Capital Index Review
Capital Index is an online broker that is located in the United Kingdom (UK), providing clients around the globe with CFD and Spread Betting via the user friendly MetaTrader 4 (MT4) platforms. They have trading technology and solutions that can cater to traders of all experience levels including retail, professional and institutional clients. Although the broker does have a variety of account types, trading instruments and educational materials, the trading brokers review team found the account funding options to be limited whilst the spreads are not the lowest that we have seen when compared to other online brokers.
Capital Index Review, Pros & Cons
- Regulated brokerage
- MetaTrader 4 platforms
- Virtual Private Server (VPS)
- Educational resources
- Charitable work
- Various account types
- Institutional & professional clients
- Limited funding options
- Spreads not the lowest
- Min $50,000 for black account
- No US clients
- Fees for same day withdrawals
In this detailed Capital Index review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Capital Index Overview
Founded in 2014, Capital Index is a UK based global online brokerage specialising in CFDs, Financial Spread Betting and Spread Trading on a range of financial instruments including Foreign Exchange (FX), Commodities, Indices and Metals.
The broker is staffed by experienced traders and professionals with established reputations within the financial industry, offering in-depth knowledge, strong client focus and total commitment to ethical standards.
Capital Index are committed to providing a unique trading experience with state-of-the-art technology, operating a Straight Through Processing (STP) brokerage model with fair and transparent prices alongside excellent customer service. In addition to delivering top trading conditions, the broker also has a variety of specialist learning and trading tools to assist traders.
The broker has invested heavily in their trading infrastructure so that they can grow with sustainability, always ensuring that they have built-in redundancy to ensure a seamless trading experience for all clients, regardless of their experience level or investment size.
Capital Index hosts their MT4 trading servers in both LD4 and NY4 which enables rapid cross-connectivity between the servers and the brokers liquidity providers (LPs). These dedicated lines provide some of the lowest latency possible which in turn can ensure reliable execution speeds for clients with minimal slippage.
Large volumes of forex transactions are conducted via the LD4 data centre in the United Kingdom (UK) which hosts a full range of redundancy, interconnectivity, support, and monitoring services. NY4 can be considered as the United States (US) equivalent of LD4.
The servers are professionally managed and monitored 24 hours a day for immediate response to any issues that may arise. They are located close to servers utilised by multinational banks and other liquidity sources which provides the servers with the same level of security as these institutions and helps to further protect Capital Index clients.
One of the things that stood out to the trading brokers team and separates Capital Index from some other brokers is the charitable work that they undertake via The Greg Secker Foundation. Founded in 2010 by Greg Secker, the owner of Capital Index, the foundation is a not for profit organisation committed to positively improving the quality of lives of people around the world.
The foundation focuses on education, life skills and leadership initiatives, and strive to equip communities with the essential tools for success. They state that their mission is to enable people to reach their full potential, thereby transforming their lives and ultimately that of their community. This is highly commendable and an excellent endorsement of the ethics the broker is based upon. To find out more about the Greg Secker Foundation you can visit www.gregseckerfoundation.com.
Capital Index Regulation
Capital Index (UK) Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. The Financial Conduct Authority (FCA) is an independent regulator that oversees the financial services industry in the United Kingdom to help protect consumers, keep the industry stable, and promote healthy competition amongst financial service providers.
As a regulated firm, the broker has to comply with the rules for holding and controlling client money that are outlined within the Client Assets Sourcebook (CASS) of the FCA Handbook. This includes the treatment, segregation, safeguarding and strict record keeping of client money and assets.
All eligible client funds deposited with Capital Index are segregated from the company’s funds and thus, if Capital Index became insolvent, client funds should not be used to offset any sums owed to the brokers creditors. Segregated client funds cannot be used for other purposes such as daily business operational costs.
If the broker is unable to meet its financial obligations to a client, eligible claimants will be able to claim any shortfall of up to £85,000 from the Financial Services Compensation Scheme (FSCS). Please note this this does not apply to all clients and you should check if it does to you before proceeding to open a trading account.
This regulation can help to give potential clients the peace of mind that they will have some form of protection should things go wrong and that the broker must abide by strict rules and regulations put in place to protect investors.
Capital Index Countries
Capital Index can cater for traders in most countries although there are some countries in which they are unable to provide brokerage services due to legal reasons, this includes the United States. USA traders may wish to refer to our best brokers in the USA page.
Some Capital Index broker features and products mentioned within this Capital Index review may not be available to traders from specific countries due to legal restrictions.
Capital Index Platforms
MetaTrader 4 (MT4)
Capital Index provide clients with access to the world’s financial markets via the MetaTrader 4 (MT4) platform which is used by millions of traders around the globe. MT4 is widely regarded as the most popular online forex and CFD trading platform for traders of all experience levels.
It has a fully customisable and user-friendly interface along with a short learning curve and vast array of tutorials to familiarise yourself with the platform.
Using MT4, you can analyse various chart types and time frames using the abundance of built-in trading tools which include technical indicators, drawing objects and price alert notifications.
The platform supports automated trading through the use of expert advisors (EAs) and has a built in MQL editor where you can develop customised indicators, scripts and EAs.
The MT4 platform is available as a desktop program for Windows. If you prefer to trade, analyse or monitor your positions in real-time from your mobile phone or tablet, you can download the Android or iOS app.
Some of the main MT4 features include:
- Fully customisable trading environment
- Multiple order types
- One click trading directly from the chart
- 9 different time frames including tick charts
- Technical Analysis with over 50 indicators & analytical objects
- Trading signals & copy trading
- Automated trading (EAs)
- Develop customised trading tools
- Price alert notifications via email, SMS & pop-ups
- Trade via desktop, mobile or tablet
Capital Index Trading Tools
Virtual Private Server
Capital Index can supply a virtual private server (VPS) to clients who would like to run their trading platform remotely 24/7 without needing their own computer switched on. If you are using the brokers Virtual Private Server (VPS) this is located in the same data centre as the main trading server to maximise connectivity and speed of trading.
The broker has an economic calendar which can be used for fundamental analysis by keeping track of the latest news releases. You can view the expected volatility of each news release along with the forecasted, previous and actual results.
Capital Index Education
Capital Index offers a comprehensive education programme that caters to all levels of trading experience through sister company, Learn to Trade.
If you are new to trading forex and CFDs online, the broker offers a range of trading guides that can help to improve your trading knowledge and skills. They cover various topics such as how to start trading online, what the different markets are, currency pairs explained, understanding pips and spreads, margin and leverage explained, different types of trading strategies, market analysis and more.
There is an extensive trading glossary on the brokers website which can enable you to familiarise yourself with some of the common trading and investing terminologies.
A section of the website is dedicated to market news and analysis which can help you to discover what is happening within the markets alongside commentary from the research director. Unfortunately, this seems to no longer be updated on a frequent basis.
Capital Index Instruments
Capital Index provide online trading in CFDs, Forex and Spread Betting.
There is a selection of major, minor & exotic currency pairs to trade in the foreign exchange (forex) market which is the largest financial market in the world, in terms of trading volume. Known by several other names, including forex, FX or the currency market, every day over $5 trillion worth of currencies are traded across the world. Because of the volume of trades, price movements can happen very quickly, making currency trading not only the largest financial market in the world but also one of the most volatile.
Contract For Differences (CFDs)
As a Capital Index client, you can trade CFDs with leverage across indices, commodities, and precious metals. CFDs reflect the price movement of an underlying asset. When trading CFDs, you don’t own the underlying asset but speculate on the price movement of a financial instrument.
As a Capital Index client, you can take Spread Bets on a variety of markets with flexible leverage depending on the product you trade. Spread Betting is a form of derivative trading that allows you to speculate on the price movement of financial markets such as Forex, Indices and Commodities by choosing a buy or sell position. These trades allow you to anticipate on whether the price of your chosen market will rise or fall without needing to invest in the underlying asset. You simply enter the amount you wish to trade “per point” and your profit or loss will move in these increments for each point movement in the market.
Capital Index Accounts & Fees
Whatever your experience level, investments size or trading style, Capital Index have a variety of different accounts to choose from which can cater to the needs of individual traders.
Every account supports trading via a desktop, mobile or web platform, hedging, expert advisors and has no dealer intervention. This can help to remove any potential conflict of interest between broker and trader. It should be noted however, the liquidity providers incorporated by Capital Index can act as market makers.
The primary differences between each account type is the minimum deposit required, spreads and commissions. The account type you opt for may depend on your trading strategy. For instance, scalpers may prefer the black account due to the tighter spreads. Swing traders whose strategy may need be so spread dependant may consider one of the other accounts.
Accounts can be opened GBP, USD, EUR. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
- Spreads from 1.4 pips
- No commission fees
- $100 minimum deposit
- 01 minimum lot size
- Spreads from 1.0 pips
- No commission fees
- $5,000 minimum deposit
- 01 minimum lot size
- Spreads from 0.4 pips
- Commission fees
- $50,000 minimum deposit
- 0 minimum lot size
- Invitation only
Those who qualify as professional clients can apply for the professional account which gives increased leverage for certain instruments and a reduction on current margin rates, allowing you to trade with more leverage, as opposed to the limitations imposed by ESMA on retail clients.
To qualify as a professional client requires meeting 2 out of the 3 following guidelines, 1) Have a portfolio of greater than $500k (not including property or cash) 2) Have a verified history of placing significant sized positions (down to broker discretion) 3) Have worked in the capacity of a professional position related to derivatives / speculation / trading. Match any two of these requirements to qualify as a professional client.
By choosing to categorised as an Elective Professional Client you will lose some of the regulatory protections afforded to Retail Clients. It is important to note that negative balance protection, Investor Compensation Fund and recourse to the Financial Ombudsman Service is removed.
Capital Index can also cater to institutional clients by creating bespoke liquidity pools. They are able to achieve this environment for clients due to their prime broker relationships and market leading technology. Institutional clients include funds, family offices, brokers, banks and professional traders. Institutional solutions include:
- API & Liquidity solutions (LD4 & NY4)
- IB and Partnering
- White label
- Prime of Prime
- Data Services
- UAT testing environment with MT4 or GUI
If you would like to try the brokers services and practice your trading strategies with virtual funds, they do offer a demo trading account. This is a popular way for beginners to gain some experience of trading online before opening a real trading account.
As broker fees can vary and change, there may be additional fees that are not listed in this Capital Index review. It is imperative to ensure that you check and understand all of the latest information before you open a Capital Index broker account for online trading.
Capital Index Support
The Capital Index customer support team can be reached via live chat, telephone and email. There is also an online form on the brokers website which you can fill out to send a message directly to them. As the brokers customer support team operates during UK office hours, you may wish to consider if this fits within your trading schedule. From our experience, they can provide prompt and accurate answers to a variety of general, technical and account related questions.
Capital Index Deposit & Withdrawal
Clients of Capital Index can make bank transfer and card deposits via one of two secure payment service providers. Deposits and withdrawals cannot be made to/from third party accounts. You can deposit or withdraw funds from the secure Client Portal. With the exception of same day withdrawals, they do not charge for deposits or withdrawals, although your bank or card provider may charge fees.
We found these funding options to be limited when compared to some other online brokerages who offer online payment processors such as PayPal, Skrill and Neteller. Some brokers also accept funding through cryptocurrencies including bitcoin.
Capital Index Account Opening
Applying for a Capital Index account is quick and easy. The online application takes around 5 minutes to complete and can be accessed using the “create account” link on the brokers website.
Upon completion of your application, the broker will notify you if they require any supporting documents. This is usually a form of ID (passport or drivers license) and current proof of residence (bank statement or utility bill). The requirements may vary depending on where you are located.
As they are regulated, Capital Index need to assess whether the products that they offer are appropriate for clients, in respect of their knowledge and experience. As part of the client on-boarding process, they have implemented an assessment that helps them to evaluate whether the product is appropriate for the potential client, in light of the client’s knowledge and experience.
Capital Index Summary
Capital Index is a regulated trading broker with a flexible product range that can cater to a wide range of trader requirements. They have solutions for retail, professional and institutional clients.
The broker implements industry leading technology with a deep liquidity pool that helps to deliver a stable trading environment including reliable trade execution speeds.
In addition to this, they have some educational resources and additional trading tools along with excellent customer support. We were particularly impressed by the charitable work that the brokerage does to help those in need.
Despite these positives, we found the spreads to not be the tightest and funding options to be limited when compared with some of the best online brokers. Whilst they do have a variety of account types, the account with the lowest spreads requires a minimum $50,000 deposit which may deter some traders.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.2% of retail investor accounts lose money when trading CFDs and spread bets with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.