If you’re looking for a low-fees forex broker, that’s easy to use and gives you access to a range of trading tools, Eightcap.com could be the one for you. Like all Forex brokers, the platform has a few limitations (we’ll delve into these as we go), but overall it’s a reliable and pleasant place to trade CFDs and FX. It wasn’t named Best Global Forex MT4 Broker 2020 at the Global Forex Awards for nothing!

To help you assess whether it’s the right place for you to trade, let’s take a deeper look at what Eightcap offers, as well as its weaknesses and across a few categories.

eightcap logo
🗺️ Regulation Australia, Vanuatu
💰 Trading Fees Low Spreads
📊 Trading Platforms MT4, MT5, Capitalise.ai
💰 Minimum Deposit $100
💰 Withdrawal Fees $0
🛍️ Instruments Offered Forex, CFDs inc.- Crypto, Shares, Indices, Commodities
💳 Credit Card Deposit Yes

Table of Contents

  1. Types of Accounts
  2. Spreads and Costs
  3. Leverage
  4. Trading Platforms
  5. Other Financial Instruments For Trade
  6. Customer Support
  7. Minimum Deposts and Funding Types
  8. Risk Management
  9. Regulation
  10. Conclusion

Eightcap Account Typeslowest spread broker

Eightcap gives you a choice between opening a standard trading account or a raw account. While two account types don’t sound like a lot, it’s really all you need to start trading — they both have similar functionalities but offer different charging structures. To be specific, the Standard account has higher spreads but doesn’t charge a commission when trading, whereas the Raw account has a lower spread and charges $3.5 for each lot traded.

We’ll go more into detail about spread and fees later, but for now, here’s a complete breakdown of the differences between the two accounts:

As you can see, fees aside, the accounts are identical in their offerings. They also both allow scalping (buying and selling currencies over a shorter time frame), Expert Advisors (trading robots), and hedging (protecting against losses by opening a buying and selling position on a currency pair).

Not sure which account is right for you? Let’s look at both options in further detail.

Standard Account

If you’re new to trading, you might expect the standard account to be the “premium” option for experienced traders. In reality, the opposite is true — we recommend the standard account for beginners.

Paying commission in standard lots can get confusing, whereas spreads are fairly simple to understand. If you’re brand new to trading, gaining an understanding of all features on the platform should be your priority. The Standard account allows you to focus on this without the distraction of complex cost structures.

While the costs with the standard account are slightly higher compared to the Raw account, if you keep your trades small, then the difference is not significant.

Raw Account

When you gain some experience (or if you’re already experienced), the Raw account is your best option — the lower spreads make a lot more sense once you trade larger amounts. Lower spreads mean more saving, so the more your trade, the more you will save.

To keep spreads low and true to the quotes provided from liquidity providers, meaning STP or ECN like pricing, this account has a small commission fee. With this account, you will pay $3.50 per standard lot to open your position and again to close your position ($7.00 round-turn). Remember, commission costs do not mean more costs, because the spreads are lower. This is the account type that most traders opt for once they gain confidence in trading.

Demo Account

You can also opt for a demo account to learn the ropes of trading before you dive straight in. This will give you access to unlimited virtual funds and trading conditions that mimic a real account. Basically, you’ll be seeing the same thing you would be if you were actually trading, but with none of the repercussions. Using a demo account is therefore highly recommended for beginners.

The demo account lasts for 30 days by default, but you can extend it or make it non-expiring if you’d prefer — just contact Eightcap. You will get $50,000 in virtual funds and you can test using either the MetaTrader 4 or MetaTrader 5 trading platform.

View Eightcap >>Visit Eightcap >>


Our Rating

The overall rating is based on review by our experts

8.50
Spreads
10 / 10
Leverage
10 / 10
Trading Platform
8 / 10
Risk Management
6 / 10
Range of Markets
7 / 10
Customer Service
10 / 10

Spreads (And Costs)

One of the first things any forex trader should consider before committing to a platform is the spreads to expect. The difference between the buy and sell price for a forex pair (or, if you’re trading a position, the difference between a short and long position).

Although some brokerages boast more features than others, they’re similar in many respects, so the fee structure is something you really need to pay attention to.

Spreads are usually shown as pip (point in percentage), where one pip represents 1/100 of 1%. Although we’re dealing with small numbers here, they really add up for large traders, so every pip matters.

Fortunately, Eightcap spreads are low, beating a lot of the other popular brokers out there. It achieves this by sourcing the best prices available on the market from “multiple top-tier liquidity providers” and globally respected banks.

Standard vs Raw Accounts

As we’ve seen already, the spreads you can expect from Eightcap depend on whether you opt for a standard account or raw account — raw accounts have a lower spread (but charge commission).

Raw Account Spreads

The lowest spread on a raw account is 0.0 pips for major forex pairs. however, this doesn’t mean you can rely on getting these types of spreads every time — the final number depends on several factors, including market conditions and prices. Spreads for minor and exotics spreads are slightly higher.

To get a better idea of what to expect, here are the average spreads on major currency pairs for raw accounts with Eightcap and these spreads are compared to:

ECN Broker Spreads
0.23 0.20 0.06 0.42 0.27
0.30 0.40 0.20 0.40 0.30
0.26 0.47 0.17 0.40 0.24
0.20 0.30 0.20 0.40 0.20
0.50 0.60 0.30 0.50 0.50
0.30 N/A 0.30 0.50 0.40
0.20 0.83 0.44 0.40 0.42
0.24 N/A 0.17 0.54 0.30
0.30 0.70 0.20 0.50 0.40
0.30 1.10 0.10 0.60 0.50
n/a 0.30 n/a 0.60 0.50
0.48 1.21 0.33 0.92 1.11

Data taken from broker website. Accurate as at 01/05/2022



Compare Lowest Spreads >>

 

As you can see, although it’s possible to get a rate of 0.0 pips on all the major currency pairs, it’s far more likely for some (like the EUR/USD pair) than others (such as the GBP/USD pair). Still, these spreads are lower than other major brokers out there for most of the currency pairs. While we don’t know how Eightcap (or other brokers) calculates their average spreads or the period they used to record these averages, when compared to other brokers, these spreads are best among the best in the market.

Note: these spreads are taken from each broker website and are updated each month.

Standard Account Spreads

The lowest spread on a Standard account is 1.0 pips. In truth (as the table below shows), you are better to look at other brokers for this type of account. Other brokers such as Pepperstone, IC Markets, IG and even Markets.com (not on this list) are better options.

These brokers spreads start from 0.6 pips. At $10 a pip, the difference between 1.0 pip and 0.6 pips is $4 for each lot you trade. If you trade frequently, this amount will add up.

Standard Account Spreads
1.06 1.27 1.42 1.73 1.23
0.75 0.85 1.40 1.19 0.86
0.86 0.74 1.19 1.19 0.83
0.70 1.30 1.30 2.20 1.40
0.80 0.90 1.70 1.80 0.80
1.20 1.10 1.10 1.70 1.40
1.30 1.50 1.80 2.00 1.30
1.10 1.20 1.40 1.50 1.20
1.30 1.40 1.50 1.50 1.40
1.20 1.20 1.40 1.40 1.20
1.20 1.20 1.40 1.40 1.40
1.30 1.50 1.50 1.70 1.70
1.30 1.70 2.10 1.40 1.50
1.20 1.40 1.40 1.50 1.20
1.40 1.80 1.66 1.52 1.38
1.40 1.20 1.90 1.90 1.60
1.70 1.80 2.00 2.20 1.60

Data taken from broker website. Accurate as at 01/05/2022



Compare Lowest Spreads >>

 

You can expect slightly different spreads for indices trading (cash CFDs), commodities, cryptocurrencies, and shares.

Other Costs

As discussed already, Eightcap charges a commission of $3.5 for every standard lot traded if you opt for a raw account.

Other than this, Eightcap doesn’t charge any fees for its products. That means no charges for inactivity, withdrawal, funding your account, or maintaining your account.

However, there is one exception: overnight positions (classified as anything left open by 24:00 GMT+2). Keep in mind, all brokers charge these costs, so this cost is nothing unique.

Known as swap rates, Eightcap charges interest on holding positions that are kept open overnight during forex trading (this happens because the trader wants to buy long or sell short, so they need to wait for the position to clear).

The exact rates are always changing, but Eightcap makes it clear what the latest rates are from the Market Watch panel on MetaTrader 4 (or MetaTrader 5, depending on which you’re using).

To find out the current charges, sign up for a demo account and then simply right-click on any currency pair on the market watch panel and click on the specification once you open the trading platform. You’ll then get the following screen:

eightball-specification

Cast your eyes to either “swap long” or “swap short” — depending on whether your position is long or short. These figures represent a standard lot, and in the example above, both numbers are negative — this means there will be a charge of $5.17 in your base currency.

You should also note that swaps made from Wednesday to Thursday are charged for three days (to cover the settlement of trades over the weekend).

Swap Free / Islamic Account

If you observe Islamic Sharia law, Eightcap has a Swap Free (sometimes called Islamic account) which means no overnight fees. However, you will need to pay an admin fee if you keep your position open for a certain amount of time. To use this account, you need to contact Eightcap customer service and request this account. To qualify, you may need to show proof of your Muslim faith.

View Eightcap >>Visit Eightcap >>

Leverage

Eightcap (like all online brokers) also offers high-risk leverage trading, which allows you to trade with more money than you deposit into your account — meaning you can win big if you play your cards right, but you also risk losing more money than you have if you’re too reckless (resulting in liquidation).

The leverage will depend if you are with Eightcap Australia or Eightcap outside Australia.

For Eightcap Australia, the maximum leverage for Forex Trading is 30:1 (the maximum permitted with ASIC).  Below summarises the allowed leverage in Australia.

  • 30:1 for major currency pairs
  • 20:1 for CFDs for a minor currency pair, gold or a major stock market indices
  • 10:1 for CFDs for commodities (other than gold) or a minor stock market index
  • 2:1 for CFDs for crypto-assets
  • 5:1 for CFDs referencing shares or other assets

Outside Australia, the default leverage amount on Eightcap is 100:1 (i.e., $100 AUD if your default currency is AUD).

However, if you don’t feel comfortable having this much leverage, you can reduce it to 1:1 if you like. On the other end of the spectrum, your leverage can be as high as 500:1.

If you’re thinking this sounds high, take solace because Eightcap offers some further guidance and restrictions to its users — each equity option has a minimum and maximum account equity.

eightcap leverage

Trading Platforms

When you set up your account on Eightcap, you won’t just have the choice between a Standard and Raw account. You’ll also have to select one of the following two platforms to trade on:

  1. MetaTrader 4 (MT4 platform)
  2. MetaTrader 5 (MT5 platform)

eightcap compare trading platform

Both MetaTrader platforms are intuitive, market-leading platforms that use cutting-edge infrastructure, but there are some differences:

As you can see, the two platforms are pretty similar, but MetaTrader 5 is more sophisticated — it includes more tools and functionalities.

Whichever platform you choose, you’ll then have to download the relevant software (available from Windows, Mac, the App Store (for iOS), and Google Play store). Both are available for your phone or PC, but only MetaTrader 5 has a web version.

We opted for MetaTrader 4 to test out Eightcap since it’s the most popular among traders, so that’s where our screenshots come from; if you go for MetaTrader 5 instead, you’ll find that everything looks slightly different.

To help you decide which to choose, let’s look at both platforms in further detail. We’ll also take a brief look at the Capitalise.ai platform, which you can connect with your Eightcap account to harness even more trading features.

MetaTrader 4

You might think that, since it came before MetaTrader 5, it’s inferior and outdated. That’s simply not the case — as we’ve said already, MetaTrader 4 is the more popular option among traders in the world.

Why? Some argue that MetaTrader 5 was developed for the benefit of its creators (to help them access more markets) rather than the traders themselves. Sure, MetaTrader 5 has more features, as you’ll soon see — but MetaTrader 4 has everything you really need to trade forex effectively.

Features include:

  • The option to use Expert Advisors (EAs) to automate trading
  • Additional free trading robot
  • Candlestick, Heikin Ashi, and Renko Charts
  • Able to follow price fluctuations in real-time
  • Charting over different time frames
  • One-click trading

eightcap-platform-mt4

Sounds pretty comprehensive, don’t you think?

The setup process for MetaTrader 4 couldn’t be much simpler: just download it straight from the Eightcap website and follow the steps on the screen. Admittedly, the installation window looks a bit dated, but you can’t have it all.

eightcap-platform

Eightcap says that creating an account takes up to 24 business hours (longer in times of high volume), but we got verified in under an hour. Can’t complain!

Once the download is finished, you’ll be prompted to continue on either the demo (highly recommended if you want to get some practice in) or the real deal.

eightcap-download

Finally, you’ll see a screen that looks something like this (depending on your base currency):

eightcap-graph

Clearly, this isn’t an amateur interface — you’ll have no shortage of options to navigate and tools to harness. Have fun exploring!

MetaTrader 5

MetaTrader 5 builds on the basic features of its predecessor with the principal focus of letting traders access markets outside of the forex sphere (think US equity markets and stock markets). Although we’ve implied this isn’t useful for all traders, it would be dishonest to say that there aren’t some serious improvements from one platform to the next.

Both platforms only allow for two market orders, two stop orders, and a trailing stop, but MetaTrader 5 lets you have six pending orders (instead of the four allowed on MetaTrader 4). You can access 21 timeframes (across various financial instruments) compared to just nine on MetaTrader 4.

This helps you to identify more trends, especially regarding supply and demand. Along with the higher number of technical indicators and graphical options, you should be unstoppable — as long as you know how to use everything properly.

MetaTrader 5 also shows the latest market updates and economic news in real-time, so you can stay educated and aware of broader market trends all on the same screen.

Finally, while MetaTrader 4 lets you use Expert Advisors, it doesn’t allow you to build your own trading robots. MetaTrader 5 does, allowing you to access a whole other level of market analysis and forecasting.

The choice ultimately comes down to your level of trading experience and technical expertise.

eightcap platform mt5

Capitalise.ai

A recent development in the world of Eightcap is the launch of the automated trading tool Capitalise.ai.

The tool allows you to automate your trading with minimal hassle by scanning markets and executing trades for you based on real-time market data and conditions. You can also backtest and stimulate your strategies to ensure you get the results you’re after.

Capitalise.ai uses Artificial Intelligence, Machine Learning, and Natural Language Processing technology. What this means is that you can use and create your trading strategies using plain English, rather than needing to learn a programming language.

Sounds good? It’s also very easy to set up. Simply follow the link on your account page to connect your accounts and start using Capitalise.ai for free:

capitalise.ai

 

View Eightcap >>Visit Eightcap >>

Other CFD Products

Although Eightcap specialises in forex, it offers an array of other CFD products.

There are over 200 financial instruments across a range of asset classes — besides forex, these include indices (such as the US30 and UK100), commodities (like gold and oil), shares (e.g., Google and Facebook), and cryptos (Bitcoin, Ripple, Ethereum, and Litecoin).

Below lists the products with Eightcap

  • 40 Forex Pairs (both on MT4 and MT5)
  • 11 Global indices – including AUD200, US30, US Dollar
  • 4 Commodities – 2 x Oils, Silver, Gold
  • 10 Cryptocurrencies including Monero, Bitcoin, Tron, Litecoin and Dash
  • 50 Shares from Nasdaq and NYSE ($0.02 per share, per side ($4per lot round turn)

As we’ve seen already, the exact range available will depend on whether you opt for MetaTrader 4 or MetaTrader 5 (the latter has far more options).

If you want to go beyond these, you’re out of luck, but this should be more than enough to get you started.

Customer Support And Service

Eightcap has a Live Chat option (hosted by Zendesk), which is the easiest way to get into contact with someone for most people.  One good thing about the Live Chat option is that the wait time for response is short and you won’t be greeted with a chatbot.

Live Chat is even available during the sign-up process, so you can always get in touch with someone if you’ve ended up in a bit of a pickle or can’t complete one of the required fields. Eightcap has your back! And it’s not one of those Live Chats that promises to connect you with an agent who mysteriously never appears or has a bot — we tried it ourselves and got through to someone straight away.

It has the following operating hours (in Melbourne, Australia time):

  • Monday 8 am to 12 am
  • Tuesday to Friday all-day
  • Saturday 12 am to 5 am
  • Sunday closed

However, if you would prefer, you can also ring their phone line or send a line to their customer service email. Whichever method you opt for, you can choose between a global and Australia-specific option.

The client services team is available to help 24 hours a day on working days by phone or email.

Educational And Research Tools

Eightcap has a dedicated page on its website for education, guides for trading strategies, and the latest news.

But while we can’t dispute that these resources exist, they’re pretty basic compared to competitors. If you want to read a quick few articles that run through the fundamentals of using the Eightcap platform, you’re golden. The blogs are informative, keep things simple, and they’re specific to the Eightcap software.

But if you want interactive resources to help you engage with the material, instructional videos, or news that’s updated daily or hourly, you’d best look elsewhere.

View Eightcap >>Visit Eightcap >>

Minimum Deposit And Funding Methods

We can’t fault Eightcap on its minimum deposit rules and funding methods — they’re low and fair. The minimum deposit is 100 of whatever your chosen base currency is (i.e.AUD 100 or GBP 100). That’s lower than many of its competitors.

Deposits and withdrawals are also free, and there’s a range of payment methods to choose from. These include:

  • China Union Pay
  • Bank transfer
  • Credit cards
  • Debit cards
  • Skrill
  • Neteller
  • Poli
  • Bpay

Did we mention that each of them is free to use? Although there’s a slight caveat: using a non-Australian bank can sometimes lead to intermediary or conversion fees, depending on your financial institution. This would be the case whichever broker you opt for, though.
eightcap funding mention

Risk Management

Technically, Eightcap comprises two separate entities — Eightcap Pty Ltd in Melbourne, Australia and Eightcap Global Ltd in Port Vila, Vanuatu. The complaints authority for the former is AFCA, and for the latter, it’s VFSC. As they are a regulated broker by different bodies (see below) there are a few subtle differences.

In Australia, Eightcap has tighter regulation than FVSC requires. We’ve already mentioned that VFSC has more relaxed regulation than ASIC. One other difference worth noting is that ASIC requires forex brokers in Australia to provide negative balance protection. This means traders in Australia will never see their account balance will not go into negative.

And like all good brokers, Eightcap segregates your money from its own funds by keeping them secure in Tier 1 banks. This means the broker can never get their hands on your funds.

And while Trustpilot isn’t a failsafe way to assess a platform, it gives a good sign — and Eightcap has an average rating of 4.5, across 190 reviews.

View Eightcap >>Visit Eightcap >>

Regulation

Although established in Australia, according to the disclaimer, Eightcap is “regulated in multiple jurisdictions.” The Australia branch is regulated by the Australian Securities and Investments Commission (ASIC), while the Bahamas offshoot is regulated by the Securities Commission of the Bahamas (SCB) similar to Axi.

eightcap regulators

ASIC regulation means Eightcaps Australia branch must abide by the standard set by the Australia Financial Regulator. This ensures Australian traders have an element of protection such as a local dispute resolution process.

Traders outside Australia, regardless of whether this is in the Singapore, the Philippines or Europe are using Eightcaps international branch which must comply with the standard set by the SCB. While the SCB standard is not as high as some regulators such as ASIC, FCA, CySEC or American ones such as NFA, CFTC or Finra, it is still adequate. The main concern is you won’t have a local Eightcap office in event of a dispute.

The verdict? Eightcap takes sufficient measures to manage its risk and is a legitimate, properly regulated platform — but if you’re not living in Australia or Bahamas, you might feel more secure using a platform covered by your own country’s regulatory institution.

View Eightcap >>Visit Eightcap >>

Conclusion

Eightcap’s standout feature is its low spreads and commissions and lack of fees. If you’re looking for somewhere you can start trading instantly, easily, and without spending too much money on charges, you’d struggle to find somewhere better. Does that make it perfect? Of course not — it would benefit from better educational resources, regulation outside of Australia, and perhaps more markets and tools. But this is a user-friendly, reliable platform worth serious consideration.

About the author: Justin Grossbard

Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.

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kaidan
kaidan
1 month ago

what cryptocurrencies can i trade if i use mt4?

Reply
David Levy
Forex Expert
David Levy
1 month ago

MT4 can only handle crypto pairs that operate through a central exchange. There are too many coins to list here but if you take a look at the crypto section of this review, you can find the list.

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Amos Rodriquez
Amos Rodriquez
1 month ago

Do I have to pay for Eightcap tools like Capitalise.ai?

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David Levy
Forex Expert
David Levy
1 month ago

MetaTrader 4, 5, Capitalise.ai are completely free along with FX Blue Labs, you will however need to pay to use The Amazing Trading. The first 28 days are free, thereafter you must maintain an account balance for $500 or more

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