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Capital.com Review | Platform, Fees, Pros, and Cons

Considering using Capital.com as your brokerage? This review will cover everything you need to know to decide if it’s the right choice for your trading.
Haydn Squibb
Author: Haydn Squibb

Last Updated: August 5, 2020
Our Rating 4.5/5

If you’re in the market for a new online broker, it’s worth taking a close look at Capital.com. This UK-based brokerage stands out with commission-free trades, user-friendly mobile apps, and access to a wide variety of markets. Plus, it’s a reliable and trustworthy broker with more than 360,000 active traders.

So, is Capital.com the best broker for you? This guide will cover everything you need to know about this broker to make an informed decision.

Table of Contents

    Trade with Capital.com Today

    Our Rating

    • Access to 2,000 stocks and 68 forex pairs
    • Highly regulated and trustworthy
    • User-friendly mobile trading apps
    • Excellent educational resources
    75% of retail investor accounts lose money when trading CFDs with this provider.

    What is Capital.com?

    Capital.com was launched in 2016 as an alternative low-cost online broker. The platform has quickly amassed users with its promise of commission-free trading and proprietary AI algorithms that offer trading tips and ideas.

    This broker also offers plenty of flexibility for traders looking to put together a diverse portfolio. You can access contracts for difference (CFDs) for stocks on most major exchanges around the world, as well as for stock indices, forex, cryptocurrencies, and commodities. Retail traders get leverage of up to 30:1 across the platform.

    One of the most important things traders should know about Capital.com is that it is tightly regulated. It’s one of the only online CFD brokers that is compliant with the European Security and Markets Authority, which protects your investments in the event that the broker gets into trouble. It’s also regulated by the UK’s Financial Conduct Authority and Cypress’s Securities and Exchange Commission.

    All of these attributes have combined to help Capital.com grow quickly in a short span of time. The broker now boasts more than 360,000 users and has handled more than $13 billion in trading volume since its inception.

    What Assets Can You Buy on Capital.com in the UK?

    A big part of the appeal of Capital.com is that it offers traders access to a wide range of markets. We can break this broker’s offerings down into four categories: stocks and indices, forex, cryptocurrencies, and commodities.

    It’s important to note that all trading on Capital.com is done through CFDs. These derivatives allow you to speculate on the price of the underlying asset without actually owning it. This is relatively standard practice for online brokers and trading CFDs can eliminate some of the regulatory headaches surrounding forex trading and cryptocurrency trading.

    Stocks and Indices

    Capital.com offers trading on more than 2,000 global stocks. The stocks available are from most of the world’s major exchanges, including the London, New York, and Tokyo stock exchanges and the NASDAQ. All prices are updated in real-time and you can quickly filter the list of stocks to find top gainers and losers on the day.

    You can also trade stock indices like the S&P 500 or the UK 100. Capital.com offers CFD trading for around 20 indices in all, including some sector-specific indices like the US Tech 100.

    Forex

    Capital.com’s selection of forex pairs for trading is extremely impressive. The platform includes 68 forex pairs, which means you get access to all major and minor pairs as well as a handful of exotics. We’ll dive into greater detail about leverage and spreads below, but note that you can trade on margins of 30:1 for major forex pairs and 20:1 for all other currencies.

    Cryptocurrency

    This broker also stands out for offering an extremely wide array of cryptocurrency pairs.  In addition to Bitcoin, Ethereum, and Litecoin, you also get access to some of the second-tier digital currencies, including Steem, NEO, Tron, and Stellar. Most other online brokers that offer cryptocurrencies stick to just a few of the most well-known coins.

    You’re not limited to trading into cryptocurrencies using US Dollars, either. Rather, Capital.com supports pairings between Bitcoin and Ethereum with most major and minor global currencies.

    Commodities

    Capital.com offers CFD trading on 25 commodities, including all of the most widely traded commodities. Notably, the platform also includes trading for a few less common commodities, including carbon emission futures, UK sugar and wheat, and orange juice.

     

    Capital.com Leverage and Margin Trading

    Leverage is one of the main advantages of trading CFDs, and Capital.com offers leverage for every asset type. When you leverage a trade, you can create a much larger effective position size than you actually have money in your account. For example, when trading with 10:1 leverage, you could buy $1,000 worth of a stock with just $100 in your trading account.

    Leverage is allowed at the following levels for different types of assets on Capital.com:

    • 30:1 for major forex pairs
    • 20:1 for minor and exotic forex pairs
    • 20:1 for gold, 10:1 for all other commodities trading
    • 20:1 for major indices, 10:1 for all other indices
    • 5:1 for stocks
    • 2:1 for cryptocurrencies

    These are the standard limits imposed by the European Security and Markets Authority for retail traders. It’s worth noting that Capital.com does allow higher leverage (up to 500:1) if you have a professional trading account. However, you have to apply for a professional account and acceptance will be contingent on your trading experience and account balance.

    Capital.com Account Types

    Capital.com offers three different retail trading account types with different minimum deposits. For a Standard account, all you need to get started is £15. You get access to all of the platform’s main features with a Standard account, but it doesn’t come with custom analytics or a dedicated account manager.

    If you deposit at least £2,300, you’re upgraded to a Plus account and given those perks. Users with a balance of £7,660 or more receive a Premier account, which includes exclusive webinars and online events.

    Leverage for professional accounts at Capital.comFull-time traders can also apply for a professional account at Capital.com. This expands your leverage up to 500:1 for major forex pairs, 200:1 for indices and commodities, and 20:1 for shares and cryptocurrencies. Importantly, a professional trading account comes with more risk. You only receive negative balance protection when trading at leverage of 50:1 or less. If you take out more margin than that, you could be on the hook for losses that exceed your account balance.

    Fees and Commissions at Capital.com

    Understanding all of the fees that an online broker charge is essential. Commissions, spreads, and other fees can add up quickly and negate any trading profits if you’re not careful. With that in mind, let’s take a closer look at what fees Capital.com charges⁠ and which fees it leaves out.

    Trade Commissions

    Capital.com, like many other modern online brokers, doesn’t charge trade commissions. This is a huge deal for traders, since it means you’re not paying a flat fee for every trade. Without trade commissions, it becomes much more economical to scale into and out of positions with multiple trades as a way to minimize risk.

    Spreads

    Spreads are the main way that online brokers like Capital.com make money. The spread is the difference between what you can buy an asset for and what you can sell it for at the same time. Spreads aren’t charged on a per-trade basis like commissions, but rather apply as a percentage commission of every trade you place.

    Capital.com isn’t the absolute cheapest broker we’ve seen when it comes to the spread, but it’s pretty inexpensive. Spreads for most US stocks are on the order of 0.1% or less, which is hardly noticeable for most traders.

    Spreads on forex trades matter more since the margins are typically thinner. Here, Capital.com really shines; the platform charges 0.6 pips, the equivalent of 0.006%, for most major currency pairs and less than 2 pips for most minor currency pairs. That’s extremely inexpensive compared to a lot of other forex CFD brokers.

    Unfortunately, trading cryptocurrencies at Capital.com is significantly more expensive. The Ethereum-US Dollar pair, for example, trades around 6.8 pips. That’s a pretty major markup that makes Capital.com a little less attractive for crypto traders.

    Financing Fees

    Financing fees are incurred when you hold a leveraged CFD position overnight. We’ll talk more about leverage below, but keep in mind that you can avoid financing fees altogether by not leveraging your trades on Capital.com.

    Financing fees vary widely at this brokerage depending on what type of asset you’re trading. That said, you can see the financing fees and calculate how much they will cost before you commit to a trade. That gives you a chance to evaluate whether the interest on your position is worthwhile.

    Inactivity Fees

    Capital.com charges a $10 monthly fee if you go more than 12 months without placing a trade on the platform. That’s a much more generous policy than what most competing brokers have in place. Many online brokers we’ve seen charge $30 per month after just three months of inactivity.

    Platform and Trading Tools

    Capital.com is truly a modern brokerage. The platform has embraced AI tools and user-friendly mobile apps to provide a seamless experience for traders. Plus, it caters to beginners with an in-depth trade education platform.

    Let’s take a closer look at some of Capital.com’s most notable features:

    AI-based Dashboard

    The Capital.com dashboard stands out in its own right. When you log into your trading account, you see a lot more than just your account balance. You can see what types of assets traders across the brokerage are trading, down to the level of individual stocks that are hot on any given day. You can also check on top gainers and losers at a glance.

    Better yet, Capital.com uses AI to customize your trading experience. The platform will suggest assets that are similar to those you’ve traded recently and surface stocks that are trading with higher-than-usual volume. You’ll also find a news feed that’s tailored to show stories that align with your trading interests.

    Advanced Technical Charts

    Capital.com uses its own proprietary charting software rather than relying on a third-party solution like MetaTrader. The built-in charts are sleek and easy to use. Plus, they come with more than 70 common technical studies and an array of drawing tools to help you get the most out of your analysis. You can also display multiple charts in the same window and save layouts to quickly apply to future charts.

    That said, Capital.com’s charting software is missing out on an important feature: strategy testing. You can’t use this brokerage platform for calculating whether a set of technical indicators can be traded on profitably by studying historical data. Moreover, the technical analysis software doesn’t enable custom scans and doesn’t let you create indicator-based alerts.

    Given this, the lack of software like MetaTrader does feel like something of a missed opportunity. Capital.com’s analysis tools are advanced enough for intermediate traders, but they won’t offer all the tools that many experienced traders demand.

    Flexible Orders

    You can set up trades right from your charting window, which makes it easier to get orders in quickly within Capital.com. Importantly, you also have some flexibility over how these trades are executed. The platform enables you to set up a stop-loss price and a take-profit price with every order. You can also enter limit orders to control how much you pay for an asset.

    The only thing missing here is the ability to buy fractional shares of stocks. This isn’t possible since Capital.com only allows CFD trading. However, since you can trade shares on a 5:1 margin, you still have the flexibility needed to open positions with a fairly small investment.

    Investmate

    Investmate is Capital.com’s trading education interface. It’s an interesting, interactive take on learning to trade. Beginners can choose their own goal, read case studies about an industry, and then try to predict how the market responded to an event before finding out what actually happened.

    There are six different goals and more than 30 different educational courses within the platform. All told, this is a much more robust educational platform than what we’ve seen from many of Capital.com’s competitors.

    Capital.com Demo

    Capital.com offers a demo account with $100,000 in paper money that mirrors the functionality of the live trading platform. When you open up a new account, you can decide whether to start out with the demo account or move straight to live trading. If you want to come back to the demo account later, you can do so at any time. Helpfully, it’s easy to reset the demo account whenever you want to test out a new trading strategy.

    Capital.com Mobile Trading

    Another reason to like Capital.com is that the broker takes mobile trading seriously. The mobile apps for iOS and Android include access to all the same features and tools as the desktop platform. They’re also touch-friendly and well-organized so that you don’t feel crowded working on a smaller screen. Notably, the mobile apps also support price alerts through push notifications on your smartphone.

    Research and Analysis

    One of the best things about Capital.com is that it offers its own market news service. Instead of simply pulling articles from other sites, which often means you’re getting news that’s hours old, this broker has its own team of financial analysts that are putting market events in perspective.

    Capital.com has its own news feedYou’ll find a mix of short news stories, feature articles, and deep analysis on the Capital.com news page. Plus, news that’s relevant to your trading interests will automatically appear in your dashboard. Capital.com also has an economic calendar so you can stay on top of government releases and other major news that has the potential to move the market.

    Premium account holders also get access to Capital.com webinars. These cover some of the biggest trends and events each week and are led by top analysts inside the brokerage.

    Capital.com Bonus Offers

    Capital.com only rarely offers deposit bonuses, but you can score free money with this online broker by referring friends. For each friend who signs up for a trading account using your referral code, Capital.com will deposit £250 in your account.

    Just make sure to read the terms and conditions behind the bonus so you know what you have to do to qualify.

    Capital.com Minimum Deposit and Payments

    A big part of trading is being able to move money easily into and out of your brokerage. Capital.com makes this easy, although the initial setup takes a little longer than at some other online brokers because of the additional regulation surrounding the platform.

    To create an account at Capital.com, you’ll need to verify your identity and address. This involves uploading an ID document such as a driver’s license or passport. You’ll also need to upload a document showing your current address, such as a bank statement, credit card statement, or utility bill. Notably, Capital.com does not accept traders who reside in the US at this time.

    Once your account is verified, you can deposit money. Capital.com accepts GBP, EUR, USD, or PLN. The platform requires a minimum deposit of £20 (or €20, $20, or 80zł). You can make your first deposit by debit card, credit card, or wire transfer (minimum €250 deposit), or using a wide variety of online money transfer services. After your initial deposit, you can also transfer money using Neteller or Skrill.

    The platform makes it simple to withdraw money from your account and doesn’t charge any fees in the process. You can decide which of the payment accounts you used to deposit money to receive withdrawals at. Note that there is a withdrawal limit of £35,000 per day for most users.

    Customer Service at Capital.com UK

    Capital.com’s support team is available 24 hours a day Monday to Friday. The company has phone numbers listed for several countries in Europe, including the UK, Ireland, Austria, Switzerland, Cyprus, and more. In addition, you can get in touch with the company’s support team by email using a form on the Capital.com website.Customer Service at Capital.com

    It’s worth noting that the FAQs page on Capital.com’s website is also very extensive. It covers everything you need to know about how to open an account, how various fees are assessed, and how to use some of the tools the broker provides.

    Capital.com contact number: +44 20 8089 7893

    Capital.com address: 4th Floor 64-66 Vincent Square, London, United Kingdom, SW1P 2NU

    Is Capital.com Safe?

    Capital.com may be a relatively new brokerage, but it’s built up trust by conforming to several highly regarded financial regulatory authorities. Importantly, Capital.com is headquartered in the UK and conforms to both UK and European regulations. That’s a major difference from some competitors, which are headquartered offshore specifically to avoid regulations that protect retail traders.

    European Security and Markets Authority
    The European Security and Markets Authority (ESMA) is based in Paris and is one of the main consumer financial regulators for the European Union. This agency specifically focuses on CFD trading, which is why it is significant that Capital.com conforms to the body’s regulations. In fact, Capital.com was the first online broker to come into line with new regulations the ESMA put into effect in 2017. One of the most important impacts of ESMA regulation is that leverage is limited to 30:1 for retail traders.

    Financial Conduct Authority
    The Financial Conduct Authority (FCA) is the primary financial regulator in the UK. One of its primary missions is to protect retail traders from fraud and illegal trading activity, and the FCA is widely respected as a leader in financial regulation. Since the FCA oversees Capital.com, traders are also covered by the Financial Services Compensation Scheme. This plan will compensate consumers up to a maximum of £50,000 in the event that Capital.com ever runs into financial trouble.

    Capital.com is also regulated by the Cyprus Securities and Exchange Commission (CySEC), although this body has much less stringent controls than either EMSA or FCA. Notably, all retail accounts on Capital.com come with negative balance protection. So, you can never lose more than you deposit into your account when trading with leverage.

    Pros and Cons of Capital.com

    Pros:

    • Low £20 minimum deposit
    • Access to 2,000 stocks and 68 forex pairs
    • 30:1 leverage for forex trading and 5:1 for stocks
    • User-friendly mobile trading apps
    • Strong trade education tools
    • Highly regulated and trustworthy

    Cons:

    • Doesn’t offer MetaTrader software
    • No accounts for US traders
    • Cannot own stock shares outright
    • Only 2:1 leverage for cryptocurrency trading

    The Verdict

    UK-based Capital.com is one of the newest brokers on the market, but it’s seen rapid growth thanks to its embrace of the modern features traders demand. The platform provides insights and information using AI and self-hosted news service. The user interface is friendly and intuitive, it includes a thorough charting software, and there are mobile apps for trading on the go. Plus, Capital.com does away with many of the fees charged by other brokers and keeps its spreads extremely low for most asset classes.

    Perhaps most important of all, Capital.com is trustworthy. It’s regulated by some of the most widely respected financial authorities in Europe, including ESMA and FCA. That adds major appeal for traders who may be wary about putting their money in the hands of an online brokerage that’s less than five years old.

    On the whole, there’s a lot to like about Capital.com. Beginner and experienced traders alike will find the tools they need to succeed with this brokerage.

    Ready to start trading with Capital.com? Click the link below to sign up for an account today!

    Trade with Capital.com Today

    Our Rating

    • Access to 2,000 stocks and 68 forex pairs
    • Highly regulated and trustworthy
    • User-friendly mobile trading apps
    • Excellent educational resources
    75% of retail investor accounts lose money when trading CFDs with this provider.

    FAQs

    Why do I need to upload documents to open a Capital.com trading account?

    Identity verification is required by the financial regulators that govern Capital.com. This process also ensures that traders are located in a country where Capital.com is allowed to operate.

    Does Capital.com offer access to MetaTrader 4 or 5?

    No, Capital.com does not offer traders access to MetaTrader software. Instead, the broker has its own proprietary charting platform with more than 70 built-in technical studies.

    What countries does Capital.com operate in?

    Capital.com operates in most of Europe and in several countries in Asia. Notably, US traders are not allowed to open an account at Capital.com. The full list of countries where Capital.com is available includes: Argentina, Austria, Bahrain, Armenia, Bulgaria, Chile, Croatia, Cyprus, Czech Republic, Germany, Estonia, Finland, Georgia, Germany, Greece, Hungary, Iceland, Indonesia, Ireland, Italy, Kuwait, Latvia, Liechtenstein, Lithuania, Mali, Mexico, Monaco, Oman, Netherlands, Norway, Pakistan, Philippines, Portugal, Qatar, Romania, Sierra Leone, Slovakia, Spain, Sweden, Switzerland, Thailand, United Arab Emirates, and the United Kingdom.

    Does it cost anything to open a Plus or Premium account?

    No, there is no extra charge for opening a Plus or Premium retail trading account at Capital.com. However, these accounts do require a larger account balance. You must deposit a minimum of $3,000 for a Plus account and $10,000 for a Premium account.

    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Haydn Squibb

    A journalist, with experience writing across the UK financial and professional service sector. Haydn holds a degree in Media Writing and enjoys covering about a wide range of topics from financial markets and current affairs to home, health and lifestyle. Haydn's work has been published on a number of top tier websites.