LCG Review (London Capital Group) 2021

Are you an experienced trader looking for a comprehensive forex broker platform? If so, it’s well worth reading our LCG review. The platform hosts many asset classes that can be traded at the click of a button. This includes forex, cryptocurrencies, thousands of CFDs, and a range of spread betting products. Fees at the platform are competitive and is ideal if you find yourself trading large volumes.

LCG was founded way back in 1996, but the broker actually lost its publically listed status last year. As such, we would strongly suggest reading our in-depth LCG review prior to opening an account. Within we cover everything you need to know including fees, tradeable instruments, spreads, user-friendliness, and crucially – whether your money is safe at the broker.

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What Criteria do we Apply When we Review a Forex Broker?

With hundreds of UK forex brokers now active in the online trading space, knowing which platform to go with is no easy feat. Each review is based on our personal experience and fact-checking against the latest available online information. This includes depositing funds, using the trading platform, verifying our identity, and more.

Here are the main factors that we look for when reviewing a forex broker.

• The number of payment methods supported
• How easy is the KYC process?
• What trading fees will you need to pay?
• How many forex pairs can you trade?
• The reputation and regulatory standing of the platform

Who are LCG (London Capital Group)?

London Capital Group – more commonly referred to as LCG, is an online broker that offers trading services to retail and institutional investors. Launched back in 1996, the platform is well-known in the UK brokerage arena. Although the platform has a great reputation in the public domain, it is important to note that LCG lost its publicly traded status in 2019.

Prior to this, LCG was listed on the UK-based NEX Exchange, which typically lists small-to-medium firms. However, with the broker failing to meet its reporting obligations, LCG is no longer listed. In terms of what the broker offers, LCG hosts thousands of financial instruments that you can trade with ease. In the forex department, this includes dozens of trading pairs.

LGC allow the trading of most major and many minor currencies, in addition to a number of exotic pairs that are also covered. If you’re looking to trade CFDs, LCG offers just under 5,000 instruments. This includes stocks and shares, futures, cryptocurrencies, and indices. LCG is also known for offering competitive fees on some of its asset classes.

For example, if you’re prepared to meet the £10,000 minimum deposit that comes with an ECN account, you’ll get a spread of just 0.65 pips on EUR/USD. On the flip side, the same pairing will see its spread increase to 1.45 pips if you’re holding a classic account at the brokerage. As such, LCG might be better suited if you’re looking to deposit and trade large amounts.

Pros and Cons of LCG (London Capital Group)

How to Sign-Up at LCG Broker: Step-by-Step Walkthrough

If you’re confident that LCG meets your personal trading needs, we have provided a quick overview of how to get started with the broker below. The guidelines will outline how to open an account, verify your identity, deposit funds, and start trading.

Step 1: Open an Account

As is the case with all UK forex brokers, you will first need to open an account with LCG. To get the ball rolling, head over to the platform’s homepage and click on the ‘START TRADING NOW’ button. You will then be asked a range of questions pertaining to your personal identity. This includes your full legal name, nationality, UK address, date of birth, and tax number. You’ll also need to provide some contact details.

Step 2: Financial Information and Trading Experience

As is the case with all brokers that are regulated by the Financial Conduct Authority (FCA), you will need to provide some additional information on your financial standing. This is to ensure that you have the financial means to trade online. As such, you’ll need to enter your employment status, annual income, and estimated net worth.

LCG will also ask you some questions about your trading experience. This will include the type of financial instruments you have previously traded, and whether or not you understand the risks of buying and selling CFDs.

Step 3: Verify Your Identity

Now that you have opened an account with LCG, you are best advised to verify your identity. You don’t need to do it straight away, although it’s best to do so to avoid any delays when it comes to making a withdrawal. Head over to your account dashboard and click on the ‘UPLOAD DOCUMENTS’ button.

You will then have the option of uploading a copy of your government-issued ID, which can be either a passport or driver’s license. The team at LCG will then verify the documents that you upload.

Step 4: Deposit Funds

Now that you have uploaded your verification documents, you can proceed to fund your LCG account. If you hold a classic account there is no minimum deposit.

ECN accounts, which benefit from the tightest spreads, have a minimum deposit of £10,000. You can fund your account with a debit/credit card, bank transfer, or an e-wallet (Skrill and Neteller online)

Step 5: Start Trading

Once your deposit has been credited, you’re all set up to start trading. The platform makes it a seamless process to find your desired asset class, and you can even search for the specific instrument you wish to trade. The broker hosts two trading platforms. This includes its native LCG Trader (which is backed by cTrader) or MT4.

What can I Trade at LCG?

The LCG trading platform is typically split into two main asset classes – forex and CFDs. If opting for the latter, you’ll have access to thousands of financial instruments. Just remember – you won’t own the underlying asset if buying a CFD product, as you are merely speculating on its future price.

CFDs

Forex

• 60+ forex pairs
• Supports majors, minors, and exotics

While LCG is has a strong offering in the CFD department, it is less well equipped when it comes to forex. With just 60+ pairs listed at the broker, this is much lower than some of its industry counterparts. With that being said, LCG does cover most major and minor pairs, so it’s just the number of exotic currencies that are limited.

LCG Broker Fees

As we briefly noted earlier, the trading fees that you pay at LCG will vary depending on the type of account that you hold. Fees will also depend on the specific asset that you wish to trade. Below we have listed the most important points surrounding fees.

If you’re an everyday retail trader that wishes to invest smaller amounts, you’ll want to stick with the classic account. The good news is that LCG will not charge you any trading commissions. The bad news is that classic accounts come with spreads that are much higher than other forex brokers in the space. For example, you’ll be charged a whopping 1.45 pips on EUR/USD, which is surprising when you consider just how liquid the pairing is.

If you’re a seasoned trading professional with the £10,000 minimum deposit that comes with the ECN account, you’ll be treated to industry-leading spreads. Sticking with the same example as listed above, EUR/USD comes with a spread of just 0.65 pips when trading on the ECN account.

However, you will need to pay a minimum of $10 (GBP equivalent at the time of the trade) in commission. ECN accounts will come with an increased trading commission if utilizing the platform’s native LCGTrader. This comes at a cost of $45 per $1 million traded.

Those trading large amounts will also be treated to a rebate program if providing the platform with liquidity. You’ll need to deposit at least £25,000 to qualify, and rebates typically range from £4-£9 per £1 million traded. 

Deposits and Withdrawals

We really like the payments department at LCG, not least because the platform supports several deposit and withdrawal methods

• Debit Cards
• Credit Cards
• Bank Transfer
• Skrill
• Neteller

Although the platform supports Skrill and Neteller, it is somewhat surprising that PayPal is not offered. Take note, if opting for a deposit via your credit card, you will need to pay a 2% transaction fee.

When it comes to withdrawals, LCG charges a £20 fee if the request is for less than £1,000. Once again, this illustrates that the broker favors those that are willing to trade much larger amounts. The minimum withdrawal amount is £50, which is reasonable.

Trading Platform and Features

As is the case with any broker that you are considering joining, you need to make some considerations regarding its main features and benefits. This should include everything from the trading platform, research tools, and order types.

Leverage Trading at LCG (London Capital Group)

LCG allows you to apply leverage on all of its asset classes. The specific leverage amounts will depend on where you are based, and the type of investor status you currently hold. If you are based on the UK, you will be capped to the limits imposed by ESMA.

Check out the leverage limits listed below for UK-based retail traders.

• Major Forex Pairs: 30:1
• Minor/Exotic Pairs, Major Indices, and Gold: 20:1
• Minor Indices and Non-Gold Commodities: 10:1
• Stock CFDs: 5:1
• Cryptocurrencies: 2:1

On the other hand, if you’re deemed a professional trader then you will be offered much higher leverage limits. This includes up to 500:1 on major forex pairs like EUR/USD and GBP/USD. You will be required to prove to LCG that you have the required net worth to open a professional account, or currently be employed in a trading-based position.

Is LCG Regulated? Is my Money Safe?

The most important factor that you need to consider prior to joining a new broker is whether or not your money is safe. At the forefront of this is regulation and reputation. Regarding the former, LCG holds multiple regulatory licenses, including that of the FCA. This also includes a license with CySEC in Cyprus. When it comes to reputation, LCG has been active in the UK brokerage space since 1996, so it has a long-standing track record to boast of.

It is also important to note that LCG recently lost its status as a publically traded company. Prior to 2019, LCG was listed on the NEX Exchange, which typically lists small-to-medium companies that wish to raise capital. LCG was de-listed because it failed to meet its reporting obligations within the stated time frame. While you will always have the regulatory protections of the FCA, the de-listing is a concern.

As an added layer of security, all LCG client funds are held in segregated bank accounts, and the platform benefits from SSL security.

Customer Support

If you need to speak with somebody from the LCG customer service team, support is available between Monday and Friday, from 05:00 to 22:00 (UK time). As such, weekend support is not offered. Nevertheless, you can contact LCG via live chat, telephone, or email.

We also like that LCG has a strong presence on social media. This includes Twitter, Facebook, and LinkedIn.

Conclusion

If you’ve read our LCG broker review from start to finish, you should now be able to make an informed decision as to whether or not the platform is right for you. We think that the broker has both its good and bad points. On the one hand, the platform lists dozens of forex pairs and almost 5,000 CFD products. This includes everything from bonds, stocks and shares, ETFs, indices, and cryptocurrencies.

When it comes to the trading platform itself, we like the fact that you can choose from LCGTrader or MT4. The best trading fees are reserved for those with an ECN account. As this requires a minimum deposit of £10,000, this is going to be out of reach for most. Finally, it is somewhat alarming that LCG recently lost its status at a publically listed company, so do tread with caution before opening an account.

Best UK Trading Platform 2021

• Trade Crypto, Forex, CFDs and More
• FCA Regulated
• Only £200 Minimum Deposit
• Accepts Paypal

Trade Now!

75% of retail investors lose money when trading CFDs with this provider.

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