Mon. Oct 19th, 2020
city index review

City Index Review 2020

This article is our latest City Index review for 2020. But before continuing to read the rest of the post, please be advised that 74% of traders lose their capital with this broker and you may lose money too.  It is, therefore, crucial for you to understand how CFDs work before you start trading.


SUMMARY


Company Profile:

City Index was founded in 1983 and originally offered only spread-betting. In 2001, the company introduced CFD trading on its platform, and by 2014, City Index became a part of the NYSE-listed Gain Capital Group, which also has Forex.com as a subsidiary. The company's headquarters are in London.

The company has over 150,000 retail and institutional clients and is regulated by several tier-1 regulators.

city index logo

Key  Features:

  • AT Pro Platform
  • Premium Trader
  • Low-cost trading
  • Negative Balance Protection

overall 

3.8/5

Established: 1983

Spread: 0.5 on EURUSD (Standard Account)

Regulation: FCA, ASIC, MAS

Headquarters: United Kingdom

Minimum Deposit: £100

Leverage: 30:1

Platforms: MT4, AT Pro, Web-based

Products: Forex, Stocks, Indexes, Commodities, Cryptocurrencies


Pros

  • Low-cost trading
  • Cryptocurrency trading available
  • Excellent trade execution
  • Great for short-term and high volatility trading
  • 37 years of experience
  • PayPal is available for funding/withdrawing

Cons

  • No social trading
  • No Swap Free Accounts
  • Inactivity Fee after 12 months

Products


The products that City Index offers are the following:

  • Forex - The number of currency pairs currently stands at eighty-four (84).
  • Indices - There are 21 major indices available.
  • Stocks - The global shares are around 4,500.
  • Cryptocurrencies - Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple.
  • Other Markets - Oil, commodities, precious metals, bonds, interest rates, and options.
  • Spread-betting - Available to U.K. clients.
city index

Regulation


  • The Financial Conduct Authority regulates City Index in U.K. (#113942).
  • Their Australian office is regulated by the Australian Securities & Investments Commission (ASIC).
  • Their Dubai office for the Middle East and North Africa is licensed by the United Arab Emirates Central Bank.
  • The Monetary Authority of Singapore regulates Gain Capital Singapore.

What types of accounts can you open?


City Index has three account types: Standard Trading AccountPremium Trader, and Professional Trader.

New traders can only open the default standard account and may get a special invitation to upgrade to the Premium Trader upon meeting specific activity levels.

The Professional Trader account is only for traders who have professional trading experience and an investment portfolio that exceeds €500,000.

Dedicated Support

The standard account doesn't come with a dedicated relationship manager, priority support, and broker-assisted dealing.

This personalized support is only available with the Premium and Professional Trader accounts.

Loyalty Rewards

Their standard account also doesn't have loyalty rewards and invitations to special events. This is only available with the Premium Trader.

Negative Balance Protection for Standard and Premium

This benefit allows a trader to protect himself from incurring a loss that's greater than his deposit, but this is only for the standard and Premium accounts.

What are the spreads and margin requirements?


With the EUR/USD serving as the benchmark, the minimum spread is set at 0.5, but it typically moves from 0.8 pips. Here is a table showing the spread of each major currency pair:

city index spreads

Leverage and Margin

City Index complies with European Securities and Markets Authority (ESMA) rule in limiting leverage offered to clients to 30:1.

The only exception to this is the Professional Trader account, which offers up to 400:1 leverage but will devoid the trader of any FCA protection.

On average, most of the major FX pairs available with City Index have a 3.33% margin. Stocks, on the other hand, may vary from 20%.

How much is the Initial Deposit?


City Index requires a minimum deposit of £100.

Depositing Options

City Index has the following options for funding: Visa, MasterCard, Maestro, Electron, PayPal, and Bank transfer.

Depositing and withdrawing funds is also free of charge, but there is a maximum deposit limit of £50,000 and a minimum withdrawal amount of £100 (it used to be £50).

Cash Rebates

There are also cash rebates associated with the Professional Trader account in which at Tier 1 level (a volume £29 - £79.99 million) will have a £4 cashback per million on forex trades and £2 per million for indices.

Inactivity Fees

There is a £12 inactivity fee after 12 months of no trades taken on an account.

Trade Execution


City Index offers a price improvement mechanism wherein trades will turn favorable as it's getting processed, allowing the user to increase the probability of making a profit. 

Here are other notable trade execution and order features of City Index:

  • Close out level - this automatically closes trades if the user's funds fall below the 50% margin requirement. This is part of the negative balance protection. 
  • Hedging - City Index also offers the capacity to BUY and SELL positions simultaneously.
  • Guaranteed Stop-loss - This guarantees a stop-loss level regardless of volatility.
  • Order Cancels Order - This order secures either a limit or stop order while simultaneously canceling the order that doesn't get triggered.
  • Trailing Stops - This order type automatically moves the stop level closer to the market price while the trade is in profit.

Platforms


Aside from the availability of the popular trading platform MetaTrader 4, which is also available in mobile formats for iOS and Android, City Index also has its own proprietary platform called AT Pro.

AT Pro boasts a lot of features, including customized chart templates using C#, .NET, and Visual Basic. Apart from that, it also has over 100 indicators, trading signals (displayed directly on the chart), and backtesting capabilities. ATR Pro is well-suited for the more experienced segment of City Index's clientele.

A web-based trading platform is also accessible to clients, with the charting application powered by TradingView.

Are there any tools and educational resource to help traders?


There is an extensive list of topics about the Forex market that are covered on their website and mostly complete with articles and videos that traders can pore over. It's categorized based on a trader's experience and skill level.

Some of the topics even cover options trading strategies and crypto trading. There's also a video library that includes all the episodes of City Index's Trading Academy.

Do they provide research?

They do provide market news and analysis for each financial product they offer on their platform. They also have dedicated analysts who provide research and market outlook, which covers the technical and fundamental guide.

Traders will also receive alerts via email about the latest developments in the financial markets, and each alert is complete with charts and commentary from their analysts.

Customer Support


City Index's phone support is very helpful. We were able to contact their representatives even during the weekend for some queries that we have about our accounts. Other methods to reach them is through chat, phone, or email, and they do have a FAQ to answer general questions about their services.

Conclusion


City Index is perfect for short-term trading and high volatility trading because of its superb pricing and excellent trade execution. As a trader progresses, the potential to get upgraded to the Premium Trader account is also advantageous as it will provide more long-term benefits for the client.

9 thoughts on “City Index Review 2020

  1. 3.5 out of 5 is a great score that I feel it is well worth trying out for. I actually like the fact that the biker is worthy and well trustworthy as I would be sure that my investment capital is in safe hands. Also, city index trades virtually everything else and that to me is very cool. Thumbs up for sharing all of these inflation’s here about it and it was surely a worthy read. Thanks

  2. It’s too bad that people get into the investing game trying to make quick money  trying to buy and sell stocks like the pros. Like you mentioned that lots of people lose money this way. 

    The best way is to seek and follow financial advice from a good financial advisor instead of tryi h tI do it yourself. Yiu can even use a robo o investor  which will do it for you. 

    great article thanks

  3. So like every other stockbroker, City Index has it’s pros and cons. 

    I think the reason that people lose their money to brokers is that they are not sure how trading really works and guess their way through, hoping to invest in the right things.

    It is always best to do your research and see how a particular market or company is performing before throwing your money into it. I always get other opinions and those of professionals before I invest in anything.

  4. Thank you so much for this awesome post!  I had been considering City Index for a while, mostly because I use bitcoin a lot, and thought this would be a great way to trade. However, when I saw that most people lose money through City Index, I knew then the risk was too great for me.  I don’t have a lot of money, so I’d rather go a safer route for sure.  Thanks for the heads up on that!

  5. Great article. 

    I didn’t know forex..com and city index were related. Overall City Index looks like it has some pretty amazing stuff! 

    I am going to have to give it a try, see if it is a good fit. 

    I think when dealing with other brokers, there are a lot of risks that most people don’t realize. If City Index is as good as it sounds, it can eliminate a lot of the problems that other brokers haven’t solved. 

    Thanks for the info! 

  6. Wow, this is really cool. I didn’t expect to see good review or good features of this platform here because of the warning that you had earlier given of the platform. I think it is very nice to see all this. I think it will be very nice to join here having seen how it all works. I like the platform a lot and will like to join in. Thanks a lot for sharing your insight on

  7. Thanks for the post what’s very interesting  about the website  is  you can protect yourself from incurring a loss greater than your deposit, which is a feature the basic and premium and also a guarantee  stop loss that you can stop trading anytime you feel like the site is nice thanks 

  8. Hello, thank you for the good review about City Index. I personally am also in search of a broker to open my forex trading account. Because based on my previous experience, there are several brokers who give lots of sweet promises like a server that is never down or there will never be a problem when making a transaction. But in reality, I’ve experienced that myself. And that makes me more careful about creating new accounts.

    And, based on your review, maybe I will try to create a new account. Because the most important thing for me is good customer service. However, another thoughts are also why the number given is 3.5 out of 5? Maybe I have to check it myself! 

    Thank you so much for this valuable review!

  9. Hello there,thanks for this awesome article it would be of great help to the public as it has been of help to me.i my search for reliable platforms I have encountered alot of them and this one is one of the legit and easily accessible once and I would advice everyone to try it out.

Leave a Reply

Your email address will not be published. Required fields are marked *