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.
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.
Spread: 0.5 on EURUSD (Standard Account)
Regulation: FCA, ASIC, MAS
Headquarters: United Kingdom
Minimum Deposit: £100
Platforms: MT4, AT Pro, Web-based
Products: Forex, Stocks, Indexes, Commodities, Cryptocurrencies
The products that City Index offers are the following:
What types of accounts can you open?
City Index has three account types: Standard Trading Account, Premium 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.
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.
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:
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.
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).
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.
There is a £12 inactivity fee after 12 months of no trades taken on an account.
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:
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.
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.
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.