Forex.Com Vs IG

Category: Broker Guides | Author: Trading Brokers | Date: June 28, 2023

In the world of online trading, having a reliable and reputable broker is essential for success. With numerous options available, it can be overwhelming to choose the right one for your trading journey. Two popular choices that often come up in the discussion are Forex.Com and IG. These brokers have established themselves as prominent players in the industry, offering a range of features and services to cater to traders of all levels. Whether you’re a seasoned trader or just starting out, deciding between Forex.Com and IG requires careful consideration of various factors. In this article, we will compare and evaluate these brokers across different aspects to help you make an informed decision and find the better choice that suits your trading preferences.

Overview of Forex.Com

FOREX.com

FOREX.com

Forex.Com is a reputable and globally recognized online forex trading platform owned and operated by GAIN Capital Holdings Inc. With a history dating back to 2001, Forex.Com offers a reliable and user-friendly trading environment for individuals and institutions. The platform provides access to the foreign exchange market, allowing traders to buy, sell, and trade various currency pairs. Offering advanced technology, real-time market data, customizable indicators, and multiple trading platforms, Forex.Com ensures a seamless trading experience. It is regulated by reputable financial authorities in multiple jurisdictions and offers a range of educational resources to support traders. With its commitment to security, transparency, and customer satisfaction, Forex.Com has established itself as a trusted platform in the forex trading industry.

Pros of Forex.Com

  • Established and reputable platform with a long history in the forex trading industry.
  • User-friendly interface and intuitive trading tools for a seamless trading experience.
  • Access to a wide range of currency pairs and other financial instruments for diversification.
  • Regulated by reputable financial authorities, ensuring security and compliance.
  • Offers comprehensive educational resources and support for traders at all levels.

Cons of Forex.Com

  • Limited account types compared to some other platforms, potentially restricting options for certain traders.
  • Inactivity fees may apply if an account remains inactive for a specified period.
  • Some users have reported occasional delays in customer support response times.
  • Margin requirements and leverage limits may not suit all trading strategies or risk preferences.
  • The availability of certain advanced features or tools may be limited to specific account types or trading volumes.
Forex.com Logo

Since 2001, Forex.com has been providing traders around the globe with industry leading trading conditions including user-friendly platforms, tight spreads, low commission fees, rapid trade execution speeds. The broker is regulated in multiple jurisdictions and has a huge selection of trading instruments, powerful tools and educational materials.

69% of retail investor accounts lose money when trading CFDs with this provider.

Overview of IG

IG

IG

IG, or IG Group, is a highly reputable and widely recognized provider of online trading services. With a history dating back to 1974, IG has become one of the largest and most respected platforms in the financial industry. Offering a diverse range of trading instruments, including forex, stocks, indices, commodities, and cryptocurrencies, IG provides traders with user-friendly and feature-rich trading platforms. Regulated by reputable financial authorities in multiple jurisdictions, IG ensures a secure and reliable trading environment. With a commitment to customer service, competitive pricing, and a wealth of educational resources, IG has established itself as a trusted platform for traders of all levels.

Pros of IG

  • Established and reputable platform with a wide range of trading instruments.
  • User-friendly and feature-rich trading platforms with advanced charting tools.
  • Regulated by reputable financial authorities, ensuring security and transparency.
  • Comprehensive educational resources to support traders’ knowledge and decision-making.

Cons of IG

  • Inactivity fees may apply for inactive accounts.
  • Occasional delays in customer support response times reported.
  • Margin requirements and leverage limits may not suit all trading strategies.
  • Availability of advanced features may vary based on account types or trading volumes.
  • Pricing structure, including spreads and commissions, may be comparatively higher.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Comparing Forex.Com and IG: Which Forex Trading Platform is Right for You?

To determine which platform is more suitable for you, let’s compare Forex.Com and IG across various factors:

Regulation

Forex.Com is authorized by multiple regulators, including the Financial Conduct Authority (FCA) in the UK, the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the US, the Investment Industry Regulatory Organization of Canada (IIROC), the Australian Securities and Investments Commission (ASIC), the Financial Services Agency (FSA) in Japan, the Cayman Islands Monetary Authority (CIMA), and the Monetary Authority of Singapore (MAS). Similarly, IG is authorized by the FCA in the UK, as well as by the Swiss Financial Market Supervisory Authority (FINMA) in Switzerland, MAS in Singapore, the Japan Financial Services Agency (JFSA), the New Zealand Financial Markets Authority (FMA), the Dubai Financial Services Authority (DFSA), and the South African Financial Sector Conduct Authority (FSCA).

Trading platforms

Forex.Com provides a user-friendly web-based platform, along with mobile apps for iOS and Android devices. In addition, traders have the choice of platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), NinjaTrader, and TradingView. On the other hand, IG offers a more advanced web-based platform with extensive tools and features. Traders can customize charts, access indicators and drawing tools, set alerts, access news and research reports, utilize trading signals, and choose from platforms like MT4, ProRealTime, L2 Dealer, and IG Trading Signals. Similar to Forex.Com, IG also offers mobile trading apps for convenient trading on the go.

Pricing and fees

Forex.Com provides commission-free trading on forex pairs and CFDs, with fees being incorporated into the bid-ask spreads. However, be aware of additional charges such as withdrawal fees, conversion fees, overnight fees, and inactivity fees. On the other hand, IG charges commissions on share CFDs and spread fees on various instruments. Traders should also consider overnight fees, guaranteed stop-loss order fees, share dealing commission, and inactivity fees when trading with IG.

Broker Type

Forex.Com operates as a market maker broker, meaning it acts as the counterparty to its clients’ trades. This model can potentially lead to a conflict of interest, as Forex.Com has the ability to set prices and spreads for its instruments. However, Forex.Com claims to use a hybrid model that combines market making with hedging some of its exposure with third-party liquidity providers, which helps mitigate this conflict to some extent. In contrast, IG operates as a no dealing desk (NDD) broker, acting as an intermediary between clients and the market. As an NDD broker, IG passes on prices and spreads from liquidity providers, reducing the potential conflict of interest between the broker and its clients.

Leverage

Forex.Com and IG offer different levels of leverage depending on the instrument and jurisdiction. Forex.Com provides leverage up to 1:50 for forex pairs, 1:20 for indices, 1:10 for commodities, 1:5 for crypto assets, and 1:2 for shares in the US. These levels comply with the maximum leverage allowed by the CFTC and the NFA for US clients. However, Forex.Com may offer higher leverage levels to clients outside the US, subject to local regulations. IG offers leverage up to 1:30 for forex pairs, 1:20 for indices and commodities, 1:10 for shares and ETFs, 1:5 for crypto assets, 1:2 for bonds, options, futures, interest rates, sectors, IPOs, sprint markets, binaries, and digital 100s in Europe. These levels adhere to the maximum leverage allowed by the European Securities and Markets Authority (ESMA) for retail clients in Europe. Similar to Forex.Com, IG may offer higher leverage levels to professional clients or clients outside Europe based on local regulations.

Asset Selection

Forex.Com offers access to a wide range of instruments, including forex pairs, indices, commodities, shares, crypto assets, ETFs, and futures contracts. Meanwhile, IG boasts an extensive selection of over 19,000 instruments, covering forex pairs, indices, commodities, shares, bonds, options, futures, interest rates, sectors, IPOs, spread betting, crypto assets, sprint markets, binaries, and digital 100s. IG also offers investment products such as funds, ISAs, and SIPPs.

Social Trading

Both Forex.Com and IG do not provide dedicated social trading features on their platforms. However, both brokers offer resources and tools to help traders learn from others and enhance their skills. These resources include webinars, articles, videos, podcasts, and trading signals. Forex.Com and IG prioritize the educational aspect of trading to empower their clients with knowledge and insights.

Minimum deposit

The minimum deposit requirement is an important consideration, particularly for traders with limited initial capital. Forex.Com requires a minimum deposit of $100 for a standard account and $25,000 for a premium account. Comparatively, IG requires a minimum deposit of £250 for a standard account and £50,000 for a premium account.

Withdrawal and Deposit Methods

Forex.Com offers deposit methods such as bank wire transfer, credit/debit cards, and e-wallets like PayPal, Skrill, and Neteller. Withdrawals can be made using similar methods, and the processing time can vary depending on the chosen method. Similarly, IG provides various deposit methods, including bank wire transfer, credit/debit cards, and e-wallets like PayPal and Skrill. Withdrawals can be made using the same methods, and the processing time can also vary.

Forex.Com or IG: Which Broker is the Better Choice for You?

When considering whether Forex.Com or IG is the better choice for you, several factors come into play. If you’re someone who values a wide range of trading instruments and access to futures contracts, Forex.Com may be the preferred option, as it offers over 4,500 instruments across various markets. However, if you prioritize advanced trading platforms with customizable charts, indicators, and trading tools, along with a broader selection of over 19,000 instruments, including spread betting and investment products like funds, ISAs, and SIPPs, then IG might be the better fit. Pricing and fee structures also play a role; if commission-free trading is crucial, Forex.Com is the way to go, whereas IG offers more diverse fee structures that cater to different types of trading. Additionally, if you prefer a market maker model with the potential for hybrid execution and strong regulatory oversight across multiple jurisdictions, Forex.Com is worth considering, while IG’s no dealing desk model, passing on prices from liquidity providers, may be more appealing if you prioritize reduced conflict of interest. Evaluating factors such as leverage options, minimum deposit requirements, withdrawal and deposit methods, and the availability of social trading resources can further aid in determining the best platform for your specific needs.

Conclusion

In conclusion, when choosing between Forex.Com and IG, it ultimately depends on your individual preferences and priorities. Consider factors such as the range of trading instruments, advanced platform features, pricing structures, broker types, regulatory oversight, leverage options, minimum deposit requirements, withdrawal and deposit methods, and social trading resources. By carefully evaluating these aspects and aligning them with your specific trading needs, you can make an informed decision on which platform, Forex.Com or IG, is the better choice for you.


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