Eightcap Review 2023

Trust

Eightcap Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare each entity’s different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

Here is a breakdown of Eightcap’s several entities:

• Eightcap Pty Ltd is authorized and regulated by the Australian Services and Investments Commission (ASIC). ASIC ranks as a Tier-1 regulator on our system.
• Eightcap Group Ltd is licensed and regulated by the Financial Conduct Authority (FCA) in the UK. The FCA ranks as a Tier-1 regulator on our system.
• Eightcap EU Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). CySEC ranks as a Tier-1 regulator on our system.
• Eightcap Global Limited is authorized and regulated by the Securities Commission of the Bahamas (SCB). The SCB ranks as a Tier-3 regulator on our system.
• CLMarkets Limited, trading as Eightcap International, is incorporated in Saint Vincent and the Grenadines. The entity is not regulated.

It is worth pointing out that even though Eightcap Group Ltd and Eightcap EU Ltd are licensed and authorized, the two entities are not yet fully operational. But you can register interest in signing up with either of them at eightcap.com/uk or eightcap.eu, respectively.

We have summarized the most essential aspects of Eightcap in terms of regulation and safety in the table below:

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

A broker may operate multiple entities, each being authorized in a different jurisdiction. And because of certain discrepancies between national and international legislation, each entity may be mandated to comply with different policies. Such discrepancies entail varying degrees of protection for the retail trader.

We have summed up the most important safety mechanisms to look for in a broker below:

• Segregation of client funds. Keeping client funds separate from the broker’s corporate funds (in different bank accounts) is essential for mitigating the risk of accounting errors. Eightcap Global Limited and CLMarkets Limited do not comply with this requirement.
• Negative balance protection. This mechanism removes the risk of a trader’s losses exceeding their account balance. All of Eightcap’s entities have incorporated this mechanism.
• Compensation scheme. A compensation scheme protects the trader against the broker’s liabilities and credit risk. Clients of Eightcap Group Limited can be compensated by up to 85,000 GBP under the FSCS in the unlikely event that the entity becomes insolvent, whereas clients of Eightcap EU Limited can be compensated by up to 20,000 EUR under the ICF.
• Maximum leverage. Capping the maximum leverage permitted effectively limits a trader’s market exposure. Except for Eightcap Global Limited and CLMarkets Limited, both of which afford a maximum leverage of 1:500, retail clients of Eightcap’s other entities can have a maximum leverage of 1:30. It is also worth pointing out that Eightcap Global Limited has a minimum leverage of 1:100, which is arguably quite high.

Is Eightcap Safe to Trade With?

Eightcap, as a whole, is quite safe and reliable. Most of its entities are authorized by top-tier regulators, ensuring compliance with some of the most stringent safety policies in the industry.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

Eightcap was founded back in 2009 and currently employs more than 150 people. In over a decade since its foundation, Eightcap has established itself as a reputable OTC derivatives broker with a highly effective business model.

Eightcap is also a fairly transparent broker. This is underscored by the lengthy Legal Docs section of the website and equally as informative ‘Compare Our Offering’ section. It affords visitors of the website a quick rundown of the major differences between the offerings of Eightcap’s entities.

In summary, our findings indicate that Eightcap can be regarded as having a good level of trust and stability due to the following factors:

• Eightcap is authorized by several top-tier regulators.
• Its website is fairly transparent and highly informative.
• It has an established and easily recognizable brand name.

Fees

Eightcap Trading Fees

Eightcap’s Spreads

We tested Eightcap’s spreads during the most actively traded times – the London open at 8 a.m. GMT and just after the U.S. open at 2:45 p.m.M GMT. The test was conducted on 26 December 2022.

Eightcap’s spreads remained pretty much unchanged throughout the day, demonstrating a stable liquidity supply. Additionally, the recorded spreads on shares of some of the biggest blue-chip companies, like Tesla and Apple, were quite low. The same applies to gold. Overall, the broker offers very competitive spreads.

Eightcap’s Swap Rates

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

At the time of our review, we noticed that Eightcap’s swaps were quite elevated. This can be attributed to the above-mentioned subdued liquidity levels in the broader market, owing to low trading activity right before Christmas. Traders should remember that swap rates fluctuate over time, which is why they must be monitored continually.

Eightcap’s Commissions

Eightcap’s Raw account type has a fixed $7 round turn commission per traded lot, which meets the industry average. It is also worth pointing out that the size of the commission depends on the account’s base currency. For instance, accounts denominated in Australian dollars have a fixed commission of 7 AUD. The currency conversion rate is thus an important determinant of the Raw account’s competitiveness.

Eightcap’s Non-Trading Fees

Eightcap does not charge any handling fees for deposits or withdrawals, though third-party banking fees may apply in some cases. The broker also does not charge dormant accounts with an inactivity fee.

Are Eightcap’s Fees Competitive?

Eightcap’s fees are indeed very competitive. Its spreads are, for the most part, well below the industry average, while its commissions vary. The fact that the broker does not have any non-trading fees makes its conditions even more favorable.

Platforms and Tools

MetaTrader 5 is an established name in the industry. It incorporates even more trading indicators and drawing tools than its predecessor, accommodating basic technical analysis. Clients of Eightcap can also opt for the newer and sleeker TradingView, which is arguably the most intuitive social trading platform in the world.

Automated trading is available via MT5’s in-built Expert Advisors (EAs). Additionally, Eightcap incorporates the professional Capitalise.ai – a tool that helps traders without coding skills automate their systems with ease.

Eightcap also provides free Forex VPS – increasing the speed of order execution – which is an ideal solution for high-frequency and algorithmic traders. Another great third-party tool afforded to clients of Eightcap is Cryptocrusher, which provides trading ideas, charting proprietary indicators, and other tools specifically tailored for crypto traders. Cryptocrusher is a great addition to EightCap’s extensive selection of crypto CFDs.

EightCap’s Desktop MT5 Platform

General Ease of Use

MT5’s usability is defined by its simple layout. A chart window is positioned in the middle of the screen, account info can be found at the bottom, the watch lists and other trading options are positioned on the left, and the settings menu can be found on the above panel.

The newer TradingView has a much more flexible design, allowing price action to be scaled up and down relatively easily. This affords a much broader and more detailed insight into price action behavior, which is necessary for conducting thorough and precise technical analyses.

Charts

The chart is arguably the most important component of every platform. The sophistication of the chart is crucial for studying price action behavior and determining market sentiment. It is, therefore, essential for making informed trading decisions.

We have summarized the main components of MT5’s charts below:

• Trading indicators. MT5 comprises 38 trading indicators, such as trend-based and volume-based indicators and oscillators. These are used to gauge underlying market sentiment and determine key support and resistance levels.
• Drawing tools. The platform incorporates 24 drawing tools, like trend lines, channels, Fibonacci retracement levels, and others. These are used to determine the general market direction and forecast potential breakouts or breakdowns from an established trend.
• Timeframes. Most impressively, the platform has 21 different timeframes. This is well above the industry average and affords traders a multifaceted overview of price action behavior. This diversity is arguably the biggest advantage of MT5, as it accommodates the implementation of widely different strategies, such as scalping and position trading.
• Chart types. Price action can be represented in one of three ways – as a line, using bars or candlesticks.

Orders

Here is a rundown of MT5’s several order types:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order actually gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

EightCap’s Mobile MT5 App

The app’s primary purpose is to afford traders quick and easy access to their accounts and the market, even on the go. They can use it to adjust their running positions or for deposits and withdrawals to and from their accounts. The app is thus serving a supporting role.

General Ease of Use

The mobile version of MT5 is comprised of several components, and its more straightforward design makes it quite easy to navigate. However, the barebone layout and low resolution make it very difficult to execute complex technical analyses on a small-screened smartphone.

Charts

Listed below are the chart tools available on the app:

• Trading indicators. The app incorporates 30 trading indicators, less than the desktop version. These include trend-based, range-based, volume-based, and other types of indicators.
• Drawing tools. There are 21 drawing tools, such as trend lines and channels. Due to low resolution, the chart can be overcrowded with indicators and drawing tools fairly easily.
• Timeframes. There are 8 different timeframes ranging from 1 minute to 1 month. This is comparatively less than the 21 timeframes that are available on the desktop version.
• Chart types. There are only three chart settings. Price action can be represented as a line, bars, and candlesticks.

Orders

Here is a breakdown of the different order types that can be executed through the app:

• Market orders. Market orders are used for immediate entry at best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets actually filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop loss orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price.

Tradable Instruments

Most importantly, there are over 100 cryptocurrencies, which bodes well with the inclusion of third-party tools, such as Cryptocrusher, tailored for crypto traders. There is also an above-average number of CFD stocks, commodities, indices, and a decent assortment of FX pairs.

What are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the price of the underlying without physical delivery. For example, a long position on gold would generate a profit as the price rises or incur a loss as it falls. This is achieved without having to purchase actual bars of gold. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With EightCap?

Listed below are EightCap’s available instruments broken down by asset class:

• 57 Currency Pairs
  • Majors, Minors, Exotic
• 14 CFD Commodities
  • Metals and Energy
• 520+ CFD Shares
  • U.S., UK, Australia, Germany
• 18 Indices
  • U.S., Europe, Asia
• 100+ Cryptocurrencies
  • Majors and Minors

EightCap’s collection of instruments from different asset classes is well-balanced and diverse enough to allow traders to exploit multiple opportunities in different markets. There is an extensive list of higher-volatility instruments like CFD shares and cryptocurrencies, as well as more conventional ones such as FX pairs.

Customer Support

Eightcap’s support is reliable and very helpful. For more general queries, you can turn to the dedicated FAQ section of the website, whereas more specific questions can be submitted to the support team.

EightCap’s Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

We contacted EightCap’s customer support on December 27 via live chat. An agent connected almost instantly and responded to our questions. He was polite and with good command of English, and his answers were detailed and informative.

Deposit and Withdrawal

Eightcap Deposit Methods

*Third-party banking fees may apply

Eightcap Withdrawal Methods

*Third-party handling fees may apply

Eightcap does not charge any handling fees, though third-party banking fees may apply. Any withdrawal requests submitted before 1:00 p.m. AEST/AEDT Monday to Friday will be processed on the same business day. It is also worth pointing out that international payments may take 2-5 business days to complete.

Account Types and Terms

The two account types are quite accessible given that the broker’s minimum deposit requirement is low – at $100. And with 7 base currencies available, traders can benefit from more favorable conversion rates based on the types of instruments they plan to trade the most. It is also worth pointing out that the commissions they’ll have to pay may vary depending on the underlying base currency.

The only minor inconvenience is that to set up an Islamic account, traders first have to create a regular account and then discuss this with their assigned account manager.

Why is Choosing the Right Account Type Important?

The account should reflect the trader’s particular goals, needs, and style of trading. For instance, traders who are more aggressive by nature may find it more prudent to open an account that allows the implementation of high-volatility strategies. In contrast, more risk-averse traders may find it more convenient to open an account that accommodates tighter risk management.

What Account Types Does Eightcap Offer?

The Standard account affords commission-free trading and floating spreads starting from 1.0 pips, making it more suitable for high-frequency trading. Strategies like scalping require frequent getting in and out of trades, which is more efficient when there are no associated commissions. The Raw account, in contrast, has a fixed $7 commission per traded lot and raw spreads starting from 0.0 pips. It is better fitted to accommodate high-volume trading.

It is also important to point out that while strategies like hedging and scalping are allowed with EightCap’s Bahamas-based entity, the former is not available with its Australian entity.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger-sized positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Eightcap Account Opening Process

We have summarized the steps necessary to open an account with Eightcap below:

• Step 1. Click the ‘Create Account’ button in green at the top-right corner of the main page.
• Step 2. Fill in your name, email, telephone number, and password.
• Step 3. Verify your email address by clicking the link in the conformational email you are sent.
• Step 4. In the Client Portal fill in any additional information, such as your full address and tax info.
• Step 5. Verify your account by submitting proof of identity and proof of address.

Why is a Demo Account Important?

Demo accounts serve a twofold purpose. They introduce traders to a broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment afforded by your demo account.

Eightcap Supported Countries

Eightcap’s services are not aimed at residents of the following jurisdictions:

Afghanistan, Albania, American Samoa, Bahamas, Belarus, Burundi, Central African Republic of Congo, Cuba, Cyprus, Eritrea, Guam, Guyana, Haiti, Iran, Iraq, Japan, North Korea, Kosovo, Lebanon, Libya, Mali, Myanmar, Nicaragua, Northern Mariana Islands, Pakistan, Palestine, Puerto Rico, Russia, Saint Helena, Somalia, South Sudan, Sudan, Syria, Tristan da Cunha, Turkey, Ukraine, United States, Minor Outlying Islands, Vanuatu, Venezuela, Virgin Islands (U.S.), Western Sahara, Yemen, Zimbabwe.

Research

Eightcap’s content is easy to follow and understand and it’s not jargon-heavy, making it accessible even to newbies. We found the regular market breakdowns particularly useful, affording a comprehensive and continual overview of important market developments and significant economic releases.

Research Tools

Listed below are Eightcap’s research materials by type:

• Weekly market wraps. Serving as a complex version of a classic economic calendar, Eightcap’s weekly market wraps underpin the most important-market movers over the following days.
• Market updates. The regular market updates provide a brief overview of the underlying market sentiment and are supported by highly detailed videos.
• Financial events. This section of the website covers monumental events with considerable impact on the market, such as Brexit. However, the content there is not updated particularly often.
• Webinars. Eightcap publishes frequent webinars, which are essentially a broader version of the regular video breakdowns.

Education

Eightcap scored low in the Education category. The broker has an extensive collection of videos and articles but lacks a comprehensive and coherent educational course. Eightcap’s content is suitable, to an extent, for beginners but lacks the depth to cater to seasoned traders.

There are 170+ written articles on the website, but no entries have been published for nearly a year. And even though these cover a wide range of interesting topics, they are not organized systematically, so novice traders cannot gain a well-balanced introduction to the basics of trading. There are several videos on Eightcap’s YouTube channel primarily aimed at explaining general topics, such as how to open an account with the broker.

The Bottom Line

Eightcap is a well-established derivatives broker that provides first-rate services to traders with different experience levels worldwide. It excels in most aspects, though there is still room for improvement in some areas. Eightcap’s reliability, proven by its top-tier regulation in multiple jurisdictions, makes it the perfect partner for CFD traders looking to succeed in a fast-paced environment such as the market.

Eightcap’s chief benefits include a wide selection of over 700 CFDs from different markets, competitive trading fees, diverse account types, and a steady liquidity supply. All of these are key components for achieving consistent performance on the market, which is helped by the inclusion of some professional tools like Cryptocrusher, Capitalise.ai, and a free forex VPS.

With regards to Eightcap’s disadvantages, there generally aren’t many to speak of except for the limited scope of the broker’s educational content. Including a systematic trading course would help beginners gain a broader and more multifaceted understanding of the ABCs of trading.

Across the board, we found Eightcap suitable for both beginners and advanced traders, given its wide range of supporting tools, competitive fees, and precise order execution.

FAQ