ETX Capital Review
ETX Capital is the broker name of Monecor (London) LTD which was established in 1965 and has grown ever since then. ETX Capital was launched in 2002 as a retail trading operation under the name TradIndex and then re-branded as ETX Capital. This was done in order to reflect the services offered and ETX is an acronym for electronic trading (E), telephone trading (T) and execution (X). A well-licensed and regulated online broker, ETX’s 55,000+ traders are treated to the company’s in-house developed proprietary trading platform, ETX TraderPro, and access to over 5,000 assets across six markets.
ETX’s instant execution model suggests an NDD operation. Spreads are tight and ETX Capital is transparent about all trading costs involved. Leverage is tiered and client funds are segregated. One thing that sets ETX Capital apart is that its parent company, Monecor (London) LTD, is listed on the London Stock Exchange (LSE). The proprietary trading platform won multiple awards for trading platform technology and education in both 2018 and 2019, though as a general rule, we prefer to test each broker ourselves rather than relying on ‘industry awards’ that may not be entirely unbiased .
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Regulation and Security
Monecor (London) LTD, the owner and operator of ETX Capital, is registered in the UK under company number 00851820. During the course of this ETX Capital review we discovered that the company was incorporated on June 16, 1965, making it one of the oldest Forex brokerages in existence, and placing its birth as a company decades before the birth of the internet and online Forex trading. It is authorized and regulated by the Financial Conduct Authority (FCA) under registration number 124721. Clients funds remain segregated as mandated by the regulator and are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 in the unlikely case of financial default.
Monecor (Europe) LTD (ex Minden Investments and Insurance Advisers and Sub Agents LTD), an operating subsidiary of Monecor (London) LTD, was registered in Cyprus on September 13, 2002 under registration number C114460. It is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 096/08. As mandated by its regulator, funds remain segregated and protected by the Investor Compensation Fund (CIF). Since Cyprus is an EU member, cross-border regulation across all member states applies and the firm is compliant with the MiFID II regulatory framework as well as the 4th EU Anti-Money Laundering Directive.
More detailed information is provided on their website. Transparency at ETX Capital is respectable and the company is in full compliance with all regulations; traders can rest assured that their capital is well protected.
Monecor (London) LTD Regulation
Monecor (Europe) LTD Regulation
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ETX Capital earns the majority of its revenues from spreads on currency pairs and commissions charged on CFDs. Spreads on currency pairs in the ETX TraderPro account start as low as 0.6 pips with an average spread of 0.81 pips in the EUR/USD. Traders who prefer to trade using the MT4 trading platform, will get EUR/USD spreads as low as 0.8 pips with an average spread of 1.01. CFD commissions for share trading in the ETX TraderPro account as well as the MT4 account are as low as 0.1%. ETX Capital provides a detailed list of all trading costs for both trading platforms on their website.
Swap rates on overnight positions also apply and ETX Capital charges the inter-bank market rate plus 1.35% annualized. Traders will get all the information inside the ETX TraderPro account from the deal ticket.
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What Can I Trade
ETX Capital traders have access to the following six markets: forex, indices, cryptocurrencies, shares, commodities and bonds & interest rates. Over 5,000 assets are available, and the wide selection allows traders to operate a well-diversified cross-asset portfolio. Regardless if a new trader seeks to establish a portfolio or a professional trader diversifies holdings, ETX Capital offers a solid choice in each circumstance. This broker states that not all assets are available in the trading platform and that if traders wish to trade an asset not listed, to contact ETX Capital and arrange the trade. This allowance, however, applies to professional traders only.Back to Top
ETX Capital offers CFD trading account to all traders. There are no different account types, and traders at all levels and all deposit amounts are treated equally. This was an interesting finding during our ETX Capital review as tiered services have become quite popular recently among other Forex brokers who often offer better services for higher deposits. Leverage offered depends on the asset traded while larger position sizes will result in lower leverage offered.
Traders may qualify as professional traders which will result in less protection than retail traders, but also at better leverage. This is the only way in which ETX Capital really differentiates traders at different levels. Traders can apply for an upgrade to professional status, but need to have at least €500,000 of liquid assets, one year of experience in financial markets and placed at least ten trades of significant size in four consecutive quarters.
CFD accounts are the only offered account type by ETX Capital.
An upgrade to professional client status is available on request.
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ETX Capital offers its proprietary trading platform ETX TraderPro; it is hardly surprising that the broker recommends this platform for all traders. The trading platform seems to offer a superior trading environment as compared to the MT4/MT5 or cTrader platforms offered by most brokers. ETX TraderPro can be fully customized to suit each trader’s preferences, over 60 technical indicators are available, plenty of drawing tools for analytical purposes and chart trading is available.
Risk management tools have also been incorporated which allows traders to effectively manage the amount of risk they wish to take. Interactive charts, watchlists and trade alerts round up an excellent trading platform, well designed and user-friendly. A web version as well as a mobile version are available and ETX TraderPro will serve as the main gateway to financial markets for most clients.
Traders who have existing trading solutions build on the MT4 infrastructure are also catered to as ETX Capital offers the MT4 trading platform for everyone who requires it. Trading conditions are slightly better in ETX TraderPro, but it lacks automated trading features where MT4 comes in. Millions have been invested in creating autonomous trading applications for MT4, which remains the most popular trading platform, and new ones are being released; ETX Capital offers the desktop as well as mobile version.
It is great that ETX Capital offers MT4 despite having developed its own trading platform, given the tens of millions of trader and companies who rely on the MT4 trading environment and built their portfolios and business around its infrastructure. This shows that ETX Capital does care about existing traders who may wish to switch to them in order to access a much better trading environment while maintaining their trusted trading set-up.
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The unique feature which stands out the most about ETX Capital is its ETX TraderPro platform; this sets it apart from most of its competitors and allows this brokerage to compete in the top tier of today’s ultra-competitive market sector. Another important fact to point out is that this company has been operating in the financial sector since 1965 which sets it apart from most, if not all, major players in the online brokerage space. Monecor (London) LTD, the owner and operator of ETX Capital, has been around before the rise of the internet, has bridged the period from analog to digital and then created a state-of-the-art trading platform. The experience of the team behind ETX Capital is without a doubt another unique feature.
Traders who prefer to manage their trading accounts on the MT4 platform will have access to a VPS which will allow them to run their autonomous trading solutions 24/7. No additional costs have been mentioned for this service and if this is indeed the case, it represents another great service offered by ETX Capital which sets it apart from most other online brokers.Back to Top
Research and Education
ETX Capital offers its own research and analysis to clients and features an educational section filled with content which represents a great introduction to trading. The research section provides a solid service, but ETX Capital has truly excelled in its educational department where the quality of it shines. Overall, both sections supplement the excellent trading environment created by this broker.
Research and analysis are provided throughout the trading week and covers the following categories: Commodities, Cryptocurrencies, Forex, General, Indices, Market Event and Shares. The content is written well, plenty of in-depth analysis is provided and the presentation is professional. Many traders will find great information throughout this section, regardless if they are seeking new trading idea or are simply taking a break from active trading and reading up on important market events and developments.
It is clear that ETX Capital takes their market research seriously as evident in the content provided; this further sets this broker apart from many others in the online sector who provide research for the sake of marketing purposes only. This broker delivers a rock-solid service, driven by research and analytics and executes it well.
This is another area where ETX Capital shines, as the educational section is a gold mine of information for new traders. The educational section is divided into Webinars, eBooks, Platform Guides and Courses. The amount of Webinars hosted several times per week, is impressive and some are two-hour specials; at the time of this review there are 17 scheduled webinars for the month of this ETX Capital review alone. Five eBooks are available for download, eight platform guides in the form of videos provided and eight comprehensive Forex courses have been created by ETX Capital. A glossary section is also available on the website.
New traders are highly recommended to take their time and master the Forex courses while the platform guides will introduce traders to the ETX TraderPro platform which will form the center piece to most of its clients. This is an excellent service provided by ETX Capital and serves as an example of a well-designed introduction to trading for new traders.
Traders can download five eBooks and it appears that more will follow.
Eight platform guides will decrease the learning curve when switching to ETX TraderPro.
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Customer support is available Monday through Friday between 7:30 am and 9:00 pm and clients can either call or send an e-mail. Live chat or a call-back feature is not available, but most traders will never require customer support and those who do are adequately served. The lack of an FAQ section is unfortunate, but most required information is published on the website.
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Bonuses and Promotions
At the time of this ETX Capital review, no bonuses or promotions were offered by the brokerage.Back to Top
Opening an Account
The opening account procedure is the same as with any well-regulated broker today, through an online application form which is followed by the submission of ID and proof of residence documents in order to satisfy AML/KYC requirements. ETX Capital provides a clean and simple one-page registration form which will give traders access to their back office from where further documents can be uploaded in order to verify account ownership.
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Deposits and Withdrawals
ETX Capital offers the following deposit methods: Bank Transfer, Visa Debit/Credit Card, MasterCard Debit/Credit Card, Skrill, Neteller, Sofort, GiroPay and China Union Pay. ETX Capital doesn’t charge for deposits, which is standard industry practice, but withdrawals below £100 or currency equivalent are charged £10. Deposits and withdrawals need to be conducted from an account matching the ETX Capital account holder. Third-party charges from banks or payment processors may apply.
All withdrawal request sent before 2:00 p.m. will be processed the same day; wire transfers as well as card transfers can take anywhere from 24 hours to seven business day. This depends on the location of the client. Deposits are credited instantly or within two hours in the case of bank wires.
An account inactivity fee in the amount of £25 or currency equivalent applies to all account which showed no trading activity for six months; should an account be reactivated, ETX Capital will reimburse the last three monthly inactivity charges.
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Where is ETX Capital based?
ETX Capital is headquartered in London, UK.
How does ETX Capital make money?
ETX Capital earns most of its income from spreads and commissions.
How can I deposit into an ETX Capital account?
ETX Capital offers Bank Transfer, Visa Debit/Credit Card, MasterCard Debit/Credit Card, Skrill, Neteller, Sofort, GiroPay and China Union Pay.
What is the minimum lot size at ETX Capital?
The minimum trading size depends on the asset traded, but currency pairs start out at 0.01 lots while most shares start at 1; a detailed list is available on their website.
When does a margin call take place at ETX Capital?
ETX Capital did nor provide details, but due to its FCA regulation a margin call likely takes place when the equity ratio hits 100% with an automated stop out at either 30% or 50%.
Is ETX Capital regulated?
Monecor (London) LTD, the owner and operator of ETX Capital, is registered in the UK under company number 00851820. The company was incorporated on June 16th 1965. It is authorized and regulated by the Financial Conduct Authority (FCA) under registration number 124721. Monecor (Europe) LTD (ex Minden Investments and Insurance Advisers and Sub Agents LTD), an operating subsidiary of Monecor (London) LTD, was registered in Cyprus on September 13th 2002 under registration number C114460. It is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 096/08.
What is the maximum leverage offered by ETX Capital?
The maximum leverage is dependent on the asset traded, the total position size as well as the classification of the trader.
How do I open an account with ETX Capital?
ETX Capital has an online application form which is standard operating procedure.
Does ETX Capital offer the MetaTrader Trading Platform?
Yes, ETX Capital offers the MT4 trading platform on top of its own ETX TraderPro.Back to Top
ETX Capital is certainly an impressive Forex broker, owing largely to its long time in the industry and clearly capable team. The owner and operator of this online brokerage, Monecor (London) LTD, has been in business since 1965 and it shows. This FCA and CySEC regulated broker offers its own trading platform, ETX TraderPro, but MT4 enthusiasts are equally well served. Over 5,000 assets across six different categories are available which allows for great cross-asset diversification.
Spreads can start as low as 0.6 pips on currency pairs while share CFD commissions start from just 0.1%. Client funds remain segregated and are protected either through the Financial Services Compensation Scheme (FSCS) up to £85,000 in the UK or the Investor Compensation Fund (CIF) in Cyprus. All traders are treated equal in the sole account offered by this broker, but an upgrade to professional client status is available which will tweak the trading environment further.
ETX Capital also shines when it comes to education and has created a top-notch educational program which is highly recommended for all new traders to complete. Plenty of webinars are scheduled each month which shows the attention this broker brings to the trading floor. A dedicated research team provides market commentary and trade ideas and the well-presented content makes for a nice read. ETX Capital is another shining example of how an online brokerage should be operated.Back to Top
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