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LCG Review (London Capital Group) 2020

Considering opening an account with London Capital Group (LGC)? Read on to discover everything you need to know about the platform features, pros and cons, and much more.
Kane Pepi
Author: Kane Pepi
Last Updated: March 20, 2020
Our Rating 4.3/5

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.

Note: LCG is best suited for those of you that wish to trade large volumes. This is because the broker’s lowest spreads are reserved for its ECN account holders, which requires a minimum deposit of £10,000.

Table of Contents

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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.

    Note: LCG offers two different trading platforms. You can choose from the broker’s native LCGTrader or MT4.

    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)

    The Pros

    • Established in 1996 – Long-standing reputation in the UK brokerage space
    • Regulated by the FCA
    • Dozens of forex pairs
    • Almost 5,000 CFDs across numerous asset classes
    • Low trading fees if opting for an ECN account
    • Highly rated customer support

    The Cons

    • ECN accounts require a £10,000 minimum deposit
    • Non-ECN spreads are somewhat high
    • Lost its public listed status in 2019

    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.

    Note: If you’re looking to deposit larger amounts (£10,000 or more), you will need to undergo an enhanced verification process. This is likely to include a proof of source of funds, which is required to comply with anti-money laundering regulations.

    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

    • Stocks and shares
    • Indices
    • Bonds
    • Metals
    • Energies
    • ETFs
    • Futures
    • Options
    • Cryptocurrencies

    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.

    • LCG Trader: With the broker having been active in the online forex space for 24 years, it will come as no surprise that LCG has launched its very own trading platform. Known as LCGTrader, the platform is based on the well-known cTrader suite.  
    • MetaTrader4 (MT4): Seasoned traders often prefer MT4 when trading forex online, so you’ll be pleased to know that LCG has you covered. This offers most of the features found on other MT4 trading suites available in the space. 
    • Technical Indicators: The number of technical indicators available at LCG will depend on what trading platform you decide to use. The broker’s LCGTrader suite comes with more than 60+ indicators, while MT4 is limited to just 30. This is much lower than other forex brokers active in the industry, which typically host at least 100 indicators.
    • Market Orders: Regardless of which trading platform you decide to use, LCG offers multiple order types. This covers the usual offering of stop-loss orders, take-profit orders, and limit orders. We also like the guaranteed stop-loss order that LCG provides, which is well worth the premium at just 3 pips. However, this is only available on the LCGTrader platform.  

    • Alerts and Notifications: If you’re the type of investor that likes to manually trade positions when a pre-defined price movement occurs, LCG allows you to set up alerts. For example, if you want to start trading EUR/USD when the price hits 1.14, you can receive an alert in real-time. This includes an on-screen notification, email, or SMS.  
    • Going Short: As a platform that hosts almost 5,000 CFD instruments, you’ll be pleased to know that LCG allows you to engage in short selling.

    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
    Note: Regardless of which broker you are using, if you’re based in the UK (or any EU member state for that matter), the above leverage limits remain constant. The limits have been set by the European Securities and Markets Authority (ESMA) as a means to protect retail traders from huge losses.

    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.

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    • Supports social trading, copy trading and copy portfolio features
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    • A wide range of advanced trading tools and analytics
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    62% of investors lose money when trading CFDs.

    FAQs

    When was LCG launched?

    London Capital Group (LCG) was launched way back in 1996. This gives the broker a long-standing track-record that now exceeds 24 years.

    Is LCG broker regulated?

    LCG holds a number of regulatory licenses that allows it to operate in multiple jurisdictions. This includes the UK's Financial Conduct Authority, as well as CySEC in Cyprus.

    What is the minimum deposit required at LCG broker?

    This depends on the type of account you hold at LCG. If you hold a classic account, then there is no minimum deposit. However, if opting for an ECN account - which benefits from the most competitive trading fees, then you'll need to deposit at least £10,000.

    What trading fees does LCG broker charge?

    As is the case with most online brokers operating in the space, this will depend on a number of variables. Crucially, classic account holders will not pay any trading commissions, although spreads can be expensive. ECN accounts benefit from tight spreads, but a minimum commission of $10 is applied per trade..

    Is LCG broker safe?

    Although you will benefit from the usual safeguards that come with an FCA-regulated broker, it is important to note that LCG lost its status as a publically traded company in 2019.

    What payment methods does LCG support

    LCG supports a number of everyday payment methods. This includes debit/credit cards, a bank transfer, Skrill, or Neteller.

    Does LCG broker charge any deposit fees?

    Deposit fees are only charged by LCG when a credit card is used. This amounts to a fee of 2% per deposit.

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    Kane Pepi

    Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.