When you decide to start trading, you look for a brokerage firm where you can trade. But, before choosing a brokerage firm, do you even check its features, regulations, safety and security of funds and your information, customer support service, and trading tools? Capital.com is quite a new firm in the market as it started just five years back. Hence, it is not able to keep its clients fully satisfied with its services. If you are thinking to invest your hard-earned money with such a broker, then reevaluate your decision and think that is the firm is worth to invest? Read our impartial review of Capital.com. It will clear all your doubts so that you can make a fair decision before choosing a broker.
Capital.com has been in the financial market since 2016. As it is not so old in the industry, it lacks in fulfilling the demand of customers. Being in the industry for the last five years, the company does not even have a Meta Trader platform. The broker provides outdated old fashioned trading platforms with limited features. In each market, you will also get controlled choices; hence, you can’t expect a good exposure here. Ultimately, it impacts your portfolio.
The website of the broker is so basic, which looks outdated. The UI of the website is not as impressive as compared to other highly advanced brokerage firms. The website looks like its content has not been updated for ages. In our opinion, it is not a great idea to spend your hard-earned money on these outdated services that this broker offers.
Is Capital.com safe or not?
The company has mentioned on its website that it is regulated by the Cyprus Securities and Exchange Commission (CySEC), but we can’t say whether this company is genuine or not. The lack of trust is that the broker does not offer any separate bank account, strong encryption tools to safeguard the funds and information of its clients. Also, the broker does not have any banking license, which makes it difficult to trust. Along with that, there is only one regulatory authority which is supervising the broker. That is why we advise our readers to think again and reevaluate their decision before investing their money with Capital.com.
Services in Limited Countries
Capital.com offers its services to a limited number of countries such as the United States of America, some countries from Europe. The broker does not offer its services in Asia. The broker fails to provide its services to clients from Asia. Also, in Asian countries, there are different legal restrictions; due to this, the broker gives alarming signs. That is why it would be great to think twice before investing with this broker.
Old Fashioned Trading Platforms
With the advancement of technology, the world has already shifted to MetaTrader 5. But you will be amazed to know that capital.com even does not have basic MetaTrader 4. That is why the users will not get the desired results as they want from it. The functions of capital.com are difficult to understand, which creates confusion. Also, when the customer contacts customer support, they need to wait for a long time to respond from the customer support team.
Capital.com: Types of trading account
The broker mainly offers three types of trading account to its customers: standard, plus and premier account. The minimum deposit for these accounts is way higher than any other premium brokerage firm. The minimum deposit is as high as $10,000, which is far beyond the reach of everyone. Also, for professional and institutional traders, there is a need to open an entirely different account.
Limited Tradable Products and Market
On the website, the broker has mentioned that they provide a range of tradable products such as indices, forex, commodity and many more. But in reality, the traders will find a way less tradable products in each category. The traders will not get the chance to expand their portfolio with Capital.com.
Complex and Time-consuming Account Opening
The account opening process of capital.com is so complex for a newbie and includes various time-consuming steps. The company asks its customer for their personal details and sensitive data that they do not feel comfortable sharing, like bank statements etc. Once a customer makes an account with them, they take an ample amount of time in the document verification process, which ultimately irritates the users.
High Commission, Fee and Spreads
The commissions that these broker charges are way higher than any other good regulated broker. It also includes various hidden charges to get to know once you will be trapped with them. The broker charges high overnight charges, which ultimately impacts the profitability of clients. Due to these high commissions and hidden charges, almost half of your profits will go into paying these charges.
The broker is aimed to make a maximum profit without thinking about the sentiments of innocent traders. The broker is also not clear about the spreads on every type of account, which also creates confusion, and traders end up paying high charges with every trade they execute.
Leverage on Trade
The leverage that firm offers to its client is the same for every type of account. For all types of accounts, the broker offers leverage up to 30:1. When we check the company’s official website, there is no clarity on leverage and margin, which the broker offers. So, if you are looking for heavy leverage then, capital.com is not the one you should go for. However, all of us know that leverage trading is like walking on a double-edged sword. So choose and invest your money wisely.
Deposit and Withdrawal
The broker supports only four base currencies. Also, the withdrawal and deposit process is quite a time consuming and includes numerous formalities like first you need to fill a withdrawal form, then they will process the payment, and then you will get it in your account. Along with this, the withdrawal process can take the time of 3 to 7 working days.
Education Material and Research Tools
Capital.com provides a range of educational material and research tools for the help of its clients, but in reality, those materials are not qualified and do not stand when it comes to quality. After reading its educational materials, it seems like a newbie writer has written these. The educational material and research tools disappoint the traders.
The broker claims to provide 24/7 customer support, but they face a long waiting time when any customer tries to contact them. Also, the customer support team take hours of time to resolve someone’s query.
Disadvantages of Capital.com
- Limited trading tools
- The minimum deposit is way higher.
- Low-quality services
- High commission and spread
- Spread and leverage are not clear.
- Low-quality educational resources and research tools
- Serves a very few countries
- Complex and time-consuming account opening process
- Lacks MetaTrader 5 platform
- Does not have MT4 and MT5.
This review includes all the valid points and services which the firm offers to its clients. Our motive is to study fraudulent brokers and help innocent traders to see the reality of them. In the review of capital.com, the broker failed to meet all the requirements and essential objectives that a trader requires.
If you are a newbie trader and do not know anything about brokerage firms, we would recommend you go for ROinvesting, T1 Markets, and TradedWell. These are well-regulated brokers which render high class, advanced technology services at a very competitive rate.
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