Is ETX Capital 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 ETX Capital try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether ETX Capital 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 ETX Capital
The brokerage company OvalX (aka ETX Capital) was founded in 2002 and belongs to the well-known corporation Monecor Limited, which has been operating since 1965. Headquartered in London, the company is regulated by the FCA (UK Financial Conduct Authority). The broker is aimed at cooperation with traders from EU countries. ETX Capital provides a wide range of trading tools, narrow spreads and quality training materials. In 2018, ETX Capital’s own development TraderPro was recognized as the best trading platform according to the UK Forex Awards and Online Personal Wealth Awards.
| 💰 Account currency: | USD, EUR, GBP |
|---|---|
| 🚀 Minimum deposit: | From £250 or equivalent |
| ⚖️ Leverage: | Up to 1:400 |
| 💱 Spread: | From 0.6 pips |
| 🔧 Instruments: | Currencies, indices, stocks, energies, commodities, metals, cryptocurrencies |
| 💹 Margin Call / Stop Out: | 100% - 20% |
Pros and cons of ETX Capital
👍 Advantages of trading with ETX Capital:
•control of the broker's activities by the FCA;
•typically a narrow spread for popular currency pairs;
•quality training from London’s financial experts.
👎 Disadvantages of ETX Capital:
•high minimum deposit;
•small selection of payment systems and withdrawal commission under certain conditions;
•a complex and lengthy procedure for opening an account, consisting of four stages;
•there are no PAMM accounts or investment programs for generating 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:
-
A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
-
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.
-
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 ETX Capital Regulated? Broker’s license
Security (Protection for Investors)
OvalX (aka ETX Capital) is an FCA licensed, MiFID II compliant member of the Financial Services Compensation Scheme (FSCS).
Disputes or claims will be governed by UK law. All litigation takes place under British jurisdiction. In order to comply with the MiFID II Directive, the company is obliged to provide the client with full transparency regarding the quality of the execution of trades.
👍 Advantages
- Custody of customer funds is held in segregated accounts under the requirements of the regulator
- Negative balance protection
- Participation in a compensation fund with a payment of up to £85,000 per claim
👎 Disadvantages
- The regulator does not consider claims of private traders with insignificant amounts
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 ETX Capital, which you can see below.
The Traders Union experts have analyzed the trading conditions of OvalX for explicit and implicit fees. If the withdrawal amount exceeds 100 pounds and the number of requests does not exceed 5 trades per month, then the broker does not charge an additional commission from the client. When withdrawing smaller amounts and exceeding the limit of available requests, the broker charges a commission of $25 for each payment. Replenishment of the deposit takes place without charging a commission.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $6 | Yes, under certain conditions |
| Premium | From $6 | Yes, under certain conditions |
| Professional | From $6 | Yes, under certain conditions |
Brokers that are similar to ETX Capital
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 ETX Capital conditions with its closest competitors.
Comparison of ETX Capital with other Brokers
| ETX Capital | RoboForex | Pocket Option | Exness | FBS | Pepperstone | |
|---|---|---|---|---|---|---|
Trading platform |
No |
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, WebTrader, cTrader, MT5, TradingView |
Min deposit |
No |
$10 |
$5 |
$10 |
$1 |
$1 |
Leverage |
No |
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 |
No |
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 |
No |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Instant Execution |
No deposit bonus |
No |
No |
No |
No |
$5 |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
The OvalX (aka ETX Capital) brokerage focuses on providing optimal conditions for EU investors willing to invest from $1,000. The Broker’s conditions are not suitable for beginners and traders with a minimum capital margin.
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.
Pepperstone is particularly suitable for novice market participants as well as more seasoned trading professionals. In general, the Pepperstone platform offers everything novice traders need for comfortable trading such as favorable conditions, reliability, a wide selection of trading options, along with an assortment of first rate educational materials.
Conclusions
ETX Capital is a quite reliable broker for trading. ETX Capital 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.