Is Capital.com Regulated in South Africa? Is it Legit? - TU Expert review
Capital.com is a regulated Forex broker supervised by financial authorities in. The broker adheres to the standards established by its regulators, ensuring a secure and transparent trading environment. Capital.com countries of regulation:
| Regulator | Full name | Country |
|---|---|---|
| FCA UK | Financial Conduct Authority | United Kingdom |
| CySec | Cyprus Securities and Exchange Commission | Cyprus |
| ASIC | Australian Securities and Investments Commission | Australia |
| SCB | Securities Commission of The Bahamas | Bahamas |
Is Capital.com regulated in South Africa? 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
Is Capital.com regulated in South Africa? Broker’s license
Capital.com regulation review
| Regulator | Country | Regulation level | Investor Protection Fund |
|---|---|---|---|
|
FCA UK
|
United Kingdom | Tier-1 | Up to £85,000 |
|
CySec
|
Cyprus | Tier-1 | Up to €20,000 |
|
ASIC
|
Australia | Tier-1 | No specific fund but has stringent consumer protection |
|
SCB
|
Bahamas | Tier-2 | No specific fund |
Understanding Forex Regulation Levels
When choosing a Forex broker, their regulatory framework plays a pivotal role in ensuring trust and security. Below is an overview of the different regulatory tiers:
-
Tier-1 Regulators:
These authorities are globally recognized for their strict oversight and high compliance standards. They prioritize trader safety, financial transparency, and overall market stability. Notable examples include the FCA in the United Kingdom and ASIC in Australia. -
Tier-2 Regulators:
While not as stringent as Tier-1, these regulators enforce solid compliance protocols that provide traders with a fair degree of security and reliability. -
Tier-3 Regulators:
Often limited to simple registration processes, Tier-3 regulators operate in jurisdictions with minimal oversight. Brokers under Tier-3 regulation face fewer compliance demands, offering traders less protection.
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 for a broker to have the license in South Africa?
A financial license is the key document for any broker. It confirms that the company complies with the requirements of the financial regulator and observes the law. It is important for traders to choose a broker registered their jurisdiction for the following reasons:
-
Any claim is filed at the place of the broker’s registration. Accordingly, in case any dispute arises, it will be easier for the trader to file a claim.
-
A license issued in South Africa guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
-
Traders can claim compensation under the government programs of deposit guarantees in case the broker experiences financial problems.
It is also possible to choose a broker that is not regulated in South Africa. In that case, however, the company must have a license from a reliable regulator, for example of an EU country, the UK, USA, Australia, etc.
Brokers that are similar to Capital.com
In addition to Capital.com, also other brokers from this jurisdiction have the license of South Africa. Capital.com has many competitors, and before you start working with this broker, you need to compare it to other companies. TU analysts have prepared a comparison of brokers that operate in the South Africa market and have a license of this or another reliable jurisdiction.
Comparison of Capital.com with other Brokers
| Capital.com | Bybit | Eightcap | XM Group | LiteFinance | |
|---|---|---|---|---|---|
Trading platform |
MobileTrading, WebTrader, MT4, TradingView |
MetaTrader5 |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, MultiTerminal, Sirix Webtrader |
Min deposit |
$20 |
No |
$100 |
$5 |
$10 |
Leverage |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
7.00%% |
Spread |
From 0 points |
From 0 points |
From 0 points |
From 0.8 points |
From 0.5 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution |
Market Execution |
Market Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
Cent accounts |
No |
No |
No |
No |
Yes |
Is it safe to trade with Capital.com in South Africa?
Capital.com is quite popular in South Africa. The broker does not have a license of the local financial regulatory authority, but it is regulated in a reliable jurisdiction. Therefore, this company can be trusted. The trading conditions of Capital.com are rather beneficial compared to competitors. Accordingly, trading with this company is a good decision.
FAQ
How do I check a broker’s license?
Brokers should provide their license on their official website. It is also recommended to check it on the official website of the financial regulatory authority.
Does a broker need to have an official representative office in South Africa?
Yes. According to the rules of South Africa, brokers must have an office in South Africa. This is a mandatory condition for obtaining the license.
Can the license issued by South Africa be considered reliable protection against fraud?
Yes. The rules of the financial regulator of South Africa are very strict, which makes obtaining a license in this jurisdiction extremely difficult for scammers.
What kind of information should a broker provide for traders?
On their official websites, brokers must provide the name of the managing company, r egistration certificate, legal address and internal regulatory documents.
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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.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.