Residence, Regulation, and Company Management Structure

FOREX.com is a subsidiary of GAIN Capital Group, thus it does not have any independent registration. As for GAIN Capital Group, it is registered in FCM as a broker company, regulated by CFTC and has a membership of NFA. Founders and managers of the company are mentioned on its site - www.gaincapital.com.

Company's Market Position

FOREX.com was created in 2003 to meet the needs of individual investors at FOREX market and for opening standard and mini accounts. No partners (liquidity suppliers) are mentioned.

FOREX.com conducts only individual standard (from $2500) and mini (from $250) accounts. Traditional FOREX-brokers programs, such as «Introduced broker», «White Label» and services of confiding management are offered by the associated company GAIN Capital Group.

Types of Services Offered

FOREX.com offers 16 currency pairs to trade – 7 majors and some of their cross-courses.
The size of a standard lot is $100000 or equivalent sum and $10000 on a mini-account. A maximal credit leverage is given 100:1 for standard, 200:1 for mini-lots. Clients can reduce the size of credit leverage if they want and trade mini-lots from standard account.

Minimum marginal requirements are 100% from an initial margin. The transfer of positions the next day is made on principle of SWAP, the values of rates of payments are not indicated. The exact sizes of spreads on the trading currency pair are not indicated.

Quotation is done only by stream method, the company reserves a right to widen the spreads at the «rapid» market. Information about term-of-trades is stated in one section («Reference book of trader»), but exact values of spreads and swaps are not mentioned. Opening of a trading account can be done online, or by completion of printed forms, which should be sent to the company. Depositing an account (or withdrawing money from it) is possible only by credit cards, bank orders or checks from American banks.

Trading deposits of clients are insured in Federal Deposit Insurance Corporation on sums up to $100000.

Traders Support

The site has a very interesting educational page. Demo-account is offered for 30 days only. Interactive support of users is done by free telephone lines available in different countries, and by e-mail. There is also an online form.

The site supports English, Russian and Chinese.

Analytical support includes both GAIN Capital Group's market and analyses of the largest participants of the market – Commerzbank, HSBC, Rabobank, Wachovia, BNP Paribas etc. The full version of analytics is offered only to real clients, but there are several examples on the site. A large set of paid analyses of other resources is offered also.

The Trading Platform

The company offers a JAVA trading platform of “FOREXTrader” which requires installation. There are web and mobile versions of it. Both versions enable you to watch the state of account and opened positions, but the mobile version does not support charts and makes the default a warrant. Stationary variant is the most functionally complete. It provides news, calendar of events and analytical materials.

Site Design and Ease of Navigation Comments

The design of the site is really pleasant. Information is full and well-structured, and navigation is convenient.
The site might have been translated to Russia with an automatic translator, because there is a number of ridiculous mistakes which are a characteristic of automatic translators.

Advantages

• The company doesn't hide the fact of being a subsidiary.
• The head company, GAIN Capital Group is located in the USA; availability of CFTC.
• Insurance of trading deposits.
• Flexible and powerful trading platform.
• High-quality analytical support, large choice of analytical products.

Disadvantages

• Company is not registered as independent business-unit, its activity is not controlled by anybody and is not regulated.
• There is no exact information about term-of-trades (sizes of lots, spreads, swaps) on the site.
• The sizes of payments for withdrawing money from trading accounts are not indicated either.
• No bilateral agreement between clients and company is required on the site.
• Careless translation of the site into Russian language and possibly Chinese.