An In-depth Capital Index Review For The Informed Trader
Capital Index is a Forex, CFD, and spread betting broker that has its offices in the UK, Cyprus, and South Africa. Capital Index is a new broker in the market that has gone all out in its service offering by providing access to an incredible range of assets such as Forex, stocks, indices, commodities, bonds, metals, and energy futures. Capital Index provides a Straight Through Protocol (STP) trading account for traders through different account packages, which allow traders to tap into the liquidity market through established and top liquidity providers in the market.
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Trading instruments, or securities, are the various market types you can trade. Examples include CFDs, stocks, currencies, metals, and commodity futures.
Type of Brokers
Market Maker, DMA
Platform for trading Forex, analysing financial markets and using expert advisors.
Multi-asset platform for trading Forex and CFDs.
Trade online without downloading any software.
Wire Transfer, Bank Transfer, Credit or Debit Cards, PayPal
Capital Index operates on a completely No Dealing Desk (NDD) model, which ensures that there is no interference from the company officials or its employees on the outcome of a trade. The broker does warn, however, that their liquidity providers may act as a market maker; albeit there shouldn’t be any potential conflict of interest with a trader due to anonymity clauses. Capital Index is regulated by the Financial Conduct Authority (FCA) of the UK, the Cyprus Securities and Exchange Commission (CySEC), and the Financial Services Board (FSB) of South Africa. Capital Index’s primary regulatory supervision is carried out by the FCA and the CySEC under the European MiFID, which ensures that the broker is highly efficient and secure in its dealing with its clients. Capital Index is open in its policy of holding client funds, which are segregated from the company accounts by holding them in separate bank accounts at Barclay’s Bank PLC. Further protection is provided by the Financial Services Compensation Scheme (FSCS), as a part of the FCA regulation, and the Investor Compensation Fund (ICF), as a part of the CySEC regulation. Both the FSCS and the ICF was adopted to provide protection for client funds if a broker ends its business without warning. There are cases where brokers may end up insolvent due to bankruptcy procedures or other legal complications, in which case, traders can receive their dues from the FSCS or the ICF as per their account equity. Nevertheless, the FSCS only provides protection up to £50,000, while the ICF offers a maximum of €20,000 in compensation if a broker fails to meet its debts with the trader.
The Reliability Of Capital Index Forex Trading Platforms
Capital Index has all the qualities for becoming a leading Forex broker, but as far as the Capital Index platform is concerned, the company only provides the MT4 terminal. The company did have the resources to create a new interface, but it has decided to save the money by using the MT4 license for FX trading. The MT4 is certainly not a bad choice, mainly because the MT4 is the primary platform of choice for retail traders, but traders could have felt more confident if the broker had also provided an additional platform, especially for its ECN traders. Capital Index mobile users will have to download the MT4 apps from iOS and Android store, or they can alternatively access the MT4 web browser to access their Capital Index trading account. As always, the MT4 desktop platform works well on both Windows and Mac operating systems. Due to the NDD nature of the platform, you can expect excellent speed and reliability, with orders being executed within milliseconds. Of course, an ECN account promises to fill orders at market price, but there can be significant slippages due to the extreme volatility in the markets. ECN accounts may also fill orders partially if there isn’t enough liquidity, but orders are always fast and instantaneous.
The Different Categories Of Capital Index Accounts
Capital Index Accounts are available for all traders, except those from the US and other countries where Forex trading and serving financial products are banned. Capital Index does not have a valid CFTC and NFA regulatory license, which eliminates the US market for the broker. Nevertheless, traders can primarily choose between the Advanced and Pro accounts. The Advanced account is a regular STP account that offers fixed spreads without any commission per trade. Capital Index spread for the Advanced account starts from 1.2 pips, and the account can be opened with a minimum deposit of £100. The Pro account allows traders to enjoy tighter spreads that start from 0.9 pips, but they will have to pay a commission of $3.5 per traded lot. The Pro account is available for deposits greater than £500, and all the other trading conditions are similar to the Advanced account. Both accounts are offered with a maximum Capital Index leverage of 1:200. The broker offers VPS as a free option for both accounts, which is an excellent inclusion, considering that VPS access for traders come at significant costs at most leading Forex brokers. Of course, for continued free VPS access, the trader should transact a required number of minimum orders, which is done to offset the monthly costs of VPS access. VPS is excellent for traders to enjoy lower latency, higher execution speeds, but most importantly, for EA and automated trading, where connectivity issues can affect the trading results significantly. Capital Index also offers another category of trading account for Muslim traders, known as the Islamic account, which eliminates SWAP fees and interest rates for those who follow the Sharia principles of trading. The Islamic account is the Advanced account that has all the trading conditions, apart from the SWAP fees for overnight trades. The broker had revamped its services and products, and offer completely different trading services than the ones that were provided when they launched their brokerage in 2014. Now, you don’t get any Capital Index bonus for your deposit, and the minimum deposit requirements have increased to $100 from the initial no minimum deposit limit. Subtle changes from the broker have also allowed it to streamline its services, but it has also ended up alienating many in the retail trading market. Inevitably, other excellent broker options in the market are considered to be far better regarding trading conditions and cost of trading, which should eclipse the services offered by Capital Index in a significant manner.
Is Capital Index safe?
Yes, as Capital Index is regulated and authorised by the Financial Conduct Authority (FCA), the broker is considered to be safe. The FCA ensures that their licensed brokers adhere to a strict set of guidelines and rules which serve to safeguard clients against irresponsible practises and fraud.
Is Capital Index a good broker?
Whilst Capital Index is fully regulated and offers traders access several markets including forex, indices, commodities, and precious metals, our experts do not recommend choosing this broker. Our extensive review of Capital Index found that it offers a below par trading experience in comparison to our recommended forex brokers.
What account types are available at Capital Index?
Capital Index offers three different account types; Advanced, Pro, and Black. Minimum deposits range from $100 for advanced accounts, up to $50,000 for Black accounts. Black accounts are specifically for professional traders and available through invite-only. All accounts have access to MT4 web and mobile platform.
Are there deposit or withdrawal fees at Capital Index?
Transaction fees at Capital Index depend on which payment method you wish to use. For bank transfers, debit cards, and credit cards no fees apply. Should you wish to utilise same day transfers, however, you will be charged a 15 GBP/EU/USD fee.
What is the minimum deposit amount at Capital Index?
The minimum deposit at Capital Index varies based on which account type you have selected. For the advanced account, deposits start at $100. Pro accounts allow you to start trading with a deposit of $5,000 or more. Black accounts are invite-only professional trading accounts and require a $50,000 minimum deposit.