When choosing a forex broker, it’s essential to compare different platforms to see which best fits your trading style and needs. In this article, we’ll explore FXCC and Capital.com, two popular forex and CFD brokers, to help you make an informed decision. Our comparison will cover key factors like regulation, trading platforms, fees, and customer support.
Here’s a simple comparison table for FXCC and Capital.com:
| Feature | FXCC | Capital.com |
|---|---|---|
| Founded | 2010 | 2016 |
| Regulation | CySEC, MiFID | FCA, CySEC, ASIC |
| Trading Platforms | MetaTrader 4 | Proprietary platform |
| Account Types | Standard ECN Account | Standard, Plus, Premium Accounts |
| Assets Offered | 70+ Forex Pairs, Some CFDs | 3,000+ Markets (Forex, Stocks, etc.) |
| Spreads | From 0.1 pips (Commission per trade) | Competitive spreads (No commission) |
| Leverage | Up to 1:500 (1:30 for retail) | Up to 1:30 (1:200 for professional) |
| Minimum Deposit | Low minimum deposit | $20 minimum deposit |
| Customer Support | 24/5 support via chat, email, phone | 24/7 support via chat, email, phone |
| Deposit/Withdrawal Methods | Bank Transfer, Credit/Debit Cards, E-wallets | Bank Transfer, Credit/Debit Cards, E-wallets |
1. Overview of FXCC and Capital.com
FXCC (Forex Central Clearing) is a well-established forex broker that was founded in 2010. It offers ECN (Electronic Communication Network) trading, meaning traders get access to direct market pricing with no dealing desk intervention. This allows for transparent trading with tight spreads.
Capital.com, on the other hand, is a newer broker founded in 2016. It’s known for offering a wide range of CFDs (Contracts for Difference), covering forex, stocks, commodities, cryptocurrencies, and indices. The broker focuses on providing an intuitive trading experience with a powerful AI-driven trading platform.
2. Regulation and Safety
FXCC is regulated by the Cyprus Securities and Exchange Commission (CySEC). It also complies with MiFID (Markets in Financial Instruments Directive) regulations, which ensure a high level of protection for traders. Client funds are held in segregated accounts, ensuring security in the event of financial issues.
Capital.com is also highly regulated. It is overseen by multiple regulatory bodies, including CySEC, the UK’s Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). This multi-jurisdictional regulation provides an added layer of security for traders, making it a safe platform to use.
3. Trading Platforms and Tools
FXCC offers the MetaTrader 4 (MT4) platform, a trusted platform in the forex industry. MT4 is known for its advanced charting capabilities, algorithmic trading features, and a wide range of technical indicators. Traders who prefer a stable and well-established platform will find MT4 on FXCC ideal.
Capital.com has developed its own proprietary trading platform, which is accessible via web and mobile applications. It boasts a user-friendly interface and integrates AI-powered tools to help traders make informed decisions. The platform also includes trading education resources and a demo account for beginners to practice.
4. Fees and Spreads
FXCC is an ECN broker, which means it offers low spreads starting from 0.1 pips on major forex pairs. However, as an ECN broker, it charges a commission per trade. This model can be beneficial for traders who focus on minimizing spreads and are willing to pay commissions for the service.
Capital.com, in contrast, follows a commission-free model, where the broker makes money through the spread. Their spreads are generally competitive, though they may be slightly higher than FXCC’s due to the absence of commission fees. Additionally, Capital.com has no deposit, withdrawal, or inactivity fees, which is a plus for traders concerned about hidden charges.
5. Range of Assets
FXCC focuses primarily on forex, offering over 70 currency pairs. While it does provide some CFDs on indices and commodities, its range of assets is more limited compared to multi-asset brokers.
Capital.com, as a CFD broker, offers a much broader range of assets. It provides access to over 3,000 markets, including forex, stocks, commodities, indices, and cryptocurrencies. This diversity makes Capital.com a better choice for traders looking to diversify their portfolios across multiple asset classes.
6. Leverage
FXCC offers leverage up to 1:500 for professional traders, which can appeal to more experienced traders looking to maximize their potential gains. However, retail clients under European regulations have lower leverage limits, usually around 1:30.
Capital.com provides leverage up to 1:30 for retail traders in Europe, in line with ESMA (European Securities and Markets Authority) guidelines. For professional traders, the leverage goes up to 1:200. While Capital.com’s leverage is lower than FXCC’s, it still offers ample opportunity for traders to manage risk effectively.
7. Account Types
FXCC offers a simple account structure with just one standard ECN account. This makes it straightforward, but it might limit options for traders looking for specific account features like Islamic accounts or premium services.
Capital.com, in contrast, offers multiple account types, including standard, plus, and premium accounts. The premium account provides additional benefits like personalized support and lower spreads for high-volume traders. This variety makes Capital.com more suitable for a broader range of traders.
8. Customer Support
Both brokers offer responsive customer support. FXCC provides support via live chat, email, and phone, with multilingual support available. Their customer service is praised for its efficiency.
Capital.com also offers 24/7 customer support via phone, email, and live chat. Additionally, the platform has an extensive educational section with articles, tutorials, and webinars to help traders improve their skills.
9. Deposit and Withdrawal Methods
FXCC offers multiple payment methods, including bank transfers, credit/debit cards, and e-wallets like Skrill and Neteller. The minimum deposit is relatively low, making it accessible to most traders.
Capital.com supports a wide range of deposit and withdrawal options, including credit/debit cards, bank transfers, and e-wallets. The minimum deposit is $20, which is very affordable, especially for beginners. The broker also has a no-fee policy for deposits and withdrawals, adding to its appeal.
10. Which Broker Should You Choose?
Choosing between FXCC and Capital.com depends on your trading style and needs.
- If you are primarily a forex trader looking for low spreads, fast execution, and advanced trading tools, FXCC might be the better option. It’s ideal for more experienced traders who prefer ECN trading and are comfortable using the MetaTrader 4 platform.
- On the other hand, Capital.com is more suitable for traders who want a broader range of assets to trade, including stocks, commodities, and cryptocurrencies. It’s an excellent choice for beginner traders due to its user-friendly platform, educational resources, and commission-free model.
Conclusion
Both FXCC and Capital.com have their strengths. FXCC is best for forex traders who prefer tight spreads and advanced trading features, while Capital.com offers a more diverse asset range and is ideal for traders seeking a more intuitive, AI-driven platform. Make sure to consider your trading preferences, whether it’s low-cost forex trading or multi-asset investment, before making your decision.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.