Capital.com Review (2023): Is It The Best Online Broker In Europe?

Capital.com Review (2023): Is It The Best Online Broker In Europe?

Founded in 2016, Capital.com is one of the easiest and cheapest ways to trade leveraged CFDs on equities, commodities, indices, forex pairs and cryptocurrencies anywhere in the world.

Unlike other CFD trading platforms, Capital.com offers Negative Balance Protection, which means you’re protected when your positions drop, so you can never lose more than the amount you invest in your account.

Sign up for Capital.com today.

84% of retail investors lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is Capital.com?

Founded in 2016, Capital.com is a global CFD broker used in many countries around the world. It has over 500,000 registered clients of all experience levels, who trade thousands of financial instruments through contracts-for-difference, also known as CFDs.

Capital.com’s artificial intelligence-based app allows traders to leverage the power of artificial intelligence to trade CFDs on a range of financial instruments, including stocks, cryptocurrencies, indices, forex pairs, commodities and more. For traders looking for a more sophisticated way of approaching the markets, Capital.com’s AI-driven platform has the answer.

Other Capital.com review posts only seem to mention a few of the site’s features, and are quite brief when comparing its advantages and disadvantages. I prefer to be much more thorough, so the information below should help guide anyone looking for a better, smarter way to trade financial instruments through CFDs.

Related: Read this Capital.com review to learn how to trade crypto CFDs.

Capital.com Review Trading Platform
This is how Capital.com’s trading platform looks, very similar to a Bloomberg terminal

84% of retail CFD accounts lose money.

Features of Capital.com

Most people find themselves falling into one of two distinct modes on Capital.com: Learning Mode and Trading Mode.

In Learning Mode, you can study the markets, learn the basics of trading CFDs, and brush up on breaking news in your specific areas of interest. These are the features you’ll enjoy in Learning Mode:

  • Free financial webinars
  • Educational courses for traders
  • Extensive markets glossary
  • Comprehensive CFD trading guide
  • Cryptocurrency trading tutorial
  • Investmate, Capital.com’s investor education app

In Trading Mode, Capital.com’s artificial intelligence helps you to confidently navigate through market ups and downs and decide what and when you want to trade. In short, Capital.com lets you trade from a position of both power (based on its AI) and knowledge (based on its financial tutorials and materials). These are the features you’ll enjoy in Trading Mode:

  • Mobile trading app
  • Robust web trading platform
  • Real-time prices
  • Real-time financial news
  • Stops & limits
  • Negative Balance Protection on levered trades
  • Competitive swap rates
  • Hedging mode
  • Risk management tools
  • 70+ tech indicators
  • Trader sentiment

Trading CFDs on Capital.com

If you’re familiar with the look and feel of a Bloomberg terminal, then you’ll feel right at home with the Capital.com trading platform.

If not, though, you certainly won’t be left in the dark.

When I first began trading on Capital.com, I was truly surprised with how easy and simple using the site was. I learned my way around the platform in a matter of minutes, and found the entire platform easy to navigate.

What’s even better is that as I used the platform over the ensuing days and weeks, I discovered additional depth and functionality that surprised me even more. The trading platform has managed to be simple without being simplistic.

Three Quick Benefits Of Trading On Capital.com:

  1. No Fees: That’s right, there are no commissions or fees (with tight spreads) for trades you make on Capital.com (though they do charge overnight fees on some positions).
  2. Easy To Use: This couldn’t be more important to me. I’m not a professional trader (ie. I don’t work at a bank or hedge fund), so I like my trading platform to be straightforward enough that I can understand it easily, yet robust enough that it can do everything I need it to do. Capital.com strikes this balance perfectly.
  3. Lightning Fast: My laptop is getting older, so it slows down quite a bit when I overload it, especially in Google Chrome. Yet Capital.com’s trading platform has never slowed down or frozen my laptop. Not even once. I see up-to-the-second price updates coming in all the time, and I have no problem whatsoever trading with real market data in real time.

You can try out the Capital.com trading platform completely free before verifying your identification or funding your account. Just sign up below to take a look around.

84% of retail CFD accounts lose money.

Equities & Financial Instruments

The short answer: all of them.

The entire marketplace is at your fingertips at Capital.com. For clarity and ease of use, each type of security has its own page on the website, but here’s the general breakdown:

  • Stocks/Equities: Stock CFDs are one of the best ways to take advantage of general or niche market trends. Capital.com gives traders the ability to personalize your experience and deal with targeted areas of the market or whole swaths of economic activity at once. Currently you can trade on equities from stock markets in the following countries: United States, United Kingdom, Germany, France, Hong Kong, Italy, Norway, Russia, Spain, Sweden, Switzerland.
  • Indices: Trade CFDs backed by indices, with nearly 20 of the most heavily-traded global indices—including the S&P 500, the NASDAQ 100, the Dow Jones 30 and the FTSE 100—sorted however you want to see them: based on volatility, biggest gainers, biggest losers, or most traded. Configure charts for any time frame that makes sense for you: hourly, daily, weekly, monthly, etc.
  • Forex: It’s easy to trade global currencies via CFDs when you have access to nearly 100 of the most-traded currency pairs. Each pair listed on Capital.com features up-to-the-minute buy/sell data and change percentages. Every instrument listed comes with a full range of functionality so you can use targeted charting, view volatility and examine risers and fallers, or hone in on trading volume.
  • Commodities: Play the popular world markets like oil, natural gas, gold, silver, and copper, as well as less popular markets like orange juice, carbon emissions and palladium all from a single platform, all based on real-time data and 100% functional capability by trading commodity CFDs.
  • Cryptocurrency: Trade more than 400 of the world’s most relevant crypto CFDs, including Bitcoin (BTC), Ethereum (ETH), Ripple (RPL), Litecoin (LTC) and Bitcoin Cash (BCH) with the added benefit of not owning the underlying cryptocurrencies, not having to fret about liquidity, and having access to a wealth of trading data before making a move.
Capital.com Review Live Indices Prices
Yes, asset prices really are updated this frequently on Capital.com

84% of retail CFD accounts lose money.

Fees & Commissions

One of the things I like most about Capital.com’s fee structure how clear it is:

  1. 0% fees on trades
  2. 0% fees for deposits, withdrawals, real-time quotes, trade opening/closing, educational materials, charts, use of indicators, etc.
  3. Very small overnight fees on leveraged positions

Let’s unpack these individually.

  • 0% fees on day trading: This is exactly what it sounds like—absolutely no fees outside of the bid/ask spread. Capital.com’s commission is baked into the bid/ask spread, which is always made clear before you execute a trade, so they’ll never surprise you with an unexpected fee. Bid/ask spreads can be as low as $0.00006.
  • 0% fees for deposits, withdrawals, real-time quotes, trade opening/closing, educational materials, charts, or use of indicators: Deposits and withdrawals are completely free, meaning you can pay $1,000 from your credit card and have $1,000 show up in your account moments later (funding your account really is instant like this).
  • Very small fees (0.001-0.05%) fees on leveraged positions: The only time you pay trading commissions with Capital.com is when you buy with leverage and hold that position overnight. Then they charge a low nightly fee, which depends on the specific CFD you buy, but can be something like 0.001%. For reference, many other trading platforms charge something like 0.5% per trade, which means in this example, Capital.com’s fee is 1/500 of the other platforms.

What Is Leverage?

Traders use leverage to get big returns from small investments. Leverage allows you to take on larger positions than the money you actually put up. For example, if you buy an asset with 5:1 (20%) leverage, you can buy $5 worth of stock for every $1 you add to your account. That means if you want to buy $20,000 worth of a company’s stock, you only need to fund your account with $4,000 to do so.

The great thing about leverage (also known as “buying on margin”) is that you reap all the benefits of the entire position, not just the leverage you’ve fronted. So if that stock position worth $20,000 goes up by 5%, all of those profits ($1,000) are yours to keep. Not bad when you only put up $4,000 to begin with. Of course, leveraged positions can also lose, so you need to be careful when trading on margin. Leverage magnifies both profits and losses.

Since stocks are so volatile, they offer fairly low leverage, though other financial instruments—like forex pairs and indices, which tend to be less volatile—offer much higher leverage like 20:1 or even 30:1.

For example, the EUR/USD forex pair trades at 30:1 (3.33%) leverage, which means you can trade $30,000 worth of it with just $1,000 in your account.

Here are the typical leverage numbers you can expect for each asset class, as outlined in the trading platform:

  • Forex pairs: up to 30:1
  • Indices: up to 20:1
  • Commodities: up to 10:1
  • Stocks: up to 5:1
  • Cryptocurrencies: up to 2:1

Leverage Multiplies Your Profits—And Your Losses

When you trade with leverage, you always need to keep in mind that both your gains and your losses will be magnified much more than they normally are. If a stock that’s levered 5:1 increases 2% in a day of trading, your portfolio feels it like a 10% increase; similarly, 2% drops turn into 10% losses.

These magnified losses can become a big problem for traders, which is where Capital.com’s Negative Balance Protection comes in. Negative Balance Protection protects users against losing more than they’ve deposited into their accounts, limiting the downside risk.

Cryptocurrency CFD Trading with Capital.com

You can trade dozens of the most popular crypto pairs via Capital.com. That means Bitcoin, Ripple, Ethereum, Litecoin and dozens more. It’s as easy as checking out the latest market data on a given pair and then making a trade.

Keep in mind that because you’re trading CFDs and not the actual underlying cryptocurrency itself, you won’t need a cryptocurrency wallet to execute these trades (nor will you receive the keys to your crypto assets). This works the exact same way as trading in the commodities markets: when you buy a million kilograms of wheat in the commodities market, no one has to actually deliver the wheat to you. Instead, the option on the wheat is known to be yours, and you can sell it at whatever time you choose.

Does Capital.com offer learning resources for new and experienced traders?

There are eight robust learning sections on the Capital.com website:

  1. Breaking News: You’ll find the most relevant news stories to the global financial markets here. Everything is up for analysis, from U.S. Federal Reserve news to important stories about world trade agreements.
  2. Capital.com TV: In addition to a suite of instructional videos, Capital.com TV includes dozens of news-based videos that examine how current financial events worldwide affect the price of securities, currencies and commodities. Is Bitcoin poised to make an upward move? Is oil ready to fall? What’s in store for Amazon this quarter? Are international political disputes going to disrupt European stock indices? These questions and many more are being discussed on Capital.com TV.
  3. Informative Webinars: Regularly scheduled sessions with market experts. Each week, you’ll find a fresh financial topic being put under the microscope, topics like trend analysis, short-term market scenarios, insights from expert traders, and more.
  4. Economic/Market Calendar: See country- and currency-based economic announcements listed in chronological order and rated for impact. Complete with official forecast announcements, these relevant events include U.S. Conference Board releases about consumer confidence levels, Bank of England speeches by ranking officials, EU financial pronouncements, unemployment numbers from national government sources and more.
  5. Targeted Financial Courses: Dozens of relevant lessons centered around crucial subject areas are available to help you learn more about financial markets, instruments of all kinds, the basics of CFDs and derivatives, the many risks of trading, the concept of leverage, and the mechanics of margin.
  6. Extensive Financial Glossary: A full trading glossary can help even the most seasoned trader stay informed about essential vocabulary used in the financial industry. Hundreds of carefully selected entries offer clear definitions of the most relevant terminology for anyone who wants to “speak the language” of finance.
  7. Comprehensive CFD Trading Guide: Learn about the detailed, unique aspects of CFD trading in this complete guide. There are core concept discussions about the nature of CFDs, short/long positions, how leverage works, as well as a fact-based listing of frequently asked questions about CFDs for beginners and experts alike.
  8. Real-World Guide to Cryptocurrency: This section offers a full-length discussion on the nature of crypto-CFD trading alongside detailed examinations of how and why to trade Bitcoin, Ethereum, Litecoin, and Ripple, four of the major players in the crypto market. It’s a must-read for anyone new to the world of crypto trading, and serves as a powerful review for people already familiar with this ever-changing market segment.
Capital.com Review Online Trading Courses
Capital.com has plenty of online courses designed to help make you the best trader you can be

My Experience With Capital.com

My personal experience with Capital.com has been extremely positive for a number of reasons:

  1. Extremely easy to get started: I made my first trade within 10 minutes of beginning the signup process, which is absolutely unheard of when it comes to joining a new trading platform. Normally it can take days or even weeks to get set up with someone like Interactive Brokers, but Capital.com has streamlined this process in an impressive way.
  2. Total transparency: I like that whenever I make a trade, everything is laid out in front of me: a description of what I’m buying, how much I’m paying for it, what price I need to sell it for to make my intended profit, etc. Many trading platforms used by professional traders are too overwhelming for the non-professional, but Capital.com caters to both groups very well.
  3. An incredible app: Of all the apps I’ve tried over the years, Capital.com has the best trading app hands-down. It’s both intuitive and powerful, and gives you AI-led suggestions to help aid you in your trading. I used to do 100% of my trading from my laptop, but more and more I now find myself buying and selling my positions from within the Capital.com trading app.

How to sign up for Capital.com

There are a few things you need to sign up for Capital.com:

  1. You cannot sign up for Capital.com if you live in one of these countries: Andorra, Belgium, Gibraltar, Iran, Puerto Rico, Taiwan, United States.
  2. You must select one of these three currencies: British Pound (GBP, £), Euro (EUR, €), U.S. Dollar (USD, $).
  3. You need to verify your account. Read below for instructions on verifying your account with a proof of identity and a proof of address.

Verifying Your Capital.com Account

Once you’ve opened your account, you’ll be eligible to invest up to $2,000. If you want to invest more, though, you’ll need to verify your account within 15 days after opening it with both a proof of national identity (passport, national ID or driver’s license) and a proof of address. For proof of address, you can use any of the following documents, provided they show your full name, address and have been issued in the past six months:

  • A bank statement
  • A letter from your bank with the bank’s logo
  • An online banking screenshot complete with bank logo
  • A credit card statement
  • A household utility bill for electricity, water, gas, TV or your landline phone
  • A tax statement or local authority tax bill
  • A residence certificate

I uploaded my documents (my Canadian passport and a statement from my N26 bank account) on a Wednesday afternoon, and my account was verified within 10 minutes.

If you don’t verify your identity within 15 days, your account will be automatically suspended and only unlocked once your required documents have been uploaded and verified.

84% of retail CFD accounts lose money.

Capital.com FAQs

How do I fund my Capital.com account?

You can make your first deposit using a debit card, credit card, Bank Wire Transfer, Sofort, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney, Trustly, 2c2p, or AstropayTEF as your payment method.

I funded my account using my N26 Black bank account, and the funds arrived immediately (within 30 seconds).

How can I withdraw money from my Capital.com account?

Capital.com always pays out withdrawals by the same payment method you used to fund your account initially, so if you funded your account using a bank transfer, they will process your withdrawal back to your bank account. If you’ve used several methods, the withdrawal will be sent to the one used last to top up your account. The full list of withdrawal options includes: debit card, credit card, bank transfer, Sofort, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney and Trustly.

What documents can I provide as my proof my address for Capital.com?

As a proof of address, you can upload a photo/scan of one of the following documents:

  • A bank statement
  • A letter from your bank with the bank’s logo
  • An online banking screenshot complete with bank logo
  • A credit card statement
  • A household utility bill for electricity, water, gas, TV or your landline phone
  • A tax statement or local authority tax bill
  • A residence certificate

What is the minimum and maximum deposits for Capital.com?

Capital.com’s minimum deposit is 20 USD, 20 EUR, 20 GBP, or 100 PLN by card ($250 via wire transfer). Once you’ve verified your account (see above), there are no maximum deposit limits.

Can I trust Capital.com? Is Capital.com a scam?

Yes, Capital.com is a trustworthy trading platform. It’s regulated in multiple jurisdictions (including the UK, Australia, Cyprus, and the Seychelles), and follows all financial regulations in each of those geographies.

How can prospective traders contact Capital.com?

You can call Capital.com at +44 20 3870 3087 or email their support team at support@capital.com. You can also visit the Capital.com website and click on Contact Us for country-specific options and to enter a live chat with a Capital.com support agent. Their support team currently supports 13 different languages.

84% of retail investors lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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