ECN Capital Review
ECN Capital – Should You Just Move on and Look for a Better Broker?
When you read the websites of the online brokers, it seems they are the best companies of the world taking care of the best interests of their traders. However, when you dive deep you realize that this industry is also plagued with false promises and misinformation. In most cases, new traders are the ones who have to suffer in the hands of these fraudulent entities. Even if the broker is not a fraud, the way it works is such that the trader never benefits like he/she should. ECN Capital is quite a known name in the online trading industry.
If you visit its website and read some information, you will be convinced it is one of the best. But is that really true? Is it really the best broker you can sign up with or should you just move on and find a better option? Let’s find out.
Introduction to ECN Capital
ECN Capital is mainly a CFD and forex broker. What this means is that you can use its trading platform to trade CFDs as well as forex currency pairs. When you trade CFDs, you have access to just about any financial market in the world. You can trade indices from various markets of the world and you also have commodities that include precious metals, soft commodities, and energies. In addition to that, you can trade the best and the biggest stocks of the world without owning them. The leverage is there for you to trade big and earn huge profits. On this same trading platform, you have the currency pairs from around the world available for trading.
When you join ECN Capital, you will be able to trade 12 currencies pairs and hundreds of other assets in the form of CFDs. The company has been around for nearly eight years now and according to the numbers on its website, it has more than 350,000 active traders using its trading platform. One of the main focuses of this broker which also sets it apart from many other brokers is the concept of social trading. Social trading is when traders can view and copy each other’s trades. This concept has proven to be extremely useful for new traders in the market. The asset index, trading platform technology, and spreads make it a very attractive broker for new traders.
You will also be surprised to know that it offers you an opportunity to trade in the cryptocurrency market. That’s something you still don’t get from some of the best brokers.
ECN Capital – Is It Really Safe?
This is where things start to awry. When you look at this broker from a technology point of view, it is nothing less or behind than the best brokers on the market today. However, you really can’t be impressed with technology and other things when you are not even safe with your information and money after signing up with a broker. The biggest issue with ECN capital is its regulation. If you research on the internet, you will find out that there is something wrong with the regulation part. Many reviewing websites claim that it is not regulated by CySEC. On the other hand, the broker claimed at one point in the past that it was regulated by the said regulating authority.
If you go on the website today, you don’t find the regulation information as anymore. The latest content on the website never says anywhere that the broker is regulated by CySEC. In fact, the broker is not regulated by any regulating authority. Just because the broker has removed the wrong regulation information from the website does not mean it has done a good job. In fact, it proves that the broker was misleading its traders at one point. Secondly, it also proves that the broker is unregulated – that’s a situation you want to avoid at any cost as a trader.
Yes, when you look at the website, they talk about the Know Your Customer policies and the anti-money laundering policies as well. When you read these policies, you will be impressed. It will seem as though it is the best and the most secure broker you can sign up with. However, the only safe and secure broker you can sign up with is one that has proper regulation from a regulating authority. In simple words, when there is no regulation it means the broker is not accountable for its financial activities to anyone. When the broker is not answerable to anyone, the interests of the traders are not safe.
The Unbelievable Account Types
There are two ways for you to look at the account types available from this broker. The first thing you will notice is that there are too many things that sound too good to be true. And when things sound too good to be true, they are not true. The second column in the account types table on the website talks about the bonus. This seems to be a way for the broker to attract the traders when in reality, a broker should be attracting traders to its platform by offering tight spreads and flexible trading conditions. Different account types have different types of bonuses.
For example, when you sign up with the basic account type, you will get a 30% bonus. On the other hand, if you go with the gold account, you can either get a 40% bonus on sign up or 75% cash back if you end up losing your trade. The ECN, Mega and Platinum accounts give you a 100% cash back on your losses. This is a very unique offer – something you don’t see from any other broker on the internet. However, when you have such offers from the brokers, there are strings attached to them as well. It is best that you contact the company representatives and ask them in detail about the bonus.
The other part that sounds weird in the table of account types is the availability of live support. Why would a broker deprive you of live support just because you have signed up with a basic account? So when you sign up with the silver account, which is the most basic account, you will not get 24/7 live support. At the same time, you have the signals available for you to help you with successful trades only for a week. The one on one training is available for all and also the financial course. However, if you sign up with the basic account, you will not be able to attend webinars or take advantage of the ebooks.
Trading Conditions from ECN Capital
The biggest indicator of how much your broker cares about you is the trading conditions it creates for its traders. The size of the spread you have to deal with when trading depends on the account you sign up with. If you go with the basic account, you will have to deal with the loose spreads. On the other hand, signing up with platinum account means you can enjoy some really tight spreads. When it comes to cryptocurrencies, you will have to pay a commission to the broker in addition to the spreads.
The commission you pay on your trades can be up to 1% of the volume of trade you are about to enter. It can be quite disappointing for the traders when they have to lose commission in two ways. First, they have to pay a higher price for buying an asset than what they get if they sell the same asset back. Secondly, they have to pay a commission on their trade. At the end, their profit is being chipped away in this manner by the broker. If you are looking for the best broker to trade digital coins, this might not be the best broker for you.
Customer Support from ECN Capital
On the surface, there is nothing to complain about when you look at the contacting options for this broker. If you want to talk to a representative in a hurry, you can use the online chat feature where a professional can answer your questions instantly. On the other hand, you also have a phone number available for you to call. You can also send an email to the company. There are two different email addresses available for technical and general inquiries.
When you look at the technology that this broker brings to you for trading, there is nothing to complain about. In addition to that, the asset index is quite impressive with 12 currency pairs and cryptocurrencies as well. However, the regulation information was misleading at one point. Today, the broker is not regulated at all. Furthermore, the broker says that any request for withdrawal that you place from your account will take at least seven business days. That’s a lot of days for a simple withdrawal. In any case, the withdrawal should not take more than two business days. If your mind gives you even one reason to move on and sign up with a different broker, listen to it in this case.