Eightcap is a retail Forex broker accepting clients since 2009 and creating what they believe is an ideal trading space for MT4 traders. Since its inception in Melbourne, Australia, Eightcap has expanded to five offices globally. This broker is regulated in two jurisdictions and offers clients access to over 200 assets across four sectors, from two trading platforms and two account types. High-frequency traders and access to a competitive cost structure, and Eightcap have a seasoned management team in place. In a testament to its financial success, Eightcap became a sponsor of Formula One team Scuderia Ferrari for the 2019 and 2020 seasons.
Regulation and Security
Eightcap Pty Ltd is the Australian entity, regulated by the Australian Securities and Investments Commission (ASIC). The Act of Grace mechanism under section 65 of the Public Governance Performance and Accountability Act 2013 adds another layer of security. Traders are shielded from potential damages via the Scheme for Compensation for Detriment caused by Defective Administration (CDDA Scheme). Eightcap Global Ltd is the Vanuatu entity with regularity oversight by the Vanuatu Financial Services Commission (FSC). Client deposits remain segregated, and the client agreement of the FSC division specifically notes negative balance protection, which we didn't find easily for the ASIC division during our Eightcap review. Overall, Eightcap maintains a safe and trustworthy trading environment.
ASIC and FSC provide the regulatory environment for Eightcap.
Fees
The commission-free standard account commences with spreads from 1.0 pips, while the commission-based alternative features 0.0 pips plus a $3.50 fee per 1.0 lot traded. Eightcap is a market maker and profits directly from client losses where it acts as the counterparty. Swap rates on overnight commissions apply. Equity and index CFDs face corporate events like dividends, splits, and mergers, which this broker passes on to applicable portfolios. Third-party deposit and withdrawal fees depend on the payment processor. Eightcap keeps the cost structure to a minimum, so that traders can keep as much of their profits as possible.
MT4/MT5 traders can easily access swap rates from their platform by following these steps:
1. Right-click on the desired symbol in the Market Watch window and select Symbols.
2. Select the desired currency and then click on Properties located on the right side.
3. Scroll down until you see Swap Long and Swap Short.
Eightcap is one of a few brokers that informs clients how to obtain swap rates from the trading terminal.
Some Danger Signs
No Global Regulation
For any company that’s going to take your money to trade forex on your behalf, you must ensure that they are properly regulated. It helps if they are regulated in more than one country, especially countries that are hard on scammers like the US and the UK. Global regulation is a good sign that they are reliable and legitimate.
Although Eightcap is regulated in Australia by the ASIC, it is unregulated in the rest of the world. When you look at the Eightcap website, you’ll find that they claim to have global regulations.
However, they fail to mention who else apart from ASIC regulates them. They only mention that the Vanuatu Financial Services Commission (located on an island east of Australia) regulates Eightcap Global Ltd. Probably that’s their definition of ‘global regulation’.
They claim to have 5 offices across the globe. However, they don’t list their office locations anywhere on the website. What does it take to list just 5 regions? Wouldn’t a genuine company want their clients to know where their offices are located around the world? This is a huge red flag.
Poor Reviews
You can’t afford to invest large sums of money without knowing the experience of people that have done it before you. The poor reviews about Eightcap from former and current investors are a clear indication that this broker is often up to no good.
One of the complaints from several investors is that Eightcap deletes their transaction history, especially if the investor identifies any questionable transactions. This means they won’t be able to refer to them in case they need to file a complaint. That’s no doubt scammer behavior.
Other complaints include:
The broker deducting money from their accounts
Imposing charges when the investor chooses to withdraw their money
No responses to complaints by the investors
Accusations of investors breaching contracts without evidence to keep their money
Conclusion
There’s no other way to say it, Eightcap is a scam. Stay far away from this broker. They create the impression that they are globally regulated, and yet they can’t mention where else except Australia. Unkeen investors could easily fall for this.
Also, the number of bad reviews from several review websites is a clear indication that they are not worth your time. Some novice investors ‘go with their gut’ despite negative reviews. You’ll end up in a financial hole that will be difficult to come out of.
Research, research, research. We can’t stress that enough. Before investing in any online trading platform, you must have as much information as possible to make a sensible decision. The critical factors to look out for include reviews, regulation, terms and conditions, deposit and withdrawal policy, and legal documents.
You also need to get proper forex trading training so that you don’t blindly trust any broker out there.
0 Comments