Richard Montana | May 5, 2022
CAPEX is an online broker that gives you access to trade a great selection of more than 2,100+ financial instruments on versatile and powerful trading platforms. You can follow the markets, analyse charts and place trades with minimal fuss via your web browser and trading apps. I like that they also have a selection of trading tools and market insights to help you find potential trading opportunities. However, I found them to be lacking when it comes to educational materials. This is not a big issue for me as I have experience but it may impact you if you are a beginner looking for some guidance along the way.
Pros / Cons
- Regulated broker
- Great choice of 2,100+ trading instruments
- Segregated client funds
- Market news & analysis from Trading Central
- Fixed & variable spread accounts
- Platform tools inlcuding bloggers opinion, daily analysts’ ratings, etc
- Proprietary CAPEX web & mobile trading platforms
- Decent choice of funding methods including digital wallets
- Free demo accounts
- Islamic accounts for Muslim traders
- Good customer support
- Clients from USA, Japan & Canada are not accepted
- Lack of comprehensive education to help beginners
- No cryptocurrency funding
- Not the lowest forex spreads
Founded in 2016 in Cyprus, CAPEX is an online forex and CFD broker whose head office is located in Cyprus with other offices in South Africa and Romania. The company has been built around safety of clients’ data, funds and top-notch services. These are all factors that I consider to be of paramount importance when choosing a broker. Today, CAPEX claims they have a great amount of over 275,000+ accounts opened with them and a trading volume in excess $138 billion.
You can choose from plenty of markets with over 2,100+ forex, indices, bonds, ETFs, commodities, cryptocurrencies and shares are available for trading on the provided platforms. I found the broker to have very competitive spreads, transparent pricing and fast execution speeds. I could not fault their trading service and wouldn’t have any problem using them for my day trading activities.
I like that you can choose between fixed and variable spread accounts, depending on your trading strategy. This makes them a popular choice for forex traders who might want to place trades on a frequent basis or use scalping strategies.
The broker states that it is the principal to your transactions. In layman terms, this means that CAPEX is a market maker who will take the opposite side to your trade. Personally, I would prefer to use an ECN broker that send my orders through to liquidity providers. This is because it helps eliminate any potential conflict of interest compared to when there is a dealing desk involved as with a market maker. If you would also prefer to trade with an ECN broker, XM Group are one of my top choices. I have multiple accounts with them and they have never let me down.
I would always prefer to trade with a regulated broker as it gives me confidence that my funds will be safe and they will behave in a professional manner. The only downside I see to using a regulated broker if that they cannot provide some products and services an unregulated broker can. However, I think safety of funds should come before anything else. I mean, what good is it having all of the features possible if we can’t trade with peace of mind.
If you are a European client then you are entitled to compensation from the Investor Compensation Fund (ICF). The ICF can help eligible clients get back their money in cases where the broker fails or becomes insolvent. However, you need to keep in mind that any compensation is capped at €20,000.
Every client’s deposit is kept in segregated bank accounts which are maintained with only top-rated banks. This means that they cannot use your deposit for anything else such as running its day to day activities.
Whilst they accept online traders from most countries, CAPEX does not extend its online brokerage services to residents of certain jurisdictions including Japan, Canada and the USA. If you are based in a country that they do not serve, feel free to compare brokers for an alternative option.
The CAPEX WebTrader is a modern trading platform that I think is suitable for all types of traders. It runs in your web browser which is great as it requires no downloads, installation or frustrating updates. If like me you are constantly following the markets on your phone, there is also a mobile version for Android and iOS compatible devices.
Here are some of the key features of the WebTrader platform that I think are worth pointing out:
- 6 chart styles that can be displayed on 10 timeframes.
- Around 80 technical indicators used for conducting detailed market analysis.
- Risk management features including stop loss and take profit.
- Technical analysis form Trading Central; a leading financial investment research firm.
- Daily analysts’ recommendation (DAR) tool.
- Blogger opinion tool is a tool on the platform which shows a consensus to buy or sell an asset.
- ‘Trending now’ tool shows the instruments that other traders are buying.
MetaTrader 5 (MT5)
Anyone who has any experience trading online is likely to have used or at least heard about the MetaTrader platforms. MT5 is the follow up to the hugely popular MT4 trading platform, which is still widely used despite the release of MT5. You will probably notice that MT5 is just like the MT4 platform, with the only significant difference being that it has enhanced features and capabilities.
I find the platform simple to navigate and easy to use. It contains everything that you need for following the markets and taking trades. The vast number of functionalities that it has will probably not be explored if you just want to conduct basic trading activity. However, those of you that trade for a living, will certainly find plenty of tools to enhance your trading strategies even further.
One of the reasons I use the MetaTrader platforms is because I find them great for automated trading with expert advisors. Surprisingly, CAPEX actually does not allow trading with EA’s which may be a deal breaker if you are considering running EA’s on MT5. If that is the case, you may want to consider Admirals instead. They have the MT4 & MT5 platforms.
The MT5 platform is available as downloadable desktop application for windows and on Android and iOS devices. You can get it directly from the broker or from MetaQuotes, who are the developers of the platform.
Here are some of the features of the MT5 platform I feel may be of interest:
- Fully customisable interface, layouts, indicators, charts, etc.
- Different execution modes and up to 6 pending order types.
- 3 chart types display over 21 timeframes from one minute to one month.
- Real time display of the assets ‘buy’ and ‘sell’ prices.
- The MT5 has the economic calendar embedded in the platform.
- One account can be accessed seamlessly from all the desktop and mobile applications.
- Automation of trades using software Expert Advisors (EAs), though the use of EAs is forbidden by CAPEX.
CAPEX Mobile App
This is the brokers proprietary trading app developed for the iOS and Android devices. I felt like the app has a simple and clean user interface with matching default colours that make it easy to look at. Whilst this may sound silly, it is important if you plan on looking at charts as often as I do! You can use the app to monitor the markets and conduct detailed market analysis with ease. You shouldn’t have any problems entering and exiting trade positions relatively quickly.
I often find myself using trading apps more often than not, simply because I don’t want to start my laptop every 5 minutes to see what is happening in the markets. However, if you want full functionality, then you would probably want to consider a desktop trading platform instead. I notice that the majority of apps are limited in what they can do in comparison.
These are what I noticed to be some of the key features of the app:
- It is user friendly and easy to navigate around.
- It integrates with the clients’ area of the CAPEX website.
- It is used to make deposits, manage accounts and request for withdrawals.
- The app shows live quotes of all the tradable assets and well as the charts.
- It can be used to place multiple order types including risk management settings.
Over 50,000 experts give their opinion on whether to buy or sell an asset, this can help to determine the market sentiment. A trader may choose to go with the popular opinion or to do otherwise. Sentiment analysis is often used as part of a contrarian trading strategy. It also gives you the opportunity to learn from expert bloggers and read incisive commentaries.
I personally prefer to do my own market analysis as everyone has a different trading style. I like to know what I am getting into rather than following the crowd or even trading against them. That being said, this can be a great tool to help give you extra confirmation on your trading decisions.
Insiders’ Hot Stocks
This is a handy tool that shows you the stocks that most traders are buying and selling. It comprises of stocks that has been identified as trending by TipRanks insider trading strategies. You can even develop a strategy based on the trading activities of these experts or again, just use them as additional confirmation on your trades.
Daily Analyst Ratings (DAR)
This is a tool that collates recommendations from several top-rated analysts to help you make informed decisions. I like that you can access it through the WebTrader platform and choose to follow high ranked analysts based on performance.
Hedge Funds Activity
This tool gives you trading ideas based on the activity of hedge funds. It shows the trade positions of leading fund managers on very popular stocks in the last quarter. I think this can be a powerful tool when used correctly. This is because hedge funds often place large orders that can have a significant impact on price.
News, Views & Current Events
This service is provided by Trading Central; a financial research firm known for in-depth analysis. It provides coverage of most popular trading instruments in multiple languages. A recognition tool scans the markets constantly and alerts you to possible trading opportunities. I think it is a fantastic tool for a hands-off approach to market analysis. It allows you to automatically scan thousands of instruments for trading signals based on your own criteria. I put it up there with Autochartist when it comes to market analysis. If you think these are tools that you would find useful, Forex.com provide both Trading Central and Autochartist free of charge.
You will find a few helpful articles in the ‘Learn to Trade’ section of the brokers website. I also noticed a financial dictionary which explains the meaning of around 31 trading terms which can be useful to beginners. In truth, I felt disappointed with the lack of education provided and saw that the articles featured were not regularly updated. This is an area I believe there is great room for improvement in. If you are new to trading and require as much information as possible, Fortrade have plenty of free educational resources to help you get started.
Although education is an area that I found them to be lacking, I was certainly not let down by the instruments available to trade. You will find an impressive choice of over 2,100+ financial instruments across different asset classes. Everything from forex, stocks, indices, commodities and cryptos are included. If you are looking for an even greater selection, then IG would be worth a look as they have a huge amount of 17,000 global markets for you to choose from.
- 55 currency pairs (major, minor & exotic crosses).
- 4 bonds.
- 19 commodities.
- 6 crypto assets.
- 30 ETFs.
- 19 commodities.
- 26 indices.
- Over 2,000 stock CFDs.
I like that CAPEX have a few different accounts for you to choose from. The account you do go for will depend on your initial investment size and trading strategy. If you want a basic account just to trade with minimal hassle, then the essential option should suffice. If you want more of a personalised trading experience with some hands-on support, I would consider the original account option. Finally, for those of you who know what you are doing and want all of the bells and whistles that the broker provides, then the signature account is probably what you would go for.
You will need a minimum of $100 to open an account. This is reasonable, although some brokers such as Fusion Markets have a minimum deposit requirement of just $1. For all accounts, you will have access to trade using any of the platforms we discussed above. Features such as daily market reviews, financial research and trading video library access are also available to all account holders.
I think it is good that they do not charge commissions although this does means that the variable spread is marked-up to cover costs. I found that the spread varies depending on the platform. On MT5, the EUR/USD spread averages 3.0 pips while the spread on the WebTrader platform is fixed at 1.8pips. To be honest, these spreads are quite high. It may not make a difference if you are holding trades for a long time but it could eat into your profit if you are frequently entering and exiting the market. If that is the case, I would have a look at FP Markets as a better option.
This account is designed for those of you who are beginners and have a limited knowledge of the markets. The broker recommends $1,000 for opening this account but the minimum deposit is $100 and you should only ever trade with an amount that you feel comfortable with.
This account has been created for experienced traders. They recommend $5,000 to open this account but again, only use what works for you. You get access to market research and a dedicated account representative that is available to you 3 days a week.
This account is designed for those of you who are corporate clients or high net worth professional traders. This is the account you will need if you want access to Trading Central. One-to-one meetings with account representative and special trading conditions are some of the other benefits enjoyed by signature account holders.
Islamic accounts are swap-free and can be requested by Muslim clients. I think it is great that the broker caters to clients from different religions without discrimination.
You can open free and unlimited demo accounts for all account types. I am a big advocate of demo accounts as I feel that it is important to allow traders to test the different trading platforms and conditions before opening a real account.
The support team is available from 6:00am to 1:00am GMT from Monday to Friday. A ‘Contact Us’ form is available on the website which can be used to get support to contact you either by phone or email. You can also talk to them using the instant web chat which is my preferred method. I just find it the quickest and easiest way to get a response.
In the support section of the website you can find a frequently asked Questions (FAQs) section which may answer some important questions that you may have before opening an account. Then there is the ‘Get a call back’ which you can use to schedule a call from the support team.
You can fund your trading account via bank transfer, card payment and a few digital wallets. I think this is a good variety that should meet most of your expectations. However, they don’t accept crypto funding at this time which may deter some traders. For crypto funding you can consider Hankotrade.
I like the digital wallet options because they give me quick access to funds. This is important if I need to act fast on some unexpected market news or if I need to access my funds for something other than trading. I also appreciate that they do not charge deposit fees.
Here are the payment options you can choose from:
- Credit Cards: The cards accepted are Visa and Mastercard. Card payments are instantly processed.
- Bank Wire Transfer: This payment method is accepted from all clients. It takes 3-5 days to completely process bank transfers.
- E-wallet: Skrill and Neteller are the e-wallet payments methods accepted. Deposits are instant but withdrawals are processed within 24 hours.
Accounts can be opened in EUR, CZK, DKK, EUR, GBP, HUF, PLN, RON, SEK, ZAR. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency. As you will find with the majority of brokers, they do not accept payments from third parties.
It takes only a few minutes to register an account with CAPEX. You can just visit the website and click on the ‘Register’ button which is found on the far top right-hand side of the website. You are then presented with a simple registration form that requires some personal information.
After you have completed the form, your account is created. You can then choose to try the demo account which comes with virtual funds of €10,000. You can also choose to continue registration in order to open a live account. Another 4-page form displays requesting for personal and professional information. Also, the clients’ trading experience and a quiz section is required before the account can be approved. This is to protect you and make sure that the services are suitable.
Overall, I found CAPEX to have a good selection of trading instruments to choose from along with user-friendly platforms and very competitive fees. The trading platforms are robust, scalable, fast and suitable for all types of traders. Both platforms are mobile friendly with Android and iOS apps for you to trade wherever and whenever you like. I like the fact that they are regulated as it makes me feel confident that my funds are safe and helps to ensure a secure trading environment for all clients.
The proprietary CAPEX WebTrader platform is loaded with innovative tools for you to conduct in-depth market analysis and take positions without any issues. I feel the Trading Central software is an excellent addition for helping you to spot potential trading signals based on your own preferences. You also get access to some innovative platform tools like Blogger Opinions, Insiders’ Hot Stocks, Daily Analyst Ratings and Hedge Funds Activity. All of these can help with your daily trading decisions.
However, there are a few drawbacks with this broker for you to think about. There is virtually no educational content on the website at this time which could be a problem is you are a beginner. Although you can always practice trading on a demo account and find plenty of trading guides elsewhere. I also discovered that the forex spreads aren’t the lowest and crypto funding is not currently supported. If you can overlook these minor discrepancies, then CAPEX could be a great choice of broker for you.