The company behind Capital.com is Capital Com SV. It is registered and regulated in Cyprus. The local financial watchdog – the Cyprus Securities and Exchange Commission is one of the most respectable one. This may not be the case if you decide to trade with an off-shore company.
Minimum Initial Deposit
Capital.com has set the initial minimum deposit at $100, which is a reasonable level. Do keep in mind, this company provides CFDs on asset classes other than FX, so a bigger investment may be appropriate. On the other hand some brokers have gone out of their way, to reduce the entry barrier, like XM who require only $5.
Remember, the minimum deposit should only matter if you are a new trader, willing to experiment. The veterans will tell you, a bigger investment is needed in order to execute a long-term trading strategy.
Average spreads & Commissions
At Capital.com, your trading costs come down to the spread and overnight premium (i.e. borrowing rate for your margin capital, in case you hold a position open for more than a day). When it comes to the spreads they are relatively competitive: around 25 cent on Gold, 20 cent for Apple Stock and 0.6 points on the S&P 500 index. Keep in mind all of these products are CFDs.
When it comes to the overnight rates, they are not clearly mentioned on the website. This may be because the app is totally oriented towards beginners.
The most unusual thing about Capital.com is that they do not offer currency trading. If that is something you are interested in.
Capital.com offers leverage up to 1:50. This may seem low for you, especially if you follow the forex trading industry, where companies often offer 1:500 and higher levels. When it comes to CFDs on equities and specific stocks, 1:50 is a reasonable level. Currencies move in much smaller increments than stocks, for instance. This is why a much bigger position (and hence more margin) is required in the FX market.
Higher leverage levels can allow you to take bigger positions, with less capital to back them up. This can be devastating, if miss-used. Be sure to fully understand the risks involved with margin trading, before participating in it.
Capital.com offers only an app for trading. It is available for both major operating systems – Android and iOS. Although it may lack some of the analytical capabilities of the desktop version of the world’s most popular forex trading platform MetaTrader4 (MT4), it still feels capable of doing the job. One of the neat little features it has is the 2-day line chart, a rather recently popularized way of viewing a market’s dynamic in a snapshot.
Methods of Payment
A decent number of payment options are available at Capital.com. They include Bank Transfer, Credit/Debit Card, Neteller and Skrill. You are pretty much covered, because some of the most popular e-wallets are added to the traditional options.
Capital.com is a CFD broker, which offers trading only via a mobile app. The company is regulated by CySEC, which gives it a lot of credibility. The entire business appears to be aimed at people with less experience in financial markets, especially given the second app, Investmate, which the company offers. That being said trading conditions, in terms of spreads are rather good for a CFD provider. The app’s design fells intuitive and pleasant. Overall we believe this is a great gateway to the world of financial markets.