Capital.com offers CFDs trading of a few assets including commodities, indices, stocks, and cryptocurrencies. It provides several account types with different spreads and leverages up to 1:30. You can also trade here in micro lots. However, users are still not opting for this broker. Why do the traders consider this broker as a potential scam?
There are two companies behind Capital.com- Capital Com SV and Capital Com UK Limited which are both licensed in Cyprus and the UK. The implementation of segregated accounts and the compensation scheme was very important to the traders so they were really disappointed when they learned that the broker didn’t have the same goals as its customers. This is mainly because segregated accounts imply that the broker cannot spend the money of the user which are deposited for its own purposes. In case a broker becomes insolvent and cannot pay for its clients, the funds represent a guarantee.
Capital.com set a minimum deposit at $100 which is appropriate for bigger investments. However, this means that the every-day traders will find it hard to invest on a day-to-day basis. The minimum deposit should matter especially if you are a new trader. The spread on the most popular liquid pair EUR/USD is floating at about 0.6 pips which is extremely high. However, the broker does not offer free demo accounts and there is no explanation whether a commission fee is also applied.
Capital Capital.com makes it possible for professional traders only to trade with a ratio of 1:200. Higher leverage levels allow for bigger positions but this could be devastating if it is miss-used. In the beginning, the broker offered all kinds of CFDs without currencies but only via an app which was available for Android and iOS. They did launch a website later which was very confusing for the new traders.
The broker didn’t receive too many positive comments and it seems as it is not so popular as they claim to be on their website. Also, the reviews were not very positive since there were many disappointed users out there.