The post FOREX.com vs. IG by Christina Vatansever appeared first on Benzinga. Visit Benzinga to get more great content like this.
Foreign exchange trading, also known as forex or currency trading, is conducted electronically over-the-counter through online networks in major financial centers worldwide. Trading forex is buying and selling currencies to make a profit. Unlike the stock market, the forex market is open 24 hours a day, 5 and ½ days a week and facilitates transactions worth trillions of dollars. Despite the large volume of trade, investing in the forex market is extremely risky, with an industry average of 82% of forex investors losing money. Yes, financial institutions exist to invest in this market, but a base currency can shift at any time.
There are 2 main forex markets: the spot (cash) market and the derivatives market, including forwards, futures, options and currency swaps. When people refer to the forex market, they usually mean the spot market, where currencies are bought and sold according to current prices. Forex prices are determined by global supply and demand and influenced by factors such as current interest rates, geopolitical events and economic performance among others. Thus, foreign exchange markets are often the first to shift.
The decentralized nature of forex trading has allowed numerous forex brokerages to emerge on the scene. Two of the most successful forex brokerages are FOREX.com and IG. Knowing the benefits and services each broker offers can help you navigate the risks of forex trading better and increase your chance of making money by forex trading.
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CommissionsSpreads start as low as $1
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Commissions$10 value per pip
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What is FOREX.com?
FOREX.com is a DBA name of GAIN Capital Holdings which is a wholly-owned subsidiary of publicly-traded StoneX Group Inc. (NASDAQ: SNEX). This online brokerage company is based in the U.S. FOREX.com serves as a major platform for trading options such as foreign currencies, commodities and stock trading across global markets for all trading strategies. FOREX.com is listed on the New York stock exchange, has been providing trading services since 1999 and is regulated by multiple authorities across international jurisdictions. FOREX.com is regulated in 4 tier-1 jurisdictions, including the U.S., Canada and the UK. This makes FOREX.com an extremely safe forex broker to trade through.
FOREX.com Offers Traders
- Low forex fees
- Over 90 currency pairs
- Sophisticated research tools
- High-level investor protection and security measures
- High transparency
- Demo account
- Copy trading
- MetaTrader 4 & 5
In short, FOREX.com is a great tool for traders who are looking for low fees and high-quality research tools.
What is IG Markets?
IG Markets is a London-based CFD broker with a U.S. division for U.S. traders (IG-US). IG is registered on the London stock exchange, regulated by the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC), and has provided trading services since 1974. IG-US offers a range of forex trading services across international markets and is known for its user-friendly trading app.
IG Markets Offers Traders
- Negative balance protection
- A first-class online trading platform
- High-quality educational and research tools
- Over 90 currency pairs
- High transparency
- CFD trades (Forex CFD trading is not available for citizens)
- Demo account
- MetaTrader 4 & 5
In a nutshell, IG is perfect for traders of all levels who want to take advantage of innovative trading platforms, advanced educational and research tools and high transparency.
Disclaimer: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
FOREX.com Fees and Commissions
| Headquarters | New Jersey, U.S. |
| Instruments | StocksFuturesCFDForexCrypto |
| Currency pairs (Total FX pairs) | 91 |
| Minimum initial deposit | $50 |
| Minimum trade | $1 |
| Active trader or VIP discounts | Yes |
| Regulators | FCACFTCASICFSACIMA |
Fees and Commissions
Forex brokers are compensated via currency spreads, which are measured through a point per percentage (PIP). For U.S.-based currency pairs, a PIP equals 1/100th of 1 cent. When researching a forex broker’s fees and commissions, it is important to take into consideration its PIP rate for different currencies.
FOREX.com’s PIP rates for 3 major U.S.-based currency pairs are below.
| FOREX.com | Industry Average | |
| PIP rate USD/EURO | 0.10 PIP | 0.7 PIP |
| PIP rate USD/GBP | 0.10 PIP | 1.1 PIP |
| PIP rate USD/JPY | 0.9 PIP | 1.1 PIP |
With low account minimums and competitive pricing, FOREX.com is an attractive brokerage for investors looking to spend less on fees and more on investing.
IG Fees and Commissions
| Headquarters | London, UK |
| Instruments | StocksDigital OptionsSpread bettingOptionsCFDForexCrypto |
| Currency Pairs (total FX pairs) | 93 |
| Minimum initial deposit | £250.00 |
| Minimum trade | £1 |
| Active trader or VIP discounts | Yes |
| Regulators | FCAASIC |
Fees and Commissions
Currently, IG’s PIP rates for 3 major U.S.-based currency pairs are below.
| IG | Industry Average | |
| PIP rate USD/EURO | 0.6 PIP | 0.7 PIP |
| PIP rate USD/GBP | 0.9 PIP | 1.1 PIP |
| PIP rate USD/JPY | 0.7 PIP | 1.1 PIP |
Despite its higher account minimum, IG’s ability to offer lower pricing makes it an attractive choice for brokers wanting to invest across multiple currencies.
FOREX.com Research Offerings
FOREX.com is noted for offering research content across all of its trading platforms. Some research aids you can take advantage of when trading with FOREX.com are:
- Economic analysis
- Live trading webinars that offer insights and answer your questions
- Professional charting
- Real-time news from multiple native news feeds
- A global economic calendar
- A FOREX.com-sponsored social trading platform to interact with other forex traders in real time.
IG Markets Research Offerings
One of IG’s strengths is the range and depth of research services it offers traders through their IG Academy. Some of the research tools you can access when trading with IG are:
- Daily Foreign Exchange blog with news and educational articles
- Live-streaming news from Reuters
- Real-time charts
- Technical analysis systems to view trade signals
- Economic calendars and watch lists
FOREX.com vs. IG Markets: Who Offers the Best Trading Experience?
The globalization of trade and finance has transformed forex trading into the largest, most traded and most liquid assets market in the world. While there is major potential for profit in forex trading, there is also significant risk as well, and many investors experience losses. Both FOREX.com and IG are globally recognized forex brokers who offer excellent research and investing tools and whose investor losses are well below the industry norm.
So which one is better for you? These questions can guide you to a decision:
- Are they regulated by reputable authorities?
- How long have they been offering forex trading services?
- How do they manage your money?
- Do they work with reputable banks that value transparent transactions?
- How user-friendly and accessible are their trading platforms?
- Are they publicly listed?
- Do they offer reliable research and educational tools?
- Do they work for experience traders and market participants?
- Are there tight spreads?
- Does the platform fit your trading style?
- Can you check technical indicators?
Considering the questions above, FOREX.com and IG are neck-and-neck in most areas. The only factor that gives IG a slight edge is the friendliness, accessibility and compatibility of its trading platform, which is viewed as one of the forex industry’s best. Bottom line, both brokers can facilitate your forex trading but IG’s trading platform lets you trade better and faster, making it the slight favorite in the currency race.
Frequently Asked Questions
Is FOREX.com allowed in the US?
Yes, U.S. traders can use FOREX.com as their online brokerage.
Is IG forex available in the US?
Yes, U.S. traders can use IG to trade forex. IG U.S. also does’t charge any commissions to U.S. retail clients
Which broker is better than IG?
Alternatives that compare to IG in trading experience and product offerings are FOREX.com and eToro.
The post FOREX.com vs. IG by Christina Vatansever appeared first on Benzinga. Visit Benzinga to get more great content like this.
