ETX Capital is a trading name of Monecor (London) Ltd, which is authorized and regulated by the Financial Conduct Authority (FCA). The company was founded in 1965 and in 2002 launched its forex and stock division called TradIndex, which later adopted the name ETX Capital. It provides online trading in currency pairs, and CFDs on indices, commodities, shares, and cryptocurrencies through the world’s most popular trading terminal – MetaTrader 4 (MT4) and its proprietary trading platform called ETX TraderPro. You can start trading with as low as EUR100.
It is crucial to know where and by whom the company is regulated. ETX Capital, a brand of Monecor (London) Ltd, is authorized and regulated in the UK by the Financial Conduct Authority (FCA) under reference number 124721. As a regulated company, it must maintain certain rules and obligations, offering its clients the highest security. ETX Capital is obliged to segregate all its retail clients’ funds from its own funds. In addition, retail clients are protected by the Financial Services Compensation Scheme (FSCS) and if the company is unable to pay claims, customers can apply to this scheme for compensation up to GBP85,000.
There are three types of live accounts, which differ mainly in the spread and the required initial deposit.
Standard account – The minimum deposit here is EUR100 and you receive standard spreads. Trading is commission free, and your deposits and withdrawals are free of charge.
Premium account – You must invest at least EUR10,000 to open this type of account. You will receive all the features of the Standard account plus premium spreads. The minimum value for the EUR/USD pair is 0.6 pips while the average one is 1.2 pips. Trading is commission free. In addition, you will have access to market news and the company operational team.
Professional account – If you are classified as a professional trader, you will receive the same service level as in the Premium account but with higher leverage rates. To be classified as a professional trader, you must have over EUR500,000 of liquid access, relevant experience in financial services and at least 10 trades of significant size in each of the last 4 quarters.
How the Company Executes Client Orders
The “Customers Terms and Conditions” file shows that ETX Capital is the counterparty to all customer’s trades. All trades are on a principal-to-principal basis, or the company acts as a market maker. The company generally makes its money from the spreads of the instruments. However, a client’s loss may result in the profit for the company, which involves a conflict of interest because when the company executes orders, it keeps the risk to itself. It is described in the “Conflict of interest Policy” document, which informs that ETX Capital makes financial gain at the expense of any client.
The same document shows that the company offers guaranteed stop loss orders, which means that they will be executed without slippage. The company guarantees that the price at which it fills your order will be the same as the price you specified in the guaranteed stop. These orders are not free, and you will be required to pay a premium set by the company. It will be displayed before you set your guaranteed stop loss order. There also are non-guaranteed stop loss orders that are subject to slippage.
It is also written that if you are a professional trader, then the full amount of the negative cash balance is due and payable to the company immediately. If you are categorized as a retail client and you have a negative cash balance in your trading account(s), the company will set the account balance to zero, but this may take some days to happen, it says.
There is no inactivity fee, so you can determine the time frame in which you want to trade. Of course, there are common fees such as spread, swap and rollover.
Deposits and Withdrawals
Deposits can be made by bank transfer, credit/debit cards or by e-wallets such as Neteller, Skrill, and UnionPay. Normally, your account will be credited immediately.
Withdrawals can be made in the same ways as deposits – bank transfer, credit/debit cards and electronic wallets. To make a withdrawal, you must submit a request via the trading platform or by email. All funds will be returned to the same account, or source, from which they were originally deposited. Withdrawals are processed in one business day and the transaction time is within 1-5 business days.
You can trade via one of the most popular trading terminals worldwide – MetaTrader 4 (MT4). It offers a complete solution for your trade, while helping in using technical and fundamental analysis. This is a highly personalized terminal showing detailed information about financial assets and transactions. There are many custom technical indicators and charts that will help you determine the right strategy for you. ETX Capital claims that 94% of customers’ orders on MT4 are executed in less than 30 milliseconds. This can help the Automated Expert Advisors work properly.
In addition, the company has developed its own trading platform called “ETX TraderPro”. The main features include multiple chart types, trading directly from the chart and many technical indicators and drawing tools. ETX TraderPro is available as a mobile app as well.
Currency pairs – Over 60 popular major, minor, and exotic currency pairs can be traded. Spreads depend on the account type and the selected platform. The minimum spread for the EUR/USD pair in the Premium Account is 0.6 pips on the TraderPro platform and 0.8 pips on the MetaTrader 4 platform. The Standard account provides “standard” spreads.
Indices – You can trade 12 of the major indices globally, such as DAX30 and UK100. The spread for the DAX30 varies within 1.5-8 points depending on the market time.
Commodities – 17 of the most traded commodities are available such as Gold, Silver, Oil and Brent. The minimum spread for Gold is USD0.40.
Cryptocurrencies – 4 cryptocurrencies are available for trading: Bitcoin, Ethereum, Litecoin and Ripple. The required margin is 20% or 1:5 leverage.
Shares – you can trade CFDs on shares of global companies that are subject to a commission and require a margin og 20% or you can trade commission-free shares with a required margin of 100% (1:1 leverage).
There is an educational section on the web page called “Education”. You can watch a few recorded webinars and subscribe to an upcoming event (if there is any), some eBooks and platform guides. Trading courses can be found here as well.
ETX Capital is an FCA-regulated brokerage firm, which acts as a market maker, so the major conflict of interest exists. You can trade currency pairs, commodities, indices, shares, and cryptocurrencies through the MT4 terminal, and the company’s own developed platform called “TraderPro“. You can deposit by bank wire, debit/credit cards, and e-wallets. You can start trading by depositing EUR100. Spreads are variable depending on the account and the selected platform.