CapitAlpha offers its clients a choice of three basic account types: Classic, Premium and Premium. All of them offer tight variable spread and involve commission, which varies by account classification. Corporate/institutional accounts are also available.
In addition, CapitAlpha provides swap-free services for investors of Islamic belief who are unwilling to pay or earn interest for religious reasons.
Micro lots are available for trade on Classic and Premium accounts.
The Company. Security of Funds
CapitAlpha offers online trading in wide range of currency pairs and vasrious CFDs on indices, stocks and commodities through the most recognized forex platform – MetaTrader 4. The company behind the brand, AJF Financial Services LTD, is a Cyprus Investment Firm that was licensed by Cyprus Securities and Exchange Commission (CySEC) in February 2016. The company also operates a binary options site (eu-capitals.com). However, in Speptember 2017 the firm renounced its CySEC CIF license and is no longer regulated.
The Cypriot financial watchdog applies certain rules and requirements to Cyprus Investment Firms and sees to their compliance. For example, they must maintain net tangible assets of at least €730,000 to prove their financial stability. In addition, CySEC requires forex brokers to keep customer funds in segregated accounts, separated from the company’s operating funds.
As a further guarantee to clients’ funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which can pay compensation up to €20,000 EUR per person, If the company ceases trading or becomes insolvent.
Moreover, every CySEC-regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services in all EU Member States.
Minimum Initial Deposit
To open an account with CapitAlpha, traders must invest a minimum of $500. Such minimum initial amount is a bit high, as many other Cyprus-based brokers require less. For instance, leading EU brokerage FXTM demands just $5 from its clients as a start.
Spreads & Commissions
CapitAlpha offers the same tight floating spreads for all accounts, however pretty salsty commissions apply (except for the Ultimate account accessible with $4500). For example, Classic account holders are able to use spreads as low as 0.1 pips for all major currency pairs, but if we add the commission of $20, the minimum trading costs per lot would be above 2.00 pips. This is not a competitive pricing, as we find most brokers offers spreads within the range of 1.0 – 1.5 pips for the EUR/USD pair.
In comparison, FXTM’s average spreads on the commission-free Standard accounts amount to 1.5 pips on EUR/USD (accessible with $100), while the ones on the ECN accounts are averaged 0.5 pips on EUR/USD and involve commission of $4 per standard lot (round trip).For further information, you may look up real-time spreads of 15 leading brokers here.
The maximum leverage level offered by CapitAlpha is 1:500, which is a high ratio. However, many Cyprus-based brokers offer similar or higher leverage levels – for example, FXTM provides leverage up to 1:1000. For further information, you can check out a list of brokers, providing leverage equal to or exceeding 1:500 here.
Trading on leverage allows traders to control large amounts of capital and therefore, however, if not used in conjunction with a proper risk management strategy can incur heavy losses as well.
As we have already mentioned, CapitAlpha supports the famous MetaTrader4 (MT4). It comes as a PC, web and mobile versions.
MT4 is an internationally acclaimed trading terminal, offering a full spectrum of trading tools and resources: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options. Traders can download ready-made or create their own EAs and let the program do all the work.
Scalping and hedging are allowed and signals are provided (via a MQL5 account).
Methods of Payment
The following payment methods are available to CapitAlpha clients: credit/debit cards, bank wire transfer and e-wallet payment systems, such as Skrill, Neteller, Neosurf, CashU, Qiwi, WebMoney, Sofort, iDEAL, giropay, monetaRU.
CapitAlpha is Cypriot forex & CFD broker that utilizes the popular MT4. It offers tight spreads, but charges salty commissions and that is why its overall pricing is hardly competitive. It was licensed by CySEC until September, 2017.
CapitAlpha Review Conclusion
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