Capital Index review
This broker was not featured in our 2023 Broker Review Audit. This is because, in the past 12 months, it has failed to pass our initial screening process and is not recommended by our team of experts. As such some of the information found here may be out of date.
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Capital Index is a fantastic new Forex broker that allows its traders to choose multiple trading options on different financial assets. Capital Index clients can open regular trades, place spread bets, or trade CFDs on currencies, commodities, indices, and precious metals, all through a single account. Capital Index initiated its FX operations in 2014 and has a significant presence in London, Cyprus, and South Africa.
Capital Index is regulated by the FCA, the CySEC, and the FSB. Having three different Capital Index regulation ratings are sure to be a hit among new retail traders who are very particular about choosing a regulated FX broker. Although the company has understood its market well, they haven’t established a presence in the US, which prevents US traders from enjoying the numerous benefits offered by Capital Index. Nevertheless, FCA regulation ensures that the company follows a great deal of regulatory guidelines to assure the safety and security of a client’s trading capital, which is kept in segregated bank accounts and protected under the FSCS scheme.
|CySEC, FCA, FSB|
|Forex, indicies, commodities, shares|
What Are The Numerous Benefits Offered For A Capital Index Trading Account?
One of the primary benefits of trading with Capital Index is the availability of the spread betting option, which is completely tax-free in the UK. The UK has legalized the concept of spread betting by rendering all profits from spread betting to be exempted from any tax and stamp duty. However, several jurisdictions may have existing tax laws that prevent traders from enjoying such a status, while spread betting is deemed illegal in several countries. Therefore, traders should always consult with certified experts and do proper research regarding their country’s laws and regulations before opening a spread betting account.
Another benefit of a Capital Index account is the ability to open a trading account with no minimum deposit, which allows traders to start trading from $1. All initial deposits up to $100 are offered a Classic account that comes with a maximum Capital Index leverage of 1:100. The Classic account offers a fixed spread on all financial assets, and the spreads start from 2 pips standard for the EUR/USD pair. Deposits starting from $100 and up to $500 qualify for the Advanced account, which includes a variable spread structure that starts from 1.2 pips. The maximum leverage also increases to 1:200, while traders can make use of a free VPS account for ultra-low latency and faster trade execution. The free VPS option is only available if the trader maintains the required number of trading volume on a monthly basis, and in case the trader is unable to maintain the required trading volume, the company charges a premium for VPS access.
Traders depositing more than $500 are offered the Pro account, which further reduces the Capital Index spreads to 0.9 pips; however, there is a commission of $3.5 on round lots. The Pro account is not a real ECN account; yet, the spreads and other trading conditions are highly impressive. All accounts have SWAP fees for overnight trades, but if a trader wants to choose an Islamic account, the company provides a SWAP-free account for deposits higher than $100. The Islamic account is similar to the Advanced account in almost all aspects, apart from the underlying currency, which is in USD only, while all other accounts can be opened and maintained in GBP, USD, and EUR.
Trading Platform duties are accomplished by the tried and tested MT4 platform, which offers both the standard and the MAM version. The standard MT4 does its job as a reliable Capital Index platform, and MT4 users will find it easy to start trading as soon as they open an account and make a deposit. Capital Index mobile trading can be performed through the MT4 apps available through the Apple and Android stores. The MAM (Multi Account Manager) MT4 account is highly suited for account managers by managing multiple investors accounts through a single platform. Therefore, there are no real surprises when it comes to the Capital Index trading platform options.
Are There Any Drawbacks With A Capital Index Account?
Capital Index does come with a few drawbacks, the main being the lack of a higher leverage for the Classic account. Usually, we wouldn’t recommend using higher margin for trading, but a no minimum deposit option with a maximum of 1:100 leverage is a disaster. It is impossible to open a position with $1, and the company enforces a margin call if your equity falls below 100% margin. Therefore, the absolute minimum amount of money required to trade with a leverage of 1:100 is $100; however, it is strange to note that higher account types come with a maximum leverage of 1:200. Therefore, it is not as if the company is protecting its clients from losing money, as there is a greater risk of losing more money with a higher account than the Classic account.
The deposit options are also limited since the broker only provides deposit and withdrawal options through credit cards, Skrill, and bank transfers. Although the company has covered the three basics of payment options, including a few more e-wallets and payment processors into the mix can certainly improve the reach among retail traders, especially since the company offers a low deposit option.
Although the company has a reliable customer service department in place, the customer support is lethargic at times. Traders can contact support through live chat, phone, or emails, but written correspondence can take a bit of time for responding. However, expect your complaints to be resolved in an agreeable manner.
Do I Get A Capital Index Bonus?
Yes, Capital Index offers bonuses up to $10,000 for deposits, which is a great incentive for opening an account at the broker. Of course, bonuses are not recommended due to the associated terms and conditions, but if you are confident about your trading abilities and being able to meet the trading lots, Capital Index is one of the very few FX brokers out there that offers a hefty bonus for Forex trading.
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