Broker Guide To Forex.com: Account Types And Requirements
Forex.com offers both practice and live trading accounts on its platform, enabling traders to place hypothetical trades before committing actual capital. By default, practice accounts are only valid for 30 days, but can be renewed by calling 877-367-3946 or by using the live chat feature on the company's website.
The company's practice account provides $50,000 in fake currency and full access to its trading platforms and tools for 30 days in order to familiarize novice forex traders with the tools and features of the trading platforms, as well as to facilitate the testing of forex trading strategies in a risk-free environment before committing actual capital.
While the company doesn't explicitly offer different levels of service depending on account value, GAIN Capital Holdings Inc. does operate an institutional division through GAIN GTX that caters to professional forex traders with higher account values. This service also offers a specialty execution desk that is capable of making complex trades with low spreads.
The company's accounts are capable of trading 58 different currency pairs, gold contracts and silver contracts by default for retail accounts. However, GAIN GTX can offer additional liquidity in 10 equity indexes and seven additional commodities.
To open an account, traders may either apply online or download the necessary forms to mail in from Forex.com's website. Non-U.S. residents must submit two forms of identification, including one photo ID and one proof of address, as well as complete a W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding form.
The company requires a minimum initial deposit of $500, but recommends a starting balance of at least $3,000 to trade the full range of products offered. Funding can be initiated via credit card, debit card, eCheck (ACH payment), wire transfer or a personal/business check. But, it's important to note that eCheck or ACH payments are only accepted from U.S. banks.
Many beginning forex traders tend to be undercapitalized, which means that they may be taking on excessive risk. In general, traders should have sufficient capital such that they are only risking 1% or less of their funds on any single position, called the 1% rule. So, an account with a minimum deposit of $500 would only permit $5 positions under this set of rules.
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