London Capital Group Review: Is it the Best Forex Broker?

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Introduction

Nowadays, financial instruments such as forex currency pairs, CFDs, commodities, and indices garner high stakes. People are becoming familiar with the high-profit potential of trading these instruments, driving their uptake across the globe. However, the global market for trading forex pairs, CFDs, and other assets is very unpredictable. It is a place where only proactive trade experts can make their earnings independently. For most people, the successful trading of these instruments can be achieved only by partnering with a financial service that brokers their trades.

London Capital Group (LCG) is among such brokers that have helped millions of users buy and sell financial instruments, forex currencies in particular. This London Capital Group review explores the broker and its online operations to disclose how it guides the economic well-being of its clients. The review further studies the plus-points as well as the downsides of this currency trading broker. Key findings from this London Capital Group review also reveal why no retail investor accounts lose money when trading CFDs.

What is the London Capital Group?

Founded in 1996, London Capital Group has emerged as one of the world’s most competitive online brokerage services. The LCG group of online brokers has consistently kept their pace with the ever-changing landscape of financial trading. In 2016, the London Capital Group rebranded its service by launching the LCG Trader, a web-based application of a white-labeled cTrader platform. This offering is equipped with the widely-used MetaTrader 4 platform. The company also ensured that its LCG Trader product stays a fully-functional mobile application and performs the entire suite of LCG online broker services to the clients.

What is the London Capital Group?What is the London Capital Group?

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Today, LCG helps its clients access a wide range of CFDs, forex pairs, and spread betting instruments. These instruments are categorized across different asset classes. Barring the U.S. traders, LCG brokers the trades for clients from all parts of the world. The company has designed its services to fit the needs of beginners. All platforms offered by the London Capital Group are simple and functional on basic computing systems and devices. They can be either downloaded or accessed on web browser applications.

Similarly, the company offers mobile trading services, helping its clients choose between a standard account or an electronic communications network (ECN) account. For ECN trading accounts, the London Capital Group takes a minimum deposit of $10,000. These trading accounts vary based on their profit margin requirements and competitive spreads. With London Capital Group, trades can be made directly with market makers, which is why none of its retail investor accounts lose money when trading CFDs. Moreover, the company optimizes the cost of the spread based on market liquidity. To top all this, London Capital Group provides excellent customer service. All clients associated with LCG traders, including the beginners, are managed efficiently by the broker.

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How London Capital Group Works?

The LCG Trader platform offered by the London Capital Group is the key instrument to their success. It is quite a streamlined trading platform and provides stability and ease of access to its clients. Web browser applications such as Google Chrome, Mozilla Firefox, Windows Edge, and Apple Safari can effectively run this web-based trading platform. Being a flagship offering of London Capital Group, LCG Trader comes with an updated UI, one-click trading features, and fully-integrated cross-platform support. On the grounds of this platform’s working efficiency in catering to the clients of London Capital and Finance, TrustPilot has ranked this broker with a remarkable 4.2 out of 5 stars.

London Capital Group conducts its services with the simple UI of its trading platforms. The easy-to-use tools provided by the broker help clients in creating custom watchlists and analyzing trade charts. The broker actively places trade orders and monitors those orders to have complete control over the clients’ investments. They get access to every instrument’s depth-of-market, which keeps them updated on upcoming market events. The broker runs an economic market calendar that notifies the clients of future trading opportunities. The technical analysis charts generated by the London Capital Group provide a full-screen display of how every trade scores under 70 technical indicators. The broker allows its traders to apply these indicators across multiple time frames and generate reports in the form of tick charts or monthly charts.

LCG Trading Platforms

The LCG broker services primarily operate with the MetaTrader 4 platform. It provides their clients access to thousands of reliable tools to trade their financial instruments. These tools ensure that every trade reaps significant profits and does not impede the growth of the client’s investment portfolio. From trading through charts or using the new order window, users can leverage the power of MetaTrader4 by setting up price-based alerts on their instruments.

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London Capital Group also notifies its clients of their email address or phone number. To reach the price objective, it takes great care to protect its clients from the high risk of losing money with short-selling. However, it runs a closed system that cannot monitor the financial conduct of its clients across all instruments simultaneously. For advanced traders, the broker incorporates third-party plugins to run analytics and automation of their trading processes. However, the London Capital Group does not integrate these tools directly with the LCG Trader. They are added as an option with the MetaTrader 4 platform.

LCG – Types of Trade Order

Four types of orders can be placed with the LCG Trader. The broker offers these options to help their clients make profits and/or avoid losses on their trades.

  1. Market Order – It is the simplest form of trade order where the broker provides signals to the traders indicating the time for executing their trade request at the existing market rate.
  2. Stop Order – This is a pending order made by the trader. The broker sets the entry at a predetermined point of the market, either above or below the existing market rate. The broker indicates the trade’s execution, depending on what’s more profitable – buying or selling. The broker also allows the trader to set an expiration time for this pending order.
  3. Limit Order – This is also pending order similar to the stop order, but the entry is set at a predetermined point below the existing market rate. The trader can also set an expiration time for this order.
  4. Stop-Limit Order – In this pending order, the trader gets to select a tolerance range for execution. With this range, the order gets canceled if the market surpasses the selected rate and tolerance gap. This order can also be set with an expiration time.

Since retail investor accounts lose money when trading CFDs under volatile market conditions, the broker helps them make the stop-loss orders, which curb the high risk of losing money and stop the trailing loss on trades. An additional option is provided by the broker, where the trader can issue a stop-loss order by executing it at the asking rate.

How LCG Conducts its Research & Training?

This London Capital Group review discovered how the broker helps in trading and educates the users to become experts. Beginners can become seasoned traders by taking advantage of the educational offerings provided by the London Capital Group. The broker develops high-quality educational content in the form of basic-level videos and articles to advanced trading materials. Other brokers in the industry do not provide such quality education, which keeps their clients limited to their growth. This broker offers basic as well as advanced training on forex and CFD trading. It helps new investors detect and avoid trades that indicate a high risk of losing money. It also provides background information on markets to eliminate instances where retail investor accounts lose money when trading CFDs. By relying on London Capital Group’s education, users can gradually become proficient in their markets.

London Capital Group has set the production quality of these education videos very high. The material, however, may lack in actual market application to some degree. Even so, the how-to user guides for the LCG Trader platform are very illustrative. Advanced traders may find relatively low content for next-generation trading information. But, their skills can improve when the broker leads them to define new ways to meet their customers’ target.

Research-wise, the London Capital Group delivers a real-time market commentary. It provides articles in the form of the latest news on the website. This research information is accessible to LCG users only, with all rights reserved to the London Capital Group. The broker also offers weekly sessions on market analysis sessions. It is a webinar conducted by London Capital Group’s expert trade analysts. It is scheduled every Monday and contains key takeaways on how traders can prepare for the events in the following week.

The analytical research material developed by the London Capital Group is used to generate insights for traders. These insights are based on industry standards and do not risk the traders’ wealth under any market conditions. The research materials further support educational resources as the broker connects its users with a team of analysts for actionable information. The trading platform also develops charts, which can be tested with a demo account to check the efficacy of LCG’s features and services.

London Capital Group – Key Offerings

The majority of features offered by the London Capital Group are integrated into its trading platforms. LCG clients can adopt the medium they prefer and experience the benefits of these offerings. The LCG Trader is designed as an entry-level platform that helps beginners with insightful charts. The MetaTrader 4 platform is more flexible. It runs back-testing on trader orders to simulate the outcomes. This allows users to mitigate every high risk of losing money. The automated trading system of MetaTrader 4 serves as a supplemental advantage to traders and helps proficient traders implement customized online trading strategies.

The mobile versions of these trading platforms are even more functional. They not only bridge the connection between the desktop and web applications but also provide alerts to the users – which is a critical offering of the London Capital Group. The broker offers authentic charts of market data, which can be easily modified to add indicators. The navigation between every order entry is smooth. Account management is streamlined perfectly, and the LCG research tools are organized with straightforward access.

London Capital Group - Key OfferingsLondon Capital Group – Key Offerings

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The web version of LCG Trader is a fast solution to trading. It is easy and has access to a standard trading menu, which also includes a charting section. The changes made on trades are instantaneously translated to the LCG Trader web app. The charts offered by LCG brokers are displayed in full-screen modes for better understanding. However, the web application is unable to integrate the entire suite of LCG offerings. Therefore, the MetaTrader 4 platform is a bit better than the LCG Trader app.

Financial Instruments Supported by LCG

Broker services provided by London Capital Group are listed in the following categories of financial instruments. Clients can select these instruments across a wide range of multiple asset classes.

  • Indices
  • Commodities
  • Metals (spot)
  • ETFs
  • CFDs
  • Bonds
  • Forex Pairs
  • Options
  • Individual stock

The spreads on these financial instruments, except the individual stocks, are competitively low. All financial instruments have tiers of leverage where the broker runs a dynamic leverage model through the trading platforms and automatically adjusts the leverage based on the clients’ trading positions. When the client’s trading volume increases per instrument, the limit for maximum leverage decreases concurrently.

London Capital Group’s Customer Service

LCG customer service is one of the biggest advantages of the group. Since most investors are looking for ways to avoid every high risk of losing their investments, they tend to reach out to the company frequently. To cater to these needs, London Capital Groups supports its customers via telephonic conversations, live chat, and email support. The customer service of the London Capital Group is available from Monday to Friday, between 0800 hrs and 1900 hrs (BST).

The clients can reach out to the LCG dealing desk, where their queries can be raised and resolved. There are shorter hold times on the live chat and telephonic options. The representatives respond quickly, especially in the live chat windows. There is a section of FAQs that is also equally informative and properly organized to solve our common doubts.

For running responsive customer support, London Capital Group scores high on trust and reliability. The LCG website allows new users to try the demo account and experience these support services in an unsolicited format. Since there are no regional branch offices of the London Capital Group, the entire customer service is conducted online from the London headquarters. To get in-provide service, clients need to visit the LCG headquarters.

Pros and Cons of Trading with LCG

Being one of the Top Forex Brokers globally, the London Capital Group offers several benefits to the traders. At the same time, it also holds some shortcomings that impact the user experience.

Pros Cons
 Top-quality customer service.  No customer service on weekends.
 Strict implementation of best market practices.  Restricts implementing unconventional trading strategies.
 Closely regulated by UK Financial Conduct Authority FCA #182110.  Not available for US clients.
 Invested funds not subjected to risks of  regulatory non-compliance.  Minimum deposit required for opening an ECN trading account.
 Funds are stored only at Tier-1 banks.  Feature-based differences between platforms.
 Rebates for high-volume traders.  A monthly fine of £15 for an inactive account.
 Investor protection to clients.  Limited back-testing.
 Trading incentives available.  Incentives only on premium services.

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The above points highlighted by the London Capital Group review are also a factor to LCG being awarded as the best forex broker by leading market regulators in 2020. 

How LCG Analyzes Client Portfolio?

London Capital Group’s online trading services generate data from dozens of credible sources. Depending on the trading platform being users, LCG offers its traders valuable information on the active market. It displays market positions in real-time, sharing data on profit margins, pricing trends, pip values, and trade times. This information governs the success of the investments of LCG’s clients. They can make informed decisions by understanding this information.

How LCG Analyzes Client Portfolio?How LCG Analyzes Client Portfolio?

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The company, however, does not have its trading journal. It needs to provide user-guides on tax accounting tools for its platforms. The company can help the client improve the portfolio when a custom request is made through the platform. When the client reports the profit-loss details and the net deposits, LCG analyzes the trade balance, processes it every month, and forwards it to tax authorities. This LCG saves its clients from the risk of losing their earnings due to tax defaults. The company’s cTrader brand also offers multiple tools integrated with auditing features that analyze the client’s trading activity and improve its performance over time. These tools have multiple filters that analyze trading performances on different levels, which is very useful to expand the investment portfolios of beginners.

How Much Does LCG Broker Services Cost?

The trading costs at the company are processed under its competitive spread. LCG offers guaranteed stop losses to its clients at an extra charge of 3 pips. The LCG trader account gets charged with the costs when the commission gets processed. While trading ETFs and individual stocks, the company adds commissions to the spread on either side. The company’s website advertises that an additional spread will be added to the market ask and deducted from the market bid prices.

For the standard account, the company does not charge any minimum deposit for customers. To open an ECN trading account, a minimum deposit of $10,000 is charged. This cost provides access to the best spreads at highly competitive rates. The company also offers cost-benefit differences between the LCG Trader platform and the MetaTrader 4 platform. For LCG Trader, a $45 commission is charged for every $1,000,000 traded on the platform. For MetaTrader 4, a $10 commission is charged per lot round-trip trade. Hence, the costs for an ECN-enabled MetaTrader 4 user account is greater than that of an ECN-enabled LCG Trader account. The total cost of the ECN-LCG Trader account comes to $45 for a $1,000,000 trade (average spread excluded). Similarly, it costs $100 and the average spread for using an ECN-MetaTrader 4 account to trade one lot of 100,000 trade volumes.

Additional Costs

LCG allows its clients access to premium services if they maintain high account balances. These services include a VIP Analysis tool developed by TSE. It is offered by the company at its discretion. For active traders, there is a rebate program that starts at £4 for trading a million units of trade volumes. This rate goes higher when the trade volume increases significantly. Inactivity for a month costs the clients with a £15 monthly penalty for each account. If the trading activity exceeds 180 days, and the deposits are made from credit card deposits, the company does not charge any additional fees.

Is LCG a Safe Broker for Trading?

Is LCG a Safe Broker for Trading?Is LCG a Safe Broker for Trading?

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The company takes extra care in securing its operations and client information. LCG has implemented robust data protection technologies to protect its transactional data and user information. To ensure that the client funds are not prone to any high risk of trading, all corporate funds maintained by the company are compliant with the U.K. Financial Conduct Authority. The funds are stored in Tier-1 banks only. It helps the company secure its clients’ assets and protect them under any unlikely economic event. Even in the worst-case scenario, LCG never becomes insolvent as it holds these funds across segregated accounts at UK-regulated banks. The clients can also increase their asset protection through the UK Financial Services Compensation Scheme, eligible only on funds up to £85,000.

LCG – one of the Top Forex Brokers in UK provides negative balance protection for its accounts and protects them from losing money through market pitfalls. The company allows guaranteed stop losses on some instruments. This safety feature depends on market conditions and entails an additional cost for activation. However, the company fails to customize the security of its mobile applications. It is also a concern that LCG has not implemented any additional protection with two-factor authentication or biometric scanning access to its clients.

Final Thoughts on London Capital Group

This review rates London Capital Group one of the best online brokers for entry-level forex & CFD trading. The company in itself is a seamless financial service provider. The trading experience of LCG users has been adjusted to drive its adoption among amateur traders. The group offers its services across a broad selection of spread betting instruments and CFDs. These instruments have been further classified into forex, commodities, indices, ETFs, and other asset classes. The company seems to be well-regulated by top financial authorities in the UK.

For individuals new in the domain of forex and CFD trading, LCG is a great partner and a reliable resource. Its competitive spreads ensure every account reaps high profits in its activities. The company offers additional benefits to every high-performing and active account. It demonstrates success with functional simplicity, where the client accounts get access to desktop platforms, web apps, and mobile applications. The company aims to provide its account holders with excellent customer service. It not only manages their trades manually but also keeps things intuitive and feature-rich based on investor preferences. Overall as per the review, the London Capital Group is undoubtedly a viable support system for every new trader in the forex and CFD marketplace.

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