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Forex.com Review 2020

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Forex.com, founded in 2001 as part of GAIN Capital Holdings, is an established global online broker that caters to individuals seeking to trade the retail FX and CFD markets. GAIN Capital Holdings, a conglomerate that includes City Index, an online CFD and spread betting provider, and Daniels Trading, a futures advisory trading firm, was acquired by StoneX Group Inc. in February 2020.

StoneX Group Inc., a publicly traded company (NASDAQ: SNEX), advertises that it connects “clients to the global markets across asset classes through institutional-grade platforms, end-to-end clearing and execution, and high-touch expertise.”

Globally, Forex.com offers an extensive range of offerings, from CFDs, to spread betting to futures, across several different asset classes, though not all are available in every region that it services. Aside from forex, where it derives its name, Forex.com also offers commodities, indices, individual stocks, bonds, ETFs, unleveraged gold & silver, cryptocurrencies, and futures to provide trading opportunities for all types of traders. Forex.com (U.K.) also offers client account protection, such as ESMA-mandated negative balance protection and guaranteed stop loss orders.

Forex.com offers U.S. clients leveraged access to over 80 currency pairs with competitive spreads across different account types. A well-organized and navigable website with fully­ disclosed services and fees, multiple user interfaces, education and research tools that are on par with industry standards, and regulatory oversight place Forex.com in the upper echelon of online brokers.

Forex.com stakes its claim as the #1 FX broker in the U.S. and that claim is validated by the latest (June 30, 2020) CFTC Retail Forex Obligation report which “represents the total amount of funds at an FCM, RFED, or FCMRFD that would be obtained by combining all money, securities and property deposited by a retail forex customer into a retail forex account or accounts, adjusted for the realized and unrealized net profit or loss.”

Key Takeaways

  • Forex.com is the #1 FX broker in the U.S in terms of customer funds.
  • Forex.com is a good fit for high-volume traders.
  • Forex.com is registered with the CFTC (U.S.), NFA (U.S.), and FCA (U.K.).

Who Forex.com Is For

Forex.com is for all types of traders seeking exposure to a wide array of products and asset classes but is a good fit for the high-volume trader. Product offerings vary by region but the broker emphasizes fast and reliable execution, a variety of platforms, and account security. In the U.S., it is geared towards clients who want to trade the foreign exchange markets.

Pros

  • Wide range of product offerings

  • TradingView charts built into web platform

  • Regulated by FCA (U.K.) & CFTC, NFA (U.S.)

  • Offers protection for U.K./E.U. client accounts

  • Rebates for high-volume traders

Cons

  • No account protection for U.S. clients

  • No guaranteed stop losses for U.S. clients

  • Live chat advertised but unavailable

  • Subpar website maintenance

Pros Explained

  • Globally, Forex.com offers clients access to a wide range of product offerings that span several asset classes. Clients have access to forex, equities, commodities, indices, bonds, ETFs, industry sectors, cryptocurrencies, unleveraged gold & silver, and futures (through an affiliate).
  • TradingView is “an advanced financial visualization platform” that has been integrated into Forex.com’s web-based platform. Its ease of use and functionality make it, by far, the most impressive aspect of the web-based platform.
  • Forex.com is a registered FCM and RFED with the CFTC and a member of the NFA (#0339826). Additionally, GAIN Capital UK Ltd is authorized and regulated by the Financial Conduct Authority (FCA #113942). U.K./E.U. clients also have additional asset protection through the Financial Services Compensation Scheme (FSCS), up to £85,000.
  • Forex.com offers its U.K./E.U. clients “negative balance protection,” as mandated by ESMA, and guaranteed stop loss orders (GSLO) (for an additional charge), which protects against market gap risk. These rules likely resulted from the SNB event of January 15, 2015 that roiled the markets, especially the highly leveraged retail FX market.
  • Forex.com advertises fast, reliable execution making it a good fit for the high-volume trader, who can earn rebates through the “Active Trader” program, thereby lowering trading costs.

Cons Explained

  • Forex.com does not offer “negative balance protection” for U.S. clients. This means that U.S. traders with negative account balances are on the hook for more money than they initially deposited into their accounts.
  • Forex.com does not offer guaranteed stop loss orders (GSLO) for U.S. clients.
  • A broker, especially an online broker, that does not place a high priority on addressing the needs of its customer in an efficient and satisfactory manner may be at a disadvantage. Forex.com’s live chat option, though advertised, is not available.
  • An effective web presence is crucial for an online broker. While Forex.com’s website has an intuitive feel, there are a few pages with either incorrect, outdated, and/or incomplete information, which speaks to a general lack of attention to detail.

Costs

Forex.com started out primarily as a market maker, but has since morphed into an ECN that generates revenue either through customer trades that “cross” the bid/ask spread, or as commissions, which are on par with the industry. Pricing is transparent and easily found on Forex.com.

The spreads vary depending on the type of account the client chooses. For example, the minimum EUR/USD spread for U.S. clients on a “standard” account is 1 pip while “commission” and “STP Pro” accounts will show spreads of 0.2 and 0.1, respectively. However, the latter two have commissions of $50 and $60 per million added to the displayed spread. Regions outside the U.S. also offer Direct Market Access (DMA) accounts for larger account sizes (25,000+). The DMA account offers no markup on spreads, but a commission is charged.

Standard account and commission account traders may also benefit from the Active Trader Program. The program is open to anyone who opens an account with at least $10,000 or who trades $25 million of volume in a month. The program is not open to DMA account holders, as that account already has volume-based fee reductions.

Forex.com requires that the minimum initial deposit “is at least 100 of your selected base currency,” though they recommend a deposit of 2,500 so that the client has “more flexibility and better risk management” in their trading.

As is the norm in the FX industry, clients will be charged swap fees on positions they hold overnight, which may be subject to currency conversion charges if they trade in a currency other than the account’s base currency.

In terms of other fees, accounts with no trading activity for more than 12 months are subject to a $15/month inactivity fee. The website does not list additional fees for deposits or withdrawals.

Trade Experience

Forex.com’s trading platforms accommodate the active day trading professional as well as the occasional longer-term trader. Clients can choose between the downloadable advanced trading platform or MetaTrader 4 (MT4) for a desktop experience, the web trader for a browser-based trading experience, or choose the Forex.com or MT4 mobile app for trading on portable smart devices.

Within the platforms, traders can access charts, economic calendars, news, positions, and trade/order history, and access trade signals and research reports, as well as market analysis from Forex.com analysts. There aren’t many drawbacks to the platforms. There are a sufficient amount of indicators and drawing tools to satisfy the avid technical analyst, and the platforms are functional enough to make rapid-fire trades, if needed. The charting package is provided by TradingView and is, by far, the most impressive aspect of the web-based platform.

Placing trades on the web trader or the downloadable advanced trading platform is intuitive. Clients can trade directly from charts by right-clicking and selecting the “trade” option or by clicking on the “buy” and “sell” buttons along the top of the chart. This brings up an order window where the entry, stop loss, and profit target are set. One-click trading can be enabled for rapid trade execution.

Forex.com’s platform has four basic order types with the option of attaching “take profit” and/or “stop loss” orders to them. Additionally, the trader can choose to make the stop loss a trailing stop loss order. The one difference between the web-based and downloadable offering is that guaranteed stop loss orders are only available on the latter and, furthermore, only for U.K./E.U. clients.

  • Market – The simplest order where a trader signals that their trade request should be executed at the prevailing market rate.
  • Limit – A pending order where the entry is at a predetermined point below or above the prevailing market rate depending on whether it’s a buy or sell. The trader also has the option of selecting the expiration time of this order.
  • Stop – A pending order where the entry is at a predetermined point above or below the prevailing market rate depending on whether it’s a buy or sell. The trader also has the option of selecting the expiration time of this order.
  • OCO – A pair of pending orders (one an entry stop and the other an entry limit) where the execution of one automatically cancels the other. The trader also has the option of selecting the expiration time of this order.

A Forex.com account can also be integrated with NinjaTrader, a popular third-party trading platform. VPS is available for MT4 accounts. Clients can use Forex.com’s API to connect in for their own strategies. MT4 and MT5 connectivity allows the use of automated strategies using MetaTrader algorithms.

Forex.com Web Platform.

The mobile app is functional, providing traders with access to all their account information. Traders can add or withdraw funds, view trade history, create watchlists, access news, and view charts from the mobile app. It is also easy to navigate and set up.

The charting feature is one of the drawbacks of the mobile app. There are a limited number of common indicators available, such as RSI, MACD, and moving averages, but drawing functions and more advanced technical tools are missing. Full order functionality is available, including conditional orders and the ability to easily place stop losses and profit targets at the time of a trade.

Functional demo accounts are provided for free, giving potential clients time to assess the pricing structure before committing real capital. The one criticism of the broker’s demo accounts is that they expire in 30 days and Forex.com doesn’t give the prospective client the option of extending or applying for a new one under the same credentials. The implication seems to be that you’ve had enough time to test our platform, so either open a funded “live” account or go elsewhere.

Range of Offerings

Globally, Forex.com provides access to a broad selection of financial instruments across a wide range of different asset classes, including:

  • 80+ currency pairs
  • 220+ equities
  • Commodities
  • Indices
  • Bonds
  • ETFs
  • Sectors
  • Cryptocurrencies
  • Gold & Silver
  • Futures & Futures Options – U.S. (FuturesOnline)

In the U.S., its product line caters solely to spot forex trading, unleveraged gold & silver, and futures through its affiliate, FuturesOnline.

Customer Service

The broker’s website lists multiple ways that clients can contact Forex.com, including online chat and live phone support, from 10 a.m. ET on Sunday to 5 p.m. ET on Friday. FAQs and website client support were satisfactory, but repeated attempts to contact via “live chat” proved to be unsuccessful. Social media support is not available, although they do have social media accounts where they post market analysis and company information.

Phone support is the quickest way to have questions answered by a real person. There is a small menu to choose from at the start of the call. Wait times will vary based on call volume, but during a normal day you can expect to wait several minutes before being connected with a representative. Email support is available for more in-depth questions but expect to wait one to three business days for a response.

Education

Forex.com’s educational offerings are on par with the industry standard and are well organized. Clients can access content according to their experience level, or thematically. All content, with the exception of “technical analysis” topics that are available on the platform, can only be accessed through the website.

Client experience is divided into three categories—beginner, intermediate, and advanced, while themes range from the industry norm of providing market basics, such as fundamental and technical analysis, risk management, and trading strategies, to platform tutorials. A comprehensive glossary is also available.

Forex.com Education.

New investors will find some helpful background information, but relying solely on Forex.com’s education to become proficient in the markets is unlikely. That said, the material covers all the major topics that a beginner should need to know.

Portfolio Analysis

Basic real-time information about client activity, such as balances, transaction activity, and profit/loss breakdown can be found on the platform. Forex.com does not provide a trading journal nor do they provide tax accounting tools on the platform. Unlike some competitors, Forex.com does not have a built-in tool for analyzing trading activity in any of its platforms.

Research Amenities

Forex.com’s market analysis and insights are on par with industry standards and serve to connect traders to the markets and supplement its educational resources.

Forex.com’s platform offers Trading Central, a third-party vendor that provides technical analysis reports along with an economic calendar, Reuters news feed, and proprietary news and analysis market-wrap articles. Additionally, a margin calculator and an array of trading and charting tools can be found on all of its trading platforms. The broker’s “premium” and “pro” accounts have the option of receiving research tailored to the client’s needs.

Forex.com Research.

Security

Forex.com is regulated in several jurisdictions but since laws vary by country, the products offered also vary. For example, CFDs are not available to U.S. clients but are available outside the U.S.

Forex.com is a registered FCM and RFED with the CFTC and a member of the NFA (#0339826). Additionally, GAIN Capital UK Ltd. is authorized and regulated by the Financial Conduct Authority (FCA #113942) in the U.K.

Client funds are kept segregated from the funds of Forex.com, which helps safeguard clients’ money in the event the company has financial issues. U.K./E.U. clients also have additional asset protection through the Financial Services Compensation Scheme (FSCS), up to £85,000, while Canadian clients are protected by the Canadian Investor Protection Fund. U.S. clients are not as fortunate, as no additional insurance is provided by the company in terms of safeguarding their funds.

Forex.com offers negative balance protection, which is mandated under ESMA rules that went into effect in 2018, and guaranteed stop losses at an additional cost for its U.K./E.U. clients.

However, non-U.K./E.U. client accounts can go negative, as negative balance protection is not offered to them. In plain English, U.S. traders with negative account balances are on the hook for more money than they initially deposited into their accounts. Also, U.S. clients are not offered guaranteed stop loss orders.

Forex.com does have two-factor authentication (2FA) and bio-metric authentication for its mobile application, and encrypts data using SHA256, TripleDes, and MD5.

Verdict

Forex.com is an online broker that can service all types of traders but its emphasis on fast, reliable execution makes it a good fit for the high-volume trader who can earn rebates that would lower their trading costs.

The broker offers access to a variety of financial instruments with spread and commission costs that are on par with the industry, a choice of account types, multiple user interfaces, and educational and research resources. Customer service leaves a bit to be desired, especially the fact that “live” chat is functionally unavailable even though it is advertised as a selling point. In addition, substandard website maintenance speaks to a lack of attention to detail.

Being NFA/CFTC/FCA-regulated lends credibility, underscoring Forex.com’s status as a global online broker. That said, the inconsistency in not offering negative balance protection and guaranteed stop losses in the U.S. is a bit disconcerting given that the former gives clients peace of mind while the latter offers a viable risk management tool in volatile market conditions.

Overall, Forex.com checks off most of the boxes needed to be considered a good broker. However, the impression that one gets is that it could be so much better if a bit more attention was paid to the primary revenue generator – the customer.

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Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of six months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on their platforms, costs and fees, security, the mobile experience and customer service. We established a rating scale based on our criteria, collecting over 3,000 data points that we weighed into our star scoring system.

In addition, every broker we surveyed was required to fill out a 320-point survey about all aspects of their platform that we used in our testing. Many of the online brokers we evaluated provided us with in-person demonstrations of their platforms at our offices.

Our team of industry experts, led by Theresa W. Carey, conducted our reviews and developed this best-in-industry methodology for ranking online investing platforms for users at all levels. Click here to read our full methodology.

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Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

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CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

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Daily Financial News

Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

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