Capital.com Review: Thumbs up, literally…

Expert Capital.com Review

Capital.com Review

Name: Capital.com

Description: Capital.com was founded in 2016 and is a CFD trading platform and spread betting broker with offices in the UK and around the world. Since then, they have grown to offer over 3,700 tradable assets to 300,000 active monthly traders. Capital.com won “Best Trading App” in our 2023 Awards.

Why we like them:

Capital.com has an easy-to-use and intuitive trading platform and app, that gives access to the most popular financial markets with competitive spreads with the ability to reduce risk by decreasing your leverage.

Pros

• Innovative and intuitive app
• Set your own leverage
• Proprietary technology

Cons

• Trading only, no ISA or SIPP
• No options markets

• Pricing & Spreads
  (4)
• Market Access
  (3.5)
• Apps & Trading Platform
  (4.5)
• Customer Service
  (4.5)
• Research & Analysis
  (3.5)

Overall

4

• Visit Capital.com

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Thumbs up, literally

Do you know what the most impressive thing about Capital.com is? They put the buy and sell buttons at the bottom of the app.

I don’t mean that in a facetious way, it’s genuinely a brilliant feature. 

This may not sound like much but it’s a good example of how Capital.com has integrated decades of analytics, experience, feedback and customer data into creating a very easy-to-use intuitive trading app from scratch.

When Capital.com first became authorised by the FCA back in 2018, I visited their offices in London to have a chat about what they offer. The two main things we discussed were button placement and AI.

Rapid Growth

Of course, since then Capital.com has grown rapidly and now has over 7 million registered users, with 75,000 active monthly clients across Europe who have traded positions valued at over $700 billion. They have also significantly boosted their UK management team by making a series of high-level executive hires. This includes Peter Hetherington as UK CEO, the former CEO of IG Group and Schroders Wealth Management.

Trading App

But anyway, if you’ve updated your iPhone to the latest iOS you’ll notice that Apple has started moving things to the bottom of the screen, the search bar for instance. This is because, phones are getting bigger, and your thumb can’t reach the top of the screen if you are holding it with one hand. This is something that Capital.com figured out would make trading easier 5 years ago. I’ve just been through a bunch of other trading apps on my phone and still, amazingly enough, none of the other brokers have done this yet.

Capital.com was also the first to integrate artificial intelligence to help you improve your trading, they say, based on the Martingale theory. When I spoke to Chris Demetriou, the head of sales in the UK, he said that the system should give you prompts based on your previous trades. So for example, if you are about to do a trade that is similar to ones you have constantly lost on before, you should get a “are you sure you want to do this” notification.

There have also been some significant improvements recently including:

• adding average price execution data for larger orders
• improving the visibility of overnight funding fees
• the ability to add dynamic widgets to individual home screens

Leverage Control

Everybody knows, that one of the main reasons people lose money when trading is overleverage. This could be either from not having enough free cash on account to give your position breathing space, or simply putting on trades that are too risky. One really good feature is that you can change your leverage based on asset class. The default leverage is the max that retail traders in the UK are permitted, but you can change this to 1:1 so you need to fully pay up for positions. A sensible thing to do if you are just getting started, which can help reduce excessive losses. As your experience grows you can increase your leverage accordingly.

Hedging

You can also set the platform to put on hedging positions, so you can be long and short the same thing at the same time. Why you ask? Well, it can help you run longer-term positions and short-term hedges. This in fact is the very point of CFDs and spread bets. They were originally hedging tools, and still a good way to protect your long-term investment portfolio against short-term market corrections without having to close off your positions.

Customer Support

Customer support is pretty good too, you can get in touch via the chat widget on the platform, whatsapp or telegram. When I tested it I got a response within a minute and the issue I had was dealt with quickly (uploading ID to verify my account if you must know).

TradingView

You can’t trade from the charts, but when you have open positions they are overlayed along with your stops and limits, which you can move by dragging and dropping. But, if charting is your thing, you can join the other 78,000 Capital.com customers using and trading from TradingView.

Proprietory Tech

One thing I quite like though is that instead of relying on third-party software, the Capital.com trading platform is built in-house, and if you want something you can ask for it. For example, previously on the app you could see where an asset is as a percentage relative to the daily range. But, a customer asked, if you could see it in points too. So, that was quickly integrated so that you can now toggle between percentages and points. A small thing, but indicative of a broker that can do things and does do things, rather than just logging a helpdesk ticket.

Refinitiv

There are no trading signals on the platform or app, but you do get access to Refinitiv reports on US stocks, which give you a good overview of historic and potential future financial health. A good feature for those looking at slightly longer-term positions.

Overnight funding

Talking of long positions, or longer long positions, Capital.com also display quite clearly what your overnight financing rates are going to be on a daily basis. I’m sure this is a regulatory obligation anyway, but it’s done in a way that you can actually see what the price is, rather than an opaque formula. It gives a bit more transparency about how much a position is going to cost you.

Investmate

If you are new to trading, they have a stand-alone app called Investmate, which puts you through a series of bitesize courses that explain the financial markets. Capital.com also own currency.com if you fancy a punt on crypto, and shares.com so we can expect to see more comprehensive physical investing options soon.