Highlights at Capital Spreads
Very tight spreads here at Capital Spreads. Spreads on the FTSE and Dax Rolling indices are just 1 point. Unlike some other providers Capital Spreads does not vary its spreads during volatile market conditions and discounts are offered on rolling of future bets.
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Markets Covered
Trade on over 2,000 worldwide spreads including Indices, Shares, Forex, Commodities (including precious metals, energies and soft), Interest Rates and Bonds.
Training Facilities
Demo account, using £10k 'virtual money', plus regular training seminars. Capital Spreads also makes available a free eBook about risk management which one can download from its website to help existing and prospective clients learn how to trade.
Typical Spreads
FTSE 250 Shares: 0.125% either side
Small Cap & AIM shares: 0.125% either side
US Shares: 0.125% either side
FTSE 100: 1 point
Wall Street: 1 point (2 points out-of-hours)
S&P Rolling Daily: 0.3 points
EUR/USD: 1 point
GBP/USD: 1.8 points
Gold: 4 points
Brent Crude: 4 points
Dealing Commissions and Fees
A fee of 2% is applicable for credit card deposits. No fee for deposits by BACS or direct debit.
Financing Charges
Capital Spreads calculates financing based on the base rate of the underlying currency of the country of the market concerned (not LIBOR). The rate is (RFR + 2.5%) if Long and (RFR - 2.5%) if short. Funding is charged on the whole position size.
Shares & Indices: The RFR is generally equivalent to the base rate of the underlying currency of the country of the market concerned. E.g. the RFR for a short rolling daily contract on Google may be based on the US Fed Funds Rate minus 2.5%.
Currencies: The RFR is calculated as the funding rate corresponding to the 2nd currency minus the funding rate corresponding to the 1st currency. E.g. the 1st currency of GBP/USD is sterling and the second is the US dollar. Therefore, if USD rates were 2% and GBP rates were 4.75% then the RFR for GBP/USD would be 2% - 4.75% or minus 2.75% (a negative differential).
Accounts Available and Credit Facilities
Deposit Accounts. No Credit.
Minimum Stake and Deposit
The usual minimum stake size is £1, $1, €1 or 1 SEK. However, you are able to trade certain high priced USA, German, French and South African equities and some commodities with just a 10 pence stake size. Minimum deposit varies depending on the market you trade but should be above £30.
Rolling Policy
Rolling Trades keep rolling until you close the position (or get stopped out of a position). Profits and losses are not crystallised each night. The profit or loss you realise will be the difference between the level at which you have entered the market and the level at which you exit the market when you eventually do close your position or you are stopped out by your stop loss or limit profit level for example.
Dividend Policy
If you are long, you will receive 80% of the dividend and if you are short, you will be debited 100% of the dividend.
Futures
Futures bets are available for forex, indices, stock and commodity contracts. Facility to rollover futures contracts is available. For equities, Capital Spreads will expire the existing bet spread free (at just the market price) and offer the subsequent quarter at half of the spread. For indices, commodities and Forex contracts, Capital Spreads will expire the bet at our mid-point and offer the subsequent quarter at the corresponding level. Note that rollover of futures contracts will imply that the existing bet will be closed, realising any profits or losses incurred and a new bet is subsequently opened.
Stop and Limit Orders Available
Stop Loss, Limit Orders, If Done, OCO and Trailing Stop Losses Available. Guaranteed Stops are also available.
Capital Spreads will automatically apply a stop-loss to every new bet but the stop loss level can be adjusted after your trade has been confirmed.
Basis for Triggering of Stops
Your stop loss will be executed when Capital Spreads bid/ask price reaches your stop loss level.
Opening Hours
Open for trading from 07:00am until 21:15pm, Monday to Friday. Markets open after London Capital Group's normal hours of business (Mon-Fri 07:00-21:00) may be offered on a wider spread/smaller stakes than that available in the normal trading hours.
Research and Charting
Technical analysis data from Investors Intelligence. Charts provided by IT-Finance. Research providing clients with an event calendar detailing all the economic and corporate data due to be released, heat maps, historical charting and UK sector analysis is also provided by Interactive Data
Support
Good e-mail and telephone support.
Details and Signup Incentives
No incentives at the present time; just a good execution platform
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