LCG ReviewCategory: Reviews | Author: Trading Brokers | Date: September 9, 2023
LCG, which stands for London Capital Group, is a UK-based brokerage that’s been in the game since 1996. They specialize in online trading services, covering forex, CFDs, and spread betting. The cool thing is they’re fully regulated by the Financial Conduct Authority (FCA) and even listed on the London Stock Exchange. LCG boasts access to over 7,000 instruments spanning nine different asset classes. So, in this review, we’ll dive into what makes LCG tick, including their regulation, trading tools, educational offerings, market options, account types, and how you can fund your trading adventures.
Pros & Cons
- Competitive spreads and execution
- No deposit or withdrawal fees (except for credit card deposits)
- Regulated by the FCA and other regulators Access to over 7,000 instruments across nine asset classes
- Various trading platforms and tools
- Educational resources and market analysis
- No cryptocurrencies trading
- High minimum deposit for the ECN account
- Fee for credit card deposits
LCG, or London Capital Group, stands as a well-regulated and respected broker offering a comprehensive array of trading services. Regulated by the FCA and compliant with MiFID II, LCG places a strong emphasis on security and transparency, instilling confidence in traders. With over 7,000 instruments spanning nine asset classes, including forex, indices, shares, commodities, bonds, ETFs, options, and cryptocurrencies, LCG ensures a diverse trading landscape. Their offering encompasses CFD trading, spread betting, and vanilla options, catering to various trading preferences.
LCG boasts versatile platforms, including LCG Trader and MetaTrader 4, with mobile apps for traders on the move. For educational support and market insights, traders can access webinars, videos, articles, guides, daily market reports, and a responsive customer support team available 24/5. With account choices that include standard and ECN, competitive spreads, and leverage options, LCG caters to traders of all levels. Funding methods, such as bank transfers, cards, Skrill, Neteller, and Dotpay, ensure flexible financial transactions. In summary, LCG stands as a reputable and versatile broker suitable for traders seeking security, diverse assets, and competitive pricing.
In LCG’s case, the broker operates under the rigorous oversight of the Financial Conduct Authority (FCA) in the UK, known for its stringent regulations. Trading with an FCA-regulated broker brings several advantages, including the segregation of client funds from the broker’s own assets in separate bank accounts, protection of client funds up to £85,000 through the Financial Services Compensation Scheme (FSCS) in the event of broker insolvency, and negative balance protection for retail clients to prevent losses exceeding their account balance.
Furthermore, compliance with the Markets in Financial Instruments Directive II (MiFID II) enhances transparency and safeguards investor interests. Clients also have access to the Financial Ombudsman Service (FOS) for dispute resolution. Additionally, LCG maintains registration with other regulatory bodies, such as the Securities Commission of The Bahamas (SCB) and the Cyprus Securities and Exchange Commission (CySEC) in various regions. However, it’s essential to note that regulatory rules and protections may vary between these jurisdictions and the FCA, necessitating a thorough understanding of the differences before choosing LCG as your broker.
Platforms & Tools
In the world of trading, having the right platforms and tools at your disposal can make a world of difference. LCG recognizes this and offers its clients two primary platforms: LCG Trader and MetaTrader 4 (MT4). These platforms are versatile and available on web browsers, desktops, and mobile devices.
LCG Trader, the broker’s proprietary platform, is a robust tool that boasts advanced charting, technical analysis capabilities, trading signals, and one-click trading. It grants access to a staggering 7,000+ instruments spanning nine asset classes, including vanilla options. LCG Trader also accommodates various order types like market, limit, stop, trailing stop, and guaranteed stop orders, all within a user-friendly interface that can be tailored to suit individual trading styles.
On the other hand, MetaTrader 4 (MT4) is a globally popular platform renowned for its support of custom indicators, expert advisors, and automated trading strategies. With MT4, traders can tap into over 60 forex pairs, spot metals, and indices. Additionally, MT4 offers an integrated market watch, news feed, economic calendar, and trading history. It enjoys a thriving online community of traders and developers who frequently share their tools and insights.
Beyond these platforms, LCG enriches the trading experience with a suite of handy tools, including:
- Market Analysis: LCG’s team of analysts delivers daily market reports, technical analysis, and trade ideas covering a wide range of instruments and asset classes.
- Economic Calendar: Stay informed with LCG’s economic calendar, which highlights upcoming economic events and indicators that could impact market dynamics and volatility.
- Trading Signals: LCG’s trading signals are powered by Trading Central, a prominent provider of technical analysis and research. These signals encompass forex, indices, commodities, and shares.
- Vanilla Options: For added flexibility, LCG offers vanilla options—contracts that grant traders the right (but not the obligation) to buy or sell an underlying asset at a predetermined price and date. These options can serve as effective hedges against market risks or tools for speculating on various scenarios.
Education is a pivotal aspect to weigh when considering a broker, and LCG doesn’t disappoint in this department. They offer a wealth of educational resources to empower their clients, including:
- Webinars: LCG regularly conducts live webinars that delve into a multitude of topics, ranging from market analysis and trading strategies to risk management and platform tutorials. These webinars are hosted by LCG’s own experts and analysts, who generously share their insights and tips. The best part? You can catch them live or access the recorded sessions at your convenience.
- Videos: LCG has curated a collection of concise and user-friendly videos that cover the essentials of trading. Whether you’re looking to master platform navigation, order placement, indicator usage, or technical analysis, these videos serve as valuable guides to kickstart your journey with LCG’s trading services.
- Articles: LCG keeps traders informed through a repository of articles featured on their website. These articles span a wide spectrum of trading-related topics, from market news and economic events to insights into trading psychology and invaluable trading tips. Crafted by LCG’s team of analysts and experts, these articles provide unique perspectives and analyses on market trends and opportunities.
- Guides: For those looking to grasp the fundamentals of trading, LCG offers comprehensive guides that cover essential concepts. These guides explain key trading products such as CFDs, spread bets, and vanilla options, along with insights into associated trading conditions, fees, and risks. Available in downloadable PDF format, these guides are an invaluable resource for traders looking to expand their knowledge base.
LCG boasts an impressive array of over 7,000 markets spread across nine diverse asset classes, ensuring traders have a vast playground to explore. Here’s a glimpse into these diverse offerings:
- Forex: Dive into the world’s largest financial market with over 60 currency pairs, from major to exotic. Forex trading is all about predicting the movements in exchange rates, and it’s a market that sees daily turnovers exceeding $6 trillion.
- Spot Metals: LCG offers six precious and industrial metals, including gold, silver, platinum, palladium, copper, and aluminum. These metals are not just commodities but can act as hedges against inflation, currency fluctuations, and geopolitical uncertainties
- Indices: Over 30 indices, such as UK 100, Wall Street, Germany 30, Japan 225, and US Tech 100, await your exploration. Trading indices involves speculating on the performance of a basket of stocks representing specific markets or sectors, often serving as benchmarks.
- Shares: With access to more than 4,000 shares across UK, US, and European markets, traders can speculate on individual company stock price movements. It’s a way to gain exposure to particular companies or industries.
- Commodities: Over 100 commodities, including oil, natural gas, coffee, sugar, wheat, and corn, are available for trading. These raw materials are vital to the global economy and are influenced by factors like supply and demand, weather, and geopolitics.
- Bonds & Interest Rates: LCG provides access to over 10 bonds and interest rate products like UK Gilt 10Y, US T-Bond 30Y, Euro Bund 10Y, and Euribor 3M. Trading bonds and interest rates involves speculating on the price movements of debt instruments issued by governments or corporations, offering insights into creditworthiness and economic outlook.
- Vanilla Options: Explore more than 40 vanilla options on forex and indices, providing the flexibility to buy or sell contracts granting rights, though not obligations, to purchase or sell an underlying asset at predetermined prices and dates.
- ETFs: LCG offers over 500 exchange-traded funds (ETFs) spanning various categories, from equity and fixed income to commodities and currencies. ETF trading allows diversification and exposure to specific themes or trends.
- Cryptocurrencies: Delve into the exciting world of digital currencies with six cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, and EOS. Cryptocurrency trading enables speculation on the price movements of these decentralized digital assets and participation in blockchain technology innovation.
LCG offers to its clients two account types to global users and one to its UK clients. These consist of the CFD Trading Account, ECN Account, and Spread-betting Account.
- CFD Trading Account: This standard account option opens the door to trading contracts for difference (CFDs) across a staggering 7,000+ instruments spanning nine asset classes. CFDs are your ticket to speculating on price movements without owning the underlying assets. With no minimum deposit requirement, the CFD Trading Account offers variable spreads starting at 0.6 pips on major currency pairs. It also supports various order types, including market, limit, stop, trailing stop, and guaranteed stop orders.
- ECN Account: For traders seeking a premium experience, the ECN Account provides direct market access (DMA) and offers raw spreads from as low as 0 pips on major currency pairs. DMA grants you access to the interbank market, displaying the best available bid and ask prices from multiple liquidity providers. To unlock this account, you’ll need a minimum deposit of $10,000 and be prepared for a commission of $45 per million traded. Like the CFD Trading Account, it supports multiple order types for your trading convenience.
- Spread-betting Account: Designed exclusively for UK clients, this account type facilitates spread betting on the same extensive array of 7,000+ instruments spanning nine asset classes. Spread betting parallels CFD trading in many aspects but offers unique advantages, such as tax-free status in the UK and zero commission fees. With no minimum deposit requirement, the Spread-betting Account also boasts variable spreads starting at 0.6 pips on major currency pairs. It supports a range of order types, including market, limit, stop, trailing stop, and guaranteed stop orders.
Funding your trading account with LCG is a straightforward process, and the broker offers a variety of reliable methods to cater to your preferences. Here’s an overview of the funding options available, although it’s essential to verify the latest details on LCG’s official website, as the information may change:
- Bank Transfer: Bank transfer allows you to move funds directly from your bank account to LCG’s bank account. While this method is secure, please note that it may take up to 3 working days for the funds to appear in your trading account. LCG typically doesn’t charge fees for bank transfers, but your bank might impose some charges.
- Credit/Debit Cards: You can conveniently use Visa or Mastercard to fund your account. Credit/debit card deposits are usually processed within 10 minutes. However, LCG applies a 2% fee for credit card deposits, while debit card deposits are free. Withdrawals via credit/debit cards are also free, but they may take up to 5 working days to complete.
- Skrill and Neteller: Both Skrill and Neteller offer online payment services for quick and easy transactions. Funds deposited using these methods are typically credited within 10 minutes. LCG generally doesn’t impose fees for Skrill and Neteller deposits or withdrawals, but these payment services might have their fees.
- Dotpay: Dotpay is a convenient online payment service, primarily available to clients from specific countries. This option allows you to use local currencies and payment methods. Dotpay deposits are processed quickly, usually within 10 minutes. LCG typically doesn’t charge fees for Dotpay deposits or withdrawals, but Dotpay itself may have associated fees.
Please keep in mind that the minimum withdrawal amount from your LCG account is £50, unless you’re closing your account. Additionally, it’s essential to note that withdrawals are typically processed to the same source you used for depositing funds. You can only withdraw funds that are not currently being used as margin for your open positions.
In summary, LCG stands as a reputable broker, boasting competitive pricing and execution. Regulated by the FCA and other authorities, it prioritizes client security. Offering access to 7,000+ instruments across nine asset classes, including vanilla options, LCG provides a versatile trading experience. Supported by platforms like LCG Trader and MT4, supplemented by market analysis and trading signals, it caters to traders of all levels. Account options include the standard account, with no minimum deposit and variable spreads from 0.6 pips, and the ECN account, requiring a $10,000 deposit but offering low spreads from 0 pips with a $45 commission per million traded. Funding methods are diverse, with LCG not charging deposit or withdrawal fees, except for a 2% fee on credit card deposits. While LCG is a solid choice, some drawbacks include the absence of cryptocurrency trading, a high ECN account minimum deposit, and the credit card deposit fee. However, it’s worth noting that while LCG offers strong features, there are other brokers with longer track records that might be worth considering as alternative options. For additional choices, we encourage you to explore our trading broker reviews.