Forex.com GAIN Capital Group Review explained by professional Forex trading experts the “ForexSQ” FX trading team
Forex.com GAIN Capital Group Review
FOREX.COM currently offers two account types: Standard, and Active Trader. The ActiveTrader account was launched in November, 2016 in Canada and US and soon it will also be rolled out to the rest of the markets where the broker operates.
An alternative to the ActiveTrader, Premium account (currently available in UK, Australia, etc.) is available with $10 000 and offers spreads averaged 1.5 pips. It also offers 2% interest on your account balance, up to $50,000.
The Active Trader account is accessible only via the broker’s proprietary FOREXTrader platform and will not be offered to traders using the MetaTrader 4 (MT4) or any Managed Accounts and accounts referred by an introducing broker (IB).
In addition, FOREX.COM offers swap-free accounts to investors of Islamic belief.
Minimum initial deposit
In order to open an account with FOREX.COM, one has to invest just $50, which is a low minimum initial deposit. In comparison, FXCM also demands $50 from its clients as a start.
Spreads & Commission
One of the main advantages of major broker FOREX.COM is that it offers commission-free trading. Of course, this means that the company gets remuneration for its services by a mark-up. That is why FOREX.COM’ variable spreads are not among the tightest in the industry – average ones amount to 1.8 pips on EUR/USD pair. Nonetheless, you get access to a selection of trading platforms with fast execution (average execution speed is 0.05 seconds), and most importantly, your funds are safe.
In addition, ActiveTrader account holders may benefit from an average 15% reduction on our standard spreads. Spreads on this account type can be as low as 0.7 pips on EUR/USD, plus, their holders get personalized support, priority service and no account fees on the FOREXTrader Platform.
In comparison, FXCM offers variable spreads, averaged 1.5 pips on commission-free accounts. For further information, you may check out and compare real-time spreads of 15 leading brokers here.
The maximum leverage levels offered by FOREX.COM is up to 1:200, which is considered average. Of course, the maximum leverage provided to US clients is 1:50.
If you need higher leverage ratios, many FX brokers provide such. FXCM offers leverage up to 1:400 and you may also check out a list of brokerages providing leverage up to 1:500 or higher here. You should keep in mind, however, that higher leverage involves greater risk of losses.
The Company. Security of funds
Set up in 1999, Gain Capital now has a global reach. Being one of the largest brokers in the US, it is therefore in direct competition with FXCM for the domination of the US market. It is It offers trading in currency pairs, index & commodities CFDs, precious metals, as well as exchange-traded futures and options (US clients).
First of all, GAIN Capital Group, LLC is a registered futures commission merchant and retail foreign exchange dealer with the US Commodity Futures Trading Commission (CFTC) and is also a member of the National Futures Association (NFA).
Brokers that are registered with the NFA are obliged to comply with a stringent set of rules. US regulation is one of the strictest, which is a good thing in terms of investor protection, however some of the rules imposed are considered too restrictive.
For instance, NFA-registered brokers are required to maintain a net capital of at least $20 million to guarantee customers’ positions, which is the highest minimum capital requirement worldwide.
Besides, hedging is not allowed and leverage is limited to 1:50, while European brokers are free to provide leverages up to 1:1000 or even higher than that.
The parent company, GAIN Capital Holdings, Inc. (NYSE:GCAP), is a New Jersey-based forex and CFD broker. As a global publicly traded company, regulated in 7 jurisdictions, Gain Capital meets high standards of corporate governance, financial reporting and disclosure. Generally speaking, if you choose to invest in forex.com, you may trade without worries about your funds’ safety.
Forex.com offers its clients two basic trading platforms: its in-house FOREXTrader & and the popular MetaTrader 4. In addition, the brokerage also supports Tradable and its special ECN platform, GTX.
The fully-customizable FOREXTrader is equipped with advanced trading features, professional charting tools and integrated research and analysis. It comes in as web, PC varsions and full array of mobile apps (including iOS and Android devices).
FOREXTrader PRO’s professional-grade trading tools include real-time charting, pattern recognition software by Autochartist, and custom-built automated trading software, called Strategy Center.
Among the FOREXTrader’s features is the Strategy Center with automated buy and sell signals, which allows traders to access 15 user customizable pre-defined trading strategies as well as build their own via the Strategy Wizard. The Strategy Center includes the ability to back test strategies against historical data and then activate them to generate buy and sell signals in real time.
The comprehensive research and analysis includes round-the-clock updates from our expert in-house research team, real-time concise headlines from Reuters News, and professional technical analysis from industry-leading Trading Central.
With this platform, users are able to choose between instant and market execution (through the Execution Mode drop-down). Unfortunately, FOREXTrader does not allow hedging, as open positions are closed in compliance with the (First in First Out) FIFO accounting rule, applicable in the US.
The most common forex trading platform – MetaTrader4 – is also supported by Forex.com. It offers competitive pricing on over 45 currencies, superior market execution and EA optimized environment. Furthermore, Forex.com’s MT4 is equipped with some unique trader tools & resources, such as live commentary from the company’s Global Research Team, real time technical analysis from Trading Central and actionable ideas from Autochartist. According to us, MT4, offered by forex.com has one significant disadvantage – it does Not offer a 3rd party bridge.
GAIN Capital’s GTX is an independent and innovative ECN designed for institutions and professional traders. It offers robust algorithmic trading capabilities that enable clients to develop and implement a wide range of trading strategies using GTX’s Java or FIX-based APIs.
Clients of Forex.com may use bank wire transfer, as well as debit/credit cards as payment methods.
US clients may also make deposits and withdrawals via Check and eCheck (U.S. bank accounts only), while EU clients can use Sofortbanking (online funds transfer available in the UK, Germany, Switzerland, The Netherlands and Belgium only).