WHAT IS LCG?
According to research in South Africa, LCG, London Capital Group, is a UK-based online trading brokerage with a history that spans over 20 years. LCG is not only reputable but also committed to providing prices which are compatible along with advanced technology and services which are professional.
LCG offers traders over 7000 products which stretch across 9 asset classes. LCG is one of the leading providers of CFDs and caters for all types of traders. Although headquartered in London, LCG has offices in Cyprus and the Bahamas as well.
LCG is both a STP and ECN broker with an impressive offering of competitive spreads along with execution speeds.
SAFE OR SCAM?
LCG is regulated and authorized by three authorization entities:
- LCG Capital Markets Limited (LCG BHS) is registered in the Commonwealth of the Bahamas, regulated and authorized by the Securities Commission of Bahamas (SCB)
- London Capital Group Limited is registered in England and Wales, and regulated by the FCA
- London Capital Group (Cyprus) Limited is registered in Cyprus, and authorized and regulated by the CySEC
LCG is compliant with strict regulations that require clients’ funds to be held in segregated accounts apart from that of company funds. LCG is prohibited from using clients’ funds for operational, or any other, reasons.
These accounts are opened with top rated European banks. These banks are not only capitalised, but they also have longstanding records of reliability. These records are frequently audited and submitted to the regulatory authorities.
LCG makes use of Secured Socket Layer, or SSL, technology. This type of technology is industry standard and encrypts all data transmissions to LCD servers. This prevents internet fraudsters from accessing or intercepting any of the data.
Furthermore, LCG is a member of the FSCS along with the ICF. The FSCS and the ICF provide compensation of up to £85,000 per client should LCG become insolvent.
Clients in the Cyprus region covered by CySEC are eligible for up to €20,000 ICF compensation if LCG becomes bankrupt.
KEY TO MARKETS REVIEW OF PRO AND CONS
|1. Instantaneous connection between apps and web versions||1) Third party tools cannot be integrated into the platform|
|2. Analysis and insights are above average quality||2. No backtesting|
|3. The mobile app is the best in its class||3. No automated trading|
|4. Strict regulation from three jurisdictions||4. No fixed spread accounts|
|5. State-of-the art platforms||5. Clients from Australia, Belgium, Canada, New Zealand, Singapore and the US are not allowed|
|6. Over 7000 tradeable assets||6. ECN trading limited to traders with more than $10,000+ capital|
|7. Technical analysis done through Trading Central||7. Not the cheapest regarding commissions and fees|
LCG uses a dynamic leverage model instead of having fixed leverage levels. The leverage model can be used on both LCG Trader and MT4 platforms. The leverage is automatically adapted according to the trading position of the trader.
Should the volume per trading instrument of a trader increase, the maximum leverage offered will decrease accordingly.
Strict regulations have recently updated the limit on maximum leverage provided and this is due to the risks involved with higher levels of leverage.
The possibility of gains is increased with higher levels of leverage, but so are the possibility of losses which may exceed the initial deposits of clients. LCG’s leverage level is determined by a tier system, which ranges from Tier 1 to Tier 4.
For instance, in the case of Forex, each currency pair, be it Major, Minor or Exotic has its own leverage level according to this Tier system, for example:
- Tier 1 Major Pairs have a leverage of 1:500
- Tier 2 Major Pairs have a leverage of 1:200
- Tier 3 Major Pairs have a leverage of 1:100
- Tier 4 Major Pairs have a leverage of 1:50
The more exotic the pair and the higher the tier, the lower the maximum leverage level will be. This is due to compliance requirements and the protection of traders.
Each trading instrument has a leverage level which is worked out according to the margin group and the Tier Level. Bonds and rates work according to a maximum leverage level of 1:1000.
LCG offers traders with the following choices in accounts:
- ECN Account
- CFD Trading Account
- Swap-free or Islamic Account
- Spread-betting Account
- Demo Account
This account caters for traders who are more seasoned in trading and this can be seen by the $10,000 account balance which must be maintained in order to qualify for this account.
The ECN Account has the following features:
- Spreads that start from 0 pips with no requotes
- Access to unparalleled forex liquidity
- Access to the LCG Trader and MT4 trading platforms
- Complete transparency and anonymity
CFD Trading Account
The CFD Trading account is the Classic-type of account which LCG offers and comes standard with the following features:
- Access to the LCG Trader and MT4 trading platforms
- Trade in over 7000 instruments which span across 9 different classes
- Pricing which is competitive and execution which is reliable
- Access to various types of analysis, research and educational material
Islamic accounts, or swap-free accounts are available to clients who follow the Muslim Faith along with the Sharia law. These accounts have neither swap- nor rollover interest on overnight positions.
After registration on the website has been completed, the trader can contact the customer support team via email to request an Islamic account.
There is also the provision made for a spread-betting account, but this option is only available to UK residents.
Traders can also opt to open a Demo account which is like the live accounts with the provision of virtual money instead of risking loss of actual funds.
The demo account is perfect for beginners who are just starting off in trading and who would like to learn more about trading in a hands-on manner.
LCG provides over 7000 market instruments that are spread over 9 different classes.
LCG offers a variety of markets which have tight spreads and very low commission on not only share CFD trade and margin requirements but also additional monthly cash rebates.
LCG charges most of its trading costs through the spread, but should a trader make use of guaranteed stop losses, there is a premium that will be charged to the trader’s account.
Although the spreads are not the cheapest, they are however competitive and depending on the market conditions, traders with an ECN account will find lower spreads. The spreads also differ depending on the two trading platforms which LCG uses.
The LCG website offers a section which is dedicated to the layout of trading instruments and the various spreads for both the Classic CFD trading and ECN account.
ECN Accounts require a maintained balance of $10,000 in the trader’s account and there is a commission of $45 per $1,000,000 traded.
DEPOSIT AND WITHDRAWAL
LCG does not have a minimum deposit which is required when opening a trading accounts, but the trader must ensure that deposits made are enough to cover the margin costs pertaining to the markets when they are trading.
Depositing of funds
LCG accepts the following payment methods:
- Southeast Asia Realtime Banking
- Skrill Moneybookers
Although LCG does not charge fees on deposits, credit card payments include an additional 2% commission when depositing. Deposits made via beforementioned payment methods usually take up to 30 minutes to reflect.
There is no withdrawal fee waived by LCG, but traders need to contact their payment providers to ensure that there are no fees waived by them that the trader will be liable for.
Withdrawals using any of the specified payment methods can take up to one working day to reflect but LCG cannot be held liable should there be any delay in processing if that delay is out of LCG’s control.
LCG offers traders a choice between two trading platforms, namely LCG Trader and Metatrader 4.
LCG Trader is LCG’s inhouse and own trading platform which is innovative and multi-asset. The trading platform is available for download on desktops, tablets and mobiles which allows traders access from anywhere in the world.
LCG Trader has the following features:
- Provides a trading experience which is fast and reliable
- World class charting package
- Access to a comprehensive range of not only market data, but also charts, news and analysis to aid traders in planning and finetuning their strategies
- Option to set price alerts and notifications
- Advanced trade protection
- Positions can either be doubled up or reversed
- One-click dealing can be done by clicking on charts
- 70 top technical indicators
- A platform which is fully customizable, and several more
This is one of the most popular and most-used trading platforms in the trading community. It is available in 39 different languages and offers a vast number of features, such as:
- Automated trading
- Free signals
- Advanced charts along with numerous trading tools
- Various technical indicators and graphical objects
- Available for download on mobile phones, tablets, laptops and desktops
- Access to EAs and automated trading options
- Stop loss tools
- Trading from charts through the one-click function
- Charting features which are advanced
- The ability to set price alerts as well as notifications
HOW TO OPEN AN ACCOUNT
The LCG review is simple and easy.
Opening of an account with LCG is a simple and fully digital process. The applicant completes the online application process which requires contact details, personal details and the completion of a questionnaire on trading experience.
With the application for an account, LCG will run an online check pertaining to the applicant’s identity and their address. This process forms part of LCG’s security procedures and the process will not affect the applicant’s credit rating.
As soon as the account has been approved by LCG, funds can be deposited into the account and trading can commence.
LCG provides customer support through the provision of a ‘Contact Us’ page, a Live Chat and an area for FAQs.
Clients who have any queries can either visit the FAQ section, or by submitting a question by completing the online form. LCG customer support can also be contacted telephonically or via email.
Alternatively, clients can access the Live Chat function at any time, anywhere on the website.
With regards to educational tools, LCG offers various options such as:
- The LCG Blog which provides a variety of light and informative stories regarding the world of online trading
- Support guides intended to develop the trading knowledge of beginners with topics covering an introduction to trading and the provision of How-to guides.
- The Online trading education centre provides videos which cover various topics such as common trading mistakes, technical vs fundamental analysis and the understanding thereof, and several others.
- LCG also provides a trading glossary with various currency trading terms amongst others.
- The FAQ section also falls within the educational tools as it does cover a variety of topics specifically pertaining to training which might aid beginners.
As with educational tools and helping beginners on their journey to becoming seasoned traders, LCG also makes provision for traders who already have more intermediate and advanced skills, experience and knowledge by providing research tools.
LCG provides traders with the latest news along with an economic calendar, analysis videos and a technical analysis that may aid them in their trades, planning strategies and the finetuning of such.
LCG has won several awards over the years not only pertaining to innovation, but also technology and service, such as:
- Spread betting Provider of the year – 2009
- Financial betting operator of the year – 2010
- CFD Provider of the year – 2011
- Best Online Trading Platform – 2012
- Best Mobile/Tablet Application – 2013
- Best platform – Capital Spreads – 2014
- Best Use of Social Media – 2015
- Forex Innovator of the Year – 2015
- Best Use of Social Media – 2016
- Best Forex Fundamental Analysis Provider – 2016, and
- Best Mobile/Tablet Trading Application – 2016
Through being regulated and authorized by strict authorities like the FCA and CySEC, LCG is a reliable broker which provides a safe trading environment and competitive and convenient trading conditions.
There is a massively diverse portfolio of trading instruments provided and although LCG only makes use of two trading platforms, they both cater for the needs of traders in every way imaginable.
Provision is made for beginner traders through the Demo and Classic CFD trading account whereas the ECN account is specifically designed to suit the trading needs of more advanced and professional traders.
The minimum account balance required with the ECN account may seem high, but for traders who trade in larger volumes, this is quite competitive when comparing it to the more professional accounts that other brokers offer.
With an array of educational and research tools, not only do beginner traders have step by step guides on how to start trading, but more advanced traders have access to information and tools that they can use to give them an extraordinary trading experience.
CFD, Forex and trading of other financial instruments carries a high level of risk that may not be suited to all traders. The level of risk may threaten the trader’s capital and can result in losses that exceed that of the initial deposit.
Traders need to ensure that they understand the level of risk involved and they need to ensure that their objectives are clear. Should traders need to, they can consult with an independent and professional third party for advice.
LCG cannot be held liable for any losses or damages caused through trading with financial instruments, According to research in South Africa.