. Forex.com do allow these types of trades, which essentially means they are not trading against you in the ECN or STP models.
Forex.com UK offers a vast selection of 80+ foreign exchange (Forex or Fx) Pairs for Trading. All the common pairs such as EUR/USD as EUR/GBP are covered, plus a host of exotic pairs. Leverage is available up to 30:1, but of course, the leverage available to you depends, as with all brokers, on your account balance and experience. Leverage of 30:1 is for retail customers, and if you qualify as a professional investor, your maximum leverage can increase to 1:400. Of all the brokers we have reviewed, this is the largest selection of Fx pairs and the highest professional account leverage.
Trading Crypto is hot right now, and Forex.com UK currently offers eight different Cryptocurrency trades. You can trade Bitcoin, Ethereum, Litecoin & Ripple against the Dollar, Pound, or AUD. Crypto leverage is typically 1:2 for retail accounts; good brokers in this space tend to keep the leverage low to be able to service the trades in the volatile environment that is cryptocurrency. For professional accounts, this rises to 1:20.
Share & Indices Trading
With a portfolio of over 200+ tradeable shares of the largest U.S. & U.K. stocks, Forex.com UK offers a reasonable selection, higher than the typical broker offering of around 100 shares CFD’s. In terms of Indices, all the major benchmarks are covered. As with many of the other Forex brokers, there are no Options or Bond trading opportunities.
Commodities & Metals
For those interested in commodities, there are 9 to choose from, such as Oil, Gas, Palladium, Soybean, Cotton, and Platinum. Livestock is not covered.
Forex.com Trading Platform
Forex.com aims to keep it straight forward when it comes to tools. You can trade from your tablet, smartphone, and P.C. / Mac, and your watchlists and setups are available on all devices. There are no costs associated with using the platforms and no complicated installation for the Web Trader platform or mobile apps. The beauty of this platform is that it is straightforward to use and intuitive, whether you are using your phone or have the WebTrader program installed on your P.C. The App has a 3-star rating on the Play store and in the Apple store, so mobile trading might not be the smoothest experience so far, but I am sure they are working on it.
Forex.com Advanced Trading Platform Video
As a frequent Forex Trader, the quality and range of the software available are essential. There is no point in having low trading costs and great margin interest rates if you cannot trade due to shoddy software. If you have a preference for the industry’s most established Forex trading packages like MetaTrader, then the choice will be clear.
Forex.com has a broad selection of high-quality platforms available. The industry-leading Forex Trading Software is MetaTrader, and Forex.com offer MetaTrader 4. Add to that the ability to plug in and use NinjaTrader, which has a massive and passionate user base who collaborate and contribute lots of systems and expert advisors.
Also, for Web Trading Forex.com are utilizing TradingView. TradingView won our Best Stock Market Analysis Software Review, so you know you are getting a high-quality web trading system.
Forex.com Background & Regulators
Forex.com is owned by Gain Capital Holdings, who is a registered corporation and floated on the NYSE Ticker: GCAP. They have been in operation for 17 years and have full FINRA membership and the SIPC Investor Protection, in the U.K. they are regulated by the Financial Conduct Authority (FCA). You can rest assured that the company accounts are public and transparent.
Account Funding & Investor Protection
Opening a demo account is free, but to start trading, you will need a minimum balance of $50. Minimum balances seem to be relevant to some people, but from my perspective, if you cannot afford $500, you probably should not be attempting to trade CFD’s.
Finally, as per regulatory requirements, Forex.com operates segregated accounts, meaning that your cash account is segregated from the accessible funds available to Forex.com, simply meaning, they cannot use your funds to trade their own account. Also, there is a Financial Services Compensation Scheme (FSCS) insolvency compensation of up to 50,000 GBP in accordance with regulations.
Customer Support & Satisfaction
At 3 am in the morning, you are trading USD/EUR, and suddenly your trading software freezes or your data feed stops. This is when a fast, 24/7 support team is vital. So, what support is on offer, from Forex.com, both technical support and client support for account setup and funding/withdrawal requests). Also important for those new to the markets and even experienced traders, is original market insights and analysis. So does this broker provide innovative research and insight? Lastly, for the less experienced trader, some free Forex education on offer would be a bonus.
Most Brokers do not have significant educational programs. To trade Forex well, you need to have a profound understanding of Technical Analysis. Technical Analysis is the analysis of supply and demand and the movement of price, usually through chart analysis.
You do have a number of options for learning Technical Analysis here at LiberatedStockTrader.com. You can self-learn through books or through a full video-driven training course. Take a look at the best selection of Professional Technical Analysis Books. Or a complete Professional Grade Training Course – all the Technical Analysis lessons in our PRO course are equally applicable to the Forex Markets.
Forex.com is the largest Forex Broker in the U.S. & U.K. and having a business that is entirely focused on foreign exchange trading, enables Forex.com to provide excellent resources in this area. Forex.com is owned by Gain Capital, a global powerhouse in CFD & Forex Trading.
The benefit here is that Forex.com clients will receive a wealth of market insights, market analysis, and market outlook communications throughout the day. The in-house team of analysts at Gain Capital provides all the market insight you will need.
In terms of customer support, Forex.com offers a 24/7 Coverage, both over the phone, chat, and email. It is surprising that not all Forex brokers offer this level of service.
Review Summary Forex.com
Forex.com is a well-established market-leading CFD broker with a good reputation, which is vital in this industry. They have a good selection of tradeable instruments, including Shares, Indices, and a vast selection of Fx pairs and Cryptocurrencies. The system and platform are designed for simplicity and ease of use from the highly-rated WebTrader software to the tight spreads. If you are looking for direct ECN market access or the MetaTrader suite, then you may they may be your broker.
Forex.com UK: Full Service Comparison Data Sheet
CFD Risk Notice ESMA & FCA Risk Warning - "CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% of retail investor accounts may lose money when trading CFDs with any provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Capital at risk"We thoroughly background check the brokers we recommend and only list reputable trustworthy companies. Read our tips to perform your own background checks, and test a broker after you sign up. You can perform your own check easilly. LiberatedStockTrader.com accepts no responsibility for your experience with any broker.
Frequently Asked Questions About CFD Brokers
How do I find a trustworthy CFD Broker?
There are thousands of brokers offering Contracts for Difference Brokerage Services. CFD’s differ from buying or selling regular stocks or foreign exchange because you do not actually own the underlying stock or currency. Instead, you own a contract for that instrument, which should closely represent the underlying asset’s value. We recommend you check ratings on Trustpilot; it is a well established independent website where customers can rate brokers. Secondly, you can use ForexPeaceArmy (FPA), which is a very well run community-driven rating site focused on fairness.
Why are CFD’s not available in the USA?
CFD’s are not allowed in the U.S.A., Canada, and India, due to the fact they do not represent trading or exchange of the actual asset. They are forbidden under the Securities and Exchange Commission regulations. CFD trading is huge in Europe and Asia, where it is entirely legal and regulated.
Why do people complain about not being able to get their funds back from CFD Brokers?
One of the issues with review sites is that sometimes unhappy customers form the majority of reviews as the websites are an outlet for complaints, the happy customers feel no need to review the service as they are content.
Due to money laundering legislation and anti-terrorism laws, all financial institutions are not allowed to return money to a bank account that did not send the money in the first place. This means you cannot fund your account from bank A and expect your funds to be returned to bank B. Many traders do not realize this, and when the brokers need to investigate the potentially fraudulent request, the delays make the customers angry, this is typically not the fault of the reputable broker. That is not to say all brokers are reputable.
What kinds of Fraud Activities are in the CFD Industry?
Many brokers act as market makers for their clients, meaning they provide the liquidity upon which you trade. An unscrupulous broker might manipulate the market prices to benefit themselves. Tactics like not executing trades or executing trades at different prices to the ones on the quote screen, for example. This is why reputation is everything in this industry.