Eightcap Review – Buckle Up for a Wild Ride (But is it Legit?)

Review Transparency

Rest assured, this review is unbiased and reflects my genuine insights into EightCap’s offerings. As a seasoned forex and CFD trader with years of experience across various platforms, I’ve utilized EightCap for several months.

Regulation & Safety

EightCap prioritizes security and transparency, evident in its regulation by top-tier financial authorities. Licenses from the Australian Securities & Investments Commission (ASIC), the Financial Conduct Authority (FCA), and the Seychelles Financial Services Authority (SCB) underscore their commitment to fair and secure trading practices. These regulatory bodies enforce strict guidelines, ensuring client protection and fostering a trustworthy trading environment.

Negative Balance Protection

EightCap offers negative balance protection, safeguarding you from losses exceeding your account balance. This safety measure ensures you won’t owe the

Account Types

EightCap caters to traders of varying experience levels by offering three distinct account types:

Standard Account: This account caters to beginners with its user-friendly interface and commission-free structure. It utilizes a standard spread pricing model, making it ideal for those starting their forex and CFD trading journey.

Raw Account: Seasoned traders seeking tighter spreads may opt for the Raw Account. While it offers lower spreads, a $3.50 commission per standard lot applies. This account type is best suited for high-volume traders who can capitalize on the tighter spreads.

STP Account: This account provides a bridge between the Standard and Raw Accounts. It features a commission structure and variable spreads, offering a balance between cost and tight spreads.

Asset Sprawl

They ain’t shy about their asset selection, offering a smorgasbord of forex pairs, indices, commodities, and even the ever-so-trendy cryptocurrencies. It’s like a financial buffet, but remember, portion control is key (and leverage can be your worst enemy).

Fees and Pricing

EightCap’s fee structure is transparent and competitive. As mentioned earlier, the Standard Account is commission-free, with spreads acting as the primary cost. The Raw Account features a $3.50 commission per standard lot, alongside tighter spreads. The STP Account adopts a variable spread and commission structure.

Spreads

Tight spreads, which is music to any trader’s ears. EightCap prides itself on offering tight spreads across various currency pairs and CFD instruments. During my evaluation, spreads remained competitive throughout regular trading sessions. . We’re talking spreads starting from a whisper-thin 0.0 pips on EUR/USD. However, during market openings and periods of high volatility, spreads could widen slightly. When compared to other brokers, EightCap’s spreads generally fall within the industry average or even lower, particularly for the Raw Account.

Leverage & Margin

EightCap offers leverage options to magnify potential returns, but it’s crucial to remember that leverage amplifies both profits and losses. Leverage levels vary depending on the traded instrument and regulatory requirements. European regulations, for instance, cap leverage for retail clients. It’s important to exercise caution and choose leverage appropriate for your risk tolerance. Leverage can be adjusted within the platform settings or upon account opening.

Orders Execution Way

EightCap operates as an Electronic Communication Network (ECN) broker, directly connecting traders with other market participants. This ensures faster trade execution and minimizes potential conflicts of interest.

Slippage

Slippage, the difference between the requested and executed price, can occur during periods of high market volatility or low liquidity. While I did experience minor slippage instances during my evaluation, they were generally within acceptable boundaries and did not significantly impact my trading experience.

Swap Rates

Swap rates, also known as rollover fees, apply to positions held overnight. EightCap’s swap rates are generally competitive with the broader market. While they don’t offer specific swap-free accounts, Islamic accounts can be requested on a case-by-case basis.

Margin Call & Stop Out Level

The stop-out level is the point at which your broker automatically closes your losing positions to prevent your account from falling into negative territory. EightCap’s stop-out level is set at 50% margin, which is a standard practice in the industry. Margin calls, on the other hand, serve as early warnings when your account equity falls below a certain threshold. EightCap issues margin calls at 75% margin, giving you the opportunity to add funds or close positions to maintain sufficient margin.

Trading Platforms

EightCap empowers traders with a choice between two industry-leading trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both platforms are renowned for their user-friendly interface, advanced charting capabilities, and extensive selection of technical indicators. MT4 is the more established platform, favored by many veteran traders for its familiarity and vast library of custom indicators and expert advisors (EAs). MT5, on the other hand, boasts a more modern interface and additional features like a built-in economic calendar and a hedging function.

EightCap complements these platforms by offering innovative tools like:

Autochartist: This powerful tool automatically scans the market for potential trading opportunities based on user-defined technical analysis parameters.

SmartScanner: This advanced scanner allows you to filter instruments based on various criteria, helping you identify potential trades that align with your strategy.

VPS Hosting: EightCap partners with reputable Virtual Private Server (VPS) providers, offering low-latency hosting solutions for seamless 24/7 trading.

Deposit & Withdrawal

EightCap facilitates a variety of convenient deposit and withdrawal methods, including:

• Credit/Debit Cards: Deposits are processed instantly, while withdrawals typically take 1-3 business days.
• Bank Transfers: Deposits and withdrawals via bank transfers may take 2-5 business days.
• E-wallets: Popular e-wallets like Skrill and Neteller offer faster processing times, with deposits typically reflected instantly and withdrawals taking 1-2 business days.

It’s important to note that processing times may vary depending on your chosen method and your bank’s procedures. EightCap strives to process withdrawal requests promptly, but external factors can occasionally influence processing timelines.

Initial Minimum Deposit

The minimum deposit requirement at EightCap is a friendly $100, making it accessible to both seasoned traders and those just starting their forex and CFD trading journey. This low minimum deposit allows you to test the platform and explore its features before committing larger sums.

Customer Support

EightCap provides 24/5 multilingual customer support via live chat, email, and phone. During my evaluation, I found their support team to be responsive and knowledgeable, addressing my inquiries promptly and professionally. Whether you’re a new trader seeking guidance or an experienced user with technical questions, EightCap’s support team is readily available to assist you.

Educational Resources

EightCap offers a library of educational resources, catering to traders of all experience levels. Their educational section includes:

Trading Guides: Comprehensive guides covering various forex and CFD trading topics, from fundamental analysis to technical indicators.

Webinars: Regularly hosted webinars conducted by industry experts, delving into market trends, trading strategies, and platform functionalities.

Video Tutorials: Informative video tutorials that provide step-by-step guidance on navigating the trading platform and utilizing its various features.

These resources serve as a valuable starting point for new traders and a helpful refresher for seasoned ones.

Market Analysis

While EightCap doesn’t offer in-depth fundamental or technical analysis directly, they integrate with third-party resources like Capitalise.ai. This advanced tool utilizes artificial intelligence (AI) to analyze historical market data and identify potential trading opportunities. It’s important to remember that no analysis tool can guarantee success, but Capitalise.ai can be a valuable addition to your trading toolkit.

Rebates & Cashback

While EightCap doesn’t currently offer traditional rebate programs, they occasionally run promotional cashback offers. These promotions can be a great way to offset trading costs, so be sure to stay updated on their website for any ongoing offers.

Bonus Offers

EightCap occasionally runs promotional bonus offers. While these can be a tempting way to boost your trading capital, it’s crucial to meticulously read and understand the terms and conditions associated with any bonus offer. These terms often include specific trading volume requirements that must be met before you can withdraw the bonus funds or any profits generated from them. Treat bonuses as an extra perk, not a guaranteed path to riches, and ensure the trading volume requirements align with your overall strategy.

EightCap Vs Top Alternatives

Evaluation

Cons

Limited Product Range: Compared to some competitors, EightCap offers a narrower range of CFD instruments, particularly in the stock and index CFD sectors.

No Proprietary Platform: EightCap relies solely on MT4 and MT5 platforms, lacking a proprietary platform that might cater to specific user preferences.

Limited Research Resources: While EightCap provides educational resources, they may not be as extensive as what some other brokers offer in terms of fundamental and technical analysis tools.

Pros

Competitive Spreads: EightCap consistently delivers tight spreads across various instruments, making them an attractive option for cost-conscious traders.

ECN Execution: Their ECN execution model ensures transparent and fast trade execution, minimizing potential conflicts of interest.

Multiple Account Options: Offering three distinct account types caters to traders of varying experience levels and trading styles.

Regulation: EightCap’s licenses from top-tier financial authorities provide peace of mind and ensure adherence to strict regulatory guidelines.

24/5 Multilingual Support: Their responsive and knowledgeable customer support team is readily available to assist traders around the clock.

Who Should Consider EightCap?

• Cost-conscious traders: EightCap’s tight spreads and commission-free Standard Account make them an attractive choice for traders prioritizing low trading costs.
• ECN trading advocates: Their ECN execution model ensures transparency and minimizes potential conflicts, appealing to traders who value a fair-trading environment.
• Platform-specific users: If you’re already comfortable with MT4 or MT5, EightCap provides a seamless trading experience without the need to adapt to a new platform.
• New traders: The educational resources, user-friendly platform, and $100 minimum deposit make EightCap an approachable option for those embarking on their forex and CFD trading journey.

Who Might Want to Look Elsewhere?

• CFD traders seeking a wider product range: If your trading strategy heavily relies on stock or index CFDs, EightCap’s selection might be limiting.
• Proprietary platform enthusiasts: For those accustomed to a specific broker’s proprietary platform, EightCap’s reliance on MT4 and MT5 may not be ideal.
• In-depth research dependent traders: If your trading decisions hinge on extensive fundamental or technical analysis tools provided by the broker, EightCap’s resources might be insufficient.

The Final Verdict

EightCap emerges as a compelling option for forex and CFD traders seeking a reliable and well-regulated broker. Their competitive spreads, ECN execution model, and multiple account types cater to a broad spectrum of traders. The user-friendly MT4 and MT5 platforms, complemented by valuable educational resources and innovative tools like Autochartist and SmartScanner, empower traders to make informed decisions. While the product range might be narrower compared to some competitors, and they lack a proprietary platform, EightCap excels in core areas crucial for successful forex and CFD trading.