City Index was established in the U.K in 1983.
The brokerage has been in the industry for more than 30 years, and has grown to become a market leader trading services for Forex, Contracts for Difference (CFDs) and Spread Bets. Their international footprint has spread to countries such as Singapore, Poland, U.S.A., Australia, and China. The brokerage is part of IPGL, a private holding company which owns 20% of ICAP plc whose market capitalization is approximately 4.3 billion GBP.
Since its creation, City Index has acquired high profile companies which include IFX Markets and FinSpreads in 2005, and FX Solutions in 2008. In 2015, US forex giant Gain Capital for around $148 million, acquired the City Index brand. City Index now operates under Gain Capital UK Ltd under authorization and regulation by the Financial Conduct Authority (FCA). One of the major reasons why City Index has been successful is their non-discrimination of traders. Their extensive range of products appeals to both expert and novice traders.
Security of Funds
FCA is one of the most reliable regulators in the world. For a company to be licensed by the body, it must fulfill certain requirements and follow strict rules. They include capital adequacy of 730,000 EUR, positions reporting and must hold clients’ money in a segregated account. Furthermore, FCA regulation includes a Financial Services Compensation Scheme (FSCS), which protects consumers up to 50,000 GBP per investor.
The mother company Gain Capital Holdings Inc. (NYSE: GCAP) a New Jersey-based brokerage provides online trading services in North America, Europe, and Asia Pacific regions. With regulation in seven jurisdictions, Gain Capital has fulfilled high standards of corporate governance, financial reporting, and disclosure.
Deposits and Withdrawals
City Index clients can deposit funds into their trading accounts via bank wire transfers, credits by telephone as well as debit/credit card payment methods. Deposits made by debit card are free, but credit card deposits charges are 1.5%. The minimum initial deposit to open an account is 100 GBP. Withdrawals can take up to 5 working days.
A City Index trading account will give you access to over 10,000 markets across the world. You can spread trade on various commodities, indices, shares, bonds and interest rates. You can choose spreads by sector, and this allows you to concentrate on areas you have experience or interest.
Spreads and Leverage
Traders commit their money on FX for the sole reason that the potential profits will far outweigh their initial investment. This is why the spread or pip value is of utmost importance as it forms the base on which profits will be multiplied in case of a positive trade. City Index offers commission-free trading and competitive spreads on the CFD account. The average spread is 0.73 pips on EUR/USD pair. Spreads on an FX account on the MT4 trading platform are approximately 1.6 pips for the EUR/USD pair. In comparison, IG variable spreads average 0.8 pips on EUR/USD and doesn’t charge commission fees. City index offers a maximum leverage level of 1:200 – an average spread by industry standards. Other FX brokers such as FXCM offer leverage ratios up to 1:400. Always remember, the higher the leverage the greater the risk of losses.
City Index boasts a variety of trading platforms which includes the in-house desktop AT Pro, Advantage Web and MetaTrader 4.
The Advantage Web platform allows you to access your trading account from anywhere. No downloads are required, as all you need is a good internet connection.
The AT Pro platform is designed for experienced traders. It offers automated trading strategies and allows you to code your own unique trading strategy.
MT4 download allows clients to download and access the MT4 trading platform. Its user-friendly interface, extensive trading tools, and tradable assets have made it the most popular trading platform globally.
Mobile Trading Apps
If you prefer to trade on the move, you can download the mobile trading platform on your iPhone, Blackberry, Windows mobile or Android device. The mobile app allows you to check market prices, open/close orders, set stop-losses and edit trading charts. You can also live stream financial news from DowJones.
Risk management is much easier and cheaper with automatically guaranteed stop-losses which start from a premium of 1 pip. The ability to place linked contingent orders with a combination of advanced tools can help reduce your trading risks.
City Index offers three different types of accounts. They are Financial Spread Betting accounts, CFD trading accounts, and Demo accounts. All account types are commission-free except CFD trading on shares. Once you deposit the initial $100 to open trade, you’ll only need to deposit $25 for successive deposits.
City Index allows novice traders to open a free online demo account with 2,500 GBP in virtual cash to practice trading. For a four-week period, you can enjoy the “Learn to Trade” program from as low as 25p per pip. The Demo account provides a real-life simulation of the actual platform. It allows you to open/close trades, track your positions, execute stop-losses and limit orders. You can also use various technical tools and charts, as you learn how to use them expertly.
Customer service support is available 24/5 from Monday to Friday. You can contact customer support via telephone, live chat, and email. Support is provided in English, Polish, Arabic, Chinese, Spanish, and German. Additionally, The brokerage holds monthly seminars and provides videos and articles on the website for novice traders.
- Competitive spreads with no commission fees
- Extensive product portfolio on offer
- Multiple trading platforms
- Part of a reputable brokerage company
- Optional day trader account
- Wide range of training tools, news, and social media updates
- Payment methods are limited in comparison to other brokers
- There’s room for improvement on the search option on the trading platform. Searching by company name is much simpler
- Lack special offers
Traders using the City Index trading platform have lodged various complaints in the past. They include commission amounts changing without notice, platform freezing, inability to close trades, high spreads and delayed or late response from customer service. In retrospect, potential traders would wish to be allowed enough time to completely utilize the Demo account before they are comfortable enough to make the initial deposit.
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