Pros & cons of Eightcap

Eightcap Fact sheet

Safety and security of funds is number one priority to every professional trader. Traders need to be able to fully trust their broker. But how can you tell whether a broker is trustworthy or not? The answer is simple, regulations. 

Eightcap is authorized and regulated by the following regulatory bodies: 

• The Australian Securities and Investments Commission (ASIC)
• The Securities Commission of The Bahamas (SCB)

If you are registered in Australia, your Eightcap’s regulator will be ASIC, which is known as a top-tier regulatory body. Global clients’ accounts will be operating under SCB, which is known to be a mildly strict regulator.

Due to the level of regulations, we can safely say that Eightcap is a trustworthy broker and to improve the level of safety, the broker implements additional policies.

Policies that Eightcap follows

Eightcap provides negative balance protection and is part of the Investors Compensation Fund. Along with this they also keep funds in segregated bank accounts. 

Trading CFDs is a leveraged activity which means that traders use leverage (borrowed funds from their broker) to increase their purchasing power. As a result, traders become susceptible to losing more money than what’s in their trading accounts. To prevent this from happening, Eightcap guarantees traders that their accounts will never go negative and if this unlikely event happens, traders can contact customer service and the balance will be turned back to zero. To guarantee that traders do not lose more money, margin call emails are sent at 80% and trades get stopped out at 50%. 

All retail client funds of Eightcap are placed separately from business funds in segregated bank accounts. The funds are kept in AA-rated banking institutions. This guarantees that even if the broker is liquidated, traders get their funds back. 

There are more than 657 assets available for trading with Eightcap. Traders can choose from Forex, commodities, indices, cryptocurrencies, and shares as CFDs. However, all the asset types are CFDs. While CFD trading offers certain benefits, it also has drawbacks. The main drawback is that CFDs are not for investing long-term, due to trading fees. If you are interested in investing long-term, physical shares are a better option. On the other hand, CFDs are much better than physical assets for price speculating in medium and short-term timeframes. Let’s discuss each asset class in more detail. 

Forex trading on Eightcap

There are more than 40 currency pairs available for trading with Eightcap. You can trade major pairs such as AUD/USD, EUR/USD, GBP/USD, etc., the minors ( AUD/CAD, AUD/CHF, AUD/JPY, etc.), and a good number of exotics such as AUD/SGD, EUR/HUF, EUR/TRY, USD/NOK, etc. Trading fees depend on the account type you pick. On a Standard account spread markups start from 1 pip. On the Raw account, there are no spread markups, but traders are charged with commissions. The commission amount based on your account currency equals 3.5 AUD, USD, NZD, SGD, CAD, or 2.25 GBP, 2.75 EUR per traded lot. The available leverage for trading currencies is up to 500:1. 

Stock CFD trading on Eightcap

There are more than 350 available stocks as CFDs with Eightcap. Stock trading using CFDs is preferable for short-term speculating as traders can use leverage to increase their purchasing power. There are fewer barriers to entering the market, and stock CFDs are more liquid than physical shares and can be traded in both bull and bear markets. When investing in physical shares, there’s no option to make money by shorting. Investors wait for asset prices to drop, buy low and sell when prices increase. When trading CFDs, you can make money even in bearish markets. Trading fees on US stocks start from as low as 2 cents per share. When trading the London Stock Exchange, as well as German or Australian markets, trading fees are 0.1% per lot.

You will find the most popular company stocks and more on your platform. Traders are able to speculate on company stock prices such as:

• Apple
• Alphabet (Google)
• Facebook
• Amazon
• Pfizer
• Netflix
• Microsoft
• Intel
• Salesforce
• Tesla
• Nike
• Coca-Cola
• Adobe
• NovartisUS

Share CFD trading is available using MetaTrader 5 (MT5) account only as the MetaTrader 4 (MT4) doesn’t support trading multi-asset classes. 

Crypto CFD trading on Eightcap

Crypto trading is where Eightcap truly shines. The broker provides access to a very decent number of crypto derivatives as you can speculate on 252 crypto derivative prices. There are various advantages of trading crypto CFDs over physical token trading. First and foremost is the simplicity that comes with only trading “contracts for difference” (CFDs), there is no need to worry about crypto wallets or where to cash out profits. Your benefits from trading go straight to your trading balance. On both account types, the average spread on BTC/USD (Bitcoin vs US Dollar) is 31.2 USD and the lowest spread during the peak liquidity hours is 12 USD. Similarly to stock CFDs, crypto derivatives can be traded in both long and short directions, and traders can use leverage to increase their purchasing power. 

Traders have access to popular crypto assets such as: 

• Bitcoin (BTC/USD)
• Cardano (ADA/USD)
• Bitcoin Cash (BCH/USD)
• Ethereum (ETH/USD)
• Tron (TRX/USD)
• EOS (EOS/USD)
• Dash (DSH/USD)
• Stellar-Lumens (XLM/USD)
• Monero (XMR/USD)

Commodity CFD trading on Eightcap

Commodities are raw materials and their valuation depends on various factors. Commodity prices are generally influenced by global supply and demand. Eightcap provides access to trading 4 major commodities: 

• Brent Crude Oil (UKOUSD)
• West Texas Intermediate Crude Oil (USOUSD)
• Silver (XAGUSD)
• Gold (XAUUSD)

Spreads on silver start from as low as 0.01 USD and from 0.1 USD on gold. On oil, spreads start from 0.03 USD. Gold and silver prices usually increase during high inflation as investors start purchasing precious metals during hard times. Increased demand increases the price. 

Indices trading on Eightcap

Indices are dual-purpose instruments. They are perfect indicators of the health of certain industries or markets, and they can be traded as CFDs. Spreads on indices start from 0 pips. On SPX500 spreads start from 0.4 pips. Traders can access the following index CFDs:

• AUS200
• HK50
• JPN225
• GER30
• FRA40
• EUSTX50
• NDX100
• SPX500
• UK100
• US30
• USDX

Indexes are very useful even if you are not trading them. As already mentioned, you can use them as indicators. For instance, in case you are planning to trade USD or American shares, keeping an eye on the SPX500 will help you track the health of the American economy. The index follows the performance of the top 500 US companies that are listed publicly. 

There are many ways to make money in the markets, but unfortunately, all of them are very hard to find. In addition, what works for one trader will never work for another. Some traders have fast fingers and are able to make their minds up fast, while others spend more time on planning and aiming. In order to meet the needs of both trader types, Eightcap provides access to spread-free and commission-free account types. Scalping and Expert Advisors (EAs) are allowed on both account types, however, hedging is only available for global clients. Traders from Australia can not use direct hedging due to the strict regulations enforced by the ASIC. We’ll discuss each account type in more detail below. 

Pros & cons of Eightcap account types

Eightcap Demo Account

Demo accounts are super handy when traders are working on new strategies or improve the existing ones. Demo accounts enable traders to trade in a similar environment to live markets, but without using actual money. Beginners use demo accounts to get familiar with using the platforms, trading indicators, and placing orders. Eightcap provides a demo version of both account types and they are free to open. 

Eightcap Standard Account

Spreads on the Standard account start from 1 pip. On the other hand, there are no commissions. The standard account is for novice and position traders. Position traders such as swing traders place fewer trading orders and therefore care less about paying larger spreads while saving on commissions. The minimum initial deposit required to open the account is 100 USD. 

Eightcap Raw Account

The Raw account is for intraday and high-frequency traders as there are no spread markups. On the other hand, there is a 3.5 USD commission per traded lot. Traders that place a large number of orders prefer saving on spreads and paying commissions instead. The minimum initial deposit requirement is 100 USD. 

Getting started on Eightcap – Main steps

There are a couple of simple steps to take to open a live trading account with Eightcap. Below we will guide you through the entire process in detail.

Step 1: Open an account

The first step is to go ahead and open the broker’s main web page. You’ll be able to see the “Create account” button in green in the top right corner of the page. By clicking the button, you will be transferred to the registration portal. The registration process is simple. You just need to fill in the simple form using your personal information. 

Step 2: Time to verify your account

After the registration is concluded, the next step to take is to verify your account. Having a verified account will give you full access to using your personal cabinet, and remove all limitations on depositing and withdrawing funds. In order to verify the account, Eightcap requires two types of documents from you. You need to provide proof of residence and proof of identity. You can use your passport, government-issued ID card, or driving license for verification of your identity. As for the residency part, you can use a utility bill or bank statement. You can scan the documents or take a digital photo using your mobile phone. Keep in mind that pictures should be of good quality. Make sure the information is clearly visible and there are no shadows or light reflections while you take the photos. 

Step 3: Make your deposit and start trading

After the verification is over, you can start depositing funds and placing orders. Keep in mind that no matter which account type you pick, the minimum initial deposit required is 100 USD. There are multiple funding options available, including Visa, Mastercard, Bank Transfer, Neteller, Skrill, UnionPay, POLi, Bpay, and PayPal. While most credit card and online banking deposit options are instant, deposits made using bank transfers may take up to 3 business days. Withdrawals generally take a couple of days more. 

Trading fees with Eightcap are average compared to the competing brokers. What’s great about Eightcap is that it offers both spread-fee and commission-free account types and various trader types can find an account with a suitable fee structure to fit their trading strategies. Moreover, Eightcap doesn’t have inactivity fees or funding fees, which is always great. 

In order to better understand how Eightcap’s fees work, let’s compare them with other brokers. For this comparison, we picked the Standard account type. On a Standard account, spreads start from 1 pip and there are no commissions. 

Comparing Eightcap fees with other brokers

Eightcap fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

Eightcap fees compared to eToro fees

Eightcap fees compared to IG fees

Eightcap fees compared to XM fees

Eightcap fees compared to AvaTrade fees

Eightcap fees compared to Capital.com fees

Eightcap provides access to the most popular CFD trading platforms, namely MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Most FX brokers offer MetaTrader platforms to their clients as these platforms are highly reliable and capable. 

MetaTrader 4 was released by Russian giant MetaQuotes back in 2005 and has been a favorite of FX brokers ever since. The software quickly gained popularity and even today remains the most popular FX platform on the market. MT4 was built for trading currencies specifically, so if you are planning to trade various asset classes, MT5 is better suited to your needs.

MetaTrader 5 was released by the same company 5 years later, in 2010. The platform is made for trading various asset classes, such as Forex, commodities, indices, cryptocurrencies, shares, bonds, and futures. 

Both platforms were designed a long time ago and their structure has not been changed since. As a result, both platforms can run on old or low-budget computers smoothly. 

MetaTrader’s platforms support robot trading and automation is available using algorithms called Expert Advisors or EAs for short. The EAs are available for download in the Meta Market. However, keep in mind that both platforms use different coding languages and MT4 EAs do not work on MT5 and vice versa. 

Mobile apps have various uses and can keep traders close to the markets from anywhere in the world. Apps are great in emergency situations. For instance, when traders forget to place stop-loss orders, they can use mobile apps to secure their trades. 

Eightcap offers mobile versions of the MetaTrader platforms. The mobile apps provide live charts and enable traders to analyze their trades and place different order types. The app is available for Android devices, but unfortunately, iPhone users will not be able to use these apps. 

Good quality educational material and research tools are critical for the development of beginner traders. Eightcap provides the tools under the following tabs:

• Capitalise.ai
• Cryptocrusher
• AI-powered Economic Calendar
• Forex VPS

Traders get analytical tools such as:

• Analysis Overview
• CFD News
• Market Updates
• Forex News
• Live Webinars

Moreover, there are extensive educational materials to be found under the following headings:

• Trading Education Overview
• MetaTrader Guides
• Fundamentals
• Trading Strategies
• Financial Events

Overall, education and research for traders provided by Eightcap are of good quality and amount. 

Great customer service is critical for every service-oriented business. Eightcap operates globally and offers superb customer service. Their customer service is available in multiple languages, including English, Chinese, Thai, French, Spanish, Italian, Korean, German, and Vietnamese. Clients can get in touch using the live chat option that is available straight from the main web page. In addition, email and phone call options are also available. The team of customer support agents is highly professional and friendly.

To sum everything up, Eightcap is a regulated broker licensed by the Securities Commission of The Bahamas (SCB) and the Australian Securities and Investments Commission (ASIC). The broker provides access to multiple asset classes using the full set of MetaTrader platforms. Traders have access to more than 657 assets, including Forex, commodities, indices, cryptocurrencies, and shares as CFDs. The broker offers 252 crypto derivatives and has both spread-fee and commission-free account types. Fees are reasonable and start from 1 pip on the Standard account. Raw account holders are not charged with spreads, on the other hand, they are charged with a 3.5 USD commission. Educational materials and research tools are extensive. Customer support is multilingual and professional. The minimum initial deposit required to open a trading account with this broker is 100 USD and leverage is up to 500:1.