Best Trading Features
Capital.com
The Winner
About the winner - Capital.com
Capital.com was founded in 2016 and has grown rapidly ever since. Capital now offers over 28 languages and operates 3 offices. More than 788000 registered clients from over 50 different countries are now using Capital.com. Capital.com has won a BrokerCheck Award in 2020 and is regulated by several authorities including FCA, NBRB and CySEC.
The Award
Best Trading Features 2020
The Best Trading Features award is one of the most important BrokerCheck Awards. Whether beginner or professional, the success of a trader is inevitably linked to the available trading functions. Many brokers try to add new functions to the existing ones every year. This year Capital.com impressed us the most with a range of functions that are interesting for both beginners and advanced traders.
We now take a look at Capital.com’s proprietary webtrader and show why Capital.com deserves our BrokerCheck award.
The Justification
Why did Capital.com win the BrokerCheck award?
Capital.com is a very fast growing CFD and Forex broker whose success is based on the clearly laid out yet feature rich webtrader. Capital.com is a market maker and has added several additional features to this model. The highlights are, in our opinion, the Guaranteed Stop Loss, as well as the extended CFD trading hours, which are currently an absolute novelty among CFD brokers.
Especially for stock traders, this offers unprecedented opportunities to react to important news or to hedge their positions in the best possible way. Also quarterly figures can now be addressed directly. We explain the additional functions now in the following section.
The Features
The Trading Features of Capital.com
Concise platform for trading beginners and advanced users
Capital.com’s Webtrader is not only user-friendly, but also packed with helpful trading functions. Through the simply structured trading interface, traders can quickly and easily access relevant information such as trading hours, margin or holding costs.
Guaranteed Stop Loss
Capital.com offers a guaranteed stop loss (GLS), which is ideal for traders who want to hedge. But a GSL is not only helpful for traders who are (often rightly) afraid of price gaps. Especially when it comes to upcoming news, no matter if it is general business news or company figures, with a GLS you can never lose more than you specified. What is a guaranteed stop loss? A guaranteed stop closes the position exactly at the price level you specified, without any risk of slippage. For this guarantee you have to pay a small additional premium, but only if your stop is actually executed.
Extended Trading Hours for CFD Stocks
But the highlight of Capital.com is without doubt the extended trading hours. Capital.com offers traders the opportunity to trade outside the extended trading hours. Normally you can trade German stocks as CFDs only at Xetra times and US stocks only at the opening of the main stock exchange from 15:30 to 22 o’clock German time. However, this was always disadvantageous for traders, because once the stock exchange was closed the positions remained open until the next trading day.
This is now changing with the extended trading hours of Capital.com. US stocks like Tesla, for example, would now be tradable from 10:10 a.m. to 2 a.m. (German time). This allows you to either react spontaneously to important news or close existing positions in profit or loss.
There are no further fees for this, only the spread continues to be understandably low. This widening of the spread follows the liquidity of the share, which is less traded off-exchange.
In the following picture, for example, you can see the Capital.com chart on Tesla for the publication of the quarterly figures in July 2020.
The Interview
Jonathan Squires
CEO of Capital.com
Mr. Squires, we are halfway through an extraordinary year 2020. How has the increased volatility affected Capital.com?
Like all trading venues, Capital.com benefitted from the volatility and we took this chance to strengthen our position in the EU and UK markets. The major challenge for us was to ensure that our system works as smoothly under heavy loads as it did during regular trading months. We got great feedback from our clients, and our ratings on TrustPilot, the appstores, etc have all jumped up in comparison to our competitors.
It is not only Corona that causes volatility, but also companies like Wirecard or Tesla. How should traders react to this?
Oil, Wirecard, Tesla, Chesapeake, and many other assets have created an incredible amount of uncertainty. We know that sometimes it’s easy to take shortcuts when trading, essentially to rely on your gut instinct. So we used our data science team to build a great tool to help our clients identify their biases. It’s called EQ – AI based system which analyses your trading behaviour with us and suggests personalised feedback and educational content if any emotional bias is detected. We see it works and is helping our clients – in one month this year, we had twice the percentage of profitable traders than the industry average. Our goal is for both us and our clients to survive in the markets, no matter how volatile.
Keyword risk. Capital.com already offers a guaranteed stoploss, but are there any plans to offer further risk protections in the future?
We care a lot on the performance of our clients. The EQ improved the trading performance and this is confirmed by our studies – https://capital.com/clients-who-read-capital-com-s-eq-messages-are-11-more-likely-to-trade-profitably.
We also have Investmate, an app which helps to educate those new to the market. The difference between those who complete the training on Investmate and our regular newbie is remarkable – the health of their balance, the consistency of their trading and their lifetime with us is all markedly different.
