Forex.com Is Why Im Broke

 50 Words on – Why you can go Broke with Forex.com?

After many hours of research and reading hundreds of comments, I have to say I’m really having a hard time to point anything that could get you broke if you chose to trade with Forex.com. However, don’t think that you finally found the godfather of all Forex Brokers because you haven’t. If you are a good, constantly profitable trader, Forex.com might not want to partnership with you. The most of the complaints are about Forex.com closing the accounts of profitable traders with the same excuse/message: “As a result of a recent quality control review of your account activity, we determined we are no longer in a position to continue extending our services to you. As such, we determined to close the account.” But let’s don’t allow this to break our spirits. Trashing is just the name of this game.

 

 

How can you Avoid Going Broke with Forex.com:

I never traded with Forex.com but I knew that they must be one of the leaders of this industry when I saw Forex.com on CNBC and ESPN. You cannot afford publicity on those channels if your business counts a bunch of traders and 3 employees. Anyway, CNBC was not enough for me so I spent more than 30 hours looking for good and trustful information about them, in order to write a fair review and here are a few tips on how you can be profitable if you chose to trade with Forex.com:

  • In other circumstances, I would be against such an idea but in this case, making a small deposit and making small profits might not trigger their attention on your account.
  • Make weekly withdrawals.
  • Try not to keep in your trading account more money than your initial deposit.
  • Before opening the trading account, read the full Terms and Conditions document and if there is anything unclear to you, email Forex.com and ask for extra explanations.
  • Forex.com is famous for one of the best customer service department in the industry. Use this tool as many times as you needed to ask questions or other information that you did not find on their website.
  • You could try to open more than one account with them and trade alternatively, one month on each of your accounts.

 

 

The Good, the Bad and the Ugly Speak

Welcome to Vegas Baby Welcome to Vegas Baby

While trading and gambling do not have anything in common, Forex.com might have something in common with the Las Vegas casinos. Although is not illegal, counting the cards in a casino in Las Vegas will make you to be banned from playing in those casinos. Whatever strategy (or trick) you plan to use to be a successful trader, at Forex.com might make you to be banned from trading with them. As stated on their website [1], “Forex.com is proud to serve their customers as a market maker” but a constantly profitable trader could be expensive for a market maker. Just to be sure that everyone knows how a market maker works, let me just tell you that he will take the opposite position in the market so your losses are their wins and your wins are their losses. Now it makes sense for you, why I said that a Market Maker might not love a constantly profitable trader?

The comment that most hit me was the one made by Nguyen from California, USA [2]. It’s extremely rare to see a trader who says good words and give a positive vote to a Forex Broker – in this case Forex.com – that just announced him that they will close his account because Forex.com determined that they were no longer in a position to continue extending their services to him. For example, Dennis Miller from Chicago, USA [2] or Carlos from Madrid, Spain [2] were not as positive as Nguyen was, when they had the same issue with Forex.com.

Those 30 hours that I spent looking for useful information about Forex.com were not filled reading only negative comments as I also found many happy traders. Steve from Japan [5] is really enjoying trading with Forex.com as he says they have amazing spreads and the re-quotes are barely seen. Tom Richards from New York [6] is nothing but pleased trading with Forex.com as he says that the withdrawals are quick and the trading platform is great.

I am quite impressed with Nguyen’s story as he gave a lot of details of his experience with Forex.com but I really have a hard time to believe that such a big company, which is dealing with millions of dollars every day, cares for a bloody 5000$ that Nguyen would have taken away. Is just that this story does not make any sense. I have the feeling that we miss something here, because the overall behavior of the Forex.com is not the one of a “jealous” market maker and by reading the next section, you will understand why I am saying this.

 

Not Being Generous Not Being Generous

This part of the review is the one that took me more than 75% of the time I needed to write the whole article. Not the writing part but the research part. For Forex.com being a Market Maker, I was expecting to see a lot of “stop loss hunting” or slippage accusations, but I didn’t. There were a few but they did not convince me: seemed more like angry traders that lost their money and they needed to find someone to blame (except themselves of course). Other details, as the spreads – variable with market or instant execution as for example 1.7 pips for eur/usd, 1.4 pips for usd/jpy or 1.6 pips for aud/usd – are relatively higher compared to some other brokers, but this is understandable given that there are no commissions charged. For some of you, the fact that Forex.com does not offer bonus incentives on deposits might be seen as a bad thing but I am not so sure about that. This is a really large company and this FX broker does not need clients the way some of the smaller brokers do. Besides that, using a bonus binds you on some conditions to accomplish before you can withdraw your profits so I think is a good thing that Forex.com has no bonuses.

I never was given to see a broker with no bad parts ‘til now and this is a little strange for me. I also was impressed to see that the maximum leverage is only 1:50 while the market average is 1:200, but I don’t think this is something to stop us to trade with Forex.com.

 

Trusted Market Leader and World Class Trading Tools Trusted Market Leader and World Class Trading Tools

At Forex.com you’re trading with a strong, reputable partner. Their parent company, Gain Capital Holdings INC (NYSE: GCAP) is listed on the New York Stock Exchange. As a global publicly traded company, Gain, must meet the highest standards of corporate governance and financial reporting. When you look at its capitalization, it is actually ranked in the top 5 FX brokers on this planet and all these things makes it almost an “honor” for you trading with them than for them having you as a client.

Forex.com provides a range of premium trading tools to help you identify trading opportunities. From market leading charting packages, to third party analysis tools, streaming news and expert research from their global research team, their tools are useful for all types of traders. Forex.com also provides three fully customizable trading platforms (FOREXTrader, MT4 and Tradable) requiring a minimum 500$ deposit to trade on all three of them. Speaking of minimums, I think it’s worth saying that the minimum trade size is only 0.01 lots (or 1000 units of the base currency) which, is a very useful feature if you plan to trade with the minimum deposit required.

 

 

Editor’s Note – Is Forex.com a Scam?

There are plenty of major complaints on the Internet that rival some of the negative comments we’ve seen about other brokers, big and small. But it’s just the sheer size of the company that makes me feel safe investing my money with it and doing some Forex trading. If many banks around the world are too big to fail, Forex.com is simply too big to be a scam. Eight regulators around the world – the FCA in UK, CFTC, NFA and SEC in the USA, FSA in Japan, SFC in Hong Kong, ASIC in Australia and the IIROC in Canada – approved a financial business and not a financial swindle.

 

Would I Trade with Forex.com? Why Not?

I must say that I was concerned when I saw comments that Forex.com had terminated accounts (and allowed the traders to withdraw the money) just because the traders had made good profits. But I have to live this on my own before doubting about their honesty. Founded in 1999, Gain Capital is one of the early developers of the on-line forex trading and after 15 years not only that they are still presented heavily in the market, but they’re actually in my top 5 biggest brokers in this industry. In my opinion, Forex.com should be on the top of the list of any serious Forex trader.

 

References

  1. Forex.com Pricing
  2. FPA on Forex.com
  3. Forex.com on BabyPips
  4. Forex.com on EarnForex

 

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