Eightcap Forex Review
EightCap offers its clients a choice of two live account types: Standard commission-free one, and Pro account with tighter spreads, but involving commission. Both account types offer maximum leverage of 1:400 and trading in micro lots on the most popular trading platform MetaTrader 4.
In addition, the brokerage also provides account management services.
The Company. Security of Funds
EightCap Pty Ltd.
Established in 2015, EightCap is an Australian forex and binary options brokerage with offices in Melbourne and Shanghai. The company behind the brand is EightCap Pty Ltd., a Melbourne-based company, regulated by the Australian Securities and Investment Commission (ASIC).
ASIC requires licensed financial services providers to meet strict capital requirements (at least $ 1 million) and to comply with various internal procedures for risk management, accounting and audits. Besides, regulated entities are required to report regularly to ASIC.
Australian FX broker regulation, however, does not include any compensation scheme in case a licensed company becomes insolvent.
Minimum Initial Deposit
Traders are required to deposit $100 in order to open an account with EightCap, which is an average initial amount. In comparison, Major broker IG (which also holds a license from ASIC) demands just $1 from its clients as a start.
Average Spreads & Commissions
EightCap offers variable spreads, averaged 1.2 pips on EUR/USD on its commission-free accounts, which is standard for the forex market. Pro accounts, on the other hand, provide typical tighter spreads around 0.5 pips on EUR/USD, but a commission of $7 per standard lot (round turn) applies, so trading costs on both account types appear to be similar. In conclusion, EightCap’s pricing is comparatively low and competitive.
In comparison, IG offers average spreads of 0.8 pips on EUR/USD on its commission-free accounts and 0.2 pips on DMA ones with commission ranging from $3 to $5. For further information, you may look up real-time spreads of 15 leading brokers here.
Clients of EightCap use leverage ratios up to 1:500, which considered a high ratio. Some jurisdictions cap leverage to significantly lower ratios than this (i.e. 1:50 in the US and the same planned in the UK), because higher leverage involves higher risk of losses in excess of initial investments.
In comparison, IG provides leverage up to 1:200.
Like most FX brokers, EightCap supports the most widely used forex platform MetaTrader 4 (MT4). It is available for PC, Mac, and mobile devices.
MT4 provides all the tools and resources a trader needs: a number of technical indicators, advanced charting package, a wide range of Expert Advisers (EAs) and extensive back-testing environment for them. By using EAs traders may sit back, while the software does all the work, as Expert Advisers allow full automatization of trades.
What is more, this broker has partnered with Myfxbook to offer AutoTrade – a platform that enables you to track, compare, analyse, share your trading activities and most importantly, copy the trades of any top successful trading systems you select on Myfxbook directly into your EightCap trading account.
In order to be able to use the AutoTrade service, your account must have a minimum deposit of at least $1,000.
At the time of writing this review, EightCap runs a Refer a Friend cash bonus of $100 for each referred person who opens a live account.
Methods of Payment
EightCap offers its clients a variety of deposit/withdrawal methods: Credit/debit cards, bank transfer and e-wallets POLi, Skrill, and China UnionPay.
Note that Debit/Credit card refunds can take between 3 – 20 business days from the date of processing to appear on your card statement.
EightCap is a well-regulated Aussie broker, offering competitive conditions for trading in a wide range of currency pairs, commodity and index CFDs, as well as precious metals, on the MT4.
Eightcap Forex Review Conclusion
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