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City Index Review

securely through City Index's website

1 Minute Review

City Index has offices in the U.K., Australia, Singapore and the Middle East and it is a part of GAIN Capital Holdings Inc (NYSE: GCAP), one of the world’s largest providers of trading services to retail and institutional customers.

Best For

  • Low spreads and fees
  • Selection of contracts for difference
  • Trusted broker owned by Gain Capital
  • Spread betting
  • CFD traders

Pros

  • Offers fixed and variable spreads
  • Offers web, mobile and desktop platforms
  • U.K. and the Middle East clients can’t lose more than they deposit
  • Trading support
  • Segregated client money

Cons

  • A monthly inactivity fee of £12 is applied for accounts that are inactive for 12 months or more
  • Forex spread is higher for MT4

Looking for a spread betting, CFD and forex broker? Benzinga has taken a look at City Index, one of the world leaders in spread betting and CFDs, to help you determine if it’s the choice for you.

If you’re interested in exploring the forex market in the UK further, we’ve got you covered with our comprehensive guide to help bring you up to speed and expand your understanding of this market.

Who’s City Index For?

Applications are considered from all countries, but clients from the U.S. and Canada are unable to open an account because of domestic financial regulations.

Traders interested in spread betting can use City Index and trade commission-free. They can use leverage for this product and take both short and long positions. U.K. and Middle East clients can use leverage without fear of losing more than they deposit. Currently, there is no U.K. capital gains tax or U.K. stamp duty for spread betting.

CFD traders can trade on indices, currencies, commodities and bonds are commission-free, and you have to pay commissions for CFDs on shares, which vary depending on the market you want to trade.

Source: www.cityindex.co.uk

Forex traders can gain access to forex markets through spread betting, CFDs and foreign exchange spot transactions. The FX spot is available only through the MT4 platform.

City Index's Commission and Fees

Securities Pricing and Fees Margins
Indices From 1 to 1.6 points, depending on the market (minimal spread, fixed) 5%
Shares Spread each side (DFT) is 0.10%, for Apple and Amazon: $0.04 20%
Forex Minimum spread is 0.5 From 3.33% to 5%
Bitcoin From $40 From 50%
U.S. crude oil 0.4 points (around market) 10%
Gold Minimum spread (around market spread) is 0.3 points 5%
Bonds Minimum spread (fixed) from 0.02 to 0.03 points depending on the product 20%
Interest rates Minimum spread (fixed) is 0.02 points 20%

The broker offers both fixed and variable spreads. Fixed spreads might be offered on certain instruments and in certain trading periods. They can widen in the less popular trading hours. City Index quotes the minimum spread plus the average spread for a historical period. Additional commissions and fees exist only for CFDs on equities and they vary for different markets.

You’ll have to pay financing costs on leveraged positions held overnight. For long positions in the U.K., U.S. and EU, financing costs are equal to 2.5%+ the London Inter-bank Offered Rate, or LIBOR. Australia’s calculation is related to the Reserve Bank Australia official cash rate (RBA OCR) and is 2.5% plus RBA OCR. You’ll pay LIBOR minus 2.5% or RBA OCR minus 2.5% for short positions.

There is also a monthly inactivity fee of £12 for accounts that are inactive for 12 months or more. City Index doesn’t make any charges for debit card, credit card deposits or transfers and the broker also doesn’t charge for money withdrawals.

City Index's Platform and Tools

City Index offers multiple ways to access their trading platform, including:

  • Web Trader
  • Mobile trading apps
  • AT Pro
  • MetaTrader 4

Web Trader, based on HTML5 technology, allows you to configure and personalize multiple workspaces. You can also switch between workspaces with a single click. It’s possible to trade through charts and you can overlay multiple markets in a single chart. Web Trader supports custom indicators, a Reuters news feed and market analysis. It has a real-time margin calculator and it allows you to define stops and limits by points, profit or price.

City Index offers iOS and Android mobile apps. You can use them to create an order, make a personalized watchlist and analyze markets through a chart. Your position can be displayed on a chart, which can also display your orders and stop loss. Real-time Reuters news and a customizable economic calendar are also available.     

AT Pro is a desktop application designed for advanced users. Its charts have more than 100 technical indicators. It’s possible to trade through charts, draw on them, use multiple charts and switch across timeframes. A technical analysis portal is also powered by Trading Central, which scans the market for trading opportunities. A fundamental analysis tool is also available.       

MetaTrader 4 can be used with City Index. You can trade over 80 forex pairs and access it on your mobile. FX spot is available only through the MT4, but you will have to pay higher spreads than for spread betting if you want to use MetaTrader 4 with the broker.

If you don’t know how these platforms compare to third-party platforms, we’ve also compiled a guide to help you understand and select the best options for you.

You can get a 90-day trial for FX Trader trading alerts from Faraday Research. After the trial, you can get the service with a 50 percent discount. Exchange data is fed into platforms and the broker doesn’t charge anything for the data.

City Index's Security

The broker uses a secure funding portal for deposits and withdrawals. Trading platforms are also secure, as they are accessed via an https:// connection. You’ll also need a username and password to access platforms.

City Index is regulated by the Financial Conduct Authority (FCA) in the U.K. and in the Middle East. It is regulated by the Australian Securities and Investments Commission (ASIC) and by the Monetary Authority of Singapore (MAS).

It holds client funds in segregated accounts and there is a deposit compensation scheme available in the U.K. and in the Middle East. There is no such scheme for clients in Australia and Singapore.

City Index's Customer Support

City Index offers support for all of its services. You can contact the support personnel by phone or via chat. New clients get a welcome letter with key account information and an introduction to platforms to help you pick the best platform for your needs. Every change or update will be emailed to you by the support team.

If you’re based in the U.K., you can ask the sales team questions about opening an account  on 0845 355 0801 or +44 203 194 1801 outside of the U.K.

You can contact the new accounts team on +44 (0)20 7107 7371 or via email: KYCTeam@cityindex.co.uk.

City Index's Tradable Asset Classes

The tradable asset classes of City Index include:

  • Indices as spread betting and CFD Trading on 21 global Indices
  • Shares as spread betting and CFDs on over 4,500 global shares
  • Forex as spread betting and CFDs and as forex through MT4
  • Cryptocurrencies as spread betting and CFDs
  • Commodities as spread betting and CFDs for crude oil, natural gas and wheat
  • Metals as spread betting and CFDs
  • Bonds as spread betting and CFDs
  • Interest rates as spread betting and CFDs
  • Options as spread betting and CFDs for U.K. 100, S&P 500, Germany 30 and forex

Final Thoughts

City Index specializes in spread trading and CFDs and it can offer competitive pricing for these products, especially with its fixed and variable rates. You can also use it to gain access to forex spot trading, but it can only be done through MT4 and the pricing seems a bit high.

Its platforms offer you adequate tools for market analysis and links to third-party research providers can help you in the decision-making process. You can get a demo account to test City Index’s products and to experience its customer support firsthand.

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