Is Capital Index 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 Index try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Capital Index 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 Index
Capital Index UK was established in 2014. The broker provides all conditions and instruments required for active trading on the spread rates and the Forex market. Capital Index is registered in the UK territory and is regulated by the Financial Conduct Authority (FCA, UK, 709693). Capital Index (Global Limited) is authorized and regulated by the Securities Commission of the Bahamas (SCB, SIA-F199). The broker has not provided information about the awards it has received.
| 💰 Account currency: | USD, EUR, and GBP |
|---|---|
| 🚀 Minimum deposit: | $100 |
| ⚖️ Leverage: | 1:30 |
| 💱 Spread: | from 0.4 |
| 🔧 Instruments: | 55 currency pairs, CFDs on precious metals, commodities, stock indices, spread betting |
| 💹 Margin Call / Stop Out: | No |
Pros and cons of Capital Index
👍 Advantages of trading with Capital Index:
•User-friendly website interface;
•Possibility to trade micro-lots;
•Accounts for beginners and professional traders.
👎 Disadvantages of Capital Index:
•No cent accounts for novice traders;
•Limited educational materials;
•Small leverage;
•No investment or referral programs for earning passive income.
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 Index Regulated? Broker’s license
Security (Protection for Investors)
Capital Index UK is registered in the UK, registration No. 09532185. The operation of the broker is regulated by the Financial Conduct Authority (FCA, UK) – license number FRN 709693. Capital Index (Global) Limited is authorized and regulated by the Securities Commission of the Bahamas (SCB), registration No. SIA-F199.
The FCA license allows Capital Index to provide its conditions on the international market under the requirement that the broker complies with all rules and obligations of the regulator. Protection of customer funds is ensured by the use of separate, segregated accounts, which the company does not have the right to use at its disposal. If Capital Index is announced insolvent, all customers’ funds will be returned to them in full, except for the fee, which the payment system may charge.
👍 Advantages
- Licensed by a proper regulating authority
- Customers’ funds are secure because they are held in a separate bank account
- If the company becomes insolvent, a customer may have his money returned
👎 Disadvantages
- Payment of financial compensation in case of company's liquidation is available only to retail customers
- The document that confirms the availability of the license is not provided on the 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 Index, which you can see below.
Traders Union experts have analyzed trading conditions of the broker to reveal trading and non-trading commissions. No hidden commissions were discovered. The broker does not charge a deposit fee, and a withdrawal fee is charged only in case the trader uses an instant wire transfer service. Trading commission for order execution is charged only on the Black Account.
| Account type | Spread (minimum value) | Withdrawal commission |
| Advanced Account | $14 | Depending on the payment system selected |
| Pro Account | $10 | Depending on the payment system selected |
| Black Account | $4 | Depending on the payment system selected |
Brokers that are similar to Capital Index
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 Index conditions with its closest competitors.
Comparison of Capital Index with other Brokers
| Capital Index | RoboForex | Pocket Option | Exness | FBS | FreshForex | |
|---|---|---|---|---|---|---|
Trading platform |
MetaTrader4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MobileTrading |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$1 |
No |
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 0.4 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.2 points |
From 0 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, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
$5 |
$30 |
Cent accounts |
No |
Yes |
No |
No |
Yes |
Yes |
The broker targets active traders regardless of their level of trading experience but does not provide an opportunity to earn passive income.
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.
FBS is a broker for those who appreciate a variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
Conclusions
Capital Index is a quite reliable broker for trading. Capital Index 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.