BCapitals FX Review
BCapitalsFX is among the newest crop of Forex brokers to have jumped into the retail FX trading wagon with a full range of services and products that are designed for both small, as well as professional investors in the market. BCapitalsFX strives to streamline its service offerings by creating distinct categories of accounts for different types of investors according to their investing capabilities. In this BCapitalsFX broker review, our aim is to find out whether the broker stays true to its promise of offering a reliable brokerage service, or if the broker is amongst the countless fraudulent brokers that fail to live up to their promises.
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BCapitalsFX Regulation – An Important Aspect To Consider Before Investing
BCapitalsFX is not regulated by any reliable or authentic regulatory agency; however, it does have its office in Dubai, which brings it under the UAE financial regulatory guidelines. With its central offices spread across the Middle East, India, and Malaysia, BCapitalsFX also seems to have its offices in China, Europe, Africa, and St. Vincent and Grenadines. Nevertheless, investing with a non-regulated broker is not advisable, especially since the broker has some significant amount of negative reputation in the online Forex trading community. The broker also fails to list the official addresses of all of its broker locations, which further reduces the trust factor that traders have come to expect from reputed Forex brokers in the industry. Furthermore, the website also lacks any encryption such as SSL protection, which is paramount for online financial companies that deal directly with client finances.
BCapitalsFX promises to hold funds in segregated accounts and offer protection and safety of funds according to modern regulatory guidelines. The company even claims to be audited by a reputed third-party firm and assures of following all anti-money laundering laws as applicable from time to time. Although BCapitalsFX tries to make up for its lack of regulatory licenses through other self-regulatory measures, it may only seem like a marketing gimmick to lure traders into opening an account and investing in the markets with BCapitalsFX.
Since regulation and licensing credentials are considered to be the key factors in determining the reliability of a Forex trading company, traders should exercise extreme caution while trading with BCapitalsFX. Unless the broker provides satisfactory answers about its regulatory status and its commitment to the safety of investors by being regulated through a known regulator, traders are advised to be careful with their investments in BCapitalsFX.
BCapitalsFX Trading Accounts According To Initial Trading Capital
One of the unique and interesting aspects of a BCapitalsFX account is the availability of ECN and Direct Market Access trading for all traders across the entire account spectrum. The broker guarantees direct market access trading that offers spreads as low as 0.1 pips for higher accounts, which is quite impressive. However, there are a few reports among the online trading community that the broker might use the market maker protocol for its smaller clients, but it would be impossible to understand the real aspects of trading with the broker unless a certified regulatory organization audits the company’s financial activities and its core Forex products.
BCapitalsFX trading accounts are broadly classified into five different categories, with each account having different trading conditions to suit different trader requirements. The smallest account offering is the Micro account, which has a low starting capital requirement of $10 and a maximum leverage of 1:400. The BCapitalsFX spreads for the Micro account starts at 0.6 pips with no commission on trading. The second category or account is the Standard account, which requires a higher deposit of $200, along with a reduction in leverage to 1:200. The company also quotes a 0.1 pip spread for the Standard account, which is impossible, considering the fact that the Standard account does not have any commission.
For pure ECN trading, the third category of account, also known as the ECN account, offers average ECN conditions for a minimum deposit of $3000, which sees the leverage further reduced to 1:100. While the raw spreads for the ECN account start from 0.4 pips, traders will have to pay a higher commission of $8 per million traded. The fourth type of trading account is reserved for larger traders and is called the Premium account, which has a significantly higher $20,000 initial deposit requirement for accessing the full suite of VIP features on offer. Spreads start from 0.1 pips, while commissions and leverages are reduced to $5 per million traded and 1:50 respectively.
The fifth and final category is an Islamic trading account, which is a SWAP-free account for Islamic traders. It is no surprise that BCapitalsFX would provide such an account due to its extensive presence in the MENA region, where the traders are predominantly from an Islamic background. Islamic trading accounts do have all the features and trading conditions as the regular trading accounts, with the only visible difference being the elimination of SWAPs and other interest-related fees.
Are BCapitalsFX Trading Costs Justified?
BCapitalsFX may seem to offer a standard Forex brokerage platform, but certain aspects of trading might not be as competitive as other ECN account offerings. Even though the company promises tight spreads, real-time spreads may vary significantly, with some users complaining about increased cost of trading under normal circumstances. The commissions are also on the higher side, with the Premium Commission for ECN trading being quoted at $5 per million traded. Other popular ECN brokers may offer reduced commission of $2 per million traded along with a guarantee of 0 pip spread on most major currency pairs.
BCapitalsFX Trading Platforms
BCapitalsFX doesn’t have any surprise in store, as all trading activities are transmitted over the traditional MetaTrader4 platform. The MT4 was primarily designed as a market maker platform, with brokers using additional ECN/STP bridges to connect traders directly to the liquidity providers. The main difference between a market maker and DMA protocol is that traders get access to Level 2 market depth along with higher volatility, faster execution of orders, slippages, partial fills, and other direct market access conditions. DMA access is typically devoid of requotes, and if users are experiencing any issues such as order cancellations, it is a sure sign of a market maker account. It will take a while before we can discern the true nature of all BCapitalsFX trading platforms and their account protocols.
MetaTrader also offers the option of trading on mobile devices such as smartphones and tablets through the dedicated BCapitalsFX mobile apps that can be downloaded for iOS, Android, and Windows devices. Adopting the MT4 terminal has lent an unprecedented amount of stability and reliability for the broker, as BCapitalsFX can concentrate its efforts on creating a great marketing strategy.
BCapitalsFX Bonus & Promotions
BCapitalsFX offers attractive bonuses of up to 30% for deposits, which can be made through bank wire, credit/debit cards, and Skrill transfers. The company also spends a considerable amount of resources on promoting its brand to newer traders, which are evident in its affiliate programs and gift programs that promise luxury cars, international travel, and electronics to referrals who manage to send in a huge number of verified clients to open an account with BCapitalsFX. Promotions and bonuses aside, always consider the consequences of trading with a non-regulated Forex broker before making your investment.