CMS Forex is a broker that is headquartered in New York and is affiliated with Gain Capital. For you bloggers out there, that doesn't stand for "content management system." It also doesn't stand for Center for Medicare and Medicaid Services. It's actually a broker and it has become quite popular in recent months. Before you open an account with them, you need to do your homework first. Here are a few things to consider about this particular broker.
Overall Rating: 8/10
Safety of Funds: 10/10
Customer Service: 8/10
Minimum Account Size: $500
CMS Forex is one that tends to get mixed reactions out in the Forex trading community. Some people do not like the confusing nature of the broker's arrangement with Forex.com or Gain Capital. Others rave about the VT Trader platform. So what are you supposed to believe?
Relationship with Gain Capital
I think a lot of the problems that people have with this broker deal with the relationship they have with Gain Capital. CMS Forex used to be an independent broker and handled everything on their own. Then in 2010, CMS became an introducing broker for Forex.com, also known as Gain Capital.
Now, instead of handling all of the functions that a normal broker handles, they simply pass your business along to Gain Capital. CMS handles customer service and you get to trade through their Forex platforms. However, Gain holds your money and the execution you get essentially comes through their network.
Perhaps the biggest selling feature for this broker is the VT Trader platform. Many traders love this unique platform and the tools that it provides. With this platform, you can do a lot of things that are not available with other trading platforms such as Metatrader 4.
With VT Trader, you can completely customize the layout according to your preferences. You also have access to over 120 technical indicators, which are not all available on other platforms. This platform has a lot of user-friendly functionality, but at the same time, VT Trader is also very advanced.
They have pretty good Forex spreads that can get down as low as .9 pips, depending on the time of day. Since the trades go through Forex.com, you should not have any liquidity issues either. You can also get leverage of up to 200:1 outside the US and Japan. In the US and Japan, 50:1 is the maximum available. They also have demo accounts that you can use to get used to the VT Trader and any other platforms you want to try.
If you're looking through all of the various Forex brokers out there, this particular broker may not have a lot separating it from the rest at first glance. The primary advantage it has is the trading platform. Since Gain is a good broker, I would also consider this to be a good broker. You simply get a bit more functionality than what you would get by going with Gain. Overall, I consider this to be a solid broker and you should feel safe depositing your money with them.