Is Capital.com Safe? - A Full Review of Its Security Features
Quick Answer: How Safe is Capital.com?
Capital.com is a safe and secure platform regulated by top authorities like the FCA, ASIC, and CySEC. It uses SSL encryption and two-factor authentication (2FA) to protect your data. Client funds are kept in segregated accounts, and UK users benefit from the Financial Services Compensation Scheme (FSCS).
Capital.com Overview
Capital.com is a multi-asset CFD and spread betting broker offering forex, indices, commodities, and share CFDs. Regulated by the FCA (UK), CySEC, and ASIC, it’s trusted by traders worldwide. The broker offers an intuitive platform, competitive pricing, and commission-free trading — giving traders access to global markets with tight spreads.
- Minimum Deposit: £20
- Regulation: FCA (UK), CySEC, ASIC
- Trading Platforms: Web Platform, Mobile App, TradingView, MT4
- Market Access:
- 5000+ markets
- CFDs on Forex, Indices, Shares, Commodities
- Spread betting available for UK clients
- Commission-Free Trading: 0% commission on all CFD trades (*other fees may apply), with costs built into competitive spreads
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Is Capital.com Regulated and What Does That Mean for You?
Yes, Capital.com is regulated by FCA, ASIC, SCB, SCA and CySEC, which impose strict standards that brokers must follow. Regulation provides legal frameworks for fund protection and operational transparency, and ensures the platform complies with strict rules to avoid fraud, offering peace of mind to traders.
Why Does Regulation Matter for Trader Protection?
Regulation plays a key role in safeguarding traders. It ensures brokers like Capital.com operate under strict rules around transparency, fair treatment, capital adequacy, and segregation of client funds. If a broker faces insolvency, regulations like the Investor Compensation Fund ensure that traders are compensated for their losses, although compensation schemes vary by availability per region.
How Secure Is Capital.com for Traders?
Capital.com implements several security measures to ensure the safety of user funds and data. With SSL encryption, two-factor authentication (2FA), and segregated accounts for client funds, the platform prioritizes data protection and provides a secure trading environment for all users.
Does Capital.com Use SSL Encryption to Protect Your Data?
Yes, SSL encryption is used by Capital.com to secure user data during transactions. This encryption ensures that all sensitive information, such as personal details and financial data, is protected from hackers and third-party access during trading on the platform.
Does Capital.com Offer Two-Factor Authentication (2FA)?
Yes, two-factor authentication (2FA) is available to add an extra layer of protection to your account. With 2FA, even if someone gains access to your password, they won’t be able to access your account without a second verification code, which adds another level of security.
How Does Capital.com Protect My Funds?
Capital.com takes fund protection seriously by using segregated accounts at top-tier banks to keep client funds separate from company funds. This ensures that even in the unlikely event of insolvency, your funds remain secure and protected. UK clients are covered by the Financial Services Compensation Scheme (FSCS).
Are Client Funds Segregated at Capital.com?
Yes, Capital.com uses segregated accounts to separate client funds from its own operating capital. This provides an extra layer of security, ensuring that your funds are protected and cannot be used for the company’s operations or liabilities.
Is Capital.com Part of the Investor Compensation Fund?
Yes, Capital.com is part of the Financial Services Compensation Scheme (FSCS) for UK-based users, which protects up to £85,000 in the event of the broker’s insolvency. This fund ensures that users can recover their funds in the unlikely event that Capital.com becomes insolvent.
Is Capital.com Safe for Beginners?
Yes, Capital.com is an excellent and safe choice for beginner traders. The platform is designed to be user-friendly, with clear features and tutorials. It also offers security features like SSL encryption and 2FA. Additionally, demo accounts allow new traders to practice without risk.
Does Capital.com Offer a Demo Account for Practice?
Yes, Capital.com offers a free demo account, which allows beginners to practice trading with virtual funds. This enables new traders to learn how to navigate the platform and understand trading strategies without the risk of losing real money.
How Easy and Secure Is the Platform for New Traders?
Capital.com provides an intuitive platform with a user-friendly interface and simple navigation, making it easy for beginners to get started. It also offers security features like two-factor authentication (2FA) and SSL encryption to ensure that your data and funds are protected while learning the ropes of trading.
How Does Capital.com Compare to Other Brokers in Terms of Safety?
Capital.com ranks highly in terms of safety compared to competitors like eToro and Trading 212. It offers strong regulation, segregated accounts, and advanced encryption. While other brokers also have safety measures, Capital.com’s comprehensive security features make it a trusted option.
For a full regulatory and cost comparison, see our XTB vs Capital.com guide. You can also compare security features in our Capital.com vs Trading 212 breakdown.
What Are the Potential Risks of Using Capital.com?
While Capital.com is a secure platform, there are inherent risks, especially with CFD trading and leverage. These can amplify both gains and losses, and overnight fees apply when holding leveraged positions. Traders should be aware of market volatility and the potential for losing more than their initial deposit when using leverage.
How Do CFDs and Spread Betting Affect Safety?
CFDs and spread betting carry significant risk due to their leveraged nature. While they can offer potential rewards, they also expose traders to amplified losses. Understanding these risks and managing positions carefully is critical to maintaining safety when using these products. Spread betting is available only for UK clients.
Is Capital.com a Safe Platform for You?
Capital.com is a safe platform, offering strong regulation, segregated accounts, and security features like SSL encryption and two-factor authentication (2FA). However, potential risks from CFD trading and leverage exist, and it’s important to assess your risk tolerance before trading.
For a complete overview of features and fees, see our Capital.com review.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
FAQs
Is Capital.com regulated in the UK?
Yes, Capital.com is regulated by the FCA (Financial Conduct Authority), which ensures that the platform operates under strict standards of transparency and security for UK users.
Does Capital.com offer negative balance protection?
Yes, Capital.com offers negative balance protection to prevent traders from losing more than their deposited funds, ensuring that your balance can’t go below zero when using the platform.
How secure is my data on Capital.com?
Your data on Capital.com is protected with SSL encryption, ensuring secure transactions and safeguarding personal information from unauthorized access. Additionally, two-factor authentication (2FA) is available for extra security.
Can I trust Capital.com with my funds?
Yes, Capital.com is a trustworthy platform with segregated accounts that protect your funds. It is also regulated by top-tier authorities like the FCA, ensuring your funds are safe and managed with the highest standards of financial integrity.
Is Capital.com safe for beginner traders?
Yes, Capital.com is safe for beginners, offering a user-friendly platform, demo accounts for practice, and strong security features. The platform’s regulation and additional safety measures ensure that beginners can trade with confidence.
References
- Trading Price Advantage | FOREX.com
- StoneX Financial Ltd FCA Register
- FOREX.com Reviews | Read Customer Service Reviews of www.forex.com
