Capital Index Review |
|
| 📅 Year founded |
2014 |
| 📈 Multiple top-tier regulation |
No |
| 📍 Headquarters |
London, United Kingdom |
| 🌍 Country of regulation |
United Kingdom / Bahamas |
| ✅ Regulators |
FCA / SCB |
| 📈 Execution Type |
Market Execution |
| 💰 Minimum Deposit |
$100 USD |
| 🛡️ Negative Balance Protection |
Yes |
| 📉 Trading Platforms |
MetaTrader4 / MarketBOOK |
| ☪ Islamic account |
Yes |
| 📉 Trading Instruments |
Forex / Indices / Commodities / Shares |
| 📱 Mobile trading |
iOS / Android / Windows |
| 💳 Payment Types Accepted |
Debit and Credit Card / Bank Wire Transfer |
| 🎮 Demo Account |
Yes |
| ⓒ Copy Trading |
Yes |
| 🎁 Bonus Offer |
None |
| 💰 Account Currencies |
USD / EUR / GBP |
| 📈 Minimum Trade |
0.01 Lots |
| 📈 Account Types |
STP |
| 📈 Margin Trading |
Yes |
| 📈 Trading fees |
Low |
| 📈 Inactivity fee |
$15 USD after 6 months of inactivity |
| 💰 Withdrawal fee |
None |
| ☎ Customer Support |
24/5 |
| 💰 Max. Leverage |
200:1 |
| ✔️ Hedging Allowed |
Yes |
| ✔️ Scalping Allowed |
Yes |
| 💰 Commission |
0.02 per unit per trade (minimum of $15 USD per trade) |
| 💰 Spreads |
From 1.0 pips |
| 💰 Leverage |
Flexible |
| 💰 Currency Pairs (Total Forex pairs) |
55 + |
| 🔢 Number of clients |
Unknown |
| 🥇 Instruments Offered |
120 + |
| 📙 Education |
Trading Guides / Glossary |
WHAT IS CAPITAL INDEX?
Capital Index is a prominent forex broker based in London, United Kingdom, established in 2014.
It is regulated by the Financial Conduct Authority (FCA) in the UK and by the Securities Commission Bahamas (SCB), some of the most respected financial regulatory bodies globally, ensuring a high standard of operation and client protection.
The London-based operation positions Capital Index at the heart of the financial world, allowing it to stay abreast of global financial trends and regulatory changes.
This strategic location not only enhances the broker’s capability to offer its clients competitive and cutting-edge trading solutions, but also provides an added layer of credibility and security, given the strict compliance and operational standards enforced in the UK.
Capital Index’s commitment to upholding the highest standards of regulatory compliance and its focus on customer satisfaction make it a reliable and attractive broker for traders looking for a secure environment to trade a wide range of financial instruments.
INTRODUCTION
Capital Index is a dynamic forex broker that extends its services to a diverse clientele, ranging from novice traders to professional and institutional clients. Since its inception in 2014, the broker has rapidly expanded its offerings to include a broad spectrum of trading instruments.
Clients at Capital Index can trade not only in forex markets but also in indices, commodities and shares, allowing them to diversify their trading portfolios across various asset classes.
To accommodate the varying preferences and strategies of its users, Capital Index provides two robust trading platforms: the widely acclaimed MetaTrader4 (MT4) and its own proprietary platform, MarketBOOK.
Capital Index’s commitment to technological advancement and customer satisfaction is evident in its ongoing development and support of both platforms.
Whether traders choose MT4 for its established reputation and reliability or opt for the innovative features of MarketBOOK, they are equipped with powerful tools to analyse markets, execute trades and manage risk effectively.
This introduction to Capital Index highlights its role as a versatile broker that not only provides a wide range of trading options but also commits to delivering cutting-edge technology and comprehensive support to its clients, ensuring a superior trading experience in the competitive world of online trading.
PROS & CONS
PROS
- Wide range of forex currency pairs, with over 55 on offer.
- Provision of quality trading platforms in MT4 and MarketBOOK.
- No withdrawal or deposit fees are charged.
- Leverage of up to 200:1 is available for traders outside of the UK.
- Low minimum deposit requirement of only $100 USD.
CONS
- High commission charges compared to other brokers in the industry.
- Fairly high spreads on forex pairs.
TRADING INSTRUMENTS
Capital Index offers an extensive selection of trading instruments, catering to the diverse needs and interests of its clients. This variety allows traders to engage in markets that are most relevant to their trading strategies and economic outlooks.
Forex
Capital Index provides its traders with the opportunity to trade a wide range of currency pairs, including all major pairs such as EUR / USD, USD / JPY and GBP/USD, along with numerous minor and exotic pairs.
The broker offers over 55 currency pairs, ensuring that their traders are never short of options.
Indices
For those interested in broader market trends rather than individual stocks, Capital Index offers the ability to trade on major indices across the globe. These include the S&P 500, AUS 200 and the UK 100 amongst others.
Trading indices allows traders to speculate on the performance of entire sectors and economies without having to select individual stocks. With Capital Index, traders have access to over 10 indices and leverage of up to 200:1.
Commodities
Traders at Capital Index can also engage in commodity trading, which includes popular commodities like gold, silver, oil and natural gas. Commodities trading is particularly attractive for those looking to diversify their portfolios or hedge against inflation and currency depreciation.
Shares
In addition to forex, indices and commodities, Capital Index offers trading in shares, enabling traders to buy and sell stocks of major companies. This includes high-profile names from technology, finance, retail and other sectors.
Trading shares allows clients to take part in the fortunes of these companies and leverage stock-specific news and events for potential gains. Capital Index offers access to over 100 companies’ shares from around the globe.
By offering such a comprehensive range of trading instruments, Capital Index enables its clients to explore multiple asset classes under one roof. Whether traders are interested in the rapid movements of the forex market, the steady trends of indices, the traditional safety of commodities or the growth potential of individual shares, Capital Index provides the tools and platforms necessary to engage with these markets effectively.
TRADING PLATFORMS
Capital Index offers its traders two sophisticated trading platforms, each designed to cater to different trading preferences and styles: MetaTrader4 (MT4) and the broker’s proprietary platform, MarketBOOK.
These platforms provide robust tools and functionalities essential for effective trading in today’s dynamic markets.
MetaTrader4 (MT4)
MT4 is widely recognised as one of the leading trading platforms in the forex market, revered for its advanced technical analysis capabilities, automated trading features and user-friendly interface. It remains a top choice among traders for several reasons:
- MT4 offers flexibility to support multiple order types and has a customisable interface, allowing traders to tailor the trading environment to their specific needs.
- The platform offers a comprehensive suite of charting tools, enabling traders to analyse market trends and price movements with precision. These include a variety of technical indicators and graphical objects.
- Traders can automate their trading strategies using Expert Advisors (EAs), which are programs that enable hands-off trading based on predetermined conditions.
- MT4 includes built-in communication tools that allow brokers to post messages and communicate directly with traders, providing updates and support seamlessly.
MarketBOOK
Capital Index’s proprietary platform, MarketBOOK, complements MT4 by offering unique features tailored to the needs of its user base. MarketBOOK is designed with an emphasis on speed, flexibility and deeper market integration.
With MarketBOOK, traders can expect numerous benefits including advanced analysis tools, over 20 trading tools, live news and updates, trading calculators and trading signals through the broker’s partnership with Signal Centre.
By offering MT4 alongside its own cutting-edge MarketBOOK platform, Capital Index ensures that all traders, regardless of their technical requirements or trading style, have access to state-of-the-art tools that enhance their trading effectiveness and efficiency.
ACCOUNT TYPES
Capital Index offers two main types of trading accounts tailored to meet the needs of different traders: the Advanced Account and the Pro Account. Each account type comes with its own set of features and benefits designed to cater to varying levels of experience, trading volume and investment strategies.
Advanced Account
The Advanced Account is suitable for traders who have access to less capital as the minimum deposit required is only $100 USD or the equivalent account base currency. Spreads on the Advanced Account start from 1.0 pips while the commissions charged thereon begin at 0.02 (of base currency) per unit per trade.
Other account features are similar to the Pro Account, with traders having the option to trade on both MT4 and MarketBOOK.
Pro Account
The Pro Account is designed for more experienced traders, with access to larger amounts of capital and who trade higher volumes. The Pro Account provides tighter spreads, starting from 1.0 pips, while the commissions charged are the same as on the Advanced Account.
For access to the Pro Account, traders are required to deposit a minimum of $10 000 USD, or the equivalent account base currency.
Additionally, the broker also provides Professional Accounts, which are provided to qualifying traders. Capital Index also provides further customised services to Institutional clients including banks and funds.
Further information on opening these accounts can be found on the broker’s website.
Capital Index has structured these account types to ensure that traders at different levels of their trading journey can find a fit that not only meets their current trading needs but also supports their growth as investors in the forex and CFD markets.
HOW TO OPEN AN ACCOUNT
Opening an account with Capital Index is straightforward as both accounts require potential traders to go through a verification process, which includes providing identification and residency information to comply with financial regulations.
Once an account is registered, traders can deposit funds and begin trading.
DEMO ACCOUNT
Capital Index provides a demo account, which can be used prior to utilising the broker’s services, in order to experience the market conditions provided by the broker.
The demo account aims to simulate live market conditions without the risk of losing live funds. This can be beneficial to new traders just starting out and to experienced traders looking to test new strategies before implementing them on live accounts.
SOCIAL TRADING AND COPY TRADING
Capital Index integrates features for social and copy trading, enabling less experienced traders to mirror the positions of seasoned traders. This functionality not only simplifies the trading process but also helps novice traders learn from experts.
Through the broker’s partnership with Signal Centre, a trading team registered with the FCA, Capital Index clients have access to trading signals on the MarketBOOK platform, provided on a daily basis.
This partnership is a fantastic addition to the broker’s offering and highlights their commitment to innovation and providing better tools to its clients.
COMMISSIONS AND FEES
Capital Index offers commissions and fees which, although still competitive, are slightly higher than the industry standard. The broker’s commissions start from 0.02 units (of the account base currency) per unit per trade, with a minimum commission of $15 USD or 10 GBP / EUR.
Apart from this, the broker does not charge fees on withdrawals or deposits and only charges an inactivity fee after 6 months of inactivity.
LEVERAGE
Leverage at Capital Index varies by trading instrument and the trader’s jurisdiction. Generally, leverage on forex pairs are available up to 200:1, except for traders who are based in the EU, with leverage limited up to 30:1 due to regulatory requirements.
For traders utilising indices and commodities, leverage varies between 10:1 and 20:1 depending on the instrument, while share trading allows leverage of up to 5:1.
WITHDRAWALS AND DEPOSITS
Capital Index offers limited methods for deposits and withdrawals which include bank wire transfers and debit and credit card deposits. Withdrawals and deposits are processed fairly quickly while the broker offers an option to receive same day withdrawals at a fee.
Other than same day withdrawals, the broker does not charge withdrawal or deposit fees, although these may be charged by third-party financial service providers.
CUSTOMER SERVICE
Customer service at Capital Index is available 24/5 and accessible via live chat, email and telephone. The broker provides support in multiple languages to cater to their clients from around the globe.
The customer service team at Capital Index is known for being efficient and knowledgeable, having received numerous positive reviews from their client base.
SAFETY AND SECURITY
The safety and security of client funds and data are paramount considerations for any reputable forex broker. Capital Index recognises this and has implemented robust measures to ensure a secure trading environment for all its clients.
Central to Capital Index’s trustworthiness is its regulation by the FCA in the UK and by the SCB in the Bahamas.
The FCA is one of the most respected regulatory bodies in the financial world, known for its stringent standards and strict enforcement of financial regulations. By adhering to FCA guidelines, Capital Index commits to the highest ethical standards and operational practices.
Under FCA rules, Capital Index is required to keep client funds in segregated bank accounts. This means that client money is kept separate from the company’s own funds, ensuring that client assets are protected in the unlikely event of the broker’s insolvency.
As an FCA-regulated broker, clients of Capital Index are eligible for protection under the Financial Services Compensation Scheme (FSCS), to which the broker also belongs. This scheme can compensate customers up to £85 000 per person in the case of a broker’s default.
The broker also implements further security measures including SSL Encryption and Two-factor Authentication in an effort to further improve the broker’s safety.
By combining FCA and SCB oversight with these additional security measures, Capital Index ensures that it not only meets but exceeds the standard requirements for safeguarding client assets and information. This comprehensive approach to safety and security makes Capital Index a reliable choice for traders seeking a secure trading environment.
PROMOTIONS
At the time of writing, Capital Index does not provide any promotions or bonuses on their website, however, this is always subject to change and traders are encouraged to regularly view the broker’s website to see if promotions have been added.
RESEARCH
Capital Index provides comprehensive market research tools including economic calendars, market news and analysis as well as various tools on the MT4 and MarketBOOK platforms.
As mentioned earlier, through the broker’s partnership with Signal Centre, the trading signals provided on MarketBOOK can serve as a great research and educational tool for traders.
EDUCATION
The broker offers fairly limited educational tools, with only trading guides and a glossary available. Although the trading guides are in-depth, covering a range of topics from basic forex terminology to managing trading risk, the broker could do more to provide further educational tools.
However, with the wide range of free tools and resources available on the internet, trader can easily access educational tools to further their learning. The broker’s lack of educational tools is thus not a key consideration when choosing a forex broker.
GLOBAL AWARDS
Over the years, Capital Index has garnered numerous awards that acknowledge its service quality, comprehensive trading tools and excellent customer support.
While not advertised on the broker’s website, their most recent awards include:
- Best Forex STP Broker (2016) – Online Personal Wealth Awards.
- Best Forex ECN / STP Broker (2016) – UK Forex Awards.
While this represents a limited number of awards, the broker may well have won more awards than what is listed above. Additionally, their excellent customer reviews are further testament to the quality service provided by the broker.
SAFE OR SCAM?
Capital Index’s operational framework is underpinned by strong regulatory oversight and a commitment to transparency, which are crucial factors in assessing its legitimacy and safety as a forex broker.
Capital Index is regulated by the FCA and the SCB, two of the most reputable financial regulatory bodies globally.
The FCA’s strict regulatory standards ensure that Capital Index adheres to ethical trading practices and financial transparency. This regulation significantly reduces the risk of unethical practices and enhances the security of client funds.
Following FCA regulations, Capital Index keeps client funds in segregated accounts, separate from its corporate funds. This is a key safeguard that protects clients’ capital from being used for any unintended purposes, including the company’s financial obligations.
As part of its compliance with FCA guidelines, clients of Capital Index are covered by the FSCS, which offers compensation up to £85 000 per person in the event of the broker’s default. This provides an additional layer of security for traders’ investments.
The broker’s commitment to transparency is evident in its clear communication of terms, conditions and trading practices. Positive customer feedback and the broker’s responsiveness to client concerns further reinforce its reputation as a trustworthy broker in the forex market.
Considering these factors, Capital Index displays all the hallmarks of a safe and reliable forex broker. Its regulatory framework, financial protection measures and commitment to client security make it a credible and secure option for traders.
CONCLUSION
Capital Index stands out as a reputable broker offering a diverse range of trading products and services. While the broker could improve in certain areas, such as offering lower spreads and commission charges, the overall quality of its trading environment is second to none.
The broker’s commitment to providing a safe trading environment, combined with excellent research and trading tools, makes it a suitable choice for both novice and experienced traders. Additionally, professional and institutional clients would also be welcomed and would enjoy the broker’s robust trading environment.
Whether you are looking to trade forex or diversify into other instruments, Capital Index should be considered a good option as a broker to partner with and is held in high regard by the team at Brokersuggest.com.
