Our Forex.com review in 2016 focused on the actual company “GAIN capital holdings” which has total assets of $1.260 billion and total customer equity of $850.0 million.
In Australia the company trades as ‘Gain Capital Forex.com Australia Pty Ltd” and is licensed to operate as a financial institution in Australia.
Forex.com is not only a Forex broker but also offers 10 global indices with tight spreads and leverage of up to 200:1. You can also trade commodities including trade metals, softs and energies. A new option is also equities, bonds, rates and options.
Trading Platform Options
There are three forex broker platforms available including the most popular MetaTrader 4 platform. While offering this standard platform, the broker differentiates itself based on its personalised customer service it offers combined with its tight spreads. They also include other services for brokers such as technical research from Trading Central, streaming news and ‘Autochartist’ pattern recognition software.
Another platform option is ‘FOREX Trader’ which offers more custom options not on on desktop but also mobile devices through the app. The platform has advanced charting tools, integrated research and research and analysis. DealBook on the other hand is more relevant for fx traders looking to trade other markets as well such as CFDs, binaries and more. When our team compared the ease of use of this fx broker compared to their competitors the ease of use was considered the poorest, from setting up an account to commencing trading.
Our forex.com review shows that most traders will just opt for the MetaTrader 4 so there is no real advantage of using this fx broker based on the platform alone. Beginners should consider a difference broker.
FX Leverage & Spreads
Forex.com offers a leverage of 400:1 which is lower than the largest Australian regulated forex brokers as shown on the comparison chart below.
Forex.com has quite tight spreads. On the 01/02/2016 a comparison for EUR/USD (the most traded currency pair worldwide) showed the Forex.com on this day was relatively poor.
Below shows the spreads that Forex.com published on its website for October 2014 which are highly competitive.
Based on our Forex.com review of spreads we find this forex broker to be less favourable in this area than other locally regulated fx brokers.
In the past a 5% bonus offer has existed where the broker will provide this percentage bonus for deposits up to $100,000. Sadly, this offer is not in the market so they only offer the standard demo account pre-loaded with $50,000 fictitious dollars. Based on this forex.com review element, this broker is the weakest when it comes to this bonus offer criteria.
Overall Editors Forex.com Review
Forex.com is a global leader in forex and in Australia have positioned themselves based on price and a range of trading options. On a positive side they have quite low spreads and are Aussie regulated for peace of mind. They have neutral positions when it comes to the trading platforms offered with most brokers likely just to choose their Metatrader 4 platform. On a negative perspective the leverage they offer is poor at 400:1 compared to market leaders which offer 500:1 and there is no bonus offer available to Australian traders presently. This forex broker based on this should be considered by price conscious brokers looking for tight spreads or those looking to trade more than just currency. For those advanced traders looking for high leverage or beginners looking for ease of use a different broker should be considered through the compare forex brokers comparison tables.