Eigthcap Review

Looking to start forex trading from scratch? Eightcap can be your top optio. Based in Australia, the broker has been expanding globally, catching eyes with their wide range of assets and tight spreads. But hold up – is it safe to trust them with your investments?

In this detailed Eightcap review, we will break down their online reputation, look into their past, and provide you savvy tips for trading. So, read on to know the highs and lows of this brokerage, ensuring you are well-prepped for your trading journey.

Eightcap Overview

Eightcap open accountEightcap Overview

Eightcap is one of the leading Forex broker in Australia. They started their business in Melbourne in 2009 and have their main office on Collins Street. They also have an office in Shanghai.

When you trade with Eightcap, you are not actually buying and owning the assets. Instead, you are making contracts based on the price changes of those assets. They use STP, which means when you make a trade, it goes straight to the market without any interference from them.

With 1:500 leverage, you can trade with greater funds than you possess. So, you can use up to 500 times more money than you put in. Using this feature can lead to larger profits, but it also increases the potential for greater losses.

Even though they are in Australia, people from over 100 countries can use Eightcap’s services. They even have their website available in different languages like German, Spanish, French, and others. But there are some places, like the USA and Japan, where they can’t offer their services because of the rules there.

Eightcap open account

Eightcap Review: Regulations

Eightcap brokerage firm is carefully watched over by different government bodies in various countries where it operates. These watchdogs ensure that Eightcap follows rules and treats its customers fairly.

Australian Regulation

In Australia, Eightcap is regulated by the Australian Securities and Investment Committee (ASIC). ASIC makes sure that Eightcap plays by the rules and protects its customers’ interests. Eightcap holds an AFSL license with number 391441, which means it’s approved by ASIC.

Bahamas Regulation

In the Bahamas, Eightcap Global Limited is regulated by The Securities Commission of The Bahamas (SCB). This commission oversees Eightcap’s operations to ensure they comply with Bahamian laws and regulations.

UK Regulation

Eightcap Group Ltd, operating in England and Wales, falls under the supervision of the Financial Conduct Authority (FCA). The FCA, with registration number FRN 921296, monitors Eightcap Group Ltd to safeguard investors and maintain the integrity of the financial markets.

Seychelles Regulation

Eightcap Limited, incorporated in Seychelles, adheres to regulations set forth by the government of Seychelles. This ensures that Eightcap operates responsibly and transparently in this jurisdiction.

Cyprus Regulation

Eightcap EU Ltd, located in Cyprus, is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). CySEC ensures that Eightcap EU Ltd follows the rules and protects investors in Cyprus.

Eightcap open account

Regulatory Advantages

  • Capital Reserves: Eightcap must keep enough money aside to cover any unexpected losses. For example, ASIC requires Eightcap to have at least A$1 million in reserves.
  • Background Checks: Before getting a license, Eightcap undergoes thorough background checks. This includes checks on the company’s directors and overall operations.
  • Segregated Accounts: Eightcap keeps its money separate from its customers’ funds. This protects customers’ money in case something goes wrong with the company.
  • Regular Reporting: Eightcap must regularly update the regulatory agencies about its finances and how it’s doing. This helps ensure transparency and accountability.

Knowing that Eightcap meets these requirements can provide peace of mind to customers. If customers ever have a complaint, they can turn to the relevant regulatory body, such as ASIC, for assistance. These regulatory organizations have established procedures to promptly and fairly handle customer concerns.

Eightcap Review Assets & Leverage

Eightcap open account

Eightcap Review: Assets & Leverage

You can trade various types of assets with Eightcap. They offer:

  • Forex: This includes major and minor currency pairs, totaling over 40 pairs to trade.
  • Equities: They offer equity products, but mainly focus on index CFDs. This means you can trade on the performance of entire stock market indices rather than individual stocks.
  • Commodities: While Eightcap provides trading options for commodities, their offerings are somewhat limited, with only four commodities available.
  • Cryptocurrencies: For those interested in digital currencies, Eightcap offers trading on six different cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Ripple.

However, when you trade cryptocurrencies with Eightcap, you are not actually buying the digital currencies themselves. Instead, you are trading derivative contracts tied to the value of cryptocurrencies.

Leverage Limits

When you trade with Eightcap, you can use leverage. This means you can control a larger position with a smaller amount of money. For example, with the maximum leverage of 500:1, you only need to put up 0.5% of the total position size as margin.

However, leveraging carries risks. If the market goes against you, you might need to add funds to your account to cover potential losses. This is called a “margin call.” If your account falls below a certain level, your trades may be automatically closed to prevent further losses.

Upon opening an account with Eightcap, the default leverage is set to 100:1. If you want to use higher leverage, you can request it from customer support after your account has been verified.

It’s important to note that while you can use high leverage for many assets, the maximum leverage for cryptocurrencies is much lower, at only 1:5. This is because cryptocurrencies can be highly volatile, and using too much leverage can increase the risk of significant losses.

Eightcap open account

Spreads & Fees in Eightcap

At Eightcap, the type of account you have determines the spreads you get. They offer two types of accounts: Standard and Raw.

Standard vs Raw Spreads

In the Standard account, spreads are a bit wider, meaning there is a bigger gap between buying and selling prices. But in the Raw account, spreads are closer to the actual market prices, which is better for traders.

Examples of Spreads

  • Here are some examples of spreads for different assets:
  • AUD/USD: Standard – 1.0 to 1.4 pips, Raw – 0.0 to 0.4 pips
  • GBP/USD: Standard – 1.2 to 1.8 pips, Raw – 0.2 to 0.8 pips
  • EUR/CHF: Standard – 1.0 to 2.5 pips, Raw – 0.0 to 1.5 pips
  • AUS200: 1.0 to 1.2 pips
  • SPX500: 0.3 to 2.5 pips
  • XAU/USD (Gold): 20 to 30 cents
  • Bitcoin (BTCUSD): 40 to 50 pips

You might notice that the spread for Bitcoin is quite high compared to others. Also, with the Raw account, although spreads are lower, there is a fixed commission of $3.5 per lot traded.

Swap Fees

Apart from spreads, you might also encounter swap fees. These are charges applied to your positions overnight. Swap fees vary based on market conditions and reflect the interest rate differences between currencies. They are charged at 00:00 New York time every night.

3-Day Fee

On Wednesday evenings, a 3-day fee is applied to account for no swap charges over the weekend.

Other Fees

Thankfully, Eightcap doesn’t charge any other fees like withdrawal or funding fees. However, if you make an international wire transfer, they’ll charge you a $25 fee for the transfer.

Eightcap open account

Withdrawal and Funding Fees

One of the good things about Eightcap is that they don’t add any extra fees when you withdraw your money or deposit funds into your account. Hence, you won’t be charged for moving your money in and out of your trading account, which can be a relief for traders.

Eighcap Broker Review Account Types

Eightcap open account

Eighcap Broker Review: Account Types

When you sign up with Eightcap, you will have the option to choose between two different types of accounts: Standard and Raw.

Standard Account

The Standard account is designed to be beginner-friendly, perfect for those who are new to trading with Eightcap. With this account, you will have access to all their trading platforms, along with good liquidity and competitive spreads in the market.

Raw Account

On the other hand, the Raw account offers direct market access, meaning you get even lower spreads, especially on forex trades where they can be close to zero. This account type ensures there is no middleman, so your orders are executed quickly.

Account Features

Both account types have some great features. There are no strict restrictions on trading strategies, so whether you are into scalping, hedging, or even developing your own trading algorithms (called EAs), you are good to go.

Minimum Requirements

To open either account, you will need to deposit at least $100, which is reasonable compared to other brokers. Additionally, the minimum lot size you can trade is 0.01 lots, making it easier for beginner traders to start small and gradually increase their trading activity.

Choosing the Right Account

The account you choose will depend on how much you plan to trade. If you are making a lot of trades, the savings you get from lower spreads in the Raw account might outweigh the commissions you pay on each trade. However, if you are just starting out and trading less frequently, the Standard account might be more suitable for you.

Eightcap Demo Account

The good thing about Eightcap is that, you don’t have to risk your money right away. They offer a standard demo account where you can trade using demo money, giving you a chance to try out the platform without any real financial risk. It’s a great way to get familiar with how everything works without worrying about losing any money. 

To get access to the demo account, all you need to do is provide your contact details and choose the platform you want to try. Whether you are new to trading or an experienced trader, the demo account can be useful. It lets beginners learn the ropes, while more experienced traders can use it to observe Eightcap’s spreads. You can always top up the demo funds, and they can go as high as $1 million in your chosen base currency. The only downside is that demo accounts are limited to 30 days, but you can always open multiple accounts if you need more time to practice.

Eightcap open account

Eightcap Review: Trading Platforms

The broker offer two main trading platforms that are widely used in the trading world: MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Eightcap MT4 Platform

MT4 is a well-known platform among traders. It’s user-friendly and favored by many brokers. With MT4, you get a bunch of charting tools and technical studies, making it popular among traders who rely on technical analysis. 

Even for beginners, it’s not too complicated, and you can easily buy or sell right from the dashboard. Plus, there are plenty of online guides to help you get started. MT4 also lets you create your own trading robots using a special coding language called MQL4. You can use MT4 on various devices like your computer, MacBook, or even on mobile apps for Android and Apple devices.

Eightcap MT5 Platform

MT5 is a bit more advanced than MT4. It allows you to trade the full range of assets available at Eightcap. MT5 has a more user-friendly interface and comes with additional features like a full order depth chart and an economic calendar right on the platform. The coding language used for creating trading robots in MT5, called MQL5, offers more functionality and allows you to develop custom indicators. Plus, backtesting is more robust with MT5. There’s also a large community of MT5 users where you can share and discuss trading scripts. Like MT4, MT5 is available on various devices including web-trader, PC/Mac client, and mobile apps for iOS and Android.

Mobile Apps

While Eightcap doesn’t have a separate mobile app for managing your account or transactions, you can still access MT4 and MT5 through mobile browsers. These mobile apps are highly rated and packed with features, allowing you to place trades, manage orders, and monitor your trading performance even when you are on the go. However, trading on a desktop offers more functionality compared to a mobile device, and factors like mobile connectivity and order latency should be considered. Nonetheless, if you need to trade while away from your computer, the MT4 and MT5 mobile apps are reliable options.

Eightcap open account

Deposits & Withdrawals

Eightcap makes it easy to deposit funds into your trading account, offering multiple currency options including AUD, USD, GBP, EUR, NZD, CAD, and SGD. To fund your account, simply log in to your client portal and choose your preferred payment method. Options include credit/debit cards, POLi Payment for Australian clients, wire transfers, Bpay, China Union Pay, and Skrill. Credit/debit card payments are instant with no transaction fees, while other methods may take 1-3 business days and could incur fees.

Withdrawing funds is easy; simply go to the withdrawal section in your client portal, fill out the form, and ensure compliance with KYC requirements. Withdrawal requests submitted before 01:00pm AEST/AEDT are processed the same day.

Funds are returned to the original payment method used for deposits within 90 days, with any excess balance paid through an alternate method. Transferring funds to bank accounts may take 2-5 days. Eightcap doesn’t impose withdrawal fees, but a $25 fee may apply for telegraphic transfers. Remember, deposits and withdrawals must be made from an account in your name.

Deposits & Withdrawals

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Final Words

So, our Eightcap review concludes that, with full regulation, competitive fees, swift order execution, and helpful customer support, they offer a reassuring trading environment. Offering advanced MetaTrader platforms enables trading across diverse assets, meeting various trader preferences. However, there are areas for improvement, such as certain features and services, their overall offering remains appealing.

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Eightcap, established in 2009, is a global online trading broker offering a wide range of financial instruments, including Forex, indices, commodities, and cryptocurrencies. Known for its user-friendly platforms and competitive pricing, Eightcap caters to both novice and experienced traders. The broker is distinguished by its commitment to providing a seamless trading experience through advanced technology.