LCG

London Capital Group (LCG) is a London-based brokerage company that allows trading on many instruments. The currency pairs that can be used for trading include more than 60, according to LCG’s terms, comprising major minor, exotic, and major. There are CFD contracts that cover a broad variety of asset classes, including indices, shares, spot metals, bonds, futures and rates of interest. LCG clients also have the option of trading in other markets, such as commodities, spot metals vanilla options, etc.

The forex pair portfolio is comparable to other brokers regulated by FCA, like FxPro that offers approximately 70 forex pairs, whereas FXCM for instance, has a restricted selection of approximately 40 pairs.

The Company. Security of Funds

London Capital Group was incorporated in 2005. It is listed in the London Stock Exchange. Its main business involves spreading betting (in the UK) and trading in CFDs and forex for retail, private and professional customers. The company also provides the Introducing Broker and White Label solutions.

LCG is controlled by the The UK’s Financial Conduct Authority (FCA) – the regulator of one of the biggest international financial markets. The watchdog enforces strict regulations and guidelines regarding the company’s capital, client funds segregation and a range of other matters. The brokerages that are regulated by the watchdog among the top-rated and secure in the world. Other major forex brokers who have an FCA license include FXCM, XM, FxPro, Forex.com, IG Group, CMC Markets, Plus500, etc.

The company also set up an Cypriot company subsidiary called London Capital Group (Cyprus) Ltd., which is licensed by CySEC.

Trading Conditions

LCG provides two types of trading account live, including Classic as well as ECN. The primary distinction between the two accounts is in spreads, with ECN accounts offering tighter spreads. LCG offers the possibility of a premium option for traders who have at minimum PS25 000 in deposits. The service is personalized, and includes evaluation and analysis, as well as instruments.

Also, you can get the Islamic account that is also known as swap-free accounts, since it doesn’t have any rollover interest on overnight transactions. The feature is popular with brokers who want to expand their reach in markets that have a mostly Muslim populace who adhere to the sharia law that specifically prohibits the profiting of interest and usury. Other brokers that offer Islamic accounts include Grand Capital, FXTM, XM, FxPro, Admiral Markets, etc.

LCG also offers a no-cost trial account.

Minimum deposit

LCG states that it doesn’t have a minimum amount of deposit required to open live trading accounts as long as the customer has enough money to meet the margin requirements of the markets they trade. This is a acceptable requirement even though LCG provides leverage up to 1:500 for certain forex pairs, which could be a bit risky for novice traders. However, it is likely that the FCA is soon to introduce an 1:50 leverage limit for CFDs for brokers who are subject to its oversight.

To qualify to be eligible for the ECN account LCG customers must have the balance of $10 000 This suggests that the service is targeted towards larger retail customers and institutional traders.

Spreads & Commissions

LCG offers floating spreads on all accounts, including the Classic and ECN accounts. The average spread for the most popular currency pairing, EURUSD on the Classic account is 1.6 pip that is close to the average of floating spreads. The most common spread on an important pair is 2.6 per cent for GBPJPY.

The spreads on ECN account are more tight and start at 0 pip. The average spread for one of the EURUSD exchange is 0.2 per cent, whereas on the GBPJPY, it’s 1.6 pip.

Like many brokerages, LCG charges a commission on accounts that have tighter spreads. According to their website there are two kinds of commissions, which are based on the platform used for trading. For trading using MetaTrader 4 (MT4) LCG charges $10 per lot. When trading with its proprietary LCG Trader it charges $45 per $1,000,000 worth of transactions.

Leverage

Maximum leverage LCG provides is 1:500 for Classic accounts for the majority of major pairs, with the exception of EURCHF and USDCHF in which the leverage is 1:50, just as in all other pairs. For minor pairs, the maximum leverage is 1:200.

On ECN accounts, the maximum leverage is 1:200 for minor and major pair and 1:50 on exotics.

Trade platform

LCG provides two trading platforms: the well-known the MT4 as well as LCG Trader that includes cTrader the platform developed by a developer that allows to brand under the white label partnership. Another popular broker offering the cTrader platform is FXPro.

The MT4 is compatible with both kinds of trading accounts that live, however, LCG Trader is only available for ECN accounts. LCG Trader is designed only for ECN accounts only.

LCG Trader LCG Trader is web-based and lets customers trade every instrument across the seven asset classes that the broker provides. The platform offers low latency, high liquidity, rapid execution, and well-optimized prices.

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Many of the top brokers like FXCM provide a platform designed specifically for them or created by them. It usually is designed to meet the requirements of more experienced traders. They also offer one of the most well-known options like MetaTrader 4 and 5 with which smaller retail traders are accustomed.

Payment methods

LCG accepts client deposits via credit/debit cards, bank transfer and online payment services Skrill. The company’s website states that it is not able to accept certain varieties that are Visa Electron debit cards.

Conclusion

LCG is a well-established important UK Forex and CFD brokerage. It is controlled through the FCA and registered in the London Stock Exchange, which means it is a reliable and stable business. It is evident that the broker doesn’t earn the majority of its revenue from retail traders but, nonetheless, it offers good conditions for them as well.

LCG’s average spreads on Classic accounts The high leverage, as well as the flexibility of deposit requirements make it appealing to traders who are primarily retail. The broker doesn’t try to lure everyone by offering attractive reward programs (with all the obligations) and all kinds of bells and whistles that are useless instead, it appeals to those who are aware of the things they need. The advantage of the fact that LCG provides MT4 is also appealing to a larger client base.

All in all, LCG looks like a excellent choice for those looking for a dependable, licensed broker that offers decent trading conditions. The FCA regulation allows the broker is able to provide services across Europe and the EEA (EU and Iceland, Norway and Lichtenstein).