EightCap is a financial service provider which does not offer up to the market services. Multiple local financial bodies regulate the firm. Hence, we cannot regard it as a safe venture to invest. So, think twice before opting for such firms which lack licence from central regulating authorities.
Official website of the broker has complex UX/UI design. Hence, the novice finds it difficult to understand its services and features. Lack of research section and poor quality of educational resources is also a major setback. The firm offers a demo trading account for a limited period and has an insufficient customer support team. Unbiased Review provided below explains each point in detail.
Is EightCap Scam or safe?
EightCap is a type of a financial service provider which is more towards scam. It has licences from multiple local financial bodies but does not have enough to guarantee complete safety. These multiple licenses complicate the regulation conditions for clients. Apart from this, the firm does not work under ICF, MiFID and EU.
Moreover, the broker does not offer segregated bank accounts, advanced safeguard tools (for protecting sensitive information and transaction data) and top-class encryption technology. These points again raise questions on the security offered by the broker. It is recommended to avoid such untrustworthy firms. There are several renowned and reliable firms you can opt for those over EightCap.
Types of account
The broker provides only two account types for trading, namely Standard and Raw trading accounts. The standard account fails to meet the trading objects of traders and charges high minimum deposit on trading. The amount for trading one round lot is greater than the average cost per round. Moreover, there is no information related to the leverage of the official website.
The trading options in each market in these account types are limited, and there are several issues related to deposits. Swaps charges are high and no discount available. Let’s consider the broker’s demo or virtual trading account. It is offered for only 30 days and seems to be a bit slow. There is no information related to Islamic trading account, which means the broker blocks the trading option for Muslim clients/countries (following Sharia Law).
It seems that the broker has opted the cheapest package of trading platforms. The platforms lack several important functions which frustrate traders while trading. The UI/UX design is also complex to understand for novice traders. Broker has not offered any platform-based tutorials to solve this significant problem of neophytes.
There are limited indicators, charts, timeframes, technical analysis and signal for clients. This impact trading to a larger extent, as results from these tools, are inaccurate many times.
Tradable markets and products
EightCap provides a limited and restricted range of financial assets for trading which directly limits the profit size. There are only 120 assets in total. You will be shocked listening that the broker does not allow trading on most popular instruments, i.e. cryptocurrencies.
Moreover, there is no clear data about the varied leverage value for various countries. For example, the Financial Conduct Authority has set the maximum leverage limit up to 1:30. We do not know or have any data that the broker is following this permissible limit or not. It is recommended that think and act vigilantly over high leverage as they magnify your losses along with profit.
The broker’s account opening process is complicated, challenging and fails to convey the real reason behind asking for sensitive information. It asks traders to provide their financial and personal data, which of course traders might not be comfortable providing. It includes bank statements, financial statements, income proof, account number, address proof, several IDs and many more.
Also, the site has not mentioned the step for opening an account on its websites. It creates confusion for traders. The process of verifying documents takes several days which is longer compared with other brokerage sites. So, there are numerous time-consuming formalities which frustrate investors.
Fees and commissions
EightCap charges high commissions, spreads and other additional hidden fees (not mentioned on the website) from traders. Also, there is no information related to commissions and spreads charged on trade. There is a lot of irrelevant information in the various sections, such as assets sections.
The broker says that it allows trading at lower spreads, but this keeps changing depending on market volatility. It also enhances when placing an order and thus, mitigates the trader’s profit size.
Withdrawal and deposit
The process of deposit and withdrawal is time-consuming and charges a certain amount. You require to fill a withdrawal form, and it takes more than three business days for this to proceed. Fee for deposit and withdrawal is hidden.
The broker offers several methods to serve the purpose, but they are limited, and none of them is globally recognised. Thus, the delay in payments, limited options and hidden fee and limitation on withdrawal amount frustrate investors.
Research tools are a vital part of trading. They help in reaching a potential decision. Unfortunately, the broker does not offer any tools for analysing market shift and conditions.
The broker offers limited educational resources, and these too are not up to the mark. Just because of their low-quality educational resources, many novice traders make huge mistakes while trading, which eventually impacts their trade.
Customer support service
The broker’s customer support team is inefficient and worst ever and fails to offer a quick and relevant response to users. The response time for the phone call and email is greater than one minute and more than three days, respectively. Live chat option is offline most of the time. The robot provides the answers in the live chat. Hence, users get irrelevant answers.
Disadvantages of EightCap
- Lack of research tools
- The complex user interface of the website
- Limited educational material
- Leverages not up to the mark
- Limited trading instruments
- Poor customer support
- Regulation issues
The Bottom Line
Overall, the broker is not safe for trading. It is risky to invest with the firm. So, think twice before investing. Also, the services offered are not up to the mark. It is better to opt for some renowned, advanced and reliable firms such as ROinvesting, T1markets, PrimeFin, GlobalTradeATF, and 101investing over EightCap.