Capital Index (UK) Limited was founded in 2014. It is authorised and regulated by the Financial Conduct Authority (FRN 709693). FCA requires all retail client funds to be fully segregated from the company’s own funds and to be kept in a separate bank account. This ensures that the funds cannot be used for other purposes. There is another company, Capital Index (Global) Limited, which is authorised and regulated by the Securities Commission of the Bahamas (registration number SIA-F199). Financial services of that company are not subject to this review.
Customers can deal with currency pairs, indices and commodities. Forex includes majors, minors and exotic pairs. There are three types of accounts: Advanced, Pro and Black. The minimum deposit amount for opening an Advanced account is GBP100 and the average spread for majors starts at 1.4 pips while the opening of a Pro account requires GBP5,000 and delivers an average spread at 1.0 pips. If you want the spread of the major forex instruments to start at 0.4 pips, you can request a Black account. The initial deposit there is at least GBP50,000. The tighter spread is at the expense of the commission. There is an option to look at the platform features by opening a 60-days demo account.
The Capital Index clients are provided access to the world’s financial markets via the popular MetaTrader 4 (MT4) platform. MT4 has become one of the most widely used trading platforms. It is an invaluable tool for trading, for analyzing financial markets and for automating trading strategies. MT4 is suitable for all types of traders and offers a wide range of analytical tools and features, helping them make better informed trading decisions. The MetaTrader 4 platform is available as a desktop version for Windows OS. If you prefer to deal or analyse your positions in real-time from your smartphone, you can download the Android or iOS app.
The Trading tools section of the website contains a third-party economic calendar only. All the necessary stuff is available in the Support section of the site. That includes trading guides for all types of instruments.
Capital Index claims to operate on an STP model that allows transparent and fast trading. However, the Order execution policy shows that the company has a right to act as a market maker as well, deciding whether to hedge or no client’s positions. That contradicts the claim of being an STP broker. Moreover, there is a warning of slippage that can be applied to all kinds of orders. That means stop loss orders are not guaranteed and can be filled at much worse price than initially set.
We can conclude Capital Index is a well-regulated European broker that provides competitive spreads and dealing via the MT4 platform. Still, it remains doubtful what kind of broker it is – STP or Market maker.