Capital Markets is an American CFD broker company founded by Varalen Capital Markets LLC. It offers profitable trading conditions, a wide range of trading tools, cutting-edge software and sufficient experience in making portfolios. Before opening a demo account, find out more about advantages and disadvantages of this broker to eliminate risks and possible scams.
When a client opens a demo account he gets an access to the MT5 platform. The broker offers a spread up to 2.8 pips on EUR/USD that is rather high compared to an average market spread of 1.5. At first, this difference may not seem high, but in long-term conditions, even one pip may greatly affect trading and profitability. Any market player should remember that the cost of trading influences the profit.
Commission and Fees
The withdrawal of funds is a crucial matter for each trader. Customers may withdraw funds via Visa or Mastercard with a 3% commission and 0.8% for electronic payments. Note that the broker charges 50 USD on the first deposit and 0.8% fee on further e-payments. The broker has limited payment methods, PayPal is not available. Full terms and conditions are set forth on the broker’s official website.
Leverage, or margin trading, is a system that enables traders to enter into transactions in cases where the amount of the transaction is much higher than the total capital of the customer. In this case, a trader invests only a small part of the funds in the transaction, the value of the percentage depends on various factors like the platform and the asset. Leverage has its own advantages and drawbacks. It may increase the possibility of more favorable profits, but, on the other hand, if the market trend goes down, leverage will enhance the losses. The broker’s demo account offers a leverage of 1:500. Just a few brokers offer such conditions.
No Crypto Transactions
The company offers customers to take part in the Forex markets. Potential customers may choose from CFDs, shares, indices, metals, raw materials, and commodities. However, transactions with crypto currencies are not available.
MT5 trading platform
MT5 is an innovative trading platform chosen by millions of traders worldwide for its cutting-edge functionality and tools. MT5 includes various timeframes and 21 time intervals for a chart. Many traders agree that this is more than enough for successful trading. The developers added exchange scanning that reports the volume of orders in the market. Now the platform gives an opportunity to trade just in one click. This option was there before, but in order to use it, traders had to install a special script. The new option simplified the process. Two new orders became available to make deals at the best prices. It also became possible to independently create advisors in MT5 Forex. Now it’s not necessary to be familiar with the basics of programming. This can be done through Wizard, a new service that is considered to be one of the best master advisors. Due to the simplicity in programming, developers promise to add a lot of applications for this trading platform to facilitate the process of trading on Forex.
MetaTrader 5 allows investors to work with trading robots, as well as use analytical tools based on technical analysis of price dynamics, and create mechanical trading systems (Expert Advisor programs).
- Market execution
- ECN NDD trading accounts
- COPYDEAL trading service
- Floating leverage
- A wide range of trading tools: more than 70 currency pairs, raw commodities and more than 3000 CFDs.
- Insightful technical analysis.
- Expert reviews and tutorials for beginners.
- No commission on CFD.
- Cryptocurrency trading is not available.
- Information about the types of accounts and deposit (https://capital-markets.com/trading/tools/) . Consult with the broker and find out as much as possible before trading
- High fees and high commission of 50 USD from the first deposit.
- No information on state regulation.
- Not a member of the online registry of NFA.
- Limits on transfers (up to 5,000 USD per withdrawal).
- Skrill or PayPal are not available.
To Sum Up
Capital Markets is a contradictory broker. On the one hand, it has a user-friendly website and offers the innovative MT5 platform. It also provides for numerous trading tools and profitable leverage. On the other hand, the spread is rather high, and there is much missing information we couldn’t find anywhere. Therefore, we cannot guarantee the security of the traders’ funds and the amount of risks a customer may face when dealing with this broker company. As you can see, there may be a possibility of fraud and scam because this broker is overshadowed. According to reviews of some traders, closing the account is not that simple as it should be.
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