Eightcap Review 2024

Trust

This section will cover how the different entities of Eightcap are regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

• Eightcap Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC), AFSL 391441. We rate ASIC as a Tier-1 regulator.
• Eightcap EU Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 246/14. We rate CySEC as a Tier-1 regulator.
• Eightcap Group Ltd is authorized and regulated by the Financial Conduct Authority (FCA), FRN 921296. We rate FCA as a Tier-1 regulator.
• Eightcap Global Limited is regulated by The Securities Commission of The Bahamas (SCB), SIA-F220. We rate SCB as a Tier-3 regulator.
• Eightcap Limited is incorporated in the Seychelles with registration number 196744. This entity is unregulated.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, Eightcap clients in Australia benefit from the oversight of ASIC. It requires that clients have negative balance protection, which means they cannot lose more than their deposit. Client funds must also be segregated from company funds.

The tables below list the protections and benefits by entity, regulator, and region.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we evaluate the broker’s longevity in the industry, the company’s size, and its transparency.

Eightcap was established in 2009, marking it as an experienced forex and CFD broker. According to its LinkedIn page, the company is headquartered in Melbourne, Australia, and has 201-500 employees.

In my research, Eightcap is open about its regulatory status, listing its regulator in the footer of each page of the eightcap.com website. Eightcap clearly covers its spreads and commissions in its Trading Costs section. The Client Agreement can be found on the Legal Documents page referenced in the footer.

To summarize, my findings indicate that Eightcap Pty Ltd can be regarded as trustworthy due to the following qualities:

• Regulated by top-tier ASIC
• 14 years of operating history
• High level of transparency

Fees

Trading Fees

I tested the Standard Account spreads at Eightcap across various markets during the London open at 8:00 a.m. UK time and after the open of the New York forex session at 1:00 p.m. UK time. At these times, the market is typically highly liquid with the tightest spreads. I recorded the data on 24 January 2024.

It was hard to find fault with Eightcap in this area, and I was especially impressed by the tight spreads in the Dow 30, gold and Bitcoin.

Swap Fees

In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of maintaining a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair). I recorded the data on 24 January 2024.

My live tests showed that swap fees at Eightcap are average for the industry.

Non-Trading Fees

The Australian entity (Eightcap Pty Ltd) does not charge any inactivity or account maintenance fees.

Are Fees at Eightcap Competitive?

While some brokers have competitive spreads in only a few popular assets, Eightcap does better by providing tight spreads across the board. This is of great importance to traders and can make or break their journey to profitability, especially for day traders and scalpers. I rate the fees at Eightcap as highly competitive for the following reasons:

• Tight spreads across all asset classes
• Average swap fees
• No inactivity fees
• No deposit or withdrawal fees

Platforms and Tools

MetaTrader 5 is available in 52 languages, from Arabic to Vietnamese. The platform provides popular features such as

• Alerts. This feature updates traders when an instrument reaches a specific price level.
• Watchlists. Traders can create a list of their favorite instruments and follow live quotes in a market watch panel.
• One-Click Trading. This feature allows traders to execute orders with a single click and no secondary confirmation. This feature enables traders to operate faster and is especially useful for short-term traders.
• Trading from the Chart. MT5 also allows users the convenience of trading directly from the chart.

The Marketwatch panel enables traders to stay on top of their favorite instruments at a glance.

The Toolbox panel allows traders to track their open positions, market exposure, trade history, and profit/loss figures in real time.

MetaTrader delivers when it comes to the range of available order types. The platform offers the following:

• Market Order. Traders use market orders to buy or sell an instrument at the best current price.
• Limit Order. Traders use limit orders to buy or sell an instrument at a specified price or better.
• Stop Loss Order. Traders use stop-loss orders to buy or sell an instrument when its price reaches a specified level.
• Stop Limit Order. Traders can manage risk more precisely with stop limit orders, which combine the features of a stop-loss with those of a limit order.
• Trailing Stop Order. Traders use trailing stop-loss orders as a stop-loss order at a defined percentage or dollar amount away from an instrument’s current market price. This order type allows traders to secure profits when they are in a winning trade while not having to exit the position.

Charting features are robust. MetaTrader 5 offers:

• 38 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 44 Analytical Objects. These include lines, channels, Gann, and Fibonacci tools.
• 21 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

MetaTrader is also popular due to its copy trading and automated trading features.

• Trading Signals. Signals in MetaTrader 5 allow users to copy other traders’ activity in real time.
• Automated Trading. MetaTrader 5 allows users to develop, test, and apply Expert Advisors (EAs). EAs are programs that monitor and trade markets using algorithms.

My Key Takeaways after Testing the Eightcap MT5 Desktop Platform

The MetaTrader 5 desktop platform is one of the most feature-rich and popular trading platforms. However, it may present a steep learning curve for beginners.

MetaTrader 5 WebTrader

The interface of the MT5 web platform is very different from the desktop and has a more intuitive and user-friendly interface. It allows you to trade without any additional software, only an internet connection is required. The Web Platform allows users to trade directly from any browser and operating system.

Popular features of the WebTrader platform include

• One-click trading
• Trading from the chart
• Watchlists with real-time quotes
• Trade History
• Advanced charting

Watchlists provide real-time updates for a selected list of instruments.

Charting via the WebTrader platform is outstanding. Traders can make use of:

• 31 Technical Indicators. These include classic trend indicators, volume indicators, and oscillators.
• 4 Analytical Objects. These include trend lines, regression channels, Gann, and Fibonacci tools.
• 9 Time Frames. Traders can choose from nine time frames, from one minute to one month.
• 3 Chart Types. Traders can use Bar Charts, Japanese Candlestick Charts, and Line Charts.

The WebTrader platform provides standard order types including market orders, limit orders, and stop loss orders. Time-in-force conditions like Good-Til-Cancelled (GTC) or a specified date can be applied to pending orders.

Traders can easily track their open positions, account balance, and profits and losses via the Trade panel, which appears at the bottom of the screen.

ModelMetaTrader 5 Mobile App

Eightcap offers the MetaTrader 5 mobile app for mobile trading, which is available for Android and iOS. The app offers popular features such as alerts, 1-click trading, and trading from the chart.

The MetaTrader 5 mobile app also provides many order types, including pending and stop orders. However, trailing stop-loss orders are only available from the desktop. To change the language of the MT5 app, you must change the language for your entire phone.

My Key Takeaways after Testing the Eightcap Mobile App

Overall, the MT5 app offers an above-average range of features. I rate it as a well-designed app, but as one that caters more to experienced traders.

Capitalize.ai

Clients of Eightcap’s Australian entity have access to Capitalize.ai, which enables them to create, test, and automate trading strategies using everyday English instead of code. For example, you could type in an entry trigger such as ‘if EUR/USD 30 minute RSI crosses above 80, buy $500 worth’. You can also automate your exits, for example, ‘close position at a profit of 6% or at trailing stop of 4%’. I found this to be a user-friendly platform with great potential for easily automating your trading ideas.

Eightcap Order Execution

Eightcap is a no-dealing desk STP (Straight Through Processing) broker.

Tradable Instruments

CFDs (Contracts for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at Eightcap include the following:

• 56 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 14 Commodity CFDs. Commodities are raw products, such as gold and oil.
• 500+ Global Stock CFDs. IG offers trading in stock CFDs from exchanges ranging from the NASDAQ to the Australian Securities Exchange (ASX). A stock is a security that represents partial ownership of a corporation.
• 16 CFDs on Indices. Available instruments range from Japanese to Swiss stock indices. An index is a basket of trading instruments that are used to gauge a market sector, stocks within an exchange, or the economy of a country.
• 92 Cryptocurrency CFDs. Cryptocurrencies, such as Bitcoin, are digital currencies that are secured by cryptography.

In the tables below, you can see a selection highlighting the variety of CFD instruments available at Eightcap:

My Key Takeaways After Exploring Eightcap Tradable Instruments

My assessment indicated that Eightcap is particularly strong in the areas of indices and cryptocurrencies. There is some room for improvement in the range of available currency pairs. Overall, the variety of tradable assets at Eightcap is impressive.

Customer Support

Support is a key component of a broker’s offering – whether you are a new trader looking for guidance on how to use the platform or an experienced trader who needs help fast to exit their positions in the event of a technical glitch.

I tested Eightcap customer service over two weeks with dozens of queries, ranging from available order types to fees and regulatory issues. Overall I had a positive experience.

Deposits & Withdrawals

Deposits

Processing times for bank wires are average compared with other CFD brokers. Free deposits are standard for the industry.

Withdrawals

You can request to withdraw funds from your account by submitting an online form through the Client Portal.

Account Types and Terms

• The Raw account is geared towards experienced traders, with spreads as low as 0.0 pips plus commission.
• The Standard Account caters well to beginners and casual traders, with the simplicity of trading without a commission and spreads as low as 1.0 pip.
• The TradingView account provides access to ultra-low spreads, advanced charting, trade ideas from the massive TradingView community, and the proprietary Pine-Script language.

Account Comparison

The table below breaks down the key features of the Standard, Raw, and TradingView account types:

Account Application

To open a CFD account with the Australian entity of Eightcap, prospective clients must provide the following information:

• Contact and Personal Details: Name, email address, country of residence, date of birth, phone number, physical address, nationality, national ID number, tax ID number, educational background.
• Employment Details: Employment status, industry, and occupation.
• Financial Details: Annual income, liquid net worth.
• Level of Trading Experience: Volume of trades, professional and academic knowledge.

Demo Accounts

Eightcap offers demo accounts via MetaTrader 4 and MetaTrader 5. Demo accounts are especially important for beginners as they allow them to practice the strategies and get comfortable with the trading platform without risking real money. The demo account features live quotes and simulates live market conditions. Once users are up to speed on a demo account, they can easily switch to a live version.

Professional Accounts

To be eligible for a professional account at the Australian entity, you will need to meet either one of the following criteria:

Benefits of being a professional client include:

• Networking opportunities at VIP events.
• Flexible pricing and leverage options.
• High-performance trade execution with ProVPS.
• Trade ideas with market news, regular insights, and complimentary analysis from your dedicated account manager.

Islamic Accounts

The Australian entity (Eightcap Pty Ltd) does offer swap-free Islamic accounts.

Leverage

One of the reasons that traders are attracted to the forex market is the high degree of available leverage. Leverage is the use of borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account. In the table below I cover the leverage available at Eightcap across a range of CFD instruments.

Supported Countries

Eightcap accepts clients from the majority of countries globally, except FATF blacklist countries like Iran and North Korea.

Research

The Trade Zone series of videos from Eightcap helps traders orient themselves with key insights for the upcoming trading week. These reports by Joe Jeffriess are less than five minutes and enable traders to be best prepared for high-impact economic reports.

The Trading Week Ahead report is text-based and also covers events on the economic horizon – deciphering everything from central bank speeches to key economic reports.

In the Trade Ideas series of reports, Joseph Jeffriess provides a technical perspective including major support and resistance levels, chart patterns, trend analysis, and potential set-ups.

The AI Economic Calendar from Acuity within the client portal goes deeper than the norm, covering over 1000 events from 55 countries. It has advanced filtering capabilities, shows assets affected by the release, provides historical event analysis, and gives price range projections.

It also includes news and commentary, along with news sentiment and correlation data. The AI Economic calendar helps traders identify which instruments to trade, when to trade, and how the market is likely to respond to economic data.

My Key Takeaways after Examining Eightcap Research Materials

I was impressed by the high-quality text and video-based analysis, along with the third-party AI Economic Calendar from Acuity. The analysis provides comprehensive coverage of both technical and fundamental themes.

Education

Eightcap provides useful articles covering trading fundamentals with topics like The Power of Market Momentum and Trading the GBP Crosses. These articles are well-written, in-depth, and accessible to beginners.

The eBooks within Eightcap Labs are focused on cryptocurrencies. Traders can get up to speed with cryptocurrencies ranging from Dogecoin to Solana with detailed downloadable guides. These complement the above-average range of crypto pairs available to trade at Eightcap.

I especially liked the articles on actionable strategies relating to various technical indicators and specific assets like crude oil. These articles go beyond the theoretical and get into practical trading advice. I rate the educational content as better than average for the industry. Eightcap could improve further by adding interactive courses.

The Bottom Line

Operating for over 15 years, Eightcap is a well-known brand on the Australian market with entities licensed by three top regulators in the world – FCA, CySEC, and ASIC.

Its Australian entity provides first-class account protection, highly competitive spreads, and a diverse range of assets. The intuitive TradingView platform makes Eightcap accessible to beginners. Meanwhile, experienced traders can benefit from the advanced features of the MT4 and MT5 platforms.

Eightcap has gone the extra mile with research materials and tools. With their advanced platforms and resources like Capitalize.ai, I also rate Eightcap as a strong choice for traders using automated strategies.

Considering Eightcap’s advantageous mix of narrow spreads, strong platforms, extensive third-party tools, and VPS hosting, I find it to be a good choice for seasoned, active traders and those employing automated trading strategies.

FAQ