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Picking the perfect Forex broker can sometimes prove tough especially if you are new to Forex trading. In order to end up with the right broker that will enable you to make profitable trades and also allow you to withdraw such profit, several features have to be looked at. In our Capital.com review, we are going to take a look at the key features of the broker which will help you decide whether to open an account with them or move to the next broker.
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What is Capital.com Forex broker?
According to the details found on Capital.com website, the firm was founded in 2016. The brokerage firm is owned by Capital Com Investments Limited. The mother company is a Financial Investment firm based in Cyprus and is licensed by CySEC. The trading license of the investment company is 319/17 and it is duly registered under the Cyprus business laws.
Being a CySEC regulated broker, Capital.com is supposed to afford its clients a number of features as provided by Cyprus law. For a start, Capital.com Forex broker is required by law to separate clients’ accounts from the firm’s. In case a broker becomes insolvent, clients who have accounts with any European regulated FX broker can get as much as 20,000 Euros. This is provided by the MiFID regulations.
In our Capital.com scam review, you will find that the broker operates in accordance with the European Securities and Markets Authority (ESMA) new regulations which were introduced in August 2018. According to ESMA, a Forex broker cannot offer leverage surpassing 1:30 for fiat currency, indices, and non-major currencies is 1:20 while non-major indices get 1:10. Even though the risk of losing money decreased significantly with the new ESMA regulations, traders can no longer earn monumental profits based on high leverages like 1:1500.
Trading at Capital.com
Capital.com Forex broker has an attractive and seemingly efficient trading platform which happens to be a very important feature to consider. Even though MetaTrader 4, the most popular trading platform is not found here, the broker has invested in some efficient platforms. There are Mobile Apps which are both compatible with iOS and Android mobile devices. In addition to this, the broker has a web-based trading platform which is called Investimate. In this Capital.com review, we find that a trader should have a good time whether one opts to trade using a Mobile app or Investimate.
At Capital.com Forex broker, you can trade any of the featured 700 instruments. These instruments include cryptocurrencies, different fiat currencies, CFDs, stocks, metals and commodities. The spreads provided by this broker for a standard account is around 0.6 which is considered tight. The broker further states that there are no commission charges applicable. However, one cannot verify this as there are Capital.com opinions which contradict this. Given there is no Demo account, it is hard to verify this without first making a deposit.
Types of accounts at Capital.com
This broker provides FX traders with four different accounts. The most basic type of account is the Retail Account. This account requires a minimum deposit of $100. Among the features which a trader will enjoy when they sign up for this account include access to a wide range of markets, advanced charts, and negative balance protection. There is the Plus Account which comes with a dedicated platform walkthrough and custom analytics as additional features over the Retail Account. The minimum initial deposit is $3,000.
Many of the Capital.com reviews point out that this broker is unique because it has a professional account. While leverage for major currencies should be 1:30, ESMA provides for the Professional Accounts to enjoy 1:200 leverage. The minimum deposit for this account is $100 and a trader stands to access numerous features. The last account is the Premier Account which affords a trader as many benefits as the Professional Account except for the cash rebates feature. The minimum deposit is $10,000.
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Is Capital.com legit?
When you browse through the Capital.com website, you will find some cool features, some which are quite exciting. One of the positive features about this broker is the fact that it is licensed by CySEC. This regulatory body is among the most reliable bodies in the financial world. The broker has displayed the licensing and registration details on its website. Even though a requirement by ESMA, the broker states on its website that around 77% of its retail traders lose money. This serves to help new traders understand how risky or profitable FX trading is.
The $100 initial minimum deposit for a Retail Account is reasonable. However, there are several FX brokers that ask for $50 or less. There are several Capital.com reviews where you will find out that there are very few brokers that have a dedicated Professional Account. The broker offers this account in accordance with the strict ESMA regulations.
Capital.com Forex broker seems to be a market maker. This is not a good thing to traders. The other disadvantage about this broker is the lack of MT4 trading tool which is trusted by millions of traders all over the world. While writing this Capital.com review we observed that the broker does not offer a demo account. But when compared with many other brokers, Capital.com seems to be an okay place to open a trading account at.
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