The London Capital Group (LCG) broker is a global intermediary that began operations in 1996. Forex, spot metals, stocks, indices, ETFs, CFDs, stock options, bonds, interest rates, and commodities are among the nine asset classes available to traders who have registered an account with LCG. The low minimum deposit requirements make trading with LCG reasonable. While the utilization of cutting-edge technology and high-quality service makes it convenient.
List of contents
London Capital Group (LCG) : Website
Instruments: CFD, Forex, Stocks, Futures
Demo Account: Yes
Min. Deposit: 0 $/€/£
Min. Trade: Lots vary by asset
Regulated By: FCA
London Capital Group (LCG), founded in 1996, has remained competitive in the fast-changing internet brokerage market. In 2016, the company developed LCG Trader, a browser-based, white-labeled cTrader platform. This, along with the popular MT4 (downloadable) platform and a working mobile application, constitutes the entirety of LCG’s consumer-facing internet offerings. The broker offers access to various CFDs and spread betting products spanning multiple asset classes. London Capital Group, like many other forex brokers, does not accept U.S. clients.
London Capital Group maintains it simple with functional platforms that can be downloaded (MT4), accessed via a browser (LCG Trader, MT4 Web), or accessed via a mobile app. The organization offers basic or electronic communications network (ECN) accounts (the latter requiring a $10,000 deposit), low margin requirements, and low spreads. In liquid markets, ECNs let clients trade directly with market makers, lowering spreads. London Capital Group’s customer service, which is crucial for all traders but especially beginners, sets it apart.
Customer Service
Monday through Friday, 8 a.m. to 7 p.m. U.K. time (24/5), support is accessible via phone, chat, and email. If the need should arise, customers can call the “dealing desk,” which is a huge plus. Hold times on the phone and in chat are significantly lower than the average, and the customer service agents were kind and quick to answer. It is highly practical to initiate live chat directly from the LCG Trader platform. The frequently asked questions are clear, well-organized, and very useful.
Customer service at LCG is generally attentive and informed. The chat box repeatedly and unexpectedly appears while using the LCG website (while logged in as a demo account) to “check-in.” Even though that can be annoying, live accounts do not experience this. There are no branch offices to visit. Customers located in close proximity to the London office will be able to receive in-person service there.
Products
The London Capital Group (LCG) gives customers access to a wide range of financial instruments in multiple asset types, such as:
- Forex
- Indexes
- Metals (spot)
- Bonds
- Commodities
- Options
- ETFs
- Individual stocks
All financial instruments, with the exception of individual stocks, have leverage tiers and spreads that are competitively low. On both the MT4 and LCG Trader platforms, LCG uses a dynamic leverage model that dynamically adjusts to the trading positions of its clients. The maximum leverage offered reduces in proportion to the client’s volume per instrument.
Pricing
LCG’s competitive spread covers most trading costs. LCG Trader charges 3 pips for guaranteed stop losses (GSLO). When trading stocks and ETFs, “commission” is added to both sides of the spread. “Additional Spread” is the spread adds to the market ask and subtracts from the market bid pricing, LCG states on its website. ECN accounts (with a minimum of $10,000) offer LCG’s greatest spreads; however, LCG Trader is still different from MT4. “A commission of $45 for every $1 million traded will be levied on all symbols on LCG Trader and $10 per lot on MT4” the website states.
ECN LCG Trader accounts cost less than ECN MT4 accounts, so this information is deceptive. ECN LCG Trader charges $45 + average spread for a $1,000,000 trade, while MT4 charges $100 + spread since one lot equals 100,000.
Broker may offer TSE VIP analysis to high-balance clients. Active traders can get a $4 million rebate that increases with volume.
LCG only charges 2% on credit card deposits and £15 per month for live accounts with no trading activity in 180 days (6 months). London Capital Group does not require a minimum deposit for “basic” accounts. Although logic dictates that this amount will be subject to the margin requirements of the customer’s smallest trade size. ECN accounts must deposit $10,000.
Trade Experience
LCG Trader is a dependable, easy-to-use trading tool accessible from any browser (Chrome, Firefox, Safari, or Internet Explorer). With its revamped appearance and feel, one-click trading, and complete connectivity across desktop and mobile platforms. This product the company’s flagship should be a good choice for new traders. The technical reports from Trading Central are also accessible through LCG, which is helpful for both novice and experienced traders seeking trading ideas.
With the help of LCG Trader’s straightforward and user-friendly interface. Traders can create watchlists, examine charts, execute and track transactions, check an instrument’s “depth of market,” and keep track of forthcoming events using the market calendar. The technical analysis charts have more than 70 technical indicators that you may use over a variety of time frames, from tick charts to monthly charts, and they can be extended to full screen. For traders searching for a dependable download platform, LCG also provides a MetaTrader 4 (MT4) solution.
LCG Trader allows chart and order window trading of thousands of financial instruments. On the instruments they are tracking, traders can also establish price-based alerts, and LCG Trader will send them an email or text message when the price goal has been met. LCG Trader is, regrettably, a closed system. Advanced traders will be unhappy to learn that they cannot directly combine those tools with LCG Trader, but that option is available with the MT4 platform. Moreover, advanced traders prefer to incorporate various analytical and automated tools into their trading process.
Security
In compliance with the FCA’s (U.K.) client money rules. LCG also takes precautions to make sure client monies are not mixed with corporate funds. By keeping such monies in separate accounts at regulated banks. So, this guarantees that client assets are safeguarded in the unlikely scenario that LCG experiences insolvency. Additionally, clients have up to £85,000 in additional asset protection through the Financial Services Compensation Scheme (FSCS).
Through its negative balance protection. LCG offers customers the assurance that they won’t ever lose more money than they have in their accounts. Depending on the state of the market, certain products allow for the use of guaranteed stop losses. However, doing so incurs a fee as long as the position is open.
The mobile application of LCG lacking in security settings. It is concerning because it can provide access to your entire account. In order to access customer accounts, there was no additional security provided by two-factor authentication (2FA) or biometric scanning.
Education
The fact that LCG’s training materials adhere to the industry standard of imparting fundamental knowledge on the forex and CFD markets sets them apart from other basic-level films and articles available elsewhere in the sector. Some background information will be helpful for new investors. But it’s unlikely that they can become market-savvy merely through LCG’s instruction.
The fact that LCG’s training materials adhere to the industry standard of imparting fundamental knowledge on the forex and CFD markets.
The educational videos are well produced, but the content is delivered in a green screen/teleprompter format with no practical market application. On the plus side, the LCG Trader platform’s instructional films are excellent. One might draw the conclusion that this kind of trader is not LCG’s target client because there isn’t much substance in the education section for more experienced traders trying to develop their skills. A good glossary is provided.
The website’s “latest news” section contains market commentary items that haven’t been updated in a while. LCG experts lead weekly “Market Analysis” webinars on Mondays. These webinars allow for a deeper exploration of the happenings of the previous week.
Pros and Cons
Pros
✔ Accent placed on customer service
✔ Governed by FCA (U.K.)
✔ Provides security for client accounts
✔ Available account and trading incentives
Cons
✘ Website maintenance under standard
✘ Does not accept U.S. clients
✘ The distinctions between LCG trader and MT4
✘ No capabilities for backtesting or automated trading
Pros Clarified
- LCG prioritizes client service, which includes access to a dealing desk and live chat 24 hours a day, seven days a week. This feature improves their score more than any other, as the ability to easily contact a broker is fundamental, especially for clients who are unfamiliar with trading.
- LCG is regulated by the Financial Conduct Authority (FCA #182110), which is one of the primary regulatory authorities in the United Kingdom and is well-regarded internationally for ensuring that market activities are fair for individuals and businesses alike. A firm’s legitimacy is significantly enhanced by the fact that it is governed by a respectable, government-backed organization. Traders understand the inherent risk of markets, but they want the peace of mind that their funds are not exposed to risks other than those they are taking, such as counter-party risk. Additionally, all client monies are stored at Tier 1 financial institutions.
- LCG provides “negative balance protection,” an increasingly significant feature that most online brokers now provide. The 15 January 2015 SNB event was most likely the impetus that shook the markets, notably the heavily leveraged retail FX market. In addition, LCG offers guaranteed stop losses [GSLO] (for an extra fee) on LCG Trader alone, which safeguards traders from market gap risk.
- Available incentives include premium services for high-balance customers and rebates for high-volume traders.
Cons Clarified
- Maintenance of the website leaves much to be desired. Web presence is one of the defining characteristics of an efficient firm, especially in 2020. While the LCG web page is attractive and user-friendly, there are a few broken links and pages with erroneous, out-of-date, or insufficient data.
- Due to regulatory restrictions, LCG cannot accept U.S. clients and hence cannot be termed a worldwide broker. This would be a red flag if the company was not controlled by the FCA, which, along with the other U.S. regulatory authorities (NFA, CFTC), is usually regarded as the foremost regulatory agency.
- There are disparities between LCG Trader and MT4 regarding spreads, commissions, and product availability. In essence, LCG’s web-based (cTrader white-label) platform is the company’s main product and has significantly more functionality than its MT4 white-label. This issue would not be as significant if MT4 were not the only download option.
- LCG Trader lacks back-testing and automated trading tools, leaving algorithmic traders with only MT4 as an alternative.
Is London Capital Group (LCG) A Worth to Get?
LCG offers a wide range of markets, including cryptocurrency and options, which will appeal to new traders. The spreads are competitive even though they aren’t the lowest. When allowing the client access to its platform via browser, download, and mobile application, LCG adheres to the idea of functional simplicity. London Capital Group is a broker for traders that value outstanding customer service and manually manage their transactions on a user-friendly platform with lots of features. Investors looking for vanilla options will probably also have a look at LCG. London Capital Group is not the right broker for you. However, if you are the kind of trader that needs to be able to do algorithmic trading using a virtual private server.
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Source: Investopedia