ETX Capital Review - Highly regarded FCA Forex & CFD Broker
Our ETX Capital Review - Updated August 5th 2020
ETX Capital was founded in London, in 1965. Initially, under the trade name TradIndex, the broker specialized in mortgage bonds, but later expanded to stocks and derivatives. In 2002, the broker rebranded to ETX CAPITAL and started offering services to retail clients. ETX CAPITAL subsequently expanded its operation to Europe, Asia and Russia.
ETX Capital belongs to Monecor (London) Limited. The group was acquired from JRG Group and the BXR Group through a joint venture in 2007. ETX Capital went online in 2014.
Currently, ETX Capital’s offices are based in London. The broker is regulated by the Financial Conduct Authority (FCA) and is a fully authorized spread betting and CFD provider. Clients’ funds are kept in segregated accounts, which means company money is kept totally separate from client’s money.
The broker has received numerous awards for its trustworthy services, such as ‘Best Trading Platform’ at the ‘Professional Trader Awards 2019’, ‘Best Trading Tools’ at the ‘Online Personal Wealth Awards 2019’ and winner at ‘Best Trading Education’ at ‘Shares Awards 2019.
ETX stands for: Electronic Trading, Telephone Trading, Execution Services
Our ETX Capital Review Ratings
Opening an account with ETX Capital is quite simple. all you need to do is register on the broker’s site by filling out a form. Then you will need to verify your identity through compliance by submitting your identity card or passport and your address using a utility bill on bank statement. After this, you will need to answer a few compliance questions to confirm your trading experience. You cannot trade until compliance verifies your account.
Clients can hold more than one account with ETX Capital, for example one account for each trading platform. Traders can hold up to five live accounts, however any additional accounts would need to be reviewed by ETX Capital’s compliance team.
ETX Capital offers various accounts to their clients that all vary in the features they offer:
The minimum deposit for this type of account is £250. ETX Capital’s New Account team supports the account opening process. Traders have access to the Client Services Team and to education, online trading courses and trading content. They will also receive market alerts and events via email. Withdrawals are free if they’re over £100 and occur only 5 or less times per month. Clients are offered FSCS Money Protection of up to £85,000
The minimum deposit for this type of account is £1000. Traders get allocated their own Personal Relationship Manager who delivers them market news and data, 3rd part technical analysis, is the point of contact for any queries, shares with them new products, places trades on their behalf, keeps them up to date with their positions and helps them access lower trading costs. Premium clients also have priority access to ETX Capital’s Operational team that help arrange withdrawals faster.
Professional accounts are offered to experienced traders who have access to unique products and premium trading conditions. Professional accounts have the same service level as Premium accounts but with lower margin rates.
To qualify for a professional account, the trader must be an ETX Capital account holder and meet two of the three criteria below:
- Over €500,000 of liquid assets excluding their personal residence.
- Relevant experience in financial services
- Traded at least 10 times, of significant size, in each of the last 4 quarters
Professional trades will lose the protections afforded to clients classified as ‘Retail’ under FCA rules, such as:
- Negative Balance Protection – Professional traders could lose more than the sum they have invested.
- Leverage – By gaining access to higher leverage traders risk magnifying their losses.
- Communication – Brokers can use more sophisticated language when promoting their products to professional traders and are not be required to provide them with standardized risk warnings that they provide to ‘retail’ clients.
- Best Execution –Execution may differ between retail and professional clients.
- Market Requests – Not all stocks that are available to trade appear on ETX Capital’s platform, but professional clients may request special stocks.
ETX Capital offers investors who deposit over £10,000 in the HNI service solution which offers the following services:
- Fast and efficient global Equity order execution services
- DMA, Bloomberg Chat and phone services
- Execution – Fidessa, VWAP, TWAP, RSPs, dark and lit pods, SOR
- Competitive margin rates, financing and commission rates
- Highly tailored personalized service by Equity options experts
High-Networth Individuals will have access to the following listed securities and assets:
- Equities and Options: UK, Europe, Canada, US, Australia, Asia, Emerging markets
- All major and minor Forex currency pairs
- All leading Indices
- Fixed Income: Global corporate / government bonds, interest rates
- Hard and soft Commodities
They also have access to funds, hedge funds, structured products, illiquid and unlisted securities.
Trading Conditions and Clients' Fund Protection
ETX Capital has slightly higher trading fees however quite standard non-trading fees. The broker does not charge account fees or withdrawal fees, unless you withdraw more than 5 times per month – then the broker will charge you and additional $10 per transaction.
ETX Capital does charge an inactivity fee of $25 per month following at least six months of inactivity. Below are ETX Capital’s spreads on popular financial instruments.
EUR/GBP - 1
EUR/JPY - 1.4
EUR/USD - 0.8
SP 500 - 0.8
Wall Street - 8
UK 100 - 6
BTC/USD - 20+ market
Gold - 0.06
ETX Capital allows you to choose from three base currencies to open an account in, which are: GBP, EUR, USD.
The broker is a brand of Monecor (London) Ltd and is a UK-based broker that’s regulated by the Financial Conduct Authority (FCA), under registration number 124721. FCA offers £85,000 in investor protection. ETX Capital also provides negative balance protection for forex, spot and CFD trading, but it’s only available to retail clients from the European Union. Professional and non-EU clients are not covered with negative balance protection.
Monecor (Europe) LTD (previously Minden Investments and Insurance Advisers and Sub Agents LTD), which is an operating subsidiary of Monecor (London) LTD, was registered in Cyprus on September 13, 2002 under registration number C114460. It is regulated and authorized by the CySEC (Cyprus Securities and Exchange Commission) under license number 096/08. Cyprus is part of European Union, which means it must comply with MiFID II regulatory framework as well as the 4th EU Anti-Money Laundering Directive. Client funds must be kept in segregated accounts and are protected by the Investor Compensation Fund (CIF).
There are several options for depositing and withdrawing funds
- Bank wire
- Credit and debit cards
- China UnionPay
Clients can use any of the same methods to fund their account. Withdrawals sent before 2pm will be processed on the same day, requests sent after may take 24 hours to be processed but this depends on the method you use and your location. Bank wires may take longer, for example, up to 7 days.
Trading Platforms and Financial Instruments
ETX Capital offers the popular MT4 (MetaTrader) platform to its traders which was developed by the fintech company MetaQuotes. The platform is recognized and valued by traders worldwide. MT4 was released in 2005 and was built on the MQL4 programming language. The platform comes with a built-in library of over 50 technical indicators and plenty of analytics tools.
MT4 offers advanced order types like Market Orders, Pending Orders, Stop Orders, and Trailing Stops. Moreover, MT4 offers technical indicators and custom indicators for technical analysis. The platform is available as downloadable software on most operating systems, on browser and Android and iOS mobile devices.
ETX Capital is responsible for the price feeds and the infrastructure behind the execution of trades on their MT4 platform. ETX CAPITAL commented that as of 4th January 2019 on average 94% of trades on their MT4platform are executed in 30 milliseconds or less.
MT4 offers automated trading tools, also known as Expert Advisors (EAs). EAs help traders to analyze quotes and execute trades automatically. Some other benefits of the MT4 are:
- You can trade micro-lots, which can help limit exposure and overleveraging.
- One-Click trading – this tool allows you to react quickly to changing market conditions and open positions more effectively.
- Hedging – you can hedge your exposure by going both long and short on the same market at the same time.
- Virtual Private Server (VPS) – VPS increases speed and ensures you can be in the markets when your PC is not switched on.
Trading on the MT4 platform offers leverage rates but to 200:1 depending on your jurisdiction which can help increase returns. You can also use mirco lots for smaller trades.
ETX Capital also offers another platform called ETX Capital TraderPro, which helps traders stay ahead of financial markets using integrated platform features, advanced research tools, and a powerful charting package. The platform various tools such as:
- Multiple chart types
- Split charting tools
- Technical indicators
- Drawing tools
ETX Capital TraderPro offers a superior trading environment to that of the MT4. It can be fully customized and has over 60 technical indicators. It has also has efficient risk management tools that can help traders manage how much risk they’re willing to take. The platform is available on browser and mobile.
At ETX Capital you can trade the following assets:
Forex: Over 60 FX pairs available, majors, minors and exotics. Minimum spread on the EUR/USD is 0.6 pips.
Indices: Over 20 global indices available like Wall Street, SP 500, UK 100, etc. Minimum spread for SP 500 is 1 pip.
Shares: Over 20 global shares available like Barclays, Facebook, Apple, etc. Minimum spread for Apple is 0.1%.
Commodities: A wide range of metals, energies and soft commodities including Coffee, Sugar and Cotton. Minimum spread for Gold is 0.4 and for Silver it’s 0.03.
Cryptocurrencies: Five major cryptocurrencies available for trading: Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash. Spreads for Bitcoin are variable.
ETX Capital offers extensive education recourses to help traders learn about financial markets:
Courses: ETX Capital has specialized beginners’ courses to help new traders learn about the fundamentals for trading.
Webinars: Traders can join online webinars to learn more about trading strategies. ETX Capital has webinars for both new and seasoned traders. Webinars are hosted multiple time per week and often have 2-hour specials.
Platform guides: ETX Capital offers comprehensive platform guides for MT4 and TraderPro.
eBooks: ETX Capital has 5 downloadable eBooks that cover various financial topics, including key trading strategies, market events or top markets to trade.
ETX CAPITAL also has an inhouse team of financial analysts who regularly update clients on market conditions and upcoming events. They offer thorough analysis to help traders learn more find out about trading opportunities with ease
ETX Capital has great customer supper that is available via phone and email. The only disadvantage is that there is no live chat. The support team is multilingual and answers relevant answers. ETX Capital can be reached through the following numbers:
Trading open 24 hours: Sunday 9:30pm - Friday 10:00pm (London Time)
Freephone: 0800 138 4582
London: +44 (0) 20 7392 1400
Cyprus: +357 (0) 22 000 580
Email address: [email protected] Capital.com
Trading desk London: +44 (0) 20 7392 1434
Trading desk Cyprus: +357 (0) 22 000 579
Customer service London: +44 (0) 20 7392 1494
Customer service Cyprus: +357 (0) 22 000 585
Email address: [email protected] Capital.com
Customer support is multilingual and available in the following languages: English, French, Spanish, German, Polish, Czech, Greek and Mandarin.
ETX CAPITAL is regulated FCA, which is amongst the top regulators in the world. Trading with a broker regulated by the FCA gives traders a sense of comfort and protection. The broker also offers great services – from good quality educational tools to great customer support. ETX CAPITAL is definitely a broker worth trying out if you’re looking for a reliable, secure broker to trade with.
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Thursday, September 16, 2021