Forex.com Review South Africa – Unbiased Pros and Cons Revealed (2021)

 

WHO IS FOREX.com?

FOREX.com has provided online trading solutions globally since 2001, boasting a client base of over 70 000 users. They operate under an NYSE-listed company, known as GAIN Capital holdings, which was founded in 1999.

With over 20 years of experience, FOREX.com understands the needs of novice and expert traders alike, and they strive to provide the highest quality of services with all the innovative tools and features needed to trade with confidence.

This licensed brokerage operates under the regulations of the US, Canada, Japan, Australia and the UK, and they only use trusted, top-tier banks to hold clients’ funds.

FOREX.com revolutionized the way trading was done, as they were amongst the first brokerages to provide online trading services.

Since their launch in 2001, they have evolved into one of the biggest retail Forex brokers in the world and serve over 140 countries.

 

Time to open an account Immediate account opening, 1 day for verification
Bonus Active Trader program ($10/million traded)
Publicly traded – listed on stock exchange Yes
Country of regulation FCA, FSA, CFTC, NFA, IIROC, ASIC
Trust score 93
Platforms MetaTrader 4, MetaTrader 5
Mobile App iPhone, iPad, Android
Copy Trading No
Islamic account No
Demo account Yes
Base currencies USD, EUR, GBP
Ave spread EUR/USD From 0.8 pips
Leverage Up to 1:200
Trading fees (low, average, high) Low
Minimum deposit $500
Withdrawal fee 0
Currency pairs 80+
Cryptocurrency trading Yes
Deposit with electronic wallet Yes

 

FOREX.com REVIEW OF PRO AND CONS

Pros Cons
Low-cost trading Some traders struggle to close trades
More than 80 currency pairs Customer support is delayed
Diversified selection of research tools No VPS offered
Over 40 000 traders Not regulated by CySEC
Compliant with international regulations  
Initial deposit of $500  
Cash rebate program for qualified traders  

 

IS FOREX.com SAFE?

FOREX.com complies with stringent regulatory standards and is fully compliant with regulatory bodies in the various operational jurisdictions including:

  1. The Financial Conduct Authority (FCA)
  2. Japan Financial Services Authority (DFSA)
  3. Australian Securities and Investment Commission (ASIC)
  4. Commodity Futures Trading Commission (CFTC)
  5. Investment Industry Regulatory Organization of Canada (IIROC)
  6. National Futures Association (NFA)

Their financial reports can be viewed on the StoneX Investor Relations website and client funds are held in segregated accounts in top-tier financial institutions.

In the unfortunate event that the company may fall into insolvency, clients are protected by the Financial Services Compensation Scheme under certain conditions.

With a total equity capital of $800 million and a total customer asset value of $5 billion, it is clear that this company is managed effectively, and funds are handled with diligence.

 

LEVERAGE

Trading with leverage may be tempting, but it is important to understand the risks involved. Higher leverage significantly increases the value of your initial deposit, but with greater leverage comes greater margin, which is the collateral payable to secure your credit.

FOREX.com offers different leverage options depending on the platform used (MT or FOREX.com) and also varies according to the asset, market and position size chosen.

The maximum leverage available will also depend on your account type and you would need to use the built-in margin calculator to determine your leverage ratio options.

Leverage rates are not listed on the website as they differ depending on current market prices. However, research suggests that their leverage offering may be capped at 1:200, but you can adjust the leverage manually.

 

ACCOUNTS

FOREX.com allows traders to choose from three different accounts to begin their trading journey:

  1. Standard account – a traditional Forex account with access to advanced trading tools, 80+ technical indicators and Expert Advisors with MT4 functionality. Demo accounts available
  2. Commission account – $5 commission per 100,000 traded, ideal for high-volume traders with $10 cash rebate per million traded in Forex monthly and interest earned on average daily available margin. Does not support MT.
  3. Direct Market Access account – recommended balance of $20,000 with a minimum trade size of 100,000. Multiple liquidity levels are viewable in real-time with no additional mark-up on prices. Does not support MT.

 

MARKET INSTRUMENTS

FOREX.com provides more than 4,500 trading products, consisting of 80+ currency pairs, in-demand commodities, indices, cryptocurrency and stocks in some of the biggest companies like Amazon, Microsoft and Facebook.

Clients can trade in large global markets, with Forex spreads starting as low as 0.8 pips and monthly cash rebates per million dollars traded.

For traders looking to diversify their portfolios, FOREX.com offers 15 indices, including UK 100, Japan 225 and Germany 30. Additionally, there are US sector-themed indices, such as ESG, Green, Biden 30 and Trump 30.

There are over 4,500 stocks available, with commissions starting as low as 1,8cents on US stocks. This is another means for portfolio diversification, allowing you to earn your share of profit from big companies like Amazon, Netflix, Tesla and Facebook.

 

FEES

Unlike most brokerages, deposits and withdrawals are free of charge with FOREX.com and trading Forex is affordable for most traders. However, they do charge penalty fees for inactivity, with $15 payable monthly after one year of not using your account.

Fees on stock CFDs may seem higher than usual, but FOREX.com strives to provide competitive pricing options for its clients.

FOREX.com is ideal for high-volume traders, who may be interested i4n applying for their Active Traders Programme. Traders who qualify will receive cash rebates on every million dollars traded and their commission fees will be reduced significantly.

Financing (rollover) fees are payable when positions are held overnight and fees are applicable for currency conversions, but the general sentiment is that FOREX.com has lower fees than most brokerages.

 

DEPOSIT AND WITHDRAWAL

FOREX.com accounts can be funded securely using bank transfers, card payments or third-party funding. No fees are charged on withdrawals and deposits, but only 3 currencies are accepted, namely USD, EUR and GBP.

Unfortunately, FOREX.com does not accept cheques, PayPal or Western Union as payment methods. On the bright side, making deposits and withdrawals is free of charge.

Only one withdrawal request may be made per transaction, despite being able to use multiple cards for your account, at a minimum of $100 per withdrawal.

The processing time for bank transfers can take 2-3 business days and card withdrawals can take up to one working week to be finalized.

The minimum amount that can be deposited per transaction, is $100, with the maximum being $10,000.

 

TRADING PLATFORMS

FOREX.com offers several popular platforms to traders:

  • Desktop Trading – software developed by FOREX.com with full account functionality and trading tools
  • MetaTrader 4 – a popular trading platform with technical indicators, charting tools and newsfeed
  • MetaTrader 5 – an upgraded version of MT4 with more advanced tools
  • Web Trading – Access markets directly from your desktop and use risk management tools, customizable layouts and charts
  • Mobile Trading – supports Android and IOS, providing full functionality with charting and analysis tools, alerts and account management features

 

TradingView allows traders to view more than 10 types of advanced chats, 60+ technical indicators with drawing tools, trade management features, overlays and the option to save charting preferences as templates for reusability.

 

HOW TO OPEN AN ACCOUNT

Creating a FOREX.com account is easy and can be done by following these steps:

  1. Visit the website and select “Open an account”
  2. Fill in all your details
  3. Supply documentation confirming identification and citizenship
  4. Answer some trading preference questions about trading goals and trading experience
  5. Accept terms and conditions and create a password
  6. Choose your payment option and fund your account
  7. Select your preferred trading instruments
  8. Download and install the trading platform
  9. Begin your trading journey!

 

CUSTOMER SUPPORT

The FOREX.com support team can be accessed via email, telephone and live chat. Their customer service reviews are mostly positive, as the team is responsive, reliable and competent.

There is an entire section on the website that is dedicated to customer support, where you can access forums, FAQs and tutorials to answer some of the most asked questions.

If your query is not answered by using the support center, you can alternatively contact them directly, but their responses may be delayed during high-volume periods.

The recommended course of action is checking the FAQs for answers or using live chat.

Customer service is available during working weeks, 24 hours a day and they can assist you in English, Chinese or Arabic.

 

EDUCATION

Their educational section covers all the fundamentals of trading and provides information based on your experience level, preferences and understanding of trading.

Topics covered include trading concepts, risk management, technical and fundamental analysis, and trading strategies. There is also an insightful quiz that will help you to determine what type of trader you are.

Their trading courses are divided into beginner, intermediate and advanced levels and there is also a trading glossary that will come in handy for all new traders.

New traders will appreciate the option to use demo-accounts, where they can experiment with all the innovative trading, research and charting tools available and practice using trading strategies they learn about.

They offer a variety of training videos, tutorials and articles, which discuss trending trading topics.

 

RESEARCH

FOREX.com provides access to a vast library of resources that can be used to make informed decisions regarding trading concepts, using trading strategies, trading times and calendars, and managing risks.

They also offer guidance on developing your trading plan and traders can use market updates and news channels, real-time trade signals and technical indicators, analysis and research tools, and blogs and articles as a source of information.

The mobile app makes it easier for traders to conveniently track price movements, the status of positions and chart developments over time.

The TradingView feature allows users to choose preferences, save trading templates and use indicators and charts to conduct research and refine their trading strategies.

Additional research and analysis tools include Autochartist Market Analysis, Recognia and Trade Ideas. They also have a team of international research and analysis experts who host webinars for Reuters News and FXStreet.

 

ACCOLADES

FOREX.com has claimed numerous industry awards over the last 20 years, including but not limited to:

  • 2001 – Best of the Web, awarded by Forbes
  • 2008 – Fastest Growing Firms in North America, awarded by Deloitte
  • 2010 – Best Arabic FX platform, awarded by Middle East Forex and Managed Funds
  • 2011 – Best Online FX Provider, awarded by MoneyAM
  • 2012 – Best Arabic FX Platform, awarded by Saudi Money Expo
  • 2012 – Best Forex Retail Trading Platform, awarded by UK Forex Awards
  • 2012 – Best FX Broker, awarded by Shares Magazine
  • 2013 – Best Forex Broker, awarded by Investors Chronicle
  • 2013 – Best USA Broker, awarded by the ForexExpo Awards
  • 2019 – Best Forex Services Provider, awarded by the UK Shares Awards

 

CONCLUSION

FOREX.com offers user-friendly platforms with full functionality and features. They can be trusted because they are compliant with strict international regulations, they are affiliated only with the highest-ranking financial institutions and they have successfully provided online trading solutions for more than two decades.

Their educational resources are designed to cater to the needs of traders with all levels of experience, along with a rich library of insightful videos, webinars and articles.

With free withdrawals and deposits, their pricing structures are competitive, despite the high fees on stock CFDs.

This platform is ideal for high-volume Forex and CFD traders with their Active Traders cash rebate program, but all types of traders are welcome, and your trading experience can be customized according to your preferences.