According to research in South Africa CAPITAL SPREADS is a division of London Capital Group Holdings, which was founded in London in 1996 as a proprietary trading business.
A Quick Overview of our CAPITAL SPREADS Review:
- ✔️Who is Capital Spreads?
- ✔️Safe or Scam
- ✔️Pros and Cons
- Leverage
- Accounts
- Market Instruments
- Fees
- Deposit and Withdrawal
- Trading Platforms
- How to open an account
- Customer Support
- Education
In 2003 the company restructured to become a participant in financial spread betting and launched CAPITAL SPREADS.
Who is Capital Spreads?
CAPITAL SPREADS offers clients the opportunity to spread bet on shares, commodities and metals, currencies and indices. CAPITAL SPREADS has good trading tools available for an organised trading experience and its mobile trading tools work on an Android or iPhone smartphone for easy to trading on the go.
Customers can trade through their online platform or by telephone.
CAPITAL SPREADS offers tight spreads that maximize profit potential and a limited margin policy where clients need only deposit the maximum value of their stop-loss (plus 20%).
Safe or Scam
One of the best benchmarks to measure the safety of a broker like CAPITAL SPREADS, is to establish which regulating authorities are watchdogs over its actions.
CAPITAL SPREADS was established in 2003 as a small betting provider and is owned by the London Capital Group, a premier financial services company established in 1996 already. London Capital Group is listed on the London Stocks Exchange.
Spreads Capital is regulated by the Financial Conduct Authority (FCA) in the United Kingdom.
Pros and Cons
| PROS | CONS |
| 1. Competitive spreads starting as low as 0.8 pips. | 1. Time allocated for customer support is quite short |
| 2. Setting up of virtual and real accounts is fast | |
| 3. No minimum deposit required. | |
| 4. Unlimited access to a selection of free, real-time live streaming charts. | |
| 5. Can trade with as low as $1 per point. |
Leverage
Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.
Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.
Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.
For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.
CAPITAL SPREADS offers a maximum leverage ratio of 1:250.
Accounts
A forex account at CAPITAL SPREADS is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.
Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.
Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.
CAPITAL SPREADS offers a Standard Account with medium fixed spread that gives access to the trading of Forex and CFDs.
CAPITAL SPREADS also offers a demo account, but that does not have all the facilities of an active account as the charting is limited.
There is a choice of currencies to use when you open an account – Sterling, US dollars, or Euros and CAPITAL SPREADS does not require a minimum deposit to open a trading account.
Clients must however deposit funds before attempting any trading, thus the minimum deposit depends on the product you will trade.
Market Instruments
The most popular market instruments available from most brokers for trading include:
Forex
Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.
Commodities
Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.
Indices
Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.
Precious metals
The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.
Energy
The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.
CAPITAL SPREADS offers access to a wide range of financial markets such as UK, European and USA as well as other global shares, foreign exchange, indices, commodities and bonds.
Fees
Cost depends on different factors, like spread and margins, and CAPITAL SPREADS clients may also experience different fee structures according to their country or place of residence.
The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.
Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.
CAPITAL SPREADS offers competitive margins of just 3% on UK 100 equities and 5% on UK Mid 250 and US equities. Overall however, you can open a £1 Rolling Daily UK 100 trade with a small £30 deposit.
CAPITAL SPREAD’s trading platform has its own unique computer-generated customer account management system (CAMS) which controls the margin on your account. This allows you to limit any trading losses on your account to the original amount that you deposited.
Deposit and Withdrawal
Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.
In the case of CAPITAL SPREADS, no minimum deposit is required to open an account, and clients have to determine their deposit according to the market they plan to trade. It is recommended to use a deposit of above £100.
The following methods can be used to fund accounts or make withdrawals:
- Credit Cards,
- Debit Cards,
- Paper Check,
- Bank Transfer,
- Skrill.
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Trading Platforms
The forex trading platform provided by CAPITAL SPREADS to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.
A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.
CAPITAL SPREADS provides MetaTrader 4 and its own CAPITAL SPREADS Platform.
The CAPITAL SPREADS online trading platform is one of the best and most reliable for experienced traders. They also offer a mobile/iPhone spread betting app which allows traders to check their accounts and execute trades on the go.
The CAPITAL SPREADS trading application is a multi-asset platform so you can switch between their spread betting platform and the CFD platform with just one click.
How to open an account
Similarly to a bank, to register a forex trading account with CAPITAL SPREADS for the first time, you will be required to go through a basic “know your customer” process, which will allow CAPITAL SPREADS to ascertain that your submitted details and ensure the safety of your funds and account details.
Customer Support
Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.
In the case of CAPITAL SPREADS customers can reach the support team via email or telephone calls. Support is only available in English.
Education
Before starting to trade, potential clients of CAPITAL SPREADS should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
CAPITAL SPREADS offers newcomers a free demo account that mirrors the live trading platform and the website offers educational and information material available in PDF and web-based formats.
In the educational section is beginner information, FAQ’s, glossaries and demos but the company does not offer seminars or online training in spread betting. An expensive manual explains trading in detail.
Research
To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.
With CAPITAL SPREADS they have access to a video of the week’s market news, a trading quiz, technical analysis, economic calendar, and more.
Awards
Being an awarded company instills extra confidence by traders. Although CAPITAL SPREADS is acclaimed by customers, there is no indication of awards won on its homepage.
Conclusion
CAPITAL SPREADS has an easy-to-use website and a very efficient platform which allows for fast execution of orders which minimizes the chances of losing potential profits.
The CAPITAL SPREADS platform comes with good charts that will get the job done effectively.
A Demo account enables first time traders to experience spread betting risk-free before opening a live account, with which they then can trade on over 2 500 distinct products including Currencies, Commodities, Indices, Shares, Bonds and Interest Rates.
Disclaimer
CAPITAL SPREADS warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.
Before deciding to trade with CAPITAL SPREADS, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.
CAPITAL SPREADS warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence CAPITAL SPREADS cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.
FAQs
TRADING ENVIRONMENT
How many instruments can I trade with CAPITAL SPREADS?
You can trade several different instruments with CAPITAL SPREADS, which include the following:
- Oil,
- Gold,
- Metal,
- Indices,
- CFDs,
- Stocks,
- Commodities
Which platforms are supported by CAPITAL SPREADS?
CAPITAL SPREADS provides the following popular trading platforms:
- MT4,
- CAPITAL SPREADS Platform.
Does CAPITAL SPREADS offer leverage?
Yes, CAPITAL SPREADS offers a maximum leverage of 1:250
What spreads can I expect with CAPITAL SPREADS?
CAPITAL SPREADS offers competitive spreads starting as low as 0.8 pips.
If details on the website is not comprehensive, more information can be obtained from the customer support service.
Does CAPITAL SPREADS charge commission?
More information on commissions can be obtained from the customer support service.
Is CAPITAL SPREADS regulated?
No/Yes, CAPITAL SPREADS is regulated by the Financial Conduct Authority (FCA) in the United Kingdom.
Is CAPITAL SPREADS a recommended forex trading broker for experts and beginners?
CAPITAL SPREADS offers a fair trading environment for all types of traders.
What is the overall rating out of 10 for CAPITAL SPREADS?
6/10
ACCOUNTS
What is the difference between a demo and live trading account?
A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.
Does CAPITAL SPREADS offer a demo account?
Yes
How long is the demo account valid?
Not indicated.
Which live trading accounts does CAPITAL SPREADS offer?
- Standard Account
What are the available deposit currencies for a live trading account?
USD, and more.
DEPOSITS AND WITHDRAWALS
What is the minimum deposit for CAPITAL SPREADS?
No minimum deposit required to open an account but $100 recommended starting trading.
How do you make a deposit and withdrawal with CAPITAL SPREADS?
CAPITAL SPREADS offers the following deposit and withdrawal methods:
- Credit Cards,
- Debit Cards,
- Paper Check,
- Bank Transfer,
- Skrill.
Withdrawals can be done via:
- Credit Cards,
- Debit Cards,
- Paper Check,
- Bank Transfer,
- Skrill.
Does CAPITAL SPREADS charge withdrawal fees?
No, but fees from a financial institution may apply.
How long does it take to make a withdrawal?
Depending on bank services it may take several days for the money to be available.
CAPITAL SPREADS AT A GLANCE |
|
| Broker’s Name | CAPITAL SPREADS |
| Headquartered | London, United Kingdom |
| Year Founded | 2003 |
| Regulating Authorities | FCA |
| Countries not accepted for trade | United States |
| Islamic Account (Swap Free) | No |
| Demo Account | Demo account, without facilities of an active account |
| Institutional Accounts | No |
| Managed Accounts | No |
| Maximum Leverage | 1:250 |
| Minimum Deposit | No minimum required |
| Deposit Options | Credit Cards, Debit Cards, Paper Check, Bank Transfer, Skrill |
| Withdrawal Options | Credit Cards, Debit Cards, Paper Check, Bank Transfer, Skrill |
| Platform Types | MT4, CAPITAL SPREADS Platform |
| OS Compatibility | Web, mobile |
| Tradable Assets | Oil, Gold, Metal, Indices, CFDs, Stocks, Commodities |
| Languages supported on Website | English |
| Customer Support Languages | English |
| Customer Service Hours | Office hours |
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