Why ETX Capital Sucks in 50 Words
They offer a proprietary web-based platform called ETX TraderPro, which can be a bit confusing in the beginning. Don’t get me wrong, the platform is feature-rich and customizable, which are good things but for a new trader, unfamiliar with the said platform, it will be somewhat overwhelming.
Why ETX Capital Doesn’t Suck in 50 Words
We are talking about a regulated company, with years of experience. The regulatory agencies are the British Financial Conduct Authority, and CySEC, both being well-respected and feared financial watchdogs. In one word: “security” – and that never sucks.
Is ETX Capital a Scam?
Monecor (London) Limited is regulated by the British FCA and Monecor (Europe) Ltd is regulated by the CySEC. This means the level of control is increased and the possibility of ETX Capital being a scam is limited. Because of their regulation, they take complaints very seriously and traders’ funds are insured up to 85,000 GBP through the Financial Services Compensation Scheme. Please do not believe that if you lose up to 85K trading, someone will give your money back; this insurance covers traders’ funds in the event of ETX bankruptcy (or other limited instances). For further increased security, traders’ funds are held in segregated accounts in German or British banks.
The company was originally incorporated in 1965… yup ’65. In 2002 they launched a retail branch called TradIngdex, which was renamed ETX Capital in 2007. Bottom line is that we are dealing with an experienced, highly regulated, trustworthy brokerage that seems to enjoy a positive reputation online.
Should I Open an Account with ETX Capital?
ETX Capital is a well-respected online broker that offers FX and CFD trading on a multitude of underlying assets including indices, equities, currencies, and cryptocurrencies. The owning and operating company has two branches: Monecor (Europe) Ltd – regulated by the Cyprus Securities And Exchange Commission (CySEC) with Licence number 096/08, and Monecor (London) Limited, regulated by the British Financial Conduct Authority (FCA) – Reference number is 124721.
ETX Capital is one of the “big guys” when it comes to online trading, so the answer to the title question should be Yes. However, if you are looking for an extremely user-friendly broker, this may not be it. Their web-based, proprietary platform is very complex and as I’ve said above, it can be a bit difficult for beginners. The other choice is Meta Trader 4, which is my favorite but again, not something for a complete beginner. On the other hand, the days of overly simplistic trading platforms (think BO trading) are gone, so if you want to trade, you might as well learn to do it on a proper trading interface.
Education is a big part of their website: they talk about the risk of trading, how to manage and reduce it, offer a few strategies and explain some of the features of their platform. They have a wide range of webinars, which is always a good thing for the newcomer trader but also for more advanced users. Also, they feature a section for Market Analysis which was up to date at the time of writing.
Accounts are not structured in the “classic” way of Beginner, Silver, Gold, VIP, etc. but instead ETX Capital offers the possibility to open a Meta Trader 4 account or a TraderPro account. The main difference between the 2 is the platform you’ll be trading on and all other trading conditions are the same. Also, it must be noted that spreads on MT4 are slightly bigger but still very competitive.
Overall ETX Capital is a solid brokerage, with a good background, fair trading conditions and regulation coming from two of the most influential financial authorities – the British FCA and CySEC.
The company lists the addresses 26 Finsbury Square, London EC2A 1DS and 3rd Floor, 62 Athallasas Avenue, Strovolos 2012, Nicosia, Cyprus. They can be contacted at phone +44(0)2073921400 and email [email protected].
ETX Capital Complaints
So far, no major complaints have surfaced but we did find a few unsatisfied customers regarding ETX Capital voiding the profits of some of their clients. The issue was later resolved. Other complaints are about slow responses from the support team and about the account being charged inactivity fees, with the respective client saying that it’s the first time he has heard about such a fee. Well, we have to let you know that this is very common and many brokers have this type of fee.
Other than that, clients seem to have a positive opinion about this brokerage. Keep in mind that all brokers will have unsatisfied clients at one point or another; in fact, that is true for all companies, no matter the field they activate in.
ETX Capital Regulatory Warnings And Announcements
There are no warnings against ETX itself but the UK Financial Conduct Authority has warned that a few companies have cloned the website and details of ETX Capital (Monecor London Ltd). See FCA warning here.
ETX Capital Bonus
This broker does not offer bonuses, in accordance with CySEC and FCA regulations. They may have limited time offers but we couldn’t locate any at the time of writing.
ETX Capital Withdrawal
Withdrawals are extremely fast: 1 working day processing time and depending on the chosen method, up to 7 business days will pass until the money reaches you. Note that e-wallets are the fastest, taking only 24 hours for the funds to reach you.
The methods are bank/wire transfer, major credit cards and e-wallets (Skrill, Neteller, China UnionPay, Sofort and GiroPay). The withdrawal will be made through the same method used for depositing. If you withdraw more than 100 GBP, ETX will not charge a fee for the first five (5) monthly withdrawals. Consequent ones will incur a 10 GBP fee.
ETX Capital Extras
The huge experience ETX has on the market can be considered an extra, as well as the solid FCA and CySEC regulation of the owning company. As for trading, the normal features are available, without anything extraordinary. We can note here the webinars, news and a blog containing financial articles.
ETX Capital Ratings
User Friendliness 17/20
The platform may get some time to get used to but it has useful features and solid functionality. The website is clean, with well-structured information and is translated in 11 languages. Demo accounts are available, as well as mobile apps but U.S. clients are not accepted.
Range Of Markets, Spreads, And Leverage 16/20
ETX Capital offers a huge range of CFDs on equities: according to their marketing material, thousands of equities. Although I haven’t counted them all, I tend to believe they are in the thousands because I got tired of scrolling down and the list still kept going. You’ll find the regular FX currency pairs, many commodities and only a few cryptocurrencies (Bitcoin, Bitcoin Cash, Ethereum, Ripple and Litecoin). In normal market conditions, the spreads are very tight (around 1 pip for EUR/USD, and just above that for GBP/USD). Normally required margins are 3.33% but for crypto, it will be higher (50%). This translates into 1:30 and 1:2 leverage, respectively.
Deposits And Withdrawals 18/20
The minimum deposit at ETX Capital is 100 GBP via card but there are no minimums for wire deposits. As for withdrawals, sums lower than 100 GBP will be charged a fee. Deposits and withdrawals can be made through major credit/debit cards, wire transfers and online banking (these methods may differ depending on regional restrictions). The processing time for payments is very fast: 1 working day and a few additional days must pass until the money reaches you. The fastest methods are e-wallets (just 24 hours for the funds to reach you after processing)
Fees And Support 16/20
There are no commissions for opening an account (which is normal for any broker). The first five (5) withdrawals of the month are free (if they are above 100 GBP) and consequent withdrawals incur a processing fee of 10 GBP each. Like most brokers, ETX Capital charges an inactivity fee. An account shall be considered inactive if there has been no trading activity for a period of 6 months and as a result, a fee of 25 GBP (or equivalent in the account currency) will be charged monthly. If you decide to reactivate the account by trading again, the last three inactivity fees will be refunded to your account. Live Chat support is available, as well as email and support through Facebook messenger.
Website Extras 11/20
ETX Capital is one of the oldest brokerages around, regulated by the FCA and CySEC but although these are major advantages, the website or platform does not stand out with something extraordinary.
ETXCapital Overall Ratings 83 + Regulated (+3) = 86/100