Review Of City Index Forex Broker That Is Best And Most Detailed 2023

What is City Index?

British brokerage The parent firm of City Index is the publicly traded, U.S.-based GAIN Capital Holdings Inc. (NYSE:GCAP). It focuses on CFDs, spread betting, and options on cryptocurrencies, bonds, interest rates, commodities, shares, and indexes. This well-run, fiercely competitive brokerage, which was established in 1983, is clearly connected to GAIN. A large selection of traders and investors, from low-skilled retailers to well-financed organisations looking for sophisticated connectivity and a lightning-fast trading interface, are catered to by an extensive product catalogue, good platform options, and robust research tools.

City Index is a reputable multi-asset trading service with over 40 years of expertise and a strong parent business in GAIN Capital, which is listed on the New York Stock Exchange and one of the biggest retail and institutional trading providers. GAIN Capital serves several trading names globally.

The broker was founded in London, United Kingdom, in 1983 and is one of the top spread betting, forex, and CFDs trading platforms for trading in cryptocurrencies, indices, shares, commodities, bonds, and interest rates.

Despite receiving high marks in the majority of the evaluation categories, City Index nevertheless has issues, such as unclear and contradictory options-fee disclosures, a dearth of volume discounts, and a lack of supplemental insurance coverage.

City Index Forex Brokers Pros and Cons

Pros

• Great range of Market instrument including Cryptocurrencies
• Proposal appropriate for both amateurs and experts
• Based on MetaTrader and proprietary technology
• Strong, well-established parent company with 35+ years of expertise and international recognition
• Cryptocurrency coverage
• Sophisticated backtesting
• Large product catalog

Cons

• No volume discounts
• No Social trading
• No multi-currency accounts

What is the City Index's leverage?

Although it is a very helpful instrument, leverage—also known as a loan issued by the broker to the trader—allows you to trade with larger capital than the original capital. Recent regulation changes from European ESMA reduced the maximum amount to just 1:30 after realising the potential to amplify both benefits and losses.

Based on entity conditions and the instrument you trade, city index leverage:

Australian branch can no longer employ high leverage and is also eligible for 1:30, but only European entity is eligible to offer that level of leverage (Forex Trading Platforms Australia)

The broker has a Financial Conduct Authority (FCA) licence with reference number 113942 and complies with ESMA regulations that restrict leverage and offer negative balance protection (so you don't lose more money than you invested in the platform). 73% of retail accounts presently lose money when trading CFDs, which is about average in the Eurozone, according to a statement required by ESMA. In the event of a broker default, the U.K. Financial Services Compensation Scheme (FSCS) offers up to £50,000 coverage, however they do not list any supplemental or private coverage.

City Index Account types

Account management has been done in a straightforward, uncomplicated manner, allowing you to apply for either a financial spread betting or CFD trading account.

The three account kinds at City Index are Trader, Premium Trader, and Professional Trader, respectively. All of them offer the same efficiency, top support, and technology, but they differ based on the skill level of the trader.

Trading service

Private Client Service, a specially designed private programme for active traders who fund and maintain an account balance of at least £10,000, was another intriguing addition we discovered from the broker. It offers incredibly competitive pricing, skilled trading support, and some intriguing rewards.

Demo trading

Before opening an account, it is crucial to understand the dangers associated in trading, thus the broker strongly advises that new traders practise and educate themselves using a demo account in addition to reducing risk by using the educational resources offered by the broker learning programmes.

City Index provides two joint CFD, spread betting, and MT4 demo accounts. With a balance of £10,000, the demo account offers 12 weeks of unrestricted use. Depending on the kind of account, the customer may additionally access the Advantage Trader or MT4 mobile, tablet, and download platforms.

How Do City Index Fees Work?

We discovered that City Index markets and trading circumstances deliver a straightforward pricing methodology and actually provide quite competitive fixed and variable spreads beginning with 0.5 pips for FX or with 1 point for Indices, with margins as low as 3.33%.

Based on our testing and comparison to more than 500 other brokers, City Index Fees are rated average, modest, and have an overall rating of 7.9 out of 10. Pricing at the City Index is consistent with the industry standard for all types of trading.

Spreads are competitive for EUR/USD, with a minimum of 0.50 pips and an average of 0.69 pips. On S&P 500 CFD and spread bets, indexes mention a 0.40 minimum spread, but no average spread. Other markets just provide minimum spreads or real-time bid/ask spreads as disclosures.

The broker offers variable spreads for forex and other markets and fixed spreads for a variety of indexes and commodities, but you need study the fine print because this division isn't obvious.

There is no minimum deposit required to start an account, and withdrawals are free. However, accounts with no activity for a year or more are taxed £12 per month. On an easy-to-read price page with few omissions, withdrawal and other costs are properly revealed.

Additional charges

Regarding extra fees, our specialists have observed that City Index levies commission when you spread bet or trade shares on a CFD trading platform. For instance, UK Shares qualify for 0.08% CFD Commission with a minimum deposit of £10.

Also keep in mind that if you hold a position open for more than a day, you will be charged an overnight fee. Financing rates are determined at a benchmark regional interest rate of +/- 2.5%.

Source:

• https://55brokers.com/
• https://www.investopedia.com/
• https://brokerchooser.com/