Knight Capital Review
There is one individual ECN account with Knight Capital, offering leverage up to 1:500, micro lots for trade and tight variable spreads with volume-based commission. There are several other options provided by this broker: corporate, joint and super/trust accounts.
What is more, Knight Capital offers MAM/PAMM accounts – appropriate solution for professional traders, hedge fund managers and institutional managers.
The Company. Security of Funds
Knight Capital is an ECN broker offering trading in more than 50 currency pairs and precious metals on the MetaTrader 4 (MT4) platform.
Headquartered in Helsinki, Finland, Knight Capital is operated by Knight Capital Markets Ltd., registered in St. Vincent & the Grenadines.
St. Vincent International Business Companies (IBC) provide financial services under the SVG’s financial regulatory regime, which is one of the most liberal ones. Registration procedure is easy and less costly, that is why this Caribbean island is a popular jurisdiction for forex start-ups (and, of course, scams). In fact, to say that brokers registered in the SVG are regulated, would be an exaggeration.
Knight Capital says on its website that client funds are fully segregated from the company’s funds in globally recognized banking institutions like Barclays Bank PLC and Credit Suisse AG. What is more, it claims to use automated account monitoring to ensure a client’s balance will never fall below zero. We don`t know whether this is true and there isn’t any authority to check or supervise this either.
So, if you intend to invest a large amount of money, we would advise you to select among brokers regulated in the UK, Cyprus or Australia, for instance, where the respective financial watchdogs are on alert.
Minimum Initial Deposit
The minimal amount required to open an account with Knight Capital is $500, which is a comparatively high initial deposit. Many other offshore brokers, require less: SVG-based Cent Mark FX demands $20; ForexBrokerInc, registered in the Marshall Islands, requires $100 for all account types, including the ECN one.
Average Spreads & Commissions
This broker offers tight variable spreads, averaged 0.3 – 0.4 pips on EUR/USD, and a commission of $7 per lot round turn applies. So, average trading costs with this broker amount to around 1.0 – 1.1 pips for the EUR/USD pair, which looks like a good offer, as most brokers offer spreads within the range of 1.0 – 1.5 pips.
In comparison, FxChoice, registered in Belize, offers variable spreads averaged 0.5 pips on EUR/USD + $7 lot (round turn) on its Pro account. Accessible with just $100 initial deposit. For further information, you may look up real-time spreads of 15 leading brokers here.
Knight Markets allows upwards of 500:1 leverage, provided that your account balance does not exceed $10,000. Such maximum leverage level is considered high, yet ForexBrokerInc, as well as many other brokers, offer leverage ratios equal to or higher than 1:500.
Traders, however, should bear in mind that operating with higher leverage levels involves greater risk of heavy losses.
As most forex brokers, Knight Capital supports the renown MetaTrader 4 (MT4), available as PC and mobile versions. MT4 provides all a trader needs: secure trading environment, a number of technical indicators, sophisticated charting system, a wide range of Expert Advisors (EAs) and extensive back-testing options. Traders can download ready-made or create their own (if they are handy with code) automated trading strategies and simply let the program do all the work.
Here is a list of more forex brokers offering MT4 platform.
What is more, this broker offers a demo MetaTrader 5 platform, and perhaps plans to launch it in the future. It provides more timeframes, advanced inbuilt events management and improved debugging tools.
Methods of Payment
The following payment modes are available to clients of Knight Capital: Credit cards (Visa, MasterCard), bank transfer, and China UnionPay.
Knight Capital does not support popular e-wallet payments such as Skrill, Neteller & FasaPay.
Knight Capital is a SVG-registered broker, offering trading in forex and precious metals on the popular MT4, using ECN execution. Its biggest disadvantage, according to us, is the lack of regulation.
Knight Capital Review Conclusion
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