Editor’s Note: Why Capex Sucks In 50 Words
The lowest account you can open at Capex requires a $1,000 deposit, however, at the bottom of their Accounts page, they write in small letters that the minimum amount required to open a trading account is $100. So, I don’t really understand what the deal is here. Maybe I will be able to trade but my account will not benefit from the full range of features? Capex doesn’t bother explaining and ThatSucks!
Why Capex Doesn’t Suck In 50 Words
Regulation, transparency, fair trading conditions and a good choice of platforms (downloadable and web-based) – all great features, topped off by Negative Balance Protection, which means that your losses cannot exceed the funds in your account. Do you know what’s worse than blowing your account? Having to pay your broker some extra money because your losses were bigger than your account. With Capex that cannot happen due to their Negative Balance Protection feature.
Is Capex A Scam?
Regulation weighs a lot when deciding if a certain broker is a scam or not because usually, a regulated company is safe to deal with. Not only Capex is regulated by CySEC and authorized by the British FCA and the Abu Dhabi Global Market but they are also registered with a few other financial regulators across Europe, including but not limited to Germany and Poland. Considering this strong supervision, it’s fair to assume that Capex is not a scam.
Should I Open An Account With Capex?
Capex (formerly known as CFD Global) is a pan-European CFD and FX broker, operated by Key Way Investments Limited and licensed by CySEC under licence number 292/16. The company is also EEA Authorized by the British FCA under reference number 784884.
In 2019, Key Way Markets Ltd (which operates ae.capex.com) received “in-principle approval” from Abu Dhabi Global Market (ADGM) and is currently green-lighted by the ADGM Financial Services Regulatory Authority (FSRA) with license No. 190005.
Launched in 2016, this broker is relatively new in the business but seems to tick all the boxes and benefits from a growing client base. The platform they offer is Meta Trader, in downloadable form (Meta Trader 5 desktop client) and a web-based platform. Both are good trading platforms and each has different advantages: the web version can be accessed from any computer with internet access and the desktop client has a wider range of features (but needs download and installation).
Capex offers three types of accounts: Essential (min deposit $1,000), Original ($5,000) and Signature ($25,000). The differences between accounts are not worth the very high deposit in our opinion, because the Signature account will only give you “Special Trading Conditions” and Trading Central as notable extra features. However, they don’t explain why those special trading conditions are so special and Trading Central analysis is something that you can get from other brokers for the lowest account. If they want a client to deposit $25,000, I’d say they need to do a better job at explaining what he/she will get.
Education is presented in the form of articles and short videos but many of the videos are locked behind deposit requirements. The content is relatively useful, especially for new traders but it’s very similar with what you can find on many other broker websites. It’s basically the same same stuff over and over again, It’s not bad but we’ve seen it before.
The broker’s registered address is Key Way Investments Ltd – 2 Sofouli Street, Chanteclair Building, 6th Floor, Office 602, Nicosia, Cyprus. On the website they also list the address 18 Spyrou Kyprianou Avenue, Suite 101, Nicosia 1075, Cyprus. They can be contacted at phone +357 22 000 358 and email [email protected].
CFD Global changed to Capex a while back, so we’ve decided to look for complaints about both of them. A search for CFD Global revealed a lot of complaints regarding aggressive marketing and numerous unsolicited calls. This is the main grief that clients had with this broker and although high-pressure sales tactics are definitely annoying, it’s still “better” than failed withdrawals and/or unauthorized trading.
When searching for “Capex”, we mostly found positive reviews (maybe a bit too positive but let’s not assume anything) and just a couple of negative reviews. It’s safe to say that the overall opinion is not heavily biased one way or the other.
Capex Regulatory Warnings And Announcements
None of the authorities that supervise Capex’s activities have warned against them. So far so good but if anything changes, we will make sure to update this section.
Requests are usually processed within 24 business hours, which is relatively fast but keep in mind that additional time will pass until the money will reach your account. Capex doesn’t charge any fees but your bank or payment processor may do so. The methods are credit/debit cards, Trustly, Neteller and Skrill (e-wallet availability may differ depending on client’s location). Unfortunately, they don’t mention anything about wire withdrawals but this method is listed for deposits, thus we can assume that you can also withdraw using it.
Having Negative Balance Protection is definitely a positive extra feature. This is not something very common among brokers and although hopefully, you won’t be using it, it’s still a very nice safety net in case of a market crash.
Capex Overall Ratings
User Friendliness 17/20
The website is translated into 9 languages, demo accounts are available and the trading platforms cater to beginners as well as more experienced traders. Mobile platforms are available as well but traders from the US, Canada, and Japan are not accepted.
Range Of Markets, Spreads And Leverage 16/20
The asset basket at Capex is very diversified and includes all the major tradable instruments: currency pairs, shares, indices, commodities, bonds, ETFs and of course, cryptocurrencies. All in all, they have a few hundred assets to trade so I am sure nobody will run out of options.
Spreads are fixed for fiat currency pairs but they could be tighter: 1.8 USD for EUR/USD and 3 USD for AUD/USD. Also, it’s unclear why Capex decided to use USD for spreads instead of pips. Leverage goes up to 1:30 for currency pairs but changes according to the asset class you are trading; for example, crypto-only has 1:2 leverage. Professional clients can use higher leverage (this can change depending on client’s location as well).
Fees And Support 13/20
CAPEX doesn’t charge for withdrawals or deposits (however, your payment processor probably does) but they have an inactivity fee of 15 USD monthly, which starts after 12 months of inactivity. The broker also charges a conversion fee of 0.5% when the currency of your account differs from the currency of the traded instrument. Live chat support was disappointing because all we got was the option to leave a message and that’s not really live chat. As alternative options, clients can use email or phone.
Deposits And Withdrawals 15/20
The minimum deposit is $100 but the lowest account you can open is $1,000, which is confusing and should be explained by Capex. As for the methods, those are wires, credit/debit cards, Trustly, Neteller and Skrill. Keep in mind that method availability may change depending on client’s location. The minimum withdrawal is not specified but the processing time is usually 24 business hours according to the website.
Negative Balance Protection, solid regulation, analysis from Trading Central, and a good choice of platforms. All in all a good selection of extra features.