FOREX.com vs. CedarFX

The forex market is booming right now. The Federal Reserve has been instituting the most aggressive interest rate hikes since the early 1980s, making the U.S. dollar the strongest currency in the world at the moment. In fact, the greenback booked the best quarter in the last seven years in the third quarter of 2022, outperforming all other major currencies.

Is now a good time to invest in forex markets? If you are interested, it is important to choose an appropriate forex broker to maximize profits. Let’s take a closer look at two of the most popular online forex trading platforms.

What is FOREX.com?

FOREX.com is an online forex broker that facilitates retail foreign exchange and contract for difference (CFD) trades. It is the largest forex broker in the U.S. since 2021 per Commodity Futures Trading Commission (CFTC) reports. It is part of Gain Capital Holdings, which in turn, is a wholly-owned subsidiary of the StoneX Group Inc. (NASDAQ: SNEX). While the platform specializes in forex trades, it also allows trading alternate asset classes, including equities and commodities, in over 500 markets. FOREX.com charges no commission on foreign exchange trades, making it one of the most affordable online forex brokers in the U.S. Per the CFTC 2021 monthly Retail Forex Obligation Report, FOREX.com is labeled as the #1 forex broker in the U.S.

Best for: Forex traders seeking efficiency and zero-commission trading

Headquarters: FOREX.com is based in New Jersey. Its parent company, Gain Capital Holdings, is headquartered at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059.

Trading instruments: You can trade stocks, commodities (including precious metals and oil), indices, forex and cryptocurrencies through a FOREX.com account. Commodities and indices can be traded through CFDs for non-U.S. residents.

Total currency pairs: You can trade more than 80 currency pairs on FOREX.com, including major, minor and exotic currency pairs.

Minimum initial deposit: A minimum initial deposit of $100 is required to open a FOREX.com account. However, a $2,500 deposit is recommended to ensure hassle-free trading and more flexibility.

Regulators: FOREX.com is regulated by the National Futures Association (License No.: 03398626) and the CFTC in the U.S. In addition, the platform is regulated by the Cayman Islands Monetary Authorities (License No.: 25033) under the revised Securities Investment Business Law of the Cayman Islands. FOREX.com is regulated by the Financial Conduct Authority in the U.K. and by the Securities and Futures Commission of Hong Kong in Hong Kong.

Active trader or VIP discount: Traders who meet the requirements for the Active Traders feature on FOREX.com enjoy up to 15% discount on trading costs through cash rebates and reimbursement on bank fees and/or wire transfers. Individuals who place more than $50 million worth of trades in a calendar month or new customers with a $10,000 fund balance qualify as active traders.

Pros:

• FOREX.com facilitates trading more than 9,500 trading products, including over 80 currency pairs.
• Active traders can enjoy up to $10 million in monthly cash rebates.
• The platform provides margin trading services.
• It offers competitive spreads on forex trades.

Cons:

• FOREX.com does not permit U.S. residents to trade CFDs.
• FOREX.com charges $15 per month as inactivity fees for accounts with no trading activity for 12 consecutive months.

What is CedarFX?

CedarFX is an online trading platform based in the U.S., known for its 0% commission and low bid-ask spread. It is also the world’s first eco-broker, thanks to its focus on sustainability. CedarFX plants 10 trees for every lot traded by its customers. Apart from forex trading, CedarFX permits trading stocks, commodities, crypto trading and global indices.

Besides a 0% commission account, CedarFX offers an Eco Account, which charges a $1 commission on each lot traded on the platform. The proceeds from such commissions are used to fund environmental causes through the U.K.-based company Ecologi.

Best for: CedarFX is best known for its zero-commission fee structure and green investing practices.

Headquarters: CedarFX is based in Saint Vincent and the Grenadines.

Instruments: CedarFX supports stocks, commodities, indices, cryptocurrencies and forex trading.

Total currency pairs: You can trade 55 different currency pairs, including major currency pairs, cross currency pairs and exotic currency pairs, through your CedarFX account.

Minimum initial deposit: Account holders need to make a minimum deposit of $50 to activate their trading account on CedarFX. However, if the deposit is made in Bitcoin, the minimum deposit amount is lowered to $10.

Regulators: CedarFX is bound by the domestic law of St. Vincent and the Grenadines. The platform also follows the recommendations of the Financial Action Task Force (FATF) in the Caribbean as well as the EU Directives.

Active trader or VIP discount: CedarFX does not offer discounts to active traders or VIPs.

Pros:

• CedarFX facilitates sustainable investing practices.
• The platform charges no commission on any asset classes traded through a 0% commission account.
• Investors can deposit and withdraw funds in Bitcoin.
• It has a minimum trade size requirement of only 0.01 lots.
• Users have reported fast and responsive customer support.

Cons:

• CedarFX is not regulated by any U.S. government agencies or regulatory bodies.
• No discounts are provided for an active forex trader.
• CedarFX facilitates trading only 170 asset classes, which is lower than its competitors.

Comparative Charges

FOREX.com and CedarFX pip rates on major currency pair trades are as follows:

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FOREX.com Research Offerings

• Trading courses are custom designed for all investors, depending on their experience levels. They are divided into three categories: Beginner, Intermediate and Advanced.
• FOREX.com offers an Advanced Desktop Platform Webinar and MetaTrader platform tutorials.
• Latest news and research and forex market insights are published daily. Week-ahead reports are also published every weekend.
• Technical analysis and chart reading tutorials are available for investors.

CedarFX Research Offerings

• CedarFX offers demo accounts and live trading accounts for beginners.
• CedarFX account holders can track live spreads directly from the web platform or the mobile app.

Bottom Line

FOREX.com and CedarFX are popular online forex trading platforms with different features and benefits. FOREX.com offers zero-commission trading, a wide range of products and competitive spreads, while CedarFX is known for being the world's first eco-broker and offering zero-commission accounts. FOREX.com is regulated by multiple authorities, while CedarFX operates under the domestic law of St. Vincent and the Grenadines. Traders should consider the pros and cons, charges, available instruments and the research and educational resources they provide before making a decision.

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