An ETX Capital Review For Top Of The Line Brokerage Services
- Website: www.etxcapital.com
- Phone: +44 (0) 20 7392 1400
- Office address:
- One Broadgate, EC2M 2QS,
ETX Capital is a financial brokerage firm that offers access to multiple markets including Forex, Equities, Commodities, CFDs, Indices, Binary Options, and Spread Betting. ETX Capital acts as a one-stop-shop for all types of investors and traders who wish to take advantage of the volatility of the global financial markets by investing in a diverse range of tradable assets. Having a large investment portfolio by investing in several financial instruments from across the world is a huge advantage for traders to establish a significant presence in multiple markets. It also helps traders to attract potential investors by generally lowering the risk of trading and improving overall profitability.
ETX Capital has more than a decade worth of experience in the financial markets and has been a mainstream financial company since its inception in 2002. The ETX brand further strengthened its presence in the industry by acquiring the now redundant Alpari FX broker and has moved on to ensure that all past Alpari clients were able to transition smoothly into the existing ETX trading platform. The acquisition of Alpari in 2015 also helped the company to acquire a fair share of the retail trading market and has provided the company with the much-needed exposure among the global pool of retail traders.
What Makes ETX Capital Special?
ETX Capital is wholly owned and operated by a firm called Monecor, which is a huge company listed on the London Stock Exchange. ETX Capital is primarily a UK-based Forex brokerage; hence, ETX Capital regulation is overseen by the FCA. The ETX Capital Group has a substantial presence in the EU zone and has its affiliate offices in Russia, Africa, and the Middle East. Therefore, ETX Capital is a highly reliable company that deals in top-quality financial services without affecting the trust or confidence of their clients in any manner. All brokers regulated by the FCA holds a fair degree of accountability towards their customers, and ETX Capital makes sure that it adheres to the numerous regulatory protocols to ensure that all customers are treated fairly and kept safe from any financial malpractices.
ETX Capital enjoys a good regulatory status in Europe, but that is no longer the case in the US. Since the NFA and CFTC stipulated changes to its operational framework and regulatory guidelines, an increasing number of FX brokers shut down its Forex related brokerage services in the US. ETX Capital is also a part of the brokers that winded down its US operations, and the broker no longer offers any products or services to the residents of the United States.
ETX Capital also offers spread betting and binary options trading, which is considered to be illegal in the US and several other parts of the world. Therefore, traders should be careful while choosing their preferred trading product, since the broker only offers a single type of account that can be used to trade the entire array of financial products. You should perform an extensive research about your local market and your country’s legal structure to ascertain whether binary options, spread betting or even FX trading is an accepted form of investment in your jurisdiction.
Some Important ETX Capital Account Information Such As Minimum Deposits, Leverage, And Spreads
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ETX Capital offers only a single type of account for all kinds of trading products, and it can be confusing for traders to get that information from their website within the first glance. Deposits start from $100 with a maximum ETX Capital leverage of 1:200 available for FX currency pairs. On the other hand, all other instruments such as commodities and metals are provided a maximum leverage of 1:100, while equities have a maximum leverage of 1:30. ETX Capital spreads are not overly attractive due to the lack of an ECN account, however, for a market maker model, the spreads are highly competitive. Typical spreads for the currencies start from 0.7 pips, while the commission for equities and indices start from 0.08% per traded amount. Even though the spreads are on the lower side, ECN traders will be hugely disappointed that the broker does not offer a dedicated ECN account and the benefits associated with a direct market access account.
Spread betting accounts are similar to the normal trading accounts, and enjoy a tax-free status in the UK. Due to the similarities between typical Forex trading and spread betting accounts, most traders in the UK open a spread betting account to lower the cost of trading and improve profitability by lieu of saving taxes and stamp duties. The Binary Options account, on the other hand, is similar to a gambling model, as the investor is only making an educated guess on the direction of the movement. The payouts depend on whether the trade is ‘in the money’ or ‘out of the money.’ ‘In the money’ trades receive a fixed percentage of payout, while out of the money usually results in the loss of the entire invested amount.
There are currently three different types of ETX Capital platforms that are designed for various types of markets. The conventional MT4 platform is available for FX, commodities, metals, and CFDs trading, while the TraderPro platform is available for equities and indices trading. Binary options traders are provided the MarketPulse platform, which is a third-party binary options platform, designed for the web. All the three different platforms are available for both desktop as well as ETX Capital mobile traders and do have excellent reliability. Although the server speeds are average and nothing to complain about, a VPS server would have certainly helped traders to enjoy lower latency and better security. The company does not offer VPS servers; therefore, if you are looking for VPS access, you will have to choose another broker.
What Is The Ultimate Verdict?
ETX Capital has been the recipient of numerous awards and is thorough in its commitment towards ensuring a favorable environment for their clients to invest in the highly volatile financial markets. ETX Capital does have a few problems with their servers, price quotes, and trade executions, which is where an ECN account with a VPS access would have made sense for traders looking for the best trading conditions. The lack of a live chat function and the delays in response to emails or website contact forms also add to trader woes, but overall, ETX Capital is a good broker with some excellent trading conditions that are well-suited to the average retail trader. Being a binary options broker, traders are also offered an ETX Capital bonus to the tune of up to 100% on deposits, which has a maximum limit of £3,750. Furthermore, traders receive a £20 bonus to trade without making any deposit, which offers an amazing opportunity for testing the markets without an actual investment. Sign up today and enter the markets to see for yourself!