Overview of Eightcap
Eightcap is an online brokerage firm that offers trading services in various financial markets, including Forex, cryptocurrencies, stocks, indices, and commodities. Established in 2009 and headquartered in the Bahamas, Eightcap provides traders with access to multiple trading instruments through its platforms, including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and integration with TradingView. The company offers three types of trading accounts: Raw Account, Standard Account, and TradingView Account, each with its own features and specifications to cater to the needs of different traders.
However, it is important to note that Eightcap is currently not regulated by any recognized financial authority. The lack of regulation raises concerns about the safety of funds and the fairness of trading practices. There are suspicions that the claimed regulation from the Bahamas Securities Commission (BahamasSCB) may not be valid, leading to doubts regarding the legitimacy of the broker. Traders should exercise caution and carefully evaluate the associated risks before considering Eightcap as a trading platform.
Despite offering a range of trading instruments, convenient deposit and withdrawal methods, and customer support services, the absence of proper regulation and limited transparency make it challenging to assess the credibility and trustworthiness of Eightcap. Traders should conduct thorough research and consider alternative regulated brokers that provide stronger assurances of fund security and transparent trading practices.
Is Eightcap Legit？
Eightcap is currently not regulated by any recognized financial authority. The broker does not hold a valid regulation, and traders should be cautious and aware of the associated risks. While Eightcap claims to be regulated by the BahamasSCB (Securities Commission of The Bahamas) with a license number of SIA-F220, there are suspicions that this regulation may be a clone or not valid. It is important to exercise caution and carefully evaluate the risks before choosing Eightcap as a trading platform. Regulation plays a crucial role in ensuring the safety of funds, fair trading practices, and the protection of traders' interests. Traders are advised to select a broker that is properly regulated by a reputable financial authority to mitigate potential risks.
Pros and Cons
Eightcap, an unregulated brokerage firm, has no pros to highlight. However, there are several significant cons to consider. Firstly, Eightcap is suspected to be a fake clone, lacking proper regulation and raising concerns about the safety of funds and fair trading practices. The company's limited transparency further complicates the assessment of its credibility and trustworthiness. Additionally, Eightcap does not offer any bonus offerings to attract or reward traders. Given these drawbacks, caution is advised when considering Eightcap as a trading platform.
Trading Instruments
Eightcap offers a diverse range of trading instruments across multiple asset classes, allowing traders to access various markets and capitalize on trading opportunities. Here is a breakdown of the trading instruments available:
1. Forex Currency Pairs: Eightcap provides 42 currency pairs, allowing traders to participate in the forex market and speculate on the exchange rate movements between different major and minor currencies.
2. Cryptocurrency Pairs: With over 100 cryptocurrency pairs, Eightcap offers extensive options for trading digital assets. Traders can take advantage of the dynamic and volatile nature of the cryptocurrency market.
3. Stocks: Eightcap offers an impressive selection of 660+ stock CFDs, including shares from major exchanges such as ASX, NASDAQ, NYSE, LSE, and German markets. This allows traders to trade individual stocks or take positions based on broader market trends.
4. Indices: Traders can access 11 indices through Eightcap, including well-known indices like the S&P 500, FTSE 100, and NASDAQ. This enables traders to speculate on the overall performance of specific market segments.
5. Commodities: Eightcap provides access to four commodities, including metals like zinc (XZNUSD) and nickel (XNIUSD). While the commodity selection is relatively limited, traders can still take advantage of price movements in these physical assets.
It's important to note that the availability of trading instruments may vary depending on the trading platform. Traders can access the full range of instruments using the MT5 trading platform, while the MT4 platform may have a more limited selection. With a wide range of trading instruments, Eightcap aims to accommodate different trading preferences and strategies, allowing traders to diversify their portfolios and explore various market opportunities.
Here is a comparison table of trading instruments offered by different brokers:
Account Types
Eightcap offers three different types of trading accounts: Raw Account, Standard Account, and TradingView Account. Each account type has its own features and specifications to cater to the needs of different traders.
The Raw Account is designed for traders seeking tight spreads and direct market access. With spreads starting from 0.0 pips, this account type is suitable for those who require fast and precise execution. It offers a wide range of over 800 tradable instruments, allowing traders to access various markets. The Raw Account charges a commission of 3.5 AUD, USD, NZD, SGD, CAD, 2.25 GBP, or 2.75 EUR per standard lot traded.
The Standard Account is a popular choice for traders looking for competitive spreads and a wide selection of trading instruments. Spreads start from 1.0 pips, and like the Raw Account, it provides access to over 800 instruments. The Standard Account does not charge any commissions, making it suitable for traders who prefer a commission-free trading structure.
The TradingView Account is specifically designed for traders who prefer using the TradingView platform for their analysis and trading. It offers spreads starting from 1.0 pips and provides access to the same range of 800+ instruments. Like the Standard Account, the TradingView Account does not charge any commissions.
All three account types have a minimum deposit requirement of $100, allowing traders with different budget levels to participate. The minimum and maximum trade sizes are 0.01 lots and 100 lots, respectively, across all account types. The margin call level is set at 80%, and the stop-out level is at 50%, ensuring risk management measures are in place.
Traders can choose from a variety of base currencies for their accounts, including AUD, USD, EUR, GBP, NZD, CAD, and SGD. Scalping is allowed on all account types, giving traders the flexibility to employ short-term trading strategies.
It's important for traders to carefully review the features and conditions of each account type offered by Eightcap to determine which one best suits their trading preferences and objectives.
How to Open an Account？
To open an account with Eightcap, follow these steps:
Visit the Eightcap website. Look for the “Create account” button on the homepage and click on it.
Sign up on websites registration page, including your name, email address, country of residence, and preferred base currency.
Receive your personal account login from an automated email
Proceed with the mandatory account verification process, which is required to comply with global anti-money laundering (AML) and know your customer (KYC) regulations.
Upload a copy of your government-issued ID, such as a passport or driver's license, as well as a proof of residency document, such as a utility bill or bank statement.
Wait for the verification process to be completed. In most cases, verification takes a few hours and is typically completed within 24 hours.
If needed, reach out to the responsive customer service team for assistance during the process, especially if you encounter any issues with verification requirements specific to your country or document system.
Consider the pros and cons of the different Eightcap account types before making a final decision.
Fund your account once it has been successfully opened and verified.
Start your trading journey with Eightcap, taking advantage of the chosen account type's features and trading conditions.
Leverage
Eightcap provides different leverage options for its clients based on their jurisdiction. For Australian clients, the maximum leverage offered is 1:30, while for non-Australian clients, the maximum leverage is 1:500. Leverage allows traders to control larger positions in the market with a smaller amount of capital.
It is important for traders to be aware of the risks associated with leverage, as it can amplify both profits and losses in trading. Responsible risk management is crucial when using leverage to ensure that potential losses are controlled and within acceptable limits. Traders should consider their risk tolerance and trading strategy before deciding on the appropriate leverage level to use.
Here is a comparison table of maximum leverage offered by different brokers:
Spreads and Commissions (Trading Fees)
Eightcap offers varying spreads and commission structures across its different account types.
In the Raw Account, traders can find spreads starting from 0.0 pips, which may be considered competitive compared to other brokers. However, it's important to note that this account type charges a commission of 3.5 AUD, USD, NZD, SGD, CAD, or 2.25 GBP, 2.75 EUR per standard lot traded. These commissions are applied to a range of trading instruments.
For the Standard Account and TradingView Account, the spreads start from 1.0 pips. These accounts do not charge any commissions for trading, making them suitable for traders who prefer a no-commission trading structure. The spreads may vary depending on market conditions and the specific trading instrument being traded.
Here are a few examples of spreads on specific trading instruments offered by Eightcap:
- EURUSD (Euro/US Dollar): Spread starts from 0 pips.
- XAUUSD (Gold/US Dollar): Spread starts from 0.12 USD.
- BTCUSD (Bitcoin/US Dollar): Spread starts from 12 USD.
- UKOUSD (Spot Brent Crude Oil): Spread starts from 0.3 USD.
- UK100 (UK 100 Cash | FTSE 100): Spread starts from 1.2 GBP.
- US30 (Dow Jones Industrial Average): Spread starts from 1.6 USD.
Traders should carefully consider the spreads and potential trading costs associated with their preferred trading instruments when selecting an account type. Additionally, it's important to note that spreads can fluctuate based on market conditions, volatility, and liquidity.
Non-Trading Fees
Eightcap imposes certain non-trading fees, while some fees commonly charged by other brokers are not applicable.
One of the non-trading fees charged by Eightcap is the swap fee, also known as an overnight financing fee. This fee is applied to positions held overnight and is a standard practice in the Forex and CFD industry. Traders can view the specific swap rates for each trading instrument by accessing the MT4 or MT5 trading platform, right-clicking on the desired symbol, and selecting the specifications. The swap rates for both long and short trades will be displayed.
On a positive note, Eightcap does not charge an inactivity fee. This is advantageous as many brokers impose such fees if no trades are executed for a certain period, typically after two or three months of inactivity. The absence of an inactivity fee is beneficial for traders who may have periods of lower trading activity or take breaks from trading. It eliminates the additional cost burden that can be associated with maintaining an inactive account.
It's important for traders to review the specific non-trading fees charged by Eightcap and assess their impact on their trading activities. By being aware of these fees in advance, traders can make informed decisions and effectively manage their trading expenses.
Deposit & Withdraw Methods
Eightcap provides a variety of deposit and withdrawal methods to facilitate transactions for its clients. Deposits can be made through several fast payment options, all managed through the Client Portal. These options include PSP (Virtual Account), credit/debit cards, cryptocurrencies, China UnionPay, PayRetailers, bank wire transfers, Worldpay, Fasapay, Neteller, PayPal, BPAY, Skrill, and POLi. Most payment methods, except for bank wires, are free of transaction charges. The deposit processing is generally instant and available 24 hours a day, with the exception of wire transfers, BPAY, and PayRetailers, which may take up to 3 days to process.
For withdrawals, users can submit a request form through the Client Portal to initiate the withdrawal process. Eightcap aims to process withdrawals within 24 business hours. The clearing times for withdrawals typically range between 2 and 5 business days. It's important to note that deposit and withdrawal limits may vary depending on the chosen payment method, and users can find detailed information regarding these limits in the Client Portal.
The minimum deposit requirement for opening an account with Eightcap is 100 USD. This minimum deposit amount allows for accessibility to a wide range of traders, including those with smaller trading budgets or those who are new to the trading world. By providing a variety of deposit and withdrawal methods, Eightcap aims to offer convenient and flexible options for its clients to manage their trading accounts effectively.
Trading Platforms
Eightcap offers a variety of trading platforms to cater to the needs of different traders. The platforms available include:
1. MetaTrader 4 (MT4): This platform is recommended for newer traders. It offers a user-friendly interface and a wide range of features to facilitate efficient trading. While it has fewer assets compared to MT5, traders can still access a diverse selection of financial instruments. MT4 allows users to download and install additional indicators and tools to enhance their trading experience.
2. MetaTrader 5 (MT5): This platform is more suitable for advanced traders who require advanced analytical tools and a broader range of assets. MT5 offers an extensive selection of financial instruments, including stocks, in addition to forex and commodities. It has more built-in technical indicators and features, such as an integrated economic calendar, to help traders make informed trading decisions.
TradingView: Eightcap has partnered with TradingView, a popular charting platform and social trading network. This integration allows traders to trade directly from TradingView's price charts. TradingView provides access to a wide range of chart types, over 100 pre-built indicators, and various trading tools. It also offers the ability to rewind the markets, create custom formulas and timeframes, and access community-built indicators.
By offering these platforms, Eightcap aims to accommodate traders of all levels of experience and trading styles. Whether traders prefer the simplicity of MT4, the advanced features of MT5, or the extensive charting capabilities of TradingView, they can find a platform that suits their needs and enhances their trading journey.
Customer Support
Eightcap provides customer support services to assist traders with their inquiries and concerns. The support team is available 24/5 and can be contacted through various channels:
- E-mail: customerservice@eightcap.com or global@eightcap.com
- Live Chat: The chat logo is available on the right-hand side of the website.
- Telephone: +61 3 8373 4800, +61 3 8375 9700
These contact options allow traders to reach out to Eightcap's customer support team for assistance and clarification. Whether through e-mail, live chat, or telephone, traders have multiple ways to get in touch with the support team.
Educational Resources
Eightcap provides a range of educational resources to support traders in enhancing their trading skills and knowledge. The broker's website features an educational page with content covering various topics, including swing trading and technical analysis. While the content is not structured as a formal course, it serves as a valuable resource for traders, especially beginners looking to expand their understanding of the markets. It is recommended for beginners to start with the existing content on the website before seeking more comprehensive educational materials from other sources.
In addition to the educational page, Eightcap offers a market analysis section that provides insights into the trading day. The analysis is presented in both video and text formats and is categorized into Crypto News, CFD News, Forex News, and Market Updates. These analyses provide traders with trading ideas and valuable information to stay updated on market trends and developments. The content is of good quality and is beneficial for both beginners and experienced traders, offering valuable insights and analysis to support their trading decisions.
Trading Tools
Eightcap offers a variety of trading tools to enhance the trading experience. These include partnerships with capitalise.ai and TradingView. With capitalise.ai, users can automate trades and access analytic tools without coding knowledge. TradingView provides powerful charts, indicators, and drawing tools, allowing traders to enter and exit positions directly from the charts.
Other tools offered by Eightcap include Cryptocrusher, a signals service, and Amazing Trader, a charting algorithm. These tools provide additional insights and analysis to assist traders in their decision-making process. The broker also offers a Forex VPS for high-frequency traders, ensuring fast and reliable trade execution.
Additionally, Eightcap provides an AI-enabled economic calendar, which helps traders identify opportunities by tracking macroeconomic events worldwide. The calendar categorizes events based on their impact level and provides insights into the expected market impact and timing.
Conclusion
In conclusion, Eightcap, an unregulated brokerage firm, presents several disadvantages that should be taken into account. The company is suspected to be a fake clone, lacking proper regulation and raising concerns about the safety of funds and fair trading practices. Limited transparency further hinders the assessment of its credibility and trustworthiness. Moreover, Eightcap does not offer any bonus incentives to traders. These drawbacks indicate a need for caution when considering Eightcap as a trading platform. It is important for traders to prioritize brokers that are regulated by reputable financial authorities to ensure the protection of their interests and investments.
FAQs
Q: Is Eightcap a regulated brokerage firm？
A: No, Eightcap is currently not regulated by any recognized financial authority, which raises concerns about the safety and security of funds.
Q: What is the minimum deposit requirement to open an account with Eightcap？
A: The minimum deposit required to open an account with Eightcap is $100.
Q: What trading platforms does Eightcap offer？
A: Eightcap offers the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, as well as integration with TradingView for advanced charting capabilities.
Q: What are the available deposit and withdrawal methods with Eightcap？
A: Eightcap offers a variety of deposit and withdrawal methods, including PSP, credit/debit cards, cryptocurrencies, China UnionPay, and more. These options provide convenient and flexible transaction solutions.
Q: Does Eightcap charge commissions on trades？
A: Yes, Eightcap charges commissions on trades for its Raw Account, with fees varying based on the trading instrument and currency.
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