Eightcap Review 2023
Eightcap is a global forex and CFD broker based in Melbourne, Australia. The company has been providing retail trading services for over a decade. A low minimum deposit, flexible account types, and lightning-fast trade execution make it well-suited for newbies and veterans. Some may argue, the absence of a proprietary trading platform leaves it struggling to become the market leader. This piece reviews the broker in detail.
Regulation and Security
Eightcap operates under the brand name of Eightcap Pty Ltd. The The Eightcap Group holds regulations in multiple jurisdictions as follows.
- Australia: Australian Securities and Investment Commission (ASIC)
- United Kingdom: Financial Conduct Authority (FCA)
- Bahamas: The Securities Commission of The Bahamas (SCB)
Eightcap’s robust regulatory framework offers reasonable assurance concerning the company’s good code of conduct. Moreover, the company secures clients’ personal and confidential information via advanced security protocols, including web encryptions (SSL) and two-step authentication.
Most regional jurisdictions provide default-compensation for their residents only; hence, if you’re looking to trade with Eightcap, you must check their compensation assets to avoid any losses later.
Negative Balance Protection
While most regulated brokers offer their clients protection against negative balance, the facility is also available at Eightcap. This means that in very rare cases when the market moves during a significant increase of volatility and your account balance drops below zero, your balance will be reset back to zero meaning you will not owe the broker money. Most regulated brokers tend to offer negative balance protection but it’s always worth checking.
While the broker keeps clients’ investments in segregated bank accounts, it also maintains enough capital to remain liquid. Therefore, traders can rest assured of their investment being readily available anytime. Additionally, the company works with first-rate insurance agencies to offer indemnity insurance to their customers.
Moreover, If the company becomes insolvent, investors can seek compensation against their financial losses of up to a specific limit depending upon the jurisdiction of their respective entity. For instance, the company’s insurance covers up to £85000 per client in the United Kingdom.
Is Eightcap available worldwide?
Headquartered in Australia, the company offers services worldwide through its regional offices. However, it doesn’t accept clients from a few jurisdictions, including but not limited to North Korea, Syria, Sudan, Iraq, Iran, Japan, and the United States.
Eightcap doesn’t have any proprietary trading platform available to offer. However, the company does provide access to the industry’s most renowned trading platforms, MT4 and MT5. Clients can access the available trading platforms online or download them on their desktop and mobile devices. Another great feature of this broker is that they allow for integration with TradingView enabling traders to feel at home with TradingView’s cutting-edge charts combined with Eightcap’s low spreads.
Online/web-based trading: Eightcap only supports MT5 for browser-based trading, so clients looking to use MT4 online have no option but to consider using the MT5 platform. In addition to being intuitive, the MT5 web terminal is highly customizable. It enables clients to explore multiple trading opportunities seamlessly. Further, clients can switch between charts and reposition tabs according to their needs.
Eightcap’s MT5 web-based version comes with various functions, including 30 technical indicators and 24 graphical objects, enabling clients to effectively perform technical analysis on multiple tradable assets. Other features include real-time quotes, 9-time frames and 3 chart types, and a complete set of orders, including stop and pending orders. However, some functions might still bother some clients. For instance, incorporating new assets into the watchlist can drive them nuts.
Desktop trading: Eightcap’s desktop trading platforms include the older MetaTrader 4 platform and its upgraded version of the MT5 platform. Both desktop trading platforms come with plenty of cutting-edge trading tools and functionalities.
While the MT4 market watch allows clients to access real-time price quotes, users can employ various MT4 technical indicators and charting options well suited for their trading needs. Clients can also configure the MT4 desktop platform to receive push notifications on their registered email or mobile phone. The company also allow clients to integrate their accounts with Capitalise.ai for algorithmic trading in MT4.
On the other hand, the feature-rich MT5 trading platform allows viewing multiple charts to keep an eye on the various financial markets using a single screen. Besides customizing the watchlist, clients can access 38 technical indicators, 44 drawing tools, and 21-time frames. The MT5 desktop trading platform also supports multiple order types and algorithmic trading. Further, clients might find the MT5 built-in news feed and economic calendar helpful for fundamental analysis.
Mobile trading: Eightcap doesn’t have any custom-built mobile trading app. However, it offers clients to download MT4/MT5 mobile-based trading platforms from the Google Play Store and App Store for Android and iOS mobile devices, respectively. The mobile-based trading platforms come with almost all the functions offered in the web terminal or desktop platforms, with only a few exceptions.
For example, the small screen resolutions of mobile devices might become the limiting factor for traders looking to perform in-depth technical analysis. However, clients can still make most of it without compromising the need for mobility. Essentially, what can be more exciting than having complete control over your account with single-click trading anywhere round the clock.
Eightcap offers two account types, including Raw and Standard accounts. Both accounts come in seven base currencies: AUD, EUR, USD, NZD, CAD, GBP, and SGD. The minimum trade size in each account is 0.01 lots, while the company sets the margin call and stop out levels as 80% and 50%, respectively.
While the company allows clients to incorporate trading strategies like scalping and hedging in both account types, the commission charging policy appears to be the only difference between each account type. However, hedging is also unavailable to clients registered with the ASIC-regulated entity. Notably, the company doesn’t offer swap-free accounts either.
Typically, investors select the account types depending upon their anticipated trading activity. For instance, high-volume traders might prefer opening a commission-based account expecting the cost saved on spreads will likely exceed the commission incurred on trading lots.
To help clients learn and practice different trading and risk management strategies without fearing the risk of loss, Eightcap also offers virtually funded demo accounts with unlimited expiry.
Eightcap’s signing-up process is pretty simple. You can set up an account with the broker within a few minutes. However, the company asks you to verify your account before allowing you to get started, which might take a little longer. You can use a copy of your national ID card, Passport, or Driving license to prove your identity. The company may also ask you to submit a copy of the utility bill or a bank statement for address verification.
You need to go through the steps below while signing up with Eightcap.
1) Filling in your details on the signup page.
2) Choosing your preferred trading platform, account’s base currency and leverage.
3) Confirmation of your agreement to the terms and conditions that apply followed by Identity and address verification.
Considering the needs of all stakeholders, the company has kept its trading dashboard as simple as possible. The eye-catching, intuitive navigation panel on the dashboard is self-explanatory. Clients can view their account details, access available payment options, and explore trading tools using the side navigation bar. Further, traders can view their transactional history and track their trading performance via the reports tab.
While the Contests button allows clients to view available promotions and participate, the learning resources are accessible via the Education tab on the dashboard. Users can also configure their account settings using the menu bar beside the avatar icon. For example, it allows you to modify your login credentials and enable/disable security features, such as two-factor authentication or biometric verification.
Deposit and withdrawals
Eightcap supports multiple payment methods for deposits, including but not limited to Debit cards, Credit cards, Skrill, Neteller, PayPal, POLi Payment, Bank Wire, BPAY, Fasapay, PayRetailers, PSP (Virtual Accounts), and cryptocurrencies. The minimum deposit to signup for an account is $100. While clients can deposit a maximum of $10,000 using cards, there is no set limit for maximum deposits via bank transfers. Transactional limits for other payment methods also vary. Please visit the broker’s funding page to find out more details.
Well known for its quick withdrawal process, the company instantly reflects card payments in your account. However, the lead time required for withdrawals processed via wire transfers is between 1 to 3 working days. You can also find more details regarding deposits and withdrawals by clicking here.
Except for the cryptocurrencies, Eightcap’s product listing isn’t as extensive as offered by other world-class brokers. However, the company makes every effort to bring all popular financial instruments from various asset classes to the table. For instance, clients can trade 47 currency pairs, 18 indices, 4 commodities, and a handful of share CFDs. Clients may also trade more than 250 crypto CFDs at Eightcap. Notably, the availability of tradeable instruments is further subject to regional restrictions. For example, the company doesn’t offer crypto CFDs to UK-based clients amid FCA restrictions.
Commissions and Fees
Keeping its cost structure in line with industry standards, the company integrates its trading fees mainly into spreads and commissions. Except for the interest fee on overnight positions, the broker neither charges a deposit or withdrawal fee nor applies an inactivity fee on dormant accounts. However, the currency conversion fee is an exception. The company doesn’t charge any commission from the standard account holders, while raw account clients need to pay a commission of $3.5 (AUD, NZD, USD, CAD, SGD), 2.25 GBP, and 2.75 EUR per standard lot traded.
Compared to average industry standards, Eightcap spreads seem pretty competitive. The company employs a variable spread charging policy depending upon your selected account type. For example, Standard account spreads start from 0.5 pips, while the RAW-account spreads start at 0.0 pips.
The average spread on EUR/USD in the Standard account is 1.4 pips, while its stays around 0.5 pips in the RAW account. Similarly, clients can trade indices like AUS200, JPN225, and UK100 for an average spread of 1.10 AUD, 750.0 JPY, and 1.40 GBP. Further, commodities for a $0.05 spread are also available. Share CFDs attract a fee of $0.02 per share per side ($4 per lot round turn).
You should always compare brokers based on their licenses and transcation costs; if either of the two doesn’t fit your benchmarks, you should avoid them to prevent regrets later. Click here to find more details regarding EightCap’s commissions and fees.
Leverage is a frequent terminology used in forex and CFD trading. It involves borrowing capital from your broker to control significant positions for a fractional investment. For example, using 1:30 leverage, you can trade a position as large as 30 times your investment. However, leverage carries increased risk exposure and can be detrimental for newbies, especially in a fast-moving market.
Eightcap leverage varies depending upon your prefered trading market and selected financial instrument. However, it offers maximum leverage of up to 1:500, excluding countries with strict regulatory checks. For instance, the company offers maximum leverage of up to 1:30 for trading CFDs (1:20 commodities, 1:5 shares) to clients based in Australia.
Analysis and Education
Eightcap’s analysis and educational resources are below average. Placing pages with the written content on technical and fundamental analysis under the academic library seems less appealing. Clients typically look for quick graphical representation which is easy to absorb. In addition to publishing textual updates and a handful of videos on YouTube, the company also publishes a series of articles titled “Trading Week Ahead”, providing insight on various markets and events. Other research tools, such as the economic calendar, and a time zone converter, are also missing.
Due to limited research and analysis tools, the firm finds it challenging to compete with its competitors. In short, incorporating the services and material from third-party research providers such as Autochartist and Trading Central may help the company improve its educational offerings. However, you can still view their research blogs and articles through their official website.
Eightcap offers excellent customer support round the clock. Clients can raise their concerns with the company via telephone (+61 3 8375 9700), email (email@example.com) and live chat. The company is also accessible on social media channels, including Facebook, Twitter, LinkedIn, Instagram, and Youtube.
Reputation amongst Traders
Eightcap is one of the highly recommended brokers as far as customer feedback is concerned. Investors seem to be applauding the broker’s instant trade execution policy, flexible payment options, and super-fast customer support. However, some users have also reported withdrawal issues with the company. With an overall rating of 4.4 on Trustpilot, Eightcap successfully fulfils client satisfaction criteria.
Eightcap has received multiple recognition of excellence awards from different reputable organizations;
- Best Customer Service Broker Awards 2021 by Gold Brands Magazine.
- Best Crypto Broker by Awards 2021 AtoZMarkets.
- Best MT4 Forex Broker Awards 2020 by Global Forex Awards.
Can beginners trade with Eightcap?
Flexible account types, intuitive trading interface, and low minimum deposit make the broker a suitable choice for beginners. However, the research and the educational facility could have been more diversified to offer newbies a next-level learning curve. Notably, the company’s multilingual customer support staff remains on their toes to help clients anytime.
The absence of a proprietary trading app, limited educational resources, and unavailability of negative balance protection could make some people reluctant to sign up with it. However, Eightcap is an excellent choice for investors looking for a budgeted trading platform with enhanced security protocols. The company’s robust regulatory framework, lightning-fast trade execution policy and competitive spreads make it even more appealing.