CAPEX.com (previously CFDGlobal.com) is a website operated by Key Way Investments Limited. It is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 292/16. We did some research and found out some bad reviews about CFD Global, so be careful dealing with its successor.
The company product portfolio consists of over 2100 trading assets such as 55 currency pairs, commodities, shares, indices, Bonds, ETFs, and cryptocurrencies. The spread of the instruments is fixed and the one for the EUR/USD is 1.8 pips while the one for Bitcoin (futures) is USD50.
Customers can trade through one of the well-known platforms in the industry – MetaTrader 5 (MT5). It is an intuitive and user-friendly terminal that offers a wide range of execution modes and order types, a lot of technical indicators and analytical tools. MetaTrader 5 is available on both desktop and mobile devices. In addition, the company provides its own developed platform called WebTrader. The company announces ‘it is a highly responsive platform designed to offer a top user experience. Available on all devices, for investors of any level with built-in risk management tools.’
There are three account types that differ in the required initial sum and the services offered. The Essential account requires USD1,000; the Original account requires USD5,000 and you will have access to a research section and some special trading conditions. You must invest at least USD25,000 to open a Signature account. In addition to the Original account, you will receive trading signals and one-to-one meetings with an account representative. However, the minimum amount required for opening a regular trading account is USD100.
The legal documents show that all retail clients are covered by negative balance protection, which means client losses will never exceed the funds in its account. The Terms and Conditions document reveals that the company may either execute client order as a counterparty (i.e. act as Principal) in which case the company will be the execution venue or it may transmit client order for execution to a third party (known as Straight Through Processing (STP) or acting as an Agent), in which case the company will not be acting as a counterparty in the order and the Execution Venue will be the third party. This means Capex decides when and how to act with client orders or it may act as a market maker. As we always say, this is not so bad when the company is strictly regulated, but a conflict of interest arises because the loss of customers is a profit for the company. The same document informs that in case of high market volatility, orders are fulfilled at the first available price. This means that all orders are subject to slippage. Stop loss orders are not guaranteed and will also be executed at the first available market price.
In general, this is a well-regulated brokerage company that offers trading instruments with fixed spread. You can trade through one of the most popular trading platforms worldwide – MetaTrader 5, and you cannot lose more than you have in the account. However, it is not clear when the company acts as a market maker and when as an STP broker, but the conflict of interest exists. Given the bad reputation of the former company, you better be careful in dealing with it.