IFX Brokers vs Capital.com

IFX Brokers vs. Capital.com

We spent many hours thoroughly examining the best-in-class Forex brokers for 2023. Here, we take a closer look at IFX Brokers vs. Capital.com.

Which offers better pricing – IFX Brokers or Capital.com?

It is common for IFX Brokers to offer lower trading fees and a wider range of account options in conjunction with higher minimum deposit requirements.

For example, the commission-free Standard Account at IFX Brokers features spreads on the EUR/USD starting at 1.3 pips.

In contrast, the Raw Account necessitates a minimum deposit of $1,000 and offers spreads of 0.5 pips in addition to a fee of $6. The IFX Brokers Premium Account has a spread of 1 pip EUR/USD, but there are no commission charges, resulting in an average of 16 USD trading costs.

Furthermore, these fees exceed the industry standard of approximately $9 per EUR/USD. In contrast, Capital.com only offers a standard account with spreads from 0.6 pips and no commission charges. As a result, the average trading fees with Capital.com are 6 USD.

Considering the cost of overnight positions, such as swap rates, is crucial. Capital.com only charges for borrowed funds, not the total position size, but this applies only to Cryptocurrencies, Shares, and Thematic Investments.

It is easy to overlook non-trading fees imposed by brokers, but they can significantly impact profitability and should be closely examined.

Capital.com, in contrast, does not charge any deposit or withdrawal fees and does not impose any fees on inactive accounts, which is unusual among CFD brokers.

Which broker offers more security when trading Forex and CFDs?

Trading on the platform provided by IFX Brokers or Capital.com is guaranteed risk-free and transparent. The South African Financial Sector Conduct Authority (FSCA), classified as a Tier 2 regulator, is in charge of monitoring the activities of IFX Brokers.

Even though South Africa’s Financial Sector Conduct Authority (FSCA) does not have the most stringent regulations in the world, it is working to improve its services to make retail trading in forex and CFD markets safer.

Capital.com is a UK-based limited liability company with additional locations in Belarus, Gibraltar, Cyprus, Seychelles, and Australia.

Capital.com operates under the registration number 10506220 and has established partnerships with reputable money managers across Europe to ensure the safe storage, protection, and management of clients’ funds, with funds kept separate from the broker’s general funds.

Furthermore, Capital.com is a member of the Financial Services Compensation Scheme, which ensures that retail accounts are safeguarded against negative balances and margin close-outs, thus ensuring that traders do not incur losses that exceed their available funds.

Capital.com maintains an Investor Compensation Fund to provide customers with an added level of trust, as required by legal regulations. It should be noted, however, that this fund does not cover professional traders.

In addition to these measures, Capital.com employs advanced security protocols to protect client data.

Furthermore, Capital.com uses Transport Layer Security (TLS) to encrypt all data transmissions and has implemented real-time replication and safe backups of all client data according to PCI Data Security standards.

Capital.com also employs pre-trade and post-trade fraud detection tools and has implemented anti-money laundering measures, such as self-assessment instruments, expert internal audits, required training, and other strategies.

Capital.com is also fully compliant with the highest Know Your Customer (KYC), Source of Wealth (SOW), and Source of Funds (SOF) regulations.

In addition, the broker utilizes sophisticated identification technologies to verify client documents, which significantly helps to combat identity theft.

Which broker offers the superior trading platform?

Since IFX Broker provides access to both MT4 and MT5, its mobile trading platform selection is on par with that of other MetaTrader-only brokers. In addition, the MT4 and MT5 trading platforms are also accessible from mobile and tablet computers running Google’s Android or Apple’s iOS.

Trading apps for mobile devices differ from their desktop counterparts in several ways, including the limited number of timeframes and chart types available.

Moreover, if a trader from South Africa uses a third-party platform like MT4 or MT5 and later decides to switch brokers, they won’t lose any of their customizations.

There are better broker platforms, but IFX Broker’s platform support is among the best. Despite this, MT4 and MT5 require more technical expertise during installation and are less user-friendly once up and running compared to the web-based systems of other brokers.

Capital.com has recently added support for Metatrader 4 to its roster of supported trading platforms. Capital.com’s proprietary trading platform was built in-house and is accessible via any modern web browser.

New traders will appreciate the platform’s friendliness, intuitiveness, and ease of setup. Customized with over 75 technical indicators, various trading chart types, and extensive drawing tools, the platform provides in-depth financial analysis.

It also allows users to easily switch between up to six tabs, allowing them to monitor all charts and instruments simultaneously. In addition, multiple watch lists can be created to monitor different markets.

Traders can manage their risk with the help of multiple stop loss and take profit options provided by this platform. However, the lack of integration with automated trading solutions and third-party strategies is a significant limitation of the platform.

By providing access to third-party platforms like MT4, Capital.com ensures that traders can take their personalized software installation with them if they decide to switch to another broker. In addition, thousands of add-ons and extras are also available for MT4.

Do these brokers both offer MetaTrader?

IFX Brokers caters to both MetaTrader 4 and 5. In contrast, Capital.com only supports MetaTrader 4 and other third-party applications.

How many Forex pairs can I expect from these brokers?

IFX brokers provide access to 70 currency pairs, while Capital.com offers 138 forex pairs.

Is it safe to trade with IFX Brokers?

It is prudent to trade with IFX Brokers, a South African-based broker, as they hold a Financial Services Provider (FSP) license and are regulated by the Financial Sector Conduct Authority (FSCA). This trusted Tier-2 regulator oversees CFD and Forex trading.

The FSCA regulates hundreds of bank and non-bank entities and has strict requirements for obtaining and maintaining an FSP license. As such, traders can have confidence in the safety and security of IFX Brokers’ platforms and trading services.

Is it safe to trade with Capital.com?

Capital.com is a reputable and safe broker for South African traders. Established in 2016 and headquartered in Cyprus, the company is regulated by several esteemed financial authorities, including the FCA, the CySEC, the ASIC, and the NBRB.

Additionally, client deposits are safeguarded by the Investor Compensation Fund or the Financial Services Compensation Scheme per regulatory provisions.

It should be noted that South African traders will operate under the subsidiary Capital Com Bel, which the National Bank of the Republic of Belarus regulates.

This regulator ensures that client funds are held in segregated accounts and that Capital.com provides negative balance protection for traders.

Who is IFX Brokers?

IFX Brokers is a prominent South African broker established just this year. They offer several types of ZAR accounts, compatibility with the MT4 and MT5 trading platforms, and a large selection of foreign exchange (Forex) pairs.

There is a lack of clarity regarding the trading costs, which are typically quite high. In addition, IFX provides very few resources for trading, training, or analysing the market. However, traders of all skill levels can find an appropriate live account among IFX’s five options.

While there is a wide range of minimum deposits (from $10 to $1,000), trading costs never go below 1 pip (EUR/USD).

Who is Capital.com?

For those in search of a new MT4 broker, Capital.com is an excellent option due to its low trading costs and an extensive list of tradable assets.

Capital.com, a reputable and licensed broker, provides access to one of the market’s largest tradable instruments, including more than 138 currency pairs, 3,600 share CFDs, 22 indices, 22 commodities, and 200 cryptocurrencies.

Capital.com only provides one trading account, but the spreads start at 0.60 pips on the EUR/USD, and no commission fee is charged. Furthermore, no service fees are assessed for making deposits, withdrawing, or having an inactive account.