Eightcap Review 2020
Eightcap is an Australian broker offering online trading on forex and CFDs via the popular MetaTrader (MT4/MT5) trading platforms. They offer competitive trading fees and tight spreads but do not have a social trading platform.
Eightcap Review 2020, Pros & Cons
- Regulated broker
- MAMM accounts
- Market news & analysis
- Multilingual & efficient customer support team
- No social trading platform
- No fixed spread accounts
- Limited trading instruments compared to other online brokers
- Do not allow clients from over 35 countries including USA
- Demo account expires after 30 days
In this detailed Eightcap 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.
Eightcap is not ranked in our best forex brokers, best stock brokers, best cfd brokers, best crypto brokers or best online brokers categories. You can use our free broker comparison tool to compare online brokers including Eightcap.
Eightcap Review: Summary
Established in Melbourne, Australia in 2009, Eightcap was launched with a mission to provide exceptional financial services to a global clientele. The broker provides access for online trading of forex and CFDs in a modern and secure trading environment. Eightcap’s website is available in 12 languages.
The online broker offers currency pairs, indices, commodities and cryptocurrencies for trading on the MetaTrader platforms via web, desktop and mobile apps. All trading styles are allowed including scalping, hedging and the use of expert advisors (EAs) which automates forex/CFD trading.
Eightcap has its trading servers located at Equinix data centres which are very popular because most leading financial institutions host their servers in these facilities. Pricing is aggregated from top-tier liquidity providers. This is why the broker is able to offer raw spreads starting from 0.0 pips and there is no dealing desk.
Eightcap Review: Regulation
Eightcap is the trading brand of Eightcap Pty Ltd which is registered in Australia with the number: ABN 73 139 495 944. Eightcap is regulated by the Australian Securities and Investments Commission (ASIC) and holds an Australian Financial Services License number 391441.
Clients’ funds are held in the top-rated banks and carefully segregated from the broker’s own funds. These funds are kept in the ‘National Australia Bank’ which is an AA rated bank with more than 30 years of operations, over 1,590 branches and a client base of about 12.7 million. To ensure compliance, all records are audited by external auditors.
Eightcap has also purchased an insurance cover in order to further protect itself and its clients from the risks associated with the brokerage business.
The broker’s websites and servers are protected by a 128-bit Secured Socket Layer (SSL). This technology encrypts all user information before it is transmitted over the internet. This gives further protection to the clients as it provides extra security and reliability to the network.
Eightcap Review: Countries
Currently, Eightcap does not process applications from clients resident in the following countries: Afghanistan, Azerbaijan, Belgium, Bosnia and Herzegovina, Burundi, Canada (British Columbia, Quebec and Ontario), Congo, Côte d’Ivoire, Ethiopia, Eritrea, Egypt, Gaza Strip, Haiti, Iran, Iraq, Israel, Japan, Lebanon, Libya, Myanmar, North Korea, Pakistan, Puerto Rico, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Trinidad and Tobago, the Central African Republic, Tunisia, Ukraine, Vanuatu, Venezuela, the United States of America, West Bank, Yemen and Zimbabwe.
Some Eightcap broker features and products mentioned within this Eightcap review may not be available to traders from specific countries due to legal restrictions.
Eightcap Review: Trading Platforms
Eightcap provides only the MetaTrader platforms for all its clients. All the versions of the MT4 and MT5 platforms are available. Both platforms were developed by ‘MetaQuotes Software Corporation’ which is a Russian software company based in Cyprus. MT4 was released in 2005 while MT5 was released in 2010. Today, MetaTrader has remained amongst the most popular trading platforms used all over the world by many online brokers and traders.
Eightcap provides the following MetaTrader platform versions:
- MT4 Desktop application for Windows
- MT4 for MAC OS
- MT4 Mobile Android app
- MT4 Mobile iOS app
- MT5 WebTrader
- MT5 Desktop Application for Windows
- MT5 for MAC OS
- MT5 Mobile Android app
- MT5 Mobile iOS app
The WebTrader runs directly in web browsers and can be accessed from Eightcap’s website. It can be used in most modern web browsers across multiple devices and operating systems.
The mobile versions of both MT4 and MT5 look very similar with intuitive interfaces making them user friendly. Both can be used to monitor the markets, place and modify trades and also used to perform technical analysis. They are freely downloadable from the relevant app stores.
The desktop versions of MT4 and MT5 also look very much alike. The major difference is that the MT5 platform was designed to improve on the existing features of MT4. Both platforms show the live instruments’ quotes, support ultra-swift trade executions, detailed charting and analysis. Both support the use of expert advisors (EAs) to automate trading and also give access to the MetaTrader markets. Here are some of the key differences between the platforms:
- MT4 has 4 pending order types while the MT5 has 6.
- MT4 comes preloaded with 30 technical indicators but the MT5 comes with 38.
- The analytical tools built into MT4 are 24 whilst MT5 has 44.
- In MT4, charts can be displayed in 9 timeframes whilst MT5 has 21 timeframes.
- MT5 has an embedded economic calendar which is absent in MT4.
Eightcap Review: Trading Tools
Eightcap provides a multi account management (MAM) software that is robust and scalable to meet the needs of all clients. The software works with the MT4 or MT5 trading platforms. It is fully customizable to meet the need of all types of managers. The MAM software solution is fast and runs on the server. The account managers can trade multiple accounts at the same time with just one click. They can also use several trading strategies including the deployment of expert advisors (EAs). Each individual client account can be customised according to commission, leverage, performance fees, account currency, etc.
Market News & Analysis
This section of the Eightcap website looks at economic events, market news and updates as well as analysts’ comments and predictions. This is prepared by Eightcap’s analysts in three subsections which include market updates, forex news and CFD news.
This is an important tool used for fundamental analysis. The calendar shows the dates and times of global economic events and their predicted impacts on currencies. The economic calendar is part of the tools that are implemented within the MT5 trading platform.
Eightcap Review: Education
Several training articles are available on the Eightcap website. The articles were prepared by Eightcap’s team of analysts. They incorporate diagrams, pictures and multiple examples to help traders increase their knowledge and skills.
The ‘Fundamentals’ section contains about 24 articles on the basics of forex trading. It introduces forex trading, stocks, spread, pips, swap rates, charts, etc.
The MetaTrader Guides contains about 14 articles on the MetaTrader platforms including ‘how to install EAs’, open and close trades, enable one-click trading, etc.
The ‘Trading Strategy’ section contains about 15 articles on how to use various indicators. Some of the indicators are Elliot waves, MACD indicator, Bollinger Bands, etc. It also looks at risk management, trading strategies and trading psychology.
Eightcap Review: Trading Instruments
Eightcap offers 46 currencies, 12 indices and 4 commodities. Over 200 share CFDs are available for trading only on the MT5 platform. 4 Crypto assets are also exclusively available on the MT5 platform.
Eightcap Review: Trading Accounts & Fees
For all accounts, the minimum opening balance is $100. The following are the account types:
- Raw Account: This account features spreads from 0.0 pips but clients are charged a commission of $3.5 for every lot traded. The typical spread for the EURUSD is 0.00-1.0 pips. The account is created for professional and high volume traders. The account features raw interbank pricing with no spread mark-ups. The maximum leverage is 1:500.
- Standard Account: This account is designed for new and experienced traders. It features standard spreads which range from 0.5-1.8 pips for the EURUSD currency pair. The maximum leverage is 1:400. No commissions are charged as the trading fees are incorporated into the spread charges.
Demo accounts are provided for all platforms. It is preloaded with virtual money, allowing traders to test the different trading platforms before opening a real live trading account. Unfortunately, the demo accounts expire after 30 days.
As broker fees can vary and change, there may be additional fees that are not listed in this Eightcap review. It is imperative to ensure that you check and understand all of the latest information before you open an Eightcap broker account for online trading.
Eightcap Review: Customer Service
The Eightcap customer support team is available 24/5. The support desk can be reached through email, phone and web chat. The support team speaks Thai, English and Chinese. Eightcap is on social media via the following platforms; Facebook, Twitter, LinkedIn and YouTube.
Eightcap Review: Deposit & Withdrawal
- Bank Wire Tansfers: This method is universally available. It takes 3-5 days to completely process a bank transfer. For withdrawals, Eightcap processes the request within 24 hours. There are no withdrawal fees for Australian banks but international withdrawals are charged a fee by the banks. This fee is approximately $20 and it is passed to the client.
- Credit/Debit Cards: Only Visa and MasterCard are accepted. The deposit limit is $10,000. Card verification is required before it can be used for deposits. For withdrawals, only the amount deposited from a card can be returned to the same card. Card deposits are free and instant while withdrawals take up to 3-20 days depending on the type of card and location of the client.
- Online Payments: The online payments accepted are POLi, BPAY, Skrill and China UnionPay. The transactions are processed instantly except for Skrill and BPAY which takes 1-2 working days to process. There are no transaction charges. For withdrawals, funds deposited via Skrill can be withdrawn to the same Skrill account. 1% transaction fee is charged and it takes 2-5 business days to complete.
Eightcap Review: Account Opening
To register a new trading account with Eightcap, visit the website and click on ‘Create Account’ found on the top side on every page. The page below displays.
Fill the form and another 5-page form will be displayed. This time, you are required to fill the account type, personal details, state the funding source and your trading experience. Next is to accept the terms and conditions and finally upload verification documents.
Eightcap Review: Conclusion
Eightcap is an established online broker that has been providing online trading services for over a decade. It is a regulated brand that desires the best for its customers. In addition to complying with the directives of the regulators, the broker has purchased an additional insurance policy in case of any eventuality.
They offer the tried and tested MetaTrader platforms. The MT4 and MT5 platforms are robust, scalable and loaded with multiple trading tools that can benefit all types and experience levels of traders. The broker also allows all trading strategies which will maximize the capabilities of the platforms.
However, there could be improvement on the services rendered by Eightcap. There are no cent accounts and no social trading platforms. The demo account is limited to 30 days. No training videos and no in-depth analysis from third party expert firms like Trading Central, Autochartist, Claws & Horns, etc.
Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment).