Capital.com Broker Review

Capital.com Broker Review

Capital.com stands as a reliable forex and CFD broker, extending its trading services to a diverse clientele worldwide. The broker is a testament to trustworthiness and reliability, regulated by multiple top-tier regulatory bodies such as the FCA and CySEC. Offering a wide array of trading instruments encompassing forex, stocks, indices, commodities, and cryptocurrencies, Capital.com accommodates traders across proficiency levels. Nonetheless, it’s essential for traders to be mindful of the broker’s slightly higher fees and limited research tools. As always, conducting thorough research and due diligence remains crucial in selecting a forex broker.

Trading Instruments

Capital.com presents a versatile range of trading instruments spanning various asset classes:

  • Forex: Delve into major, minor, and exotic currency pairs for forex trading.
  • Stocks: Trade over 2,000 stocks across multiple global markets, including the US, UK, Europe, and Asia.
  • Indices: Access over 25 global indices, encompassing renowned ones like the S&P 500, NASDAQ, FTSE 100, and DAX.
  • Commodities: Engage in trading a diverse array of commodities, including precious metals like gold and silver, energy products like crude oil and natural gas, and agricultural products such as wheat and soybeans.
  • Cryptocurrencies: Seamlessly trade popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

In addition to these, Capital.com offers trading in ETFs (Exchange-Traded Funds) and Futures. The brokerage also enables access to fractional shares, facilitating investments in popular stocks with smaller capital amounts.

Trading Conditions

Capital.com provides competitive trading conditions tailored for its clients, comprising:

  • Leverage: The maximum leverage offered by Capital.com varies by asset class and regulatory jurisdiction. For instance, for forex trading, the maximum leverage extends up to 1:30 for UK-based clients and up to 1:200 for clients outside the EU. For stocks, the maximum leverage reaches up to 1:5.
  • Spreads: Variable spreads, contingent on market conditions and liquidity, are charged on trading instruments. Typically, major currency pairs exhibit an average spread of around 0.6 pips.
  • Minimum Deposit: Opening a trading account with Capital.com requires a minimum deposit of $20 across most account types.
  • Commission: Trades executed through Capital.com do not incur any commission; instead, the broker derives revenue through spreads.
  • Order Types: Multiple order types, including market orders, limit orders, stop-loss orders, and take-profit orders, are offered by the broker.
  • Trading Platform: Access Capital.com’s proprietary trading platform available on both desktop and mobile versions. The platform boasts advanced charting and analysis tools coupled with a user-friendly interface.
  • Educational Resources: Capital.com houses various educational resources suitable for traders at all proficiency levels, encompassing webinars, trading guides, and a comprehensive knowledge base.

It’s crucial to note that trading conditions may be subject to variation based on the client’s country of residence and regulatory jurisdiction. Hence, it’s imperative for traders to verify the offered trading conditions before commencing trading activities with the broker.

Account Types

Capital.com extends three distinct account types, each catering to specific features and benefits:

  • Standard Account: Serving as the fundamental account type, the Standard Account necessitates a minimum deposit of $20. It offers access to over 2,000 trading instruments across various asset classes, with leverage ranging up to 1:30 (for UK clients) or up to 1:200 (for clients outside the EU).
  • Plus Account: Tailored for seasoned traders, the Plus Account mandates a minimum deposit of $3,000. Apart from the Standard account features, Plus account holders gain access to exclusive trading signals, news, and research tools, along with higher leverage up to 1:300.
  • Premier Account: Geared towards high-volume traders, the Premier Account sets a minimum deposit requirement of $10,000. Offering all the Plus account features and additional perks like personalized support and custom trading conditions, Premier account holders can trade with leverage of up to 1:500.

All three account types grant access to Capital.com’s proprietary trading platform, educational resources, and customer support. Traders can select the account type aligning with their trading preferences and experience level.

Regulation and Security

Capital.com, a regulated broker, places paramount emphasis on safeguarding clients’ funds and personal information. Licensed and regulated by esteemed regulatory bodies like:

Financial Conduct Authority (FCA) in the UK

Cyprus Securities and Exchange Commission (CySEC) in Cyprus

National Bank of the Republic of Belarus (NBRB) in Belarus

These regulatory entities impose stringent rules on the broker, ensuring fair and transparent operations while safeguarding clients’ funds.

Capital.com employs advanced security measures such as encryption and firewalls to secure clients’ personal and financial information. SSL (Secure Socket Layer) encryption shields the broker’s website, ensuring secure data transmission between clients’ devices and the broker’s servers.

Furthermore, Capital.com maintains clients’ funds in segregated accounts, separating clients’ funds from the broker’s operating funds. This measure ensures clients’ funds are insulated in the event of the broker’s insolvency.

Conclusion on Capital.com

Capital.com shines as a well-regulated broker offering a comprehensive array of trading instruments across diverse asset classes, including forex, stocks, indices, commodities, and cryptocurrencies. The broker provides access to a proprietary trading platform armed with advanced charting and analysis tools, coupled with a rich repository of educational resources catering to traders of all proficiencies.

Capital.com’s competitive trading conditions, comprising tight spreads, high leverage options, and commission-free trading, fortify its position. Offering a range of account types with a minimal deposit requirement of $20, the brokerage accommodates traders across diverse levels.

In terms of security and regulation, Capital.com secures clients’ trust with its stringent adherence to top-tier regulatory standards and advanced security protocols. The broker’s segregation of clients’ funds underscores an additional layer of protection.

Capital.com emerges as a reputable and dependable broker, delivering a user-friendly trading experience, competitive trading conditions, and a wealth of educational resources, fostering traders’ skills and aligning with their trading aspirations.

OANDA Broker Review

OANDA Broker Review

Established in 1996, OANDA has a global presence across eight financial hubs and holds licenses from six major regulatory bodies worldwide, including the United States, the United Kingdom, Canada, Australia, Japan, and Singapore.

CVC Capital Partners (CVC) Asia Fund IV, managing $70 billion, disclosed its acquisition of OANDA’s entire equity in May 2018, awaiting regulatory consent for the transaction.

Under the OANDA Group, various subsidiaries are authorized to offer products worldwide. The experience for customers varies based on their location, as each subsidiary provides distinct products through different platforms.

Trading Instruments at OANDA

The availability of markets may slightly differ based on the regulating entity overseeing the account. While CFDs are not offered in the United States, OANDA presents up to 124 symbols, 71 forex pairs, and the option for Bitcoin, Ethereum, and Litecoin CFD trading in Australia and the British Virgin Islands.

OANDA enables cryptocurrency trading via CFDs and through its Paxos account, allowing direct trading of crypto assets (like purchasing real Bitcoin). Notably, cryptocurrency CFD trading is prohibited for retail traders from any U.K. broker entity and U.K. residents (excluding Professional clients).

The array of investment products available to OANDA clients is detailed below:

  • Forex Trading (Spot or CFDs): Yes
  • Tradable Symbols (Total): 124
  • Forex Pairs (Total): 71
  • U.S. Stock Trading (Non CFD): No
  • Int’l Stock Trading (Non CFD): No
  • Social Trading / Copy Trading: Yes
  • Cryptocurrency (Physical): Yes
  • Cryptocurrency (CFD): Yes

Fees and Commissions

OANDA’s trading costs tend to be relatively high compared to top brokers, characterized by higher effective spreads across default and core pricing structures. Nonetheless, OANDA’s automated execution across its account offerings remains a key advantage despite not positioning itself as a discount broker.

Spread: OANDA’s bid/ask spreads, while comparable to those of FOREX.com and FxPro, may have slightly higher minimum spread costs compared to brokers offering sub-pip spreads (less than 1.0 pip). For instance, the average non-core pricing on EUR/USD during Q1 2019 stood at 1.2 pips.

OANDA’s core pricing includes a per-side commission of $5 per $100,000 traded (approximately $10 per round turn standard lot) alongside narrower spreads. The minimum deposit for this option is $10,000. Considering the commission, the total cost is nearly equivalent to the commission-free pricing. While the default pricing structure displays a 1.4-pip spread on EUR/USD, the core pricing reflects a 0.4-pip spread. After factoring in the commission-equivalent of 1 pip (0.5 pips per side), the total cost under core pricing sums up to 1.4 pips, similar to default pricing.

Micro lots: OANDA allows a reduced minimum trade size of 1 unit or 0.001 micro lot, deviating from the typical one micro lot for forex trading.

Transparency: OANDA maintains pricing transparency by consistently publishing trailing average spreads across various time frames. However, precise comparisons are challenging due to the absence of figures representing average spreads over fixed periods like a day or a month.

OANDA Mobile App and Trading Platforms

Ranked among the top brokers in 2023, OANDA’s fxTrade mobile app offers user-friendly navigation, superior market research, and impressive charting features.

App Overview: OANDA presents its proprietary fxTrade mobile app and the renowned MetaTrader 4 (MT4) mobile app developed by MetaQuotes Software Corporation.

Functionality: The fxTrade app provides an easy process to access charts by clicking the graph icon on the watchlist. Its simple design facilitates trade setup and setting price alerts. Alongside straightforward layout, the app balances charting with tools such as news headlines and integrated Autochartist research.

A notable feature is the seamless transition from charts to the trade ticket window, enabling swift order placement, with a drag-and-drop function for adjusting stop-loss and limit order levels.

Charting: Offering flexible charting options, the fxTrade app incorporates 33 technical indicators, 13 drawing tools, and a choice of over a dozen time frames. Smooth zooming capabilities enhance user experience owing to the app’s responsive design.

Syncing watchlists across platforms and alignment of mobile chart indicators with desktop or web versions of fxTrade could enhance its functionalities. Additionally, incorporating instructional and market analysis videos could further enrich the fxTrade app.

Trading Platforms

OANDA’s fxTrade trading platform, powered by TradingView, excels in market news and charting but falls short in certain aspects, particularly in integrating trading and research tools within its desktop and web platforms.

Platform Overview: OANDA provides two trading platform suites, including the popular MetaTrader 4 (MT4) platform accessible on web and desktop, and the fxTrade web and desktop trading platform. Recently, OANDA extended accessibility of MetaTrader 5 (MT5) beyond Japan through its BVI entity.

Charting: Leveraging TradingView-powered charts, the fxTrade platform offers over 80 indicators and multiple features, allowing the overlay of different currency pairs for price comparison. Identical functionalities across web-based and desktop versions facilitate seamless transitions between platforms.

However, certain integrated platform features redirect users to new browser windows, disrupting the workflow. OANDA’s Marketplace introduces additional platforms like the Seer Trading Platform for developing algorithmic trading systems and supports trading connectivity with various charting platforms.

Account Management: OANDA streamlines money transfers and statement access through its online account management portal by consolidating several services.

Market Research

OANDA provides a wealth of daily articles, podcasts, and research tools catering to forex and CFD traders. However, some research resources open in new browsers instead of integrating directly into the platform, causing minor inconvenience.

Research Overview: Extensive forex research at OANDA includes news headlines from Dow Jones Newswire on MetaTrader4 and fxTrade platforms, complemented by a wide array of articles on its MarketPulse website. Integrated trading signals and automated technical analysis via Autochartist enhance the broker’s web platform and mobile app.

OANDA’s MarketPulse website, powered by its research team, delivers market news and analysis. Furthermore, while third-party technical analysis software is available, OANDA offers Dow Jones Select among its premium offerings.

Education at OANDA

While OANDA boasts a substantial collection of written educational content and staff-led webinars, it lacks a diverse range of instructional videos. Broadening the video library and streamlining content organization could enhance OANDA’s educational offerings.

Learning Center: Covering technical and fundamental analysis across 19 chapters, OANDA’s online course comprises several lessons, yet the supplemental videos primarily focus on platform tutorials rather than comprehensive financial market lessons.

Improvements Needed: OANDA’s educational materials for beginners are dispersed on its website. Enhancing filtering capabilities by experience level and expanding video content akin to top brokers could further enrich the educational experience at OANDA.

Conclusion on OANDA

OANDA stands out for its robust regulatory history, securing licenses in major financial centers. Its exemplary mobile and web trading apps contribute to it being recognized as Best in Class for Ease of Use in 2023. While catering to both sophisticated and casual investors, OANDA’s U.S. brand serves American traders but faces limitations due to its limited product range and pricing in comparison to top low-cost brokers.