8.4/10
  • City Index

  • Bonus: N/A
  • Regulated: FCA
  • Rating: 8.4 / 10
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Broker Name: City Index
Platform(s): CFD, Bitcoin, Spread
Founded: 2015
Bonus: N/A
Spreads: from 1.0 pips
Leverage: 1:200
Regulated:   FCA
Demo Account: Yes
Minimum Deposit: 100
US Traders:   Not Accepted

City Index Review

by Martin Kay

City Index (CityIndex.co.uk) is reputable CFD broker operating in the UK under the trading name of Gain Capital UK Limited, which has a registered office at Park House, 16 Finsbury Circus, London, EC2M 7EB. Gain Capital UK Limited is regulated by the British Financial Conduct Authority (FCA), which is one of the most respected watchdogs in the online trading environment. Their Register number is 113942 and can be contacted at phone number +44 207 550 8500 or email [email protected]

 

Is City Index a Scam?

No way! City Index was established in the UK in 1983 and was acquired by Gain Capital Holdings Inc in 2015. Gain Capital is a publicly traded company (NYSE: GCAP) with total assets worth $1.430 billion (in Q4 2016). Let’s not forget they are regulated by the British FCA, which is one of the most respected financial authorities, so all this means in my book that City Index is not a scam. Sure, there will be complaints because every broker has at least a few unsatisfied customers, but there’s no scam suspicion.

 

Why Doesn’t City Index Suck In 50 Words

Nothing beats the safety of trading with a brokerage first launched in 1983 and fully regulated by the British FCA. Over the years we’ve seen brokers without regulation, or brokers that lie about being regulated. Most of them have proved to be scams or simply poor partners for your trading. Don’t you think it’s time to move on to a company with a proven track record?

 

Why Does City Index Suck In 50 Words

Depending on your level of trading experience, you might find this brokerage a bit too complicated to use. If you come from a Binary Options background, where platforms are simple and straightforward, you will be overwhelmed (probably) by the huge feature suite offered by City Index. Anyway, in my view a more complex platform opens the door for more possibilities; you just have to be willing to put in a bit of work.

 
 

Should I Open An Account With City Index?

I guess it’s safe to say this is a reliable brokerage, with tons of experience and part of the huge Gain Capital Group (they also own Forex.com, which is one of the biggest FX brokers around). City Index offers Contracts For Difference (CFD) and Spread Betting.

The two ways of trading are fairly similar but the difference lays in the way your investment is made: with Spread Betting you decide how much Pounds (let’s use Pounds for this example) you want to stake per point movement. If you choose 2 Pounds per point, then you will win or lose 2 Pounds for each point the market falls or rises. With CFDs things are a bit different: 1 CFD is the equivalent of 1 share in equity trades. When trading other products (commodities, indices, FX, etc), the value of 1 CFD varies depending on the instrument (look up the “tick value” in the instrument’s information sheets).

As you can see, if all you’ve traded so far are Binary Options, this can be a bit too much but don’t worry, City Index has an extensive Education section where they explain all these things in much more detail than I just did. Just take the time to understand them.

To open an account, City Index recommends you start with 100 Pounds, so they don’t have crazy requirements and besides, they offer a demo account, which won’t cost you anything. Trading is done on several platforms: Advantage Web (no download required), AT Pro and Meta Trader 4 (downloadable platforms), as well as mobile trading platforms for iOS and Android.

Overall this is a very complex brokerage, with intricate features and a steep learning curve, so don’t expect to just jump in and start trading if you are a novice. I believe City Index is better suited for advanced traders who are familiar with Forex, CFD and Spread Betting. If you are just switching from Binary Options, be prepared to put in some work or choose a simpler brokerage.

 

City Index Complaints

With such a long history, it’s only normal that City Index has a few unhappy customers. We could find some complaints about their execution times and disconnects during times of high volatility; also, one client that said his commission increased without prior notice and another claimed he lost 12000 (he doesn’t mention the currency) but it is unclear if he lost it due to bad trading or another reason.

 

City Index Regulatory Warnings And Announcements

So far we couldn’t locate any warnings against City Index but the British FCA has warned that a clone firm is trying to lure clients using a similar name to the real Gain Capital UK Ltd. The details of the clone firm are Gain Capital Ltd, address Derby Trading Estate, Unit 5, Stores Road, Derby DE21 4BE.

The real and FCA authorised firm is Gain Capital UK Ltd, address Park House, 16 Finsbury Circus, London, EC2M 7EB. Source: FCA Warning

 

City Index Bonus

City Index does not offer a Bonus or any other type of promotion.

 

City Index Withdrawals

Card withdrawals take between 3 and 5 business days (domestic payments may take 1-2 days). The minimum amount is 50 Pounds; withdrawals are free of charge unless you request a CHAPS transfer in which case there’s a 25-pound fee for payments below 5,000 pounds. There are a few credit cards that don’t work with City Index (a few from MasterCard and Visa). If your card is one of them, your funds will be paid back to your account of choice.

 

Trading Bitcoin With City Index

At City index you can Spread Bet and trade CFDs on Bitcoin, meaning that you won’t actually own Bitcoin but rather speculate on price movements. For the time being City Index only offers Bitcoin trading (no other cryptocurrencies), with a maximum leverage of 4:1. The available platforms for Bitcoin trading are Advantage Web (no download required) and At Pro (desktop/downloadable version), as well as iOS and Android mobile apps.

 
 

City Index Overall Ratings

User Friendliness 13/20

The website is well structured but because the amount of information is huge, it can be difficult to use by a novice. Same goes for the platforms: they have a lot of features and you will need a certain experience level to understand how they all work. Demo accounts are available, as well as mobile versions of the platforms.

 
Range Of Markets, Spreads And Leverage 17/20

City Index offers Spread Betting and CFDs on hundreds of indices, shares, Bitcoin, Forex, commodities, metals, bonds, interest rates and options (note: these are not binary options). The selection is huge but pay attention that each market has its particularities, so spreads and required margin differ from market to market. Make sure you understand the trading costs and conditions by visiting their Pricing and Charges page.

 
Deposits And Withdrawals 17/20

Deposits can be made via credit/debit card (Visa and Mastercard) and bank transfer. The recommended minimum is 100 Pounds. The minimum withdrawal is 50 Pounds or your entire account balance (whichever is lower) and the waiting time is between 3 and 5 working days or 1 – 2 days for domestic payments.

 
Fees And Support 17/20

Deposits and withdrawals are free unless you want a CHAPS payment (same day Pound transfers), in which case you will have to pay a 25 Pound fee. Apart from this, you will have to pay spreads, overnight fees, and other charges but all are normal for this type of brokerage. Live chat was easily accessible and helpful enough.

 
Extras 17/20

Tons of educational material, news, strategies, economic calendar, 5 platforms to choose from, Bitcoin trading, fully regulated by the British FCA and a vast experience – first launched in 1983. All of these make City Index a brokerage that really stands out.

 

City Index Overall Ratings: 81 + Regulated (+3) = 84/100

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