Use This Forex.com Review To Improve Your Trading Advantage
Forex.com is a global Forex broker that has its representative brokerages situated in the US, the UK, Canada, Hong Kong, Japan, and Australia. Forex.com covers some of the major financial markets in the world, thereby providing it the much-needed exposure to both retail as well as institutional traders from these important geographic locations. While most Forex brokers are content with setting up a brokerage under a lesser-known regulatory agency in pursuit of profits, Forex.com has committed itself to the welfare of its clients by being regulated by no less than eight different top-quality regulators from around the world.
Suggested Forex Brokers
- Website: www.forex.com/uk/
- Support: +44 (0) 20 7429 7900
- Park House
- 16 Finsbury Circus
- London, EC2M 7EB
Forex.com regulation is carried out by the CFTC (US), the NFA (US), the SEC (US), the FCA (UK), the FSA (Japan), the SFC (Hong Kong), the IIROC (Canada), and the ASIC (Australia). The different branches in these various jurisdictions are maintained as independent financial entities that are designed to adhere to the regulatory guidelines imposed by the respective regulatory agencies. In fact, Forex.com is one of the very few leading Forex brokers that can be trusted for their reputation and reliability, which primarily provides a safe trading environment for investors without the risk of broker scams or financial irregularities.
Safety Of Funds At Forex.com
Forex.com is a NYSE listed company, which makes it a part of an elite group of Forex brokers that are publicly traded in some of the top stock exchanges in the world. Naturally, all publicly traded companies in the NYSE are monitored by the SEC for compliance with the financial guidelines for ensuring a fair and transparent marketplace. Forex.com has a large market capitalization and maintains close to $1 billion in consumer equity. According to recent audits done by the numerous regulatory agencies as part of the annual auditing process, Forex.com is reported to hold more than $1.5 billion in assets, with at least $180 million being held in cash as liquidity to satisfy the minimum regulatory requirements. All client funds are kept in segregated accounts and are held in top tier banks with excellent protection against financial meltdowns. Forex.com is also required to provide a compulsory report of all financial transactions to the respective regulatory authorities to make sure that the broker does not indulge in any financial malpractices. Hence, as far as financial stability is concerned, Forex.com is certainly at the top of the ladder by offering excellent security and safety of client funds.
How To Trade On A Forex.com Account
Forex.com offers numerous options for traders situated in different parts of the world. For example, US traders are provided an account that has a minimum deposit requirement of $250 with a maximum Forex.com leverage of 1:50, as per the CFTC rules on FX trading. CFTC also specifies several other trading restrictions such as no hedging and FIFO rules that essentially throws out several strategies that are currently available in the retail FX trading market. UK traders, on the other hand, can start trading with as little as $50 with a maximum leverage of 1:200, without any of the restrictions mentioned above. Therefore, the broker does provide different trading conditions according to the regulatory requirements of a particular geographic location, which essentially allows the broker to scale its services according to its market presence. The average Forex.com spreads start from 2 pips on major currency pairs, and being a market maker broker; Forex.com does tend to have higher spreads than ECN brokerages. A market maker broker matches orders internally or may choose to soak them up according to their liquidity. Sometimes, market makers do have a conflict of interest with their traders, but the various regulatory guidelines imposed by the FCA and the CFTC do help in preventing brokers from taking the opposite side of a trader’s position. Nevertheless, traders are expected to shell out more regarding spreads per trade, which have the mysterious nature of increasing significantly during times of high volatility. It is indeed strange that Forex.com hasn’t done anything to reduce the spreads, or even committed itself to providing an ECN account as the standard account for traders that are looking for more flexibility and direct market access. There is a VIP account option available for larger traders, which start at a minimum of $25,000 as the initial deposit. The higher deposit requirements can in no way guarantee better trading conditions, apart from access to a personal account manager and some more benefits regarding trading tools and resources. Nevertheless, smaller traders may find some advantages with a regular account, especially due to the excellent security of funds provided by the Forex.com regulatory status.
A Close Look At Forex.com Platforms
Forex.com offers two different trading platforms, the MT4 terminal, and the ForexTrader Pro Platform. Both platforms are available for download on both desktop as well as mobile and can be conveniently used by traders for accessing the markets on the go. The Forex.com mobile apps are specifically designed to cater to the high standards of mobile trading requirements, especially when smartphones and tablets are starting to replace the traditional forms of standalone trading terminals. The ForexTrader Pro platform is an excellent user interface that offers excellent charting functionalities and an overall pleasing graphical interface. Forex.com’s proprietary platform is certainly more advanced than the traditional MT4 platform, but most MT4 users rarely make the switch to rival platforms due to the simplicity and familiarity offered by the MT4 interface. MetaTrader is also home to one of the fastest growing communities for expert advisors and tweaking the terminal for adding new functionalities, which is not available with the ForexTrader Pro Forex.com trading platform. Forex.com apps are available for download on Windows, Mac, Android, and iOS devices. Forex.com has been a prominent figure in the industry since 1999 and has the distinction of being one of the most popular Forex brokers in the market. There are some distinctive disadvantages of trading with the broker, but the company also has some positives, which seems to be working for them in the long run.