With the incredible growth of the crypto market, more and more people are looking to get into cryptocurrencies for the first time, and Capital.com wants to offer international traders a way to seize these opportunities. Their award-winning trading platform gives users access to contracts for difference (CFDs) on more than 6,000 assets, including cryptocurrencies, stocks, indices, Forex and commodities.
However, before signing up to a new exchange, most traders want answers to some critical questions: Is it safe? What features does it have? What does it cost? What are its advantages and disadvantages? Well, if you’re most traders, then you’ve come to the right place! We’ll be looking into all these issues and many more in the following review.
Capital.com is set apart from other exchanges by the AI trade bias detection system that powers its platform (called EQ), not to mention the ability to trade in more than 6,000 markets from Bitcoin to Apple to gold all in one place, eliminating the hassle of opening accounts on multiple exchanges for different assets. Its unique features have so far attracted 788,000 clients, who have traded $88 billion on the platform thanks in part to Capital.com's zero commission and tight spreads.
However, CFDs and spread betting aren’t for everyone. Those traders who prefer to use lower risk instruments may like to research the numerous other trading platforms and exchanges available, some of which also offer staking programs for certain cryptocurrencies.
Capital.com was founded in 2016, born out of the belief that finance and trading should be more accessible, useful and engaging. After going live in June 2017, Capital.com is now one of the largest CFD brokers in Europe, operating from its offices in the UK, Cyprus, Australia, Gibraltar, and Belarus, amongst other places. The team behind it has a lot of experience in the development and innovation of online trading platforms.
Capital.com was founded with the aim of building the easiest to use and most transparent financial platform possible while transforming the relationship between a trading platform and its customers. To this end, they developed Emotional Quotient (eQ), a patented AI trade bias detection system. Capital.com also launched Investmate in 2018, a dedicated educational app designed to help people get into investing.
Capital.com is regulated by the world’s top financial watchdogs, including the UK Financial Conduct Authority (FCA), Australian Securities & Investments Commission (ASIC), National Bank of the Republic of Belarus (NBRB), and the Cyprus Securities and Exchange Commission (CySEC).
As a licenced investment company, Capital.com is required by regulators to keep retail clients’ funds in segregated accounts at some of the largest European financial institutions, including Eurobank, Raiffeisen and Royal Bank of Scotland. The broker is also a member of the Financial Services Compensation Scheme (only for FCA clients) and the Investor Compensation Fund (only for CySEC clients) and is audited by the accounting heavyweight Deloitte - this applies to retail clients only.
The trading platform guarantees the full protection of your personal data as well, which is not disclosed to any third parties except the regulator. Personal information is encrypted and protected in compliance with PCI Data Security Standards.
On top of this, Capital.com offers effective risk management tools such as negative balance protection (as required by ESMA), instant price alerts and stop loss and take profit orders, as well as offering a free demo account where clients can try out the platform’s features and practise their skills in a totally risk-free environment.
Capital.com has been building a reputation as a trustworthy environment where traders can develop their skills with access to thousands of world-renowned markets. It is a trusted partner of Trading View and Investing.com, and by the end of 2020, its international platform had enticed more than 788,000 clients and processed over $100 million in deposits.
Clients can also be encouraged by the many accolades the platform has won from prestigious international awards bodies, including Best Online Trading Platform in the 2019 Shares Awards and Most Innovative Broker and Most Transparent Brokerage Service Provider in The European’s Global Business Awards 2020.
Furthermore, Capital.com has earned itself a solid 4.5-star rating at TrustPilot.
The user-friendly platform has an intuitive and easy to use interface along with a whole host of educational resources. The Investmate app offers a tailored approach to financial education where users can quickly find topics they want, save relevant information as favourites and take part in quizzes. Capital.com also offers online courses and trading guides where newbies can get to grips with the terms and concepts associated with leverage and CFD trading. On top of this, anyone can open a demo account and try out their skills without risking anything.
For those more seasoned traders, Capital.com is likewise an attractive option as it provides access to over 70 technical indicators, thousands of charts, client sentiment, price alerts, and 1:30 leverage (for retail clients). The broker has ensured strong performance through its development of a microservice hosting system where different elements of the platform are hosted on different servers to avoid downtime. Clients can also look forward to AI-powered post-trade analysis and continual market updates, news, forecasts and analytic features to help them stay on top of the latest developments.
Trading CFDs at Capital.com comes with a whole host of advantages. It provides a huge choice of instruments and markets, including stocks, indices, commodities, Forex and cryptocurrencies, all of which clients can access to trade on market swings with CFDs and spread betting (UK residents only). One advantage of using CFDs or spread betting is that investors don't actually have to own the stocks they invest in or lay out large sums of capital.
The maximum leverage available on retail accounts varies depending on the asset and the regulator under which you are registered, with a maximum of 30:1. It’s important to remember though that trading on margin magnifies potential losses as well as potential returns.
The wide range of technical indicators offers more than 80 different studies that can be applied to markets. Traders can make use of moving averages for trend trading, the Relative Strength Index for overbought and oversold measures and Stochastics for swing trading, as well as more sophisticated approaches such as using Bollinger bands to gauge changes in market volatility.
Capital.com provides most of its brokerage services for free. It offers 0% commission, and traders won’t incur any fees for deposits, withdrawals, real-time quotes, opening/closing trades, educational material and dynamic charts and indicators.
The platform is compensated for its services through the buy/sell spread, which varies across different instruments. As of January 2021, spreads started from 0.6 pips for EUR/USD, 0.8 pips for GBP/USD, 0.03 for US crude oil futures, 1 for FTSE 100, 1.6 for Nasdaq 100 and 34 for BTC/USD.
The only additional cost is the overnight fee which differs with the instrument. You can find the specific overnight fee for your chosen instrument in the market information panel in the Capital.com platform, and unlike other brokers, Capital.com charges an overnight fee that is based only on the leverage provided rather than the entire value of your position from cryptocurrencies, shares and thematic investments. The overnight charge on indices, commodities and FX is based on the entire value of your position.
Funds can be deposited or withdrawn via a range of international methods:
The minimum deposit is $20, £20, €20 or zł20 for all payment methods except wire transfer, which has a minimum of €250 or equivalent in the trading account currency.
The maximum deposit is $3,000 for the Standard account, while the Plus and Premier accounts allow higher deposits with minimums of $3,000 and $10,000, respectively.
Trading flexibility depends on the amount you have in your balance.
The broker provides a one-click trading experience with access to over 4,000 markets encompassing stocks, commodities, indices, Forex and cryptocurrencies, all in the same place – no need to sign up to multiple exchanges to access different asset classes.
A unique benefit of Capital.com is its smart trading app. It reveals cognitive biases that prevent traders from making profitable trading decisions through the use of an AI-powered trading bias detection system. It will automatically spot any deviations in your trading behaviour, immediately alert you and offer helpful content to boost your trading skills.
Capital.com’s award-winning trading platform is online – no need to download anything. It has a clear layout with light and dark colour scheme options for your preference and provides seamless multi-chart toggling, allowing you to effortlessly toggle in and out of up to six tabs.
The charts are easy to read and customisable – traders can choose candlestick, bar, area, Heikin-Ashi or line charts. They then have the use of a diverse range of drawing tools, including Fibonacci retracements and trend lines to identify major support and resistance levels.
The platform is also available on mobile for Android and iOS devices, so you can trade on the move.
The platform provides a plethora of educational resources. As well as the Investmate app, which allows users to set personal goals with access to more than 30 courses, short lessons and quizzes, the website also offers webinars, an extensive glossary and comprehensive guides covering various markets, trading strategies and principles of trading psychology.
On top of this, Capital.com’s Chief Market Strategist, David Jones, leads a successful Youtube channel with nearly 90,000 subscribers. They upload videos throughout the week offering in-depth market reviews and technical analysis of all kinds of financial assets.
In 2020, Capital.com introduced spread betting, a flexible way of speculating on upward and downward market moves. This method of trading is particularly beneficial to traders from the UK, where it is free from capital gains tax and stamp duty (subject to changes in tax laws.)
Capital.com offers a standard account type for retail traders and has removed other "premium" account types.
Having stocks, commodities, indices, Forex and cryptocurrencies all available in the same place certainly makes Capital.com a useful one-stop shop for traders with varied interests. While the CFD trading offered is high risk, it also provides traders with access to markets that would otherwise be difficult to gain exposure to, as well as the opportunity for leveraged returns.
In conclusion, the demo account and vast array of educational materials, along with the advanced charts and technical indicators, would appear to make Capital.com a welcoming environment for the inexperienced and seasoned trader alike.
81.40% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.