How Does CapitAlpha Fare In The Industry? Discover More In This CapitAlpha Review
The online Forex trading community is relatively new in terms of financial investments and trading, which still witnesses an influx of new brokers sprouting up from different parts of the world. A majority of new Forex brokers realize the importance of setting up a brokerage according to the requirements of traders, which includes better regulatory status, the safety of funds, advanced trading options, and better trading platforms.
Best and most trusted forex brokers in July 2020
All the brokers below are available in:
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
CapitAlpha is a wholly owned subsidiary of AJF Financial Services Ltd., which is a financial services company located in Limassol, Cyprus. AJF Financial Services Ltd. launched CapitAlpha as a Forex and CFD broker in 2016, and is regulated by the Cyprus Securities and Exchanges Commission (CySEC). CySEC is a member of the European Securities and Markets Authority (ESMA) and bound by the derivatives set forward by the MiFID on Forex broker regulation. CySEC is a highly recommended regulatory agency that has improved its operational structure to induce more investor-protection laws to satisfy the existing European regulatory guidelines. As per the CySEC policies for CapitAlpha regulation, the broker should follow several policies that are designed to safeguard clients’ money. All European brokers should hold their entire operating capital at top banks in Europe, and clients’ funds are supposed to be held in segregated accounts, away from the broker’s core operating account. The CySEC performs routine auditing of all regulated brokers to ensure that the companies do not misuse their client funds in any manner, and in the case of any broker-related issues, traders are protected through the CySEC’s Investor Compensation Fund (ICF). CapitAlpha has tried to ensure the maximum protection for its clients through a strong regulator and has even provided hotline numbers for traders from the UK, Italy, Spain, and Russia, which signals the company’s intent to target traders from the European Union.
ECN As Standard For CapitAlpha Trading Account
Perhaps the most intriguing aspect of the broker is the ECN service offering, which ensures that traders are connected directly to top liquidity providers through the direct market access bridge on the MT4 terminal. MT4 is the only CapitAlpha platform made available from the broker due to the apparent popularity of the interface among global traders. MT4 does offer a sense of familiarity for traders, especially for professional traders, who will find the ECN offering to be highly suited to their trading requirements. CapitAlpha mobile traders can download the MT4 apps on their smartphones or tablets from their respective app stores. Users can also access the MT4 WebTrader if they would like to use the option of a web-based browser, especially for traders that need to access their accounts on the move. MT4 ECN access is split over three different types of CapitAlpha accounts that provide direct market access for fast order execution, better price matching, and tighter cost of trading. CapitAlpha spreads start from 0.1 pips, which changes according to market conditions. Being an ECN account, traders should also pay a fixed commission per trade, which is different for each type of account. CapitAlpha has introduced a minimum trading capital of $500 for their Alpha Classic account, which is the entry-level trading account designed for smaller traders to start trading from 0.01 lots. The commission for trading starts at $20 per round lot traded, which is one of the most expensive ECN commissions in the market. We are frankly bewildered that the broker has chosen to charge a hefty commission for their Classic account holders, especially when other ECN brokers offer significantly lower commissions and spreads for their small account holders. The $500 minimum entry barrier may also be considered as too steep for an ECN account, as traders do get access to an ECN account for as low as $5 through some of the other popular brokers mentioned on our recommended list. For a minimum deposit of $5000, traders can open the Alpha Premium account, which sees the commission reduced to $15 per round lot and the minimum trade size still starting from 0.01 lots. Although the commissions are reduced for the Premium account, it is still way too expensive than the conventional ECN commission. The Alpha Ultimate account, on the other hand, offers the lowest commission of $6 per round lot, which is in tune with the average commissions charged for an ECN account. However, the Alpha Ultimate account is only available for a minimum deposit of $45,000, which is too expensive in our opinion. The Alpha Classic account also misses out on several other benefits provided on the higher accounts, such as trading signals, technical analysis reports, and one-on-one training. The Ultimate account also gives access to more premium services such as a senior account manager, SMS service, and a CapitAlpha Prepaid card. The CapitAlpha leverage starts from 1:500 for the Classic account, which is lowered to 1:400 and 1:300 for the Premium and Ultimate accounts, respectively. The broker manages to provide a higher margin for trading, but the larger account equity may end up being way too risky for inexperienced traders. Islamic traders can opt for SWAP-free accounts, which can virtually eliminate any interests or fees associated with overnight trades. Traders can also access a broad range of Forex currency pairs, Futures, Energy contracts, indices, and stocks through its MT4 platform. Even the educational resources offered by the broker are considered to be an excellent platform to learn all the aspects of the market before trading.
Promotions & Funding Methods
The broker does not offer any promotions, and it is strange to find that the company offers a smartphone or tablet offer for traders upon signing up and making a deposit. Perhaps the broker had initially offered such a rewards-based program, but there is no CapitAlpha bonus on offer for new clients. You can fund your trading account using the most varied forms of payment methods. CapitAlpha accepts most major credit/debit cards, WebMoney, SOFORT, CashU, AstroPay, Skrill, TrustPay, Przelewy24, Neteller, and bank wire. To know more about the broker’s trading products and services, open a demo account first, before opening a real account.