CB Capital Review
CB Capital Review
CB Capital offers its clients a choice of three account types, based on the initial amount deposited. The default leverage for all the above-mentioned accounts is set to 1:20, however the maximum leverage available to Classic and Pro account holders is 1:200. Scalping is available on all account types, but on Pro and Prime it is monitored.
The broker claims that all accounts offer STP/ECN execution, but in the Client agreement of CB Capital it is stated that the Company acts as the dealer and is counterparty to any client orders placed. This basically means that CB Capital acts as a Market Maker.
The Company. Security of Funds
CB Capital Business Ltd
CB Capital is a Cypriot broker that offers trading in currency pairs, equities, as well as commodities and indices CFDs. The company that operates the site and the brand, CB Capital Business Ltd., holds a license from the Cyprus Securities and Exchange Commission (CySEC).
Cyprus is currently one of the most popular forex broker hubs due to its well-balanced financial regulation, rather favorable tax regime and developed technology sector. Besides, Cyprus is a part of the European Union and therefore every CySEC- regulated broker is entitled to offer cross-border services in all EU Member States under the MiFID rules.
Moreover, there is the Investor Compensation Fund, which can pay compensation up to €20,000 EUR per person, If a licensed company becomes insolvent.
In order to be able to operate as investment firms and benefit from the above-listed provisions, Cypriot forex brokers are required to maintain a certain capital (EUR 730 000), keep client funds in segregated accounts, regularly reports transactions to the Commission and many more.
Minimum Initial Deposit
In order to open an account with CB Capital, traders have to invest a minimum of $500. Such minimum initial amount is a bit high, considering that other Cyprus-based brokers require significantly lower initial investments. For instance, FXTM demands just $5 from its clients as a start.
Spreads & Commissions
CB Capital offers variable spreads, which, however, are not very temping. The ones on the commission-free Classic accounts start out at 1.6 pips for the EUR/USD, which means that the broker’s typical spreads for this pair would be at least 1.8 pips. Average trading costs on Pro accounts also amount to around 1.5 pips per standard lot, commission included, which is on the upper end of average and the initial investment required for that account is quite high.
By comparison, with an initial investment of $500 with FXTM, one may use average spreads of 0.7 pips on EUR/USD, charged with commission of $4 per standard lot (round trip). For further information, you may look up real-time spreads of some of the leading forex brokers at our special page.
As we have already mentioned in the present review, CB Capital has set a default leverage of 1:20, which is even lower than the one CySEC requires (1:50). Nonetheless, clients can request a higher leverage up to 1:200, should the product be deemed appropriate for them. Such leverage levels are considered average for the forex market; however, most Cyprus-based brokers still offer higher leverage levels – for example, XM provides leverage up to 1:888, and FXTM 0 up to 1:888.
CB Capital says it supports both MetaTrader4 (MT4), as well as its successor, the MetaTrader 5, but we only found information about the latter on its website and only MT5 is available for download. Nonetheless, we could not log into a demo account ant test its services.
While most of the functionalities of the two platforms are pretty similar, there are a few improvements in the MT5. For example, some modules are detachable, which allows multiple monitor support. However, the MT5 also has certain drawbacks, such as the fact that custom technical indicators and Expert Advisors created for MT4 do not work on the new platform.
Methods of Payment
The following payment methods are available to CB Capital clients: credit/debit cards, bank wire transfer, Skrill and Neteller.
Withdrawals above $200 are exempted from fees.
CB Capital is a forex & CFD broker regulated in Cyprus, which is seems its biggest plus. However, it acts as a Market Maker, requires rather high initial investments and its spreads are not the best in the sector. Besides, it appears that free demo accounts are not available with CB Capital.
CB Capital Review Conclusion
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