FOREX.com investment products: Unveiling Investment Opportunities
Understanding the range of FOREX.com investment products available is crucial for any potential trader. The specific offerings you can access will largely depend on your geographic location and the regulatory entity of FOREX.com that manages your account.
FOREX.com Offerings by Region
Regulatory frameworks play a significant role in determining product availability. For instance, while CFDs are not permitted in the U.S. market, FOREX.com provides an extensive selection of over 4,500 CFDs to traders residing outside the U.S. Furthermore, knock-out options have recently become available in Japan, Singapore, and Australia, expanding the FOREX.com investment products portfolio in these regions.
FOREX.com CFD Availability and Cryptocurrency Trading
FOREX.com CFD availability extends to a wide array of instruments, including cryptocurrencies. It’s important to note that while FOREX.com cryptocurrency trading is offered via CFDs, direct trading of the underlying asset (e.g., purchasing actual Bitcoin) is not supported. Also, specific restrictions apply: crypto CFDs are not available to retail traders through any U.K. entity, nor to U.K. residents (with exceptions for professional clients).
A summary of key investment products includes:
- Forex Trading (Spot or CFDs): Yes
- Total Tradeable Symbols: 5500
- Total Forex Pairs: 91
- U.S. Stock Trading (Non CFD): No
- International Stock Trading (Non CFD): No
- Social Trading / Copy Trading: No
- Cryptocurrency (Physical): No
- Cryptocurrency (CFD): Yes
FOREX.com Fees and Account Types
FOREX.com provides various execution methods and three distinct FOREX.com account types. While transparent about its execution statistics, our analysis indicates that FOREX.com’s pricing can be slightly higher compared to the industry average.
Understanding FOREX.com Account Types and Associated Costs
The Standard account is the sole option for MetaTrader users. It features average spreads of 1.1 pips (1.3 pips in the U.S.) on the EUR/USD, based on August 2021 data. This account appeals to traders who prioritize market-maker execution despite paying a premium through wider spreads for their FOREX.com investment products.
The DMA account, known as the STP PRO account in the U.S., is globally accessible and integrated with FOREX.com’s Advanced Trading platform. This account offers agency execution and the potential for significant discounts, especially for high-volume traders. Typical spreads for EUR/USD in August 2020 were 0.03 pips, with an effective all-in cost of approximately 1.5 pips after factoring in commissions. Higher trading volumes can further reduce these effective spreads.
The Commission account, exclusive to the U.S. and FOREX.com’s proprietary platforms (not MetaTrader), requires a $10,000 deposit and at least $25 million in monthly volume. This account is designed for medium to high-volume traders seeking benefits from the Active Trader program. Commission tiers offer rebates, but the base commission for the lowest tier is $10 per Standard lot, significantly impacting the overall cost for smaller volumes of FOREX.com investment products.
Conclusion
FOREX.com offers a diverse range of FOREX.com investment products, particularly strong in CFD offerings outside the U.S. and specialized options in specific regions. While its account types cater to different trading styles and volumes, traders should carefully consider the associated FOREX.com fees and regional availability to align with their trading strategies. The platform’s extensive offerings demonstrate its commitment to providing various avenues for market participation.
