ETX Capital is the trading name of Monecor (London) Limited, a company which was originally incorporated in 1965… yup ’65. In 2002 they launched a retail branch called TradIngdex, which was renamed ETX Capital in 2007. They offer the possibility to trade Forex, Indices, Equities, Commodities and more recent, Binary Options in a regulated environment. The regulatory agency is the British Financial Conduct Authority (FCA); Monecor’s Financial Services register number is 124721 and address: One Broadgate London EC2M 2QS. It is very important to note that binary options trading is not regulated by the FCA. In other words, the parent company is regulated but not all the services it has to offer.
Is ETX Capital a Scam?
Monecor (London) Limited are not only registered with the British FCA, but also regulated by them. That means the level of control is increased and the possibility of ETX Capital being a scam is limited. Because of their regulation, they take complaints very seriously and traders’ funds are insured up to 50,000 GBP through the Financial Services Compensation Scheme. Please do not believe that if you lose up to 50K trading, someone will give your money back; this insurance covers traders’ funds in the event of ETX bankruptcy (or other limited instances). For further increased security, traders’ funds are held in segregated accounts in German or British banks. Bottom line is that we are dealing with a highly regulated, trustworthy brokerage… on paper, but it’s too soon to say how they will treat their binary options customers because as I said earlier, their binary options branch is very new.
Update February 2017: What we’ve said remains valid: this is an experienced company, regulated by one of the most feared watchdogs in the financial markets – the British FCA. There is no way we can consider them a scam. Furthermore, their web traffic is strong, with a peak at 290K visits in November and December 2016 alike. January 2017 was a slower month, with only 157K visits but hey, that’s still a lot more than other brokers. Half of this traffic comes from the United Kingdom (which is normal because they are regulated by the FCA): 50.49%, followed by Denmark with just over 11%. No major spikes in traffic and overall, the statistics show a healthy website. Again, we must point out that Binary Options are not regulated by the FCA.
Editor’s Note – Why ETX Capital Sucks in 50 words
They confused me right from the start: on their videos they show the SpotOption 2.0 platform but when I accessed it I saw it was the MarketPulse platform. Ok, that’s not such a big deal but hey: if you switch platforms, replace the video as well. They also have MT4, overall very confusing.
Update February 2017: The old SpotOption videos are now gone from their website. Thanks for cutting back on confusion guys.
Why ETX Capital Doesn’t Suck in 50 Words
We are talking about a regulated company, with years of experience. The regulatory agency is the British Financial Conduct Authority, which offers a higher level of protection and safety than say… CySEC. Don’t get me wrong, a CySEC regulated broker is better than an unregulated broker, but I’d rather go for one with FCA regulation. Update September 2016: Note that binary options are not regulated by the FCA. This information is present in several places on the ETX website so kudos for transparency.
Should I Open an Account with ETX Capital?
ETX Capital is not your regular binary options brokerage; they are primarily focused on other markets (like forex, equities, CFDs, etc.) and have just recently entered the binary options scene, probably because they’ve understood this is now a big market, with a lot of potential. The website is huge but binary options don’t get the attention they get from brokers that deal exclusively in binary options (duh) so the binary options part just contains some information about how to trade, what are binaries and a few videos explaining the mechanism for placing a trade. The best part is that you can open a binary options Demo account in just seconds. You don’t need to ask for one, or to deposit, or to send them documents; you simply fill in a few details and you are ready to go.
Education is a big part of their website (binary): they talk about the risk of trading, how to manage and reduce it, they offer a few strategies and explain some of the features of their platform. Speaking of platform, I find one feature a bit hard to use: choosing an expiry. Unlike the normal way of doing it, on ETX Capital’s platform you will find the expiry time next to the asset you want to trade, not above the chart. Ok, I don’t want to be a nitpicker, it’s just that for a moment I couldn’t find the expiry and it bothered me. Once you find it, you’ll know where it is. Overall I am not overly impressed with ETX Capital’s binary options section but since we are dealing with a huge company, I believe they are a better choice than a white label, copy-paste broker and just the fact that they are not flashy shouldn’t put you off.
Update September 2016: They’ve introduced a wide range of webinars, which is always a good thing for the newcomer binary options trader but also for more advanced users. Also they feature up to date Weekly market commentary, which is due to the fact that ETX is primarily a Forex broker and usually these brokers care for such details.
Update February 2017: So I was complaining about the expiry tab not being in the “normal” place. You know, when everything is OK, you find weird things to complain, things that otherwise you wouldn’t care about. I mean, if the internet would be filled with Scam allegations regarding ETX, I would complain about that. If their platform would freeze, I would complain about that. But since I can’t complain about something important, I nitpick. Well, just to shut me up, ETX now has an expiry tab above the chart and next to the asset you want to trade. Damn, what am I gonna complain about now…?
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ETX Capital Complaints
So far, no major complaints have surfaced regarding their binary options service but their Forex side has a few unsatisfied clients. However, almost all Forex brokerages have complaints and we are not here to analyze anything but the binary options branch. If complaints will start piling up, we will update this review accordingly.
Update February 2017: I managed to find some complaints about ETX Capital voiding the profits of some of their Forex branch clients. The issue was later resolved and other than that, clients seem to have a positive opinion about this brokerage as far as binary options are concerned.
ETX Capital Bonus
They currently offer bonuses for their ETX MT4, ETX Trader and ETX TraderPro platforms. None of these allow binary options trading, therefore you should contact their support for a personalized bonus offer for binary options. However there is no guarantee you will get one.
ETX Capital Withdrawal
Withdrawals are extremely fast (1 working day processing time) and can be performed via bank/wire transfer, major credit cards (except AMEX) and online banking. The withdrawal will be made through the same method used for depositing. If you withdraw more than 50 USD, ETX will not charge a fee.
Update September 2016: ETX will offer five (5) monthly withdrawals free of charges for any sum above 100 USD. They accept all major credit cards, wire transfers, Skrill, Neteller and the general processing time is one (1) day which is pretty fast (additional 3-5 days will pass until the money reaches you).
Update February 2017: They’ve added new e-wallets: China UnionPay, Sofort and GiroPay. All other options are still available. The first 5 withdrawals above $100 are still free and the consequent ones will incur a $25 fee. Also, withdrawals below $100 come with a processing fee. The processing time is one (1) day for all withdrawal methods but the funds will reach you in 2-3 days or 3-5 days, depending on the method you’ve chosen.
ETX Capital Extras
The huge experience ETX has on the market can be considered an extra, as well as the solid FCA regulation of the owning company, Monecor (note that binaries are not regulated by the FCA). As for trading, the normal features are available, without anything extraordinary. We can note here the webinars, news and a blog containing financial articles.
ETX Capital Ratings
User Friendly 17/20
The platform is pretty clean and straightforward. The drop down list of expiry times is located next to each asset and I don’t consider it the best place but it’s not a major problem once you get used to it.
Update September 2016: The only available language is English. Sure, this is the “official” language of the internet, but I guess more options should be available.
Number of Assets and Expiry Times 16/20
Update February 2017: The available assets are now 24 currency pairs, 10 commodities, 10 indices and 25 stocks (not all are available for Short Term trading). Overall it’s not a big change but it’s good to see they’ve added more assets, so they’re going forwards, not backwards.
Commissions, Support and Effective Return 16/20
There are no commissions for opening an account (which is normal for any broker). A fee is only charged by ETX Capital if you withdraw less than 100 USD/GBP/EUR but this fee is not specified. Withdrawals above this sum do not incur a fee charged by ETX but the bank/payment processor will charge a fee according to their Terms and Conditions. The Live Chat doesn’t exist but most of their international phone numbers are free and of course, they can be contacted by email. The effective return goes as high as 81% for normal High/Low options and can reach 100% for Spread High/Low and Touch/No touch. There is no refund for Out Of The Money trades.
Update September 2016: The first five (5) withdrawals of the month are free (if they are above 100 USD) and consequent withdrawals incur a processing fee. Live Chat support is still not available.
Update February 2017: Like most brokers, ETX Capital charge an inactivity fee. An account shall be considered inactive if there has been no other trading activity for a period of 120 days and as a result, a fee of 25 USD will be charged monthly. If you decide to reactivate the account by trading again, the last three inactivity fees will be refunded to your account.
Deposit, Payment and Bonus 18/20
Minimum deposit is 100 USD/EUR or 10,000 JPY. Deposits and withdrawals can be made through major credit/debit cards (excluding AMEX), wire transfers and online banking (these methods may differ depending on regional restrictions). The processing time for payments is very fast: 1 working day and additional 2-3 working days (or 3-5 working days in some cases) must pass until the money reaches you. There is no general bonus system (one may be granted depending on individual circumstances but we are not aware of it).
Website Extras 12/20
ETX Capital is one of the oldest brokerages around, regulated by the FCA but although these are major advantages, the website or platform does not stand out with something extraordinary.
ETXCapital Overall Ratings 83 + Regulated (+3) = 86/100