Capital.com review: unveiling pros & cons

Capital.com was founded in 2016 and is a global CFD broker, with offices throughout the world, including the UK, Cyprus, Australia, Seychelles and Gibraltar. It is a popular choice among traders and investors who wish to access global markets and create a diversified portfolio.

In the next sections below, we’ll have a look at Capital.com’s main features, benefits, but also drawbacks and everything else you should know if you are considering opening an account with Capital.com.

What is Capital.com?

Capital.com (Capital) is a forex and CFD broker that serves traders and investors around the world. CFDs, or contracts for difference, are derivative contracts that allow traders to open and close positions without actually owning the underlying asset. It is a more affordable way of speculating on future price movements. When trading CFDs on assets, you buy the CFD (or short-sell) and you realise your profit or loss when you close the position. For example, if you believe Facebook shares will increase, you open a long position (buy). Once the price increases, you close the position (sell) and book the profit.

Next, for UK citizens, Capital.com offers spread betting, which is a derivative that allows you to place a bet on the increase or decrease in the price of a chosen asset. For example, if you predict that the price of Facebook shares will increase, you will make a profit – if you are wrong, you make a loss.

Based on a unique transaction processing method that improves market efficiency, Capital.com offers commission-free trading thanks to its hybrid team of programmers and bankers.

Here are some of the main features of this CFD broker:

Capital.com: trading platform

Capital.com provides a proprietary trading platform available either via desktop or mobile phone. The interface is user-friendly, uncluttered, and easy to use. However, while it may be recommended to beginners, the lack of customizability could seem unappealing to more experienced traders. It comes with a highly intuitive menu on the left side, where you can see your portfolio, browse the markets, place orders with ease, and generate downloadable reports for your activity.

Traders from different countries can take advantage of optimal trading conditions at Capital.com. The minimum deposit is only £20 and there are many payment methods available, including credit or debit cards, bank transfers, and a variety of other services, including PayPal.

Capital.com: mobile app

Capital.com offers a mobile app that stands out due to its user-friendly interface. It comes with 2-factor authentication, price alerts, and trade confirmations. It is an excellent choice for trading on the go or regularly checking on your trading account.

There are multiple shining features of the app. You can browse the markets according to the top risers, top fallers, most traded assets, most volatile ones, and many more. There is a dedicated section for market news and a search function for easy navigation. You can also use the same order types as the desktop counterpart, which include market, limit/stop, stop-loss/take profit, and guaranteed stop.

Capital.com: assets & markets

Capital.com offers CFD trading on more than 3,500 assets and markets, including stocks, indices, and forex. It also allows spread betting on commodities, indices, forex, and stocks. At press time, Capital.com provides access to more than 2,800 stocks, over 20 indices, and more than 120 forex pairs. It further provides access to an ESG database of companies in which you can invest.

It is worth noting that, while Capital.com does offer cryptocurrencies, there are not available to UK residents as per current regulations imposed by the FCA, the local regulatory entity.

Trading all of these assets is free of commissions.As with most CFD brokers, Capital.com does have a variable fee structure based on low spreads. The three types of fees charges are the spread, overnight fee if you decide to keep your positions open overnight, and a guaranteed stop-loss premium, if you use it on your trades and if it is triggered only.

Overall, Capital.com has a very broad offering in terms of assets. This CFD broker, however, does not offer real assets, such as investing in real stocks. You can only trade via spread bets or CFDs, ideal for short- and medium-term trading strategies.

Capital.com UK: main features

Here is a short summary of Capital.com’s main features:

• It is one of the few available brokers that is regulated in more than one jurisdiction. Among its regulators are the Financial Conduct Authority in the UK, the Securities and Exchange Commission in Cyprus, ASIC and the Financial Services Authority in Australia.
• The low minimum deposit allows even novice investors to get used to trading on the platform, and the minimum trade amount is only £1, so you can build a diversified trading portfolio on any budget.
• The training and education provided by the broker are among the best in the industry. The information provided by Capital.com keeps customers up to date with the latest news and events in the financial markets.
• A range of courses is also available to improve the trading skills of its users.
• Customers have access to over 6,000 different CFD instruments, including a wide range of major currency pairs, stocks and commodities. Overall, Capital.com offers its users a wide selection of assets.
• Users enjoy negative balance protection on their accounts, which means that you can’t lose more than you have in your account.

Capital.com fees and commissions

Capital.com charges some of the lowest rollover fees in the industry for leveraged transactions (otherwise known as margin transactions, where you borrow money from the trading platform to make larger trades). Overall, Capital.com is a great choice if you decide to leverage your trades. With Capital.com, the most common types of fees are the rollover fee and the spreads.

The spread depends on what asset you choose, its volatility, and whether you use CFDs or spread betting. Overnight funding is also variable, based on the asset and market conditions. Finally, the guaranteed stop premiums are only charged if you use this type of order and which asset you choose. The highest fee is for stocks, of 1% of your trade, but commodities have a fee of 0.05%, while guaranteed stop premiums on forex and indices are 0.1%.

Capital.com: education and analysis

In terms of research and education, Capital.com’s solid offering surpasses what one can expect from a typical broker. Known as the Education Hub, the educational section provides insightful information on many trading strategies, products, and explanations of many technical terms.

Capital.com offers market research and analysis alongside educational content. Apart from the economic calendar, Capital.com regularly publishes articles and news regarding the financial markets.

• It is one of the few available brokers that is regulated in more than one jurisdiction. Among its regulators are the Financial Conduct Authority in the UK, the Securities and Exchange Commission in Cyprus, ASIC and the Financial Services Authority in Australia.
• The low minimum deposit allows even novice investors to get used to trading on the platform, and the minimum trade amount is only £1, so you can build a diversified trading portfolio on any budget.
• The training and education provided by the broker are among the best in the industry. The information provided by Capital.com keeps customers up to date with the latest news and events in the financial markets.
• A range of courses is also available to improve the trading skills of its users.
• Customers have access to over 6,000 different CFD instruments, including a wide range of major currency pairs, stocks and commodities. Overall, Capital.com offers its users a wide selection of assets.
• Users enjoy negative balance protection on their accounts, which means that you can’t lose more than you have in your account.

How does Capital.com make Money?

It is necessary to examine Capital.com’s execution methods to understand how it makes money. Capital.com offers both market maker and agency execution (depending on the markets you trade in). Capital.com’s revenues are mainly represented by the bid/ask spreads on its platform. For example, Capital.com buys assets from one trader for £10.50 and sells them to another trader for £10.51, with £0.01 representing its revenue.

If you are looking for affordable trading, have a look at our best commission-free brokers article.

How to open an account on Capital.com?

Opening an account takes only about five minutes, and the registration process is user-friendly. Opening an account is an online process and trading can start immediately. There is only one type of account for retail traders, another type for professional traders, and a demo account.

To start trading with Capital.com, you need to create an account by providing your personal data (such as email, name, create a password). Then, you need to upload documents to verify your identity and proof of address, as per current KYC regulations, alongside a risk profile assessment where you need to answer questions regarding your trading experience and risk appetite.

The process of opening an account with Capital.com is smooth, fast, and easy. The account is usually verified within one day.

How to open an account step by step:

1. Go to Capital.com website and click on “Trade” in the top right corner. Write your email address and a new password to create your account, then click on “Continue”.
2. Follow the prompts and add your personal data, choose the account type (retail or professional), and choose your base currency (Capital.com does offer trading accounts in GBP).
3. Upload proof of identity, such as a government-issued ID, passport, or driving license and proof of address, which can be your bank statement or a utility bill.
4. Fill in your experience survey, which is required according to current regulations.
5. Once you verify your account, you can deposit your funds and start trading.

Capital.com demo account

If you want to test the broker’s platform first, you can simply open an account using your email and password. There is no need to verify your identity or deposit funds, as the demo account allows you to trade with virtual money. This risk-free account comes with $1,000 in virtual funds and you can test all the features of the platform using real-world market conditions.

Capital.com: how to delete an account?

In the desktop version, go to the “Settings” tab in the lower-left corner of the screen, then “Personal Data” and “Delete Account”. In the mobile phone app, go to the “Account” tab, then “Settings” and “Delete Account”.

Capital.com: withdrawal of funds

You can withdraw funds from your account by clicking on the “Account” tab, then “Payments” section and “Withdraw”. Select the payment method used to deposit money, enter the amount to be withdrawn and click “Confirm”.

Capital: customer support

Customer support is another great feature of this low-cost CFD broker. You can contact the friendly support team via phone (+442030978888), via mail at support@capital.com, via live chat, or by completing an online form on the website. This complete offer of channels for reaching out for support is rare among other CFD brokers and is a highly appreciated feature as you can get the help you need quickly.

Capital.com: reviews

Capital.com enjoys a high rating on Trustpilot, with nearly 70% of users being highly satisfied with the brokerage service.

This is also consistent with the mobile phone app reviews in Google Play, which is rated by more than 44,000 users and has an average rating of 4.7 out of 5 stars.

Is Capital.Com not the right broker for you? Here are some alternatives:

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