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Is Capital.com An ECN Broker? or Market Market? Review broker?
Is Capital.com an ECN Broker or Market Maker? Full Broker Review
Introduction
Choosing the right broker is crucial for any trader looking to maximize their profits and minimize trading costs. One of the primary questions traders ask when evaluating a broker is whether it operates as an ECN (Electronic Communication Network) broker or a market maker. In this comprehensive review, we will analyze Capital.com to determine if it is an ECN broker or a market maker, while also assessing its features, fees, trading platforms, and overall reliability.
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What is an ECN Broker?
An ECN broker (Electronic Communication Network broker) provides direct access to interbank liquidity and matches traders’ orders with counterparties in real-time. ECN brokers offer tight spreads, charge commissions, and do not trade against their clients. They provide full transparency and allow traders to benefit from deep liquidity and fast execution speeds.
Features of an ECN Broker:
No dealing desk execution
Direct access to liquidity providers
Tight spreads with commission fees
Transparent pricing
No conflict of interest with traders
What is a Market Maker Broker?
A market maker broker creates a market for traders by taking the opposite side of their trades. Instead of routing orders to liquidity providers, a market maker executes orders internally. This means they make money from spreads and sometimes from traders’ losses, potentially creating a conflict of interest.
Features of a Market Maker Broker:
Uses a dealing desk
Wider spreads with no commission fees
Orders are executed internally
Potential conflict of interest
May offer fixed spreads
Is Capital.com an ECN Broker or a Market Maker?
Trading Model
Capital.com operates as a market maker broker, meaning it does not use an ECN model to execute trades. Instead, it executes orders internally using a dealing desk. However, the broker claims to have policies in place to ensure fair pricing and minimal conflict of interest.
Spread & Fees
Unlike ECN brokers that offer raw spreads with commission charges, Capital.com offers commission-free trading with competitive spreads. This is a clear indication that it follows a market maker model.
Order Execution
Capital.com executes trades instantly without routing orders to liquidity providers. ECN brokers typically allow access to interbank liquidity, which Capital.com does not provide.
Transparency & Conflict of Interest
Although Capital.com is a market maker, it follows strict regulations from authorities like FCA, CySEC, and ASIC, ensuring fair market conditions. However, traders should be aware that, as a market maker, the broker might have a potential conflict of interest.
Capital.com Features & Offerings
Regulation & Security
Capital.com is a regulated broker under FCA (UK), CySEC (Cyprus), ASIC (Australia), and NBRB (Belarus). This regulatory oversight ensures that the broker adheres to strict financial standards and provides a secure trading environment.
Trading Platforms
Capital.com offers multiple trading platforms:
MetaTrader 4 (MT4) – The world’s most popular trading platform
Capital.com WebTrader – A proprietary web-based platform
Mobile Trading App – A user-friendly app for iOS and Android
Asset Classes
Capital.com offers a variety of trading instruments, including:
Forex – Over 130 currency pairs
Stocks – Thousands of shares from global markets
Indices – Trade on popular indices like S&P 500 and NASDAQ
Commodities – Oil, gold, silver, and more
Cryptocurrencies – Bitcoin, Ethereum, and other digital assets
Spreads & Commissions
Capital.com operates with a zero-commission trading model. Instead, the broker earns from spreads, which vary depending on market conditions. Typical spreads include:
EUR/USD – 0.6 pips
GBP/USD – 1.0 pips
Gold – 0.30 points
Leverage
Leverage levels at Capital.com depend on regulatory jurisdiction:
FCA (UK) & CySEC (EU) – Up to 1:30 for retail traders
ASIC (Australia) – Up to 1:30
Pro Accounts – Higher leverage options available
Deposit & Withdrawal Methods
Capital.com provides multiple payment methods:
Bank transfers
Credit/Debit cards
E-wallets (PayPal, Skrill, Neteller)
Customer Support
Capital.com offers 24/7 customer support via:
Live chat
Email
Phone support
Educational resources
Read more:
Capital.com Pros & Cons
Pros:
✔ Regulated by FCA, CySEC, and ASIC ✔ Commission-free trading with competitive spreads ✔ Wide range of tradable assets ✔ User-friendly trading platforms ✔ Strong educational resources for beginners
Cons:
❌ Not an ECN broker ❌ Potential conflict of interest as a market maker ❌ Leverage restrictions for retail traders in some regions
Conclusion: Should You Trade with Capital.com?
Capital.com is a well-regulated and reliable broker, but it is not an ECN broker. Instead, it operates as a market maker, which may raise concerns about conflicts of interest. However, its zero-commission model, tight spreads, and strong regulatory oversight make it a competitive option for traders who prefer market makers.
If you are looking for an ECN broker with direct market access, Capital.com may not be the best choice. However, if you want a commission-free, beginner-friendly, and well-regulated broker, then Capital.com is a solid option.
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