Is Capital.com Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Capital.com try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Capital.com is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Capital.com
Capital.com (Capital) is a British Forex broker that provides its services to traders and investors worldwide. The company's activities are regulated by five bodies: CySEC — the Cyprus Securities and Exchange Commission ( 319/17), the FCA — the UK Financial Conduct Authority ( 793714), ASIC ( AFSL 513393), FSA ( AFSL SD101) and SCB ( SIA-F245). The company is audited by Deloitte and cooperates with two large European banks (Raiffeisen, RBS).
Capital is ready to cooperate with active traders regardless of their experience, as well as with active investors who use shares of various companies for their work.
| 💰 Account currency: | USD, EUR, GBP, PLN, RUB |
|---|---|
| 🚀 Minimum deposit: | USD 20, EUR 20, GBP 20, PLN 100 |
| ⚖️ Leverage: | FCA - 1:30, CYSEC/ASIC - 1:30 |
| 💱 Spread: | Floating |
| 🔧 Instruments: | 2,813 stocks, 239 cryptocurrencies, 138 currency pairs, 27 indices, 38 commodities, futures |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of Capital.com
👍 Advantages of trading with Capital.com:
•Fast registration procedure, which takes no more than three minutes.
•Multiple ways to deposit and withdraw funds.
•Customer funds are held in segregated accounts.
•A large number of training materials and tools for market research and study.
•Multilingual support department - the company provides support in 13 languages.
•A wide range of trading instruments.
👎 Disadvantages of Capital.com:
•The broker does not offer clients investment programs such as PAMM accounts or copying trades.
•Trading on an account without identity verification is available only for 15 days from the first deposit. For further work, the trader must verify the account.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Capital.com Regulated? Broker’s license
Security (Protection for Investors)
Capital.com is a UK-based broker registered in Wales and England, with registration number 10506220. Capital.com SV Investments Limited is registered in Cyprus, with the registration number: HE 354252. The broker is regulated by the FCA (Financial Conduct Authority) and CySEC ( Cyprus Securities and Exchange Commission). FCA: 78.91% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
CySEC: 83.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
The Capital.com broker also cooperates with large European banks Raiffeisen and RBS, in which traders' funds are stored in segregated accounts. Customer deposits are additionally protected by the ICF (Investor Compensation Fund) and FSCS (UK Financial Institutions Contributor Financial Compensation Program).
👍 Advantages
- The company's activities are controlled by two independent financial regulators - CySEC and FCA
- Customer funds are held in segregated accounts
- In case of unforeseen circumstances, traders will receive financial compensation
- Personal data of clients are reliably protected by the TLS inscription protocol
- The broker's website provides detailed information on the provisions, dispute resolution, and company policy
👎 Disadvantages
- Documents confirming the registration of the broker are not presented on the Capital.com website
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Capital.com, which you can see below.
The Traders Union specialists analyzed the trading conditions of the Capital.com broker regarding trading and non-trading commissions. Hidden commissions in the company were not detected, nor are there commissions for depositing or withdrawing funds to and from the account. The spread floats but depends on the trading instrument used by the trader.
| Account type | Spread (minimum value) | Withdrawal commission |
| Live-account | $1.1 | No |
Brokers that are similar to Capital.com
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Capital.com conditions with its closest competitors.
Comparison of Capital.com with other Brokers
| Capital.com | RoboForex | Pocket Option | Exness | Octa | XM Group | |
|---|---|---|---|---|---|---|
Trading platform |
MobileTrading, WebTrader, MT4, TradingView |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MetaTrader4, MetaTrader5 |
MT4, MT5, MobileTrading, XM App |
Min deposit |
$20 |
$10 |
$5 |
$10 |
$25 |
$5 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0.6 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
Yes |
The Capital.com broker is universal. It provides the same trading conditions for both experienced traders and beginners. On the company's website, you may find training materials and the opportunity to receive passive income through an affiliate program.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
The Octa broker has tried to adapt its conditions as much as possible to the various trading strategies used by traders. However, at the moment the company is more focused on active market participants, rather than passive investors.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
Conclusions
Capital.com is a quite reliable broker for trading. Capital.com operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.