London Capital Group Review
London Capital Group is the company with a long history and it has been delivering its services since 1996. LCG is specialized in CFD trading and spread betting as well, though the latter is available only for the UK residents. The headquarters of the firm is located in Knightsbridge, London, SW1X 7LX. LCG attracts a lot of traders yearly, but still many users ask about the reliability of this broker. Is London Capital Group scam? In our review you will find all the answers.
When preparing this review, we have found out that London Capital Group is authorized and regulated by the Financial Conduct Authority (FCA). Apart from this, LCG is listed on the London Stock Exchange. Is London Capital Group legit? Although regulation might instill some confidence in the broker’s credibility, the license never was the absolute measure of top-tier services. Quite strange is the fact that London Capital Group Forex broker does not accept clients from Australia, Belgium, Canada, New Zealand, Singapore and also the USA.
The broker offers both real and demo account on its site. Generally, there are 4 types of live accounts offered on London Capital Group website.
- CFD Trading Account
- Spread Betting Account
- Islamic Account
When searching for the data, it was quite hard to navigate on LCG site. Notwithstanding this, we have succeeded to get the necessary information. Talking about CFD trading account in particular, it happened to be quite expensive. Although London Capital Group claims to offer CFDs on more than 5,000 markets with competitive pricing, the broker wants the client to deposit at least £25,000 to start off here. London Capital Group stresses that there are no deposit requirements, but this is only on the paper. No deposit initially needed, but you will not be able to access any features. As for the asset classes provided by the broker, they include Forex, commodities, stock indices, shares, spot metals, bonds & interest rates and vanilla options. The same functionality is offered on the spread betting account as our London Capital Group review has discovered.
Additionally, the broker offers ECN account where the trader does not have to pay any spreads to LCG. It is impossible to get it right away, as the broker expects from the traders and institutions to trade large volumes and maintain $10,000 account balance to qualify. Another account type offered is Islamic. This account is of swap-free type, which means that there is no swap or rollover interest on overnight positions.
Spreads offered at London Capital Group scam are variable, meaning that they can widen during high volatility. The spread on EUR/USD pair is 1.6, which is relatively high. For ECN situation is slightly better, as on the same instrument LCG offers 0.6 spread. Nevertheless, LCG spreads may disappoint traders that seek for premium service and low costs.
Maximum leverage given to the trader is 1:500 for FX trading on Classic CFD account, whilst for ECN the limit is 1:200.
London Capital Group Reviews: Trading Platforms
The broker offers two platforms on its website – standard MT4 and LCG Trader. The second platform is web-based, which means that no files have to be installed. Additionally, London Capital Group supplies mobile LCG Trader apps for Android and iOS devices. LCG Trader is well-designed, but it will require the trader to spend much time grasping it, even with tutorials.
Right London Capital Group Forex broker offers 2 promos, namely 10% Deposit Bonus and Monthly Cash Rebates. 10% Deposit bonus is given to new clients at LCG upon making the first deposit. The minimum deposit needed to receive the deposit bonus is £500. The maximum bonus which can be obtained is £10,000.
As the part of the loyalty program, London Capital Group offers cash rebates on Forex, Indices and Commodities. For example, for FX market LCG offers £5 rebate per million (£) traded on the platform.
Client support at LCG can be reached via live chat, telephone and email. As many London Capital Group reviews admit, the quality support is below average. The staff is not resourceful in solving customers’ issues effectively, not to tell about long response time on email and phone support.
The indirect support is presented by the pretty basic FAQ, where the demanding client may find almost nothing useful.
Deposits & Withdrawals
To deposit funds, the trader can use credit/debit cards, wire transfers and Skrill. Note that the broker does not accept American Express and Visa Electron Cards. For deposits, LCG holds the commission equal to 2% of the deposit made.
Withdrawals are made in the same way as the deposits. There are a lot of negative London Capital Group opinions regarding the fees for withdrawing funds. The broker charges a fixed commission of £20 for the withdrawal with the amount lower than £1,000. The minimum amount for withdrawal is £50.