Scandinavian Capital Markets Review

Read our full Scandinavian Capital Markets review below.

 

WHAT IS SCANDINAVIAN CAPITAL MARKETS?

Found in 2011, Scandinavian Capital Markets is a respectable forex and CFD brokerage firm with its headquarters located in Sweden. This online broker is regulated by the Swedish Financial Supervisory Authority (FSA)

At Scandinavian Capital Markets, clients can trade a range of trading instruments, such as Forex exchange and over 50 currency pairs.

The broker also offers a variety of trading platforms to its traders, including Currenex, cTrader, and MT4.

 

INTRODUCTION

Founded in 2011 by a group of financial professionals under Arif Alexander Ahmad and Michael Buchbinder, the Scandinavian Capital Markets have grown to be huge Swedish forex brokers.

The company is based in Stockholm. Initially, it was established as a wealth management firm, and then one year later, it obtained registration for operation into the forex markets. The Scandinavian Capital Markets deal with ECN broking purely using an STP model to execute and deliver reliable trading operations.

The Scandinavian Capital Markets are registered and authorized with the Swedish Financial Supervisory Authority (FSA). Sweden’s first STP-ECN broker, this type of operation, was launched by the brokerage firm in 2017.

The brokerage firm provides access to Forex exchange and over 50 currency pairs and uses the Equinix NY4 Center connectivity, which has made it a powerful worldwide infrastructure.

The brokerage firm is known for its tailored pricing, custom liquidity feeds, and overall flexibility over its trading processes. It is build based on extensive technical knowledge and expertise of the foreign exchange market.

PROS & CONS

The services provided by the Scandinavian Capital Markets are top-notch; they differ greatly from other forex brokers that focus on clients with little deposits.

The issue with the model of targeting clients with small deposit accounts is that the brokerage firm will need many clients to be profitable. The higher the number of clients a brokerage firm has, the higher the amount of money they will use for their operations; this eventually degrades the quality of services they offer.

The Scandinavian Capital Market tailor their services to high-value deposit customers and money managers, while this may look like a barrier to entry to many, the quality of service provided by them is top-notch.

Pros

  • The Scandinavian Capital Markets have transparent trading conditions; they offer premium account management to their clients
  • They have many trading platforms Trader, MetaTrader 4, and Currenex.
  • They are registered with the Swedish FSA and thus giving a sense of security to their clients
  • They provide very competitive spreads
  • They are solid banking partners: The Company collaborates with leading Scandinavian banks to hold and receive their clients’ money.
  • They regularly host conferences, leadership, and seminars where they develop relationships with their clients and partners.

 

Cons

  • The minimum deposit accepted in this brokerage firm is 10,000 USD, thus not suitable for those with low amounts. But considering the close attention paid to clients if they have lower deposits, such attention will be unsustainable,
  • The maximum leverage is 1:100. The Scandinavian Capital Market being an STP-CTN broker, their trading conditions are aligned with liquidity providers and institutional brokers.
  • They only have 45pairs on most of their account types.
  • They offer limited deposit methods. They only accept banked wired transfers which are limiting to their clients.

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TRADING INSTRUMENTS

The trading instrument commonly used in the Scandinavian Capital Markets and other brokers is forex trading which is also called currency trading.

Forex trading is a currency exchange market where individuals, companies, and even financial institutions trade by exchanging currencies at floating rates.

The Scandinavian Capital Markets provide about 45 trading pairs bearing institutional spreads and some commissions on many of their account types. Though this looks limited, most symbols that are offered with other brokers are usually overpriced and untraded.

The Scandinavian Capital Market Focuses on providing the best conditions they can, and therefore they choose to disregard those other pairs.

TRADING PLATFORMS

First, let us start by understanding what a trading platform is; it is software that a brokerage firm provides to its customers, and this is what is used to carry out their trades. A platform is a multi-asset as it can be used to trade forex and the other asset classes like stock indices, cryptocurrencies, precious metals, and CFDs on the stock.

The Scandinavian Capital market provides the following trading platforms:

MT4 & MT4 Mobile

The Scandinavian Capital Market accounts support using the popular MetaTrader4 (MT4) forex platform for trading. This platform can be downloaded on their website.

Many traders are starting to prefer using this platform and prefer to keep using its resources and tools to analyze the place, price, and manage trades. This platform can also customize its features according to client preferences like color and other settings representing their style.


cTrader

cTrader is an advanced trading platform that features the latest trading technology in the forex trading industry. It features ultra-low latency and makes use of state-of-the-art Servers.

It has become the most preferred trading platform for both professional and retail traders. It is even more attractive, especially when paired with deep pools of liquidity, offered with the Scandinavian Market like Tier 1 liquidity providers.

cTrader also has options for various devices and can be downloaded on desktops, mobile phones (both iOS and Androids), web traders, thus enabling its clients to use it for trading anywhere worldwide.


Auto Trading and API

The Scandinavian Capital market also supports automatic trading features from other technology platforms like Myfxbook when connected to MT4.


MAM Accounts

The Scandinavian Capital Markets has a Multi-Account Manager (MAM) feature that allows the sub-allocated accounts under a master account to permit money managers to execute account blocking orders quickly when there is a need.

By utilizing the Multi-account manager technology, the traders have an option of not prioritizing investor orders. All the clients can receive the same whole price despite their investment amount or size of the trade.

ACCOUNT TYPES

The Scandinavian Capital Markets provide their clients with three types of premium, standard, and customer accounts. These accounts bear features like low trading commissions, competitive spreads, and ultra-low latency and customized.

Here is a brief look at their accounts:

Standard Account

This is an ECN account type; it has spread starting from 1.7pip. The minimum deposit that can be made in this Account is 10,000 USD.


Premium Account

This is also an ECN account type; it has spread starting from 0.0 and accepts a minimum deposit of 25 USD.


Custom ECN Account

This Account requires a minimum deposit of 250,000USD.

Apart from these accounts, the Scandinavian Capital Markets also offer Islamic Accounts compliant with Sharia Laws. The brokerage firm believes that its traders have a right to pursue their financial dreams in a fair environment. These Islamic accounts are also called “Swap-Free Accounts”; this is because they do not imply rollover or swap interest on their overnight positions.

This is in compliance with the Islamic faith, and thus instead, the swap fees are charged as daily administration charges. The minimum deposit needed to open an Islamic account is 1,000,000 USD, and some of the forex products are not offered.

HOW TO OPEN AN ACCOUNT

Opening an account with the Scandinavian Capital Markets is quite simple. Like the normal procedure followed when opening a bank account the first time, when opening an account with the brokerage firm, the first procedure is the basic “Know your customer process.”

This first process allows the brokerage firm to ensure that the personal details that any of the interested clients submit are correct and also to give a surety that the client account and funds will be safe.

After the above procedure of initial registration, the client is normally emailed login details which will correspond to the login on their trading platform, which will match your account type.

The brokerage firm also allows potential clients who first want to try out this kind of trading to open a demo account.

DEMO ACCOUNT

To open a Demo Account with the Scandinavian Capital Markets, first, you will need to apply for the Account by registering and filling in your personal details. Then you will have to choose the type of Account that you would like to trade with, either cTRADER or MetaTrader4; then, you will click continue to go ahead with the opening of the Account.

SOCIAL TRADING AND COPY TRADING

The Scandinavian Capital Markets introduced cTrader copy in their operations in August 2020. It works just like Social Trading and Copy trading. This feature on their web under the cTrader web application allows their clients to benefit from either copy trading from their personal accounts or the accounts of others. For example, if a strategy provider has an Equity of, say, 10,000 USD, the investor decides to invest 1000 USD, a tenth of their equity.

The strategy provider will open a position of 10lots then the position of the strategy provider is one lot. Another attractive feature also provides investors with separate copy trading accounts so that they can be able to segregate their investment from the strategies they have chosen.

Another new feature that cTrader copy offers is that the strategy providers can operate on a flexible fee structure. The strategy provider can charge the investors a fee for opening and closing the trade. These are some of the features that were not present on cMirror.

The cTrader copy also offers detailed strategy profiles that give actionable analytics, a journal of trading histories, and key performance indicators. The cTrader copy replaces cMirror, which was initially used as a tool of copy and social trading.

The cTrader copy delivers comprehensive strategies profiles and advanced risk management where the providers can display strategies for both professional and retail traders. The strategies can also be posted online, and traders from other brokerage firms can follow the trade.

COMMISSIONS & FEES

Brokerage firms like the Scandinavian Capital Markets have operations on different locations globally and offer different account types, which may differ following the regulatory entity. Their clients, therefore, may have different experiences when it comes to fees and commissions according to their place or country of residence.

All three accounts feature low, competitive costs based on a raw spread commission charge. Their Standard Account provides conditions that all the costs will be built into a spread.

The Standard Account has a spread that starts from 1.7pips while their premium account operates based on the raw interbank spread and possesses a commission charge of $10 for each lot for Meta4 platform and $100 per one million traded using cTrader. Their very competitive commission can even be decreased for high-volume clients.

LEVERAGE

Before jumping right in, let us first discuss what the term leverage in this context means. Leverage is a facility that will enable a client to get more exposure to the market they have chosen to trade-in than the amount deposited to open the trade.

Leveraged products like forex trading usually magnify a client’s potential profit and increase a client’s potential loss.

The Scandinavian Capital Markets being a European Broker which obliges to their regulatory restriction, provide low leverage levels due to the risk involved. They offer retail traders a maximum of 1:30 for all their major currencies pairs and lower leverages for other instruments.

Once there is a confirmation of their status for professional accounts, they may use the leverage of 1:100.


WITHDRAWALS AND DEPOSITS

The Scandinavian Capital Market swears to practice secure, transparent, and prompt forex operations, especially when handling their client’s funds, usually held in European banks of high reputation.

Depositing of funds in the brokerage firm accounts is done only through bank wire transfer. Deposits done to their Account are credited into a client trading account within one business day after reaching the Scandinavian Capital Markets bank.

The instructions on wiring deposits on the Scandinavian Capital Markets accounts can be found on their website on the Client Portal classified under the Fund tab. The instructions can also be obtained on their Customer Support portals. Deposits can be made in EUR, USD, GBP, and SEK.

Withdrawal requests from their Account are usually processed within 24 hours, this is applicable on business days, but request submitted during weekends is processed on Mondays.

Funds can only be returned to a client’s bank account; they do not allow third-party banking or transactions. Before withdrawn funds arrive in a client’s account, it can take even up to 5 working days; this is noteworthy.

Withdrawals can also be made via the Client Portal on the Scandinavian Capital Market website. To withdraw funds from the website, a client should log into their client portal, then go to the withdraw tab, fill in the amount they wish to withdraw and their banking details, and then click “Request.”

CUSTOMER SERVICE

Before trading with a given brokerage firm, it is important to ensure they will offer support and help whenever needed. These assist clients in finding the exact answers to their queries, thus improving the user experience.

The Scandinavian Capital Markets provide their clients with these services by taking emergency inquiries; scheduled calls can also arrange at the client’s convenience. This allows the clients to get personalized attention for their queries from the account manager assigned to them.

Clients are allowed to bring their forex account questions and needed information on the Account they are interested in features, and then the brokerage firm support team will go through the client’s concerns with them.

The procedure followed entails a client filling out a form on the firms’ website, and then the Scandinavian Capital Markets account manager will then contact them to plan for a call.


SAFETY AND SECURITY

When thinking of investing in a money market, there is a need to establish whether the brokerage firm you are thinking of investing with is safe to trade with or not. One of the things that can be used as surest benchmarks of measuring a brokerage firm’s safety is establishing which regulatory authorities act as watchdogs of their actions.

The Scandinavian Capital Markets, a Swedish financial investment Company, applies the necessary legal procedure, ensuring its safe trading conditions.

The brokerage firm is registered and authorized by the Swedish Financial Authority (FSA); this regulatory Authority is also responsible for overseeing the most stable and reputable financial trading markets. This gives the traders an assurance of safe investment conditions.

The Scandinavian Capital Markets also complies with the European ESMA regulations and the directives of MiFID; thus, investing with them guarantees transaction transparency without any conflict of interests.

The Scandinavian Capital Markets is a member of compensation schemes in case they become insolvent.


CASHBACK

The Scandinavian Capital Markets introduced a cashback bonus offer sometime back, where it enabled its clients to earn a bonus of 2USD bonus cashback for each lot traded. The cashback is governed by clear terms and condition which limits the cashback to one Account per client.

RESEARCH

Before investing in any brokerage firm, potential investors should conduct as much research as possible about speculative trading. This ensures that no money is lost unnecessarily, and trading should be as profitable as possible.

The Scandinavian Capital Markets clients are given access to this kind of information through the brokerage firm website, or they are also encouraged to subscribe to their Newsletters. Areas of information on the Newsletter include events, company news, news and analysis, trading news, and daily trading analysis clips.

EDUCATION

Since forex trading is a speculative business, potential clients of the Scandinavian Capital Markets are encouraged to avail themselves of possible trading skills and information necessary to succeed in the forex and commodity trading world.

The Scandinavian Capital Markets provides regular webinars, which entails training on various topics for both beginners and experienced traders. The topics include Forex Education for pro Traders: How to Trade using Fibonacci, and many more. They also record their webinars so that those who missed them can easily access them.

GLOBAL AWARDS

In the Forex broker world, a company awarded and recognized with awards from esteemed publications or organizations boosts the company’s reputation.

Even though the Scandinavian Capital Markets is highly regarded and rated by many of its happy clients according to personal reviews, there is no information of any Awards received by the brokerage firm on their company website.


PROMOTIONS

As of writing this review, there are no known promotions provided with the Scandinavian Capital Markets. If there are any in the future, they shall be updated on our review.

CONTESTS

According to our research on the date of writing this review, we have not found any forex trading contests held by the Scandinavian Capital Markets or any material indicating such information.

SAFE OR SCAM?

This question always crosses the mind of many traders; this is because no one likes losing money. And for that reason, it is imperative to do an adequate background check on any brokerage firm before investing.

The Scandinavian Capital Markets, a Swedish financial investment Company, applies all the required legal procedures towards secure trading conditions.

The Authority responsible for overseeing and regulating trading firms in Sweden is the Swedish Financial Supervisory Authority. The Scandinavian Capital Market is registered with the regulatory Authority and its operations are regulated by them.

It is also compliant with the European ESMA regulations and the directives provided by MiFID. Based on this analysis, it is safe to say that the Scandinavian Capital Market operations are safe. But as always, before trying to put money on any investments, it is wise to do sufficient research.


CONCLUSION

In this review, we have discussed various features and operations of the Scandinavian Capital Markets. From our intensive research on the various topics on how they run their functions, we can conclude that this is a brokerage firm that strives to provide quality trading services to its clients and operates in full compliance with the necessary laws and regulations.

Thus, the Scandinavian Capital Markets is safe to engage in business with due to the constant overseeing and obligatory conditions of their business.

Considering their other trading condition, the Scandinavian Capital Markets is a good choice for both active and seasoned traders due to their high minimum deposits.

They also use sophisticated tools and platforms that are suitable and essential for a high level of trading or professional and required by institutions and fund managers. Also, before investing in any capital market, it is wise to read their Disclaimers. For instance, the Scandinavian Capital Markets warns all potential clients that CFDs and Forex Trading always bear a high-risk level and therefore may not be suitable for all investors.

They have also warned that margin trading involves both potential profit and losses and therefore, the investors should be ready for any.