CapitalsTrade is forex broker, offering several account types as described above, plus a VIP one. All of them provide variable spreads and access to the popular MetaTrader 4 platform. Micro lots are available for trade on the Standard & Prime accounts.
In addition, this broker offers swap-free services for investors of Islamic belief.
Keep in mind that Hedging and Scalping are not allowed at CapitalsTrade.
The Company. Security of Funds
CT Business Solutions Ltd.
CapitalsTrade offers wide range of financial instruments for trade (more than 100), including currency pairs and various CFDs. It claims to have 10 years of experience in forex trading, however we haven’t heard of that broker and didn’t find any user reviews in popular FX forums and sites. The broker seems to be based in the UK, as it provides a contact phone number with the UK country code. Otherwise, the company behind the CapitalsTrade brand is licensed offshore, by the Vanuatu Financial Services Commission (VFSC).
>>Why to avoid offshore brokers?<<
It looks like Vanuatu is one of the most popular destination for shady forex companies lately. Receiving the “Dealer in Securities” license, requires having only $2,000 in capital. By comparison, the Australian Securities and Investments Commission (ASIC) demands AUD 1 million. We generally recommend avoiding off-shore brokers, as they usually operate under less strict rules, if any, compared to companies licensed by reliable regulators such as UK’ FCA or Australia’s ASIC.
Minimum Initial Deposit
CapitalsTrade requires a minimum initial deposit of $100, which is not much. However, many brokers go even lower, even well-regulated ones. For instance,with global forex and spread-betting provider IG one can open an account with just $1.
Average spreads & Commissions
CapitalsTrade does not disclose detailed information about the spreads it offers on its website. In the account types section it is only indicated that spreads start out at 0 pips on all accounts.
When we tried out its MT4 platform in demo mode, we found the spread on EUR/USD is floating around 1 pips, and a commission of $9 is charged per standard lot. This means that average trading costs for this pair are around 1.9 pips per lot, which is not a competitive pricing.
There are much better current offers by other brokers. For example IG offers spreads averaged 0.6 pips on EUR/USD, which feature no commission fees
The maximum leverage at CapitalsTrade is 1:1000, for the smallest account types. Such high leverage levels are not unheard of, but are too risky to be recommended.
One of the biggest mistakes beginner traders make is to use the maximum leverage provided by their broker.
CapitalsTrade provides its services via MetaTrader4 (MT4), available as desktop download, web version and mobile apps.
This platform has earned its popularity due to the relative ease of use, its reliability and advanced features, including top-notch charting, multiple analysis indicators, as well as automated strategies (EAs).
Methods of Payment
CapitalsTrade accepts deposits and withdrawals via bank wire, credit/debit card and w-wallets such as Skrill, Webmoney and Neteller.
It normally takes up to 72 hours to receive the funds after sending withdrawal request to the broker. However, requests made through bank wire transfers, might take up to 2-5 working days.
CapitalsTrade is one of the many forex and CFD brokers offering access to MT4 platform. Its main weak side is the offshore regulation and the fact that it does not allow scalping and hedging. Besides, CapitalsTrade’s spreads are above the average and it provides dangerously high leverage ratios.
CapitalsTrade Review Conclusion
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