LCG.com review

LCG offers competitive access to a wide-range of CFDs on FX, indices, stocks and cryptos, plus negative balance protection for FCA clients.


LCG.com Overview

LCG offers competitive access to a wide-range of CFDs on FX, indices, stocks and cryptos, plus negative balance protection for FCA clients.
Min Deposit No restriction
Max Leverage 1:500
Trading Platform Custom/MT4
Year Founded 1996
Instruments FX, CFD, Cryptos
Regulation CySEC, FCA
Open an Account
Min Deposit
No restriction
Max Leverage
1:500
Trading Platform
MT4, Proprietary
Year Founded
1996
Instruments
FX, CFDs, Crypto,
Regulation
CySec, FCA
Open Account

Company background

Founded in 1996, London Capital Group Holdings Plc (LCG) was an early pioneer in the online trading industry and was involved in several acquisitions and sales of online brokerage brands. After 20 years in operation, LCG has executed over $20 trillion worth of notional trade volume from over $1 billion in deposits.

In 2006, the company was listed on the AIM section of the London Stock Exchange (LSE), where it continues to trade today under ticker symbol LCG, with a market capitalization of nearly £10.5 million. It maintains offices in London, Cyprus, China and South Africa.

Recently, LCG received a fresh injection of capital amounting to £17 million from investment banker Charles-Henri Sabet. With that injection of capital, LCG has undergone several major changes to upgrade the quality of its services and expand its range of product offerings. As one of the measures to improve its services, LCG launched a dedicated MetaTrader 4 portal in mid-2015 in order to provide an efficient and reliable platform which traders can use to trade the forex market.

As a plus

  • Efficient and advanced trading platforms
  • Premium Quality Market Analysis
  • Regulated Broker
  • Well Established broker with an acclaimed reputation for delivering quality service
  • Wide range of Markets

On the flip side

  • Limited Support Hours
  • No support for social trading
  • Poor website layout
  • Spreads can be lower

Our verdict:

Albeit, mixed sentiment on reputable 3rd party website review, in our view LCG can be trusted with your funds. Make sure to select an account type that suits your trading style and the instruments you are going to trade.

Methodology

For this review we tested LCG.com, standard account, plus we collected secondary information from reputable sources, as well as user generated reviews.

Regulation

The CYSEC (Cyprus Security and Exchange Commission) has an extensive history as a regulatory body but has a lot of catching up to do for allowing mischievous Binary Option providers and several dishonest brokers to rip off clients. At the moment, CYSEC is attempting to improve the grip over these doubtful ventures.

The FCA (Financial Conduct Authority) is the conduct regulator for 58,000 financial services firms and financial markets in the UK and the prudential regulator for over 18,000 of those firms.

What other Forex & CFD websites and Customers say about LCG.com?

The abundance of the information on a broker of choice can help make a more thoughtful decision, but it can also quickly become overwhelming and confusing rather than providing clear answers.

We’ve gone through, authoritative user-generated and broker listings/reviews websites to, hopefully, offer more clarity on the LCG.com reception among it’s clients.  

User Generated

Most of the websites of this kind offer a raw stream of consciousness by angry and happy traders, praising the broker for their personal experience. It’s, therefore, important to keep in mind that some of the reviews will be nothing more or less than such.

Given that a lot of traders lose funds, and that they may go to a website like Forex Peace Army (FPA) to complain, we aim at distinguishing, well, more subjective from less subjective reviews and offer our limited view on the situation.

Forex Peace Army (FPA)

Being one of the most trusted user-generated Forex & CFD communities, FPA is making sure to mediate communication between traders and service providers.

LCG.com has a relatively low number of reviews that are largely influenced by negative reviews revolving around strict KYC process, spread slippage during the news and strict adherence to FCA license regulation.

Our main takeaway from this, is that you need to make sure to address the slippage with the account manager and make sure your documents are in check.

At the time of the review we found two complaints (case 1, case 2), which we believe are very typical for the industry and should be addressed to your account manager if you decide to open an account with LCG. If you have a different opinion, please leave your feedback below this review.

Non-User Generated

Reviews from the non-user generated websites, like ours, often needs to be taken with the great attention to the nature of the website and its credibility in the industry. As you are mainly relying in the opinion of an entity that can directly benefit from referring you to the broker.

You can see Elite CurrenSea clients feedback on our website and FPA to see if you can trust our website with the opinion we provide on our trusted brokers. We do provide incentives to open an account with our trusted brokers, you can learn more about from ecs.TradersClub loyalty program.

Keeping in mind the info above, we can attest the LCG reviews appear fairly positive with only minor discrepancies from lesser known and sometimes suspicious website, that argue about LCG as a scam. Keep in mind that sometimes, these reviews are the baits for brokers to pay the website to improve the review. Will you have doubts after reading some of those reviews, please address us directly and we will make sure to assist you with further investigation.

Customer Service

The customer service (support) is available in two languages: English and Italian.
Our experience was positive: LCG support chat was quick and responsive and the account manager was helpful over basic questions related to fees and account opening procedures. Despite eagerness to sell, the support was polite and to the point.

Customers can contact LCG over email, live chat or telephone.

Overall, the client service was good, it didn’t strike us as exceptional, but we got the help we needed in a reasonable time. And that’s what matter most. We encourage you leave your comments below if you had different experience.

Account Types

LCG is a Market Maker broker, which, offers, an ECS and regular type access via it’s two account types – ECN and CFD. The broker also offers an Islamic Account type that would suit traders from that region.

ECN account is best suited for those looking to trade with low spreads and no requotes. This, however, comes at the expense of commission fees, and a lower number of instruments – mostly limited to FX pairs.

Whereas, CFD Account provides access to CFDs on a broader range of markets (see below), albeit, the leaser protection against the requotes.

If you need help selecting an account type, make sure to contact us for further clarifications.

Negative Balance Protection

Currently LCG do not offer negative balance protection, but it looks like this will be enforced under new proposed regulations.

Products/CFD Portfolio

You can trade over 7,000 products across 9 asset classes including Forex, Spot Metals, Indices, Commodities, Shares, Bonds and Interests, Vanilla Options, ETFs and cryptocurrencies.

 

Product LCG Markets.com Alvexo AxiTrader
CFDs on Stocks 1:33.33 1:10 ? ?
CFDs on Forex 1:500 1:300 ? ?
CFDs on Commodities 1:200 1:200 ? ?
CFDs on ETFs ? 1:100 ? ?
CFDs on Indices 1:500 1:150 ? ?
CFDs on Crypto ? limited up to the total position value of $2,000 ? ?
CFDs on Vanilla Options ? ? ? ?
CFDs on Bonds and Interest Rates 1:1000 ? ? ?

LCG uses a dynamic leverage model both on MT4 and LCGtrader platforms, which automatically adapts to clients trading positions. As the volume per Instrument of a client increases, the maximum leverage offered decreases accordingly, as per the following table

LCG.com offers over 4500 CFDs on stocks from all over the world. Unlike with regular stock trading, you can also go short stocks you believe to go down. However, when trading CFDs on stocks, make sure to check the costs, as well as overnight fees and additional spreads LCG may charge based on the market conditions. We suggest making sure the costs are clear in advance – this will help to manage expectations. LCG does provide the info regarding the fees, but we still suggest to contact them to clarify the details.  At the time of the review, max leverage was at 1:33.Stocks

ETFs

Traders looking for a more affordable passive investment will find a wide offering of CFDs on over 500 US, UK & EU ETFs appealing. The large amount of ETFs makes LCG a place to go if you want to get into this type of investment without going through more conventional ways of obtaining ETFs directly via exchanges. 

Indices

As of 2018, you can find the largest stock markets and indices to trade as CFDs. This includes Wall Street, FTSE100 and DAX30. At the moment of the review leverage available for trading CFDs on indices was 1:500.

Commodities

London Capital Groups also offers a decent amount of CFDs on Soft, Energy & Metal Futures. Make sure to check the fees related to each Commodity type, as well as the pricing works for their futures offering. Remember that you are trading CFDs, so no ownership of asset takes place, and the time you hold the CFD will inquire additional costs. Contact your account manager to find out the approximate costs of your prospective trade if you are not certain about the fees you will pay.

Forex

A total of 66 currency pairs are available, ranging from major to some exotic pairs. At the moment of the review leverage available for trading CFDs on Forex was 1:500, which is competitive enough. Given the regulatory status and the FX origin of the broker, you should be able to comfortably trade majors as well as crosses. For exotic pairs make sure to double check the feasability of your trading decisions with your account managers or directly for clarifications.

Cryptocurrencies

LCG launched cryptocurrency CFDs in 2017 with three Bitcoin pairs including BTC/USD, BTC/GBP and BTC/EUR. Cryptocurrencies trading is only available for clients registered with London Capital Group Limited.

Vanilla Options

LCG offers an opportunity to trade both European and American buy and sell style options. This type of asset allows LCG clients to hedge the exposure on the market and diversify the portfolio.

LCG offers vanilla options on most of it’s traditional offering. Fore more info make sure to contact your account manager.

Will you need help getting around vanilla options, feel free to contact us!

Bond and Interest Rates

London Capital Group exceeds numerous other brokers with its wide range of offers. If you are interested in diversifying your portfolio, you will find the most popular bonds and interest rates. At the moment of the review max leverage available for trading CFDs on bonds was 1:1000.

Fees & Commissions

When it comes to the fee structure, LCG is somewhat less transparent in the way they present the information. To break it down, keep in mind that they offer two account types, plus an Islamic account (no swaps there). Therefore, on ECN you will be facing the following fees:

The guaranteed Stop premium is charged in pips to the account on opening of the position. This is only available for LCG Trader.

Typical Spreads Markets.com LCG CFD Acc LCG ECN FXDD
EURUSD (pips) 1.65 1.45 0.2 1.5
Apple (USD) $0.35 2-4cents/share x 4
BMW (EUR) €0.2 0.1% x


MT4 markets 
and spreads may vary from those listed in the table above, please contact customer support for further details. Spreads may vary depending on the size of the order being placed, time of day, liquidity of underlying market, as well as in some cases national holidays and daylight saving times. You can find leverage calculation based on Margin Group on LCG’s website

Trading Execution

On the bright side, the broker takes responsibility for the costs connected to deposits and withdrawals. You’d be surprised but little brokers afford their clients such a luxury.

London Capital Group allow you to execute a minimum trade of £0.50. This may vary depending on the account you open. The maximum trade requirements vary depending on the trader and the instrument. As London Capital Group offer ECN and STP execution, you can expect very tight spreads with more transparency over the price you‘re paying to execute your trades.

As a nice bonus, London Capital Group are one of very few brokers that claim to have no requotes, so you don’t have to worry about slippage (your trades being ordered at a different price to what you executed them at).

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments, but as a guide, London Capital Group offer margin up to 0.001% on currencies.

London Capital Group also offers a number of useful risk management features, such as stop losses (with trailing stops), limit orders, price alerts, and much more.

Payment methods

LCG offers a wide range of payment options under it’s two operating companies: the more traditional Wire Transfer and also Credit Card processing under CySec, plus additional options, such as, Skrill & Netteler under it’s FCA brunch.

Platforms

LCG offers platforms developed by two of the most popular 3rd party developers, including the MetaTrader 4 (MT4) platform from MetaQuotes Software Corporation, and the cTrader platform – branded as LCGTrader, developed by Spotware systems.

MetaTrader 4 offers little variation in its platform regardless of the broker, but there can be significant differences in how the platform is set up when it comes to trading spreads and commissions, the available execution method, and other tools, features, and administrative areas that can affect your trading experience.

The main difference, when it comes to LCG’s MT4 offering, is its range of account types and applicable pricing and margin requirements across each option. LCG also provides traders access to MT4 WebTrader – the web-based version of MT4, in addition to the standard desktop version.

As mentioned earlier, LCGTrader is the branded version of the cTrader platform for LCG, and comes as a web-based version and for Windows desktop, as well as a mobile app for Android and Apple iOS devices.

The cTrader suite includes related trading applications from the developer, such as the cAlgo and cMirror platforms, where cAlgo is used for automated trading and cMirror is a social copy-trading platform, which can also be used at LCG.

Overall, there has been a lot of attention to detail across the LCGTtrader platform, as can be seen in the number of subtle features available, the range of layout customizations, and the scope of tools the software comes with by default, including over 60 indicators and drawing tools in the integrated charting module.

While not many brokers offer both MT4 and cTrader, LCG is at an advantage by being able to provide traders both options. That said, it’s LCGTrader platform boasts several advantages, including more favorable pricing and features such as the Guaranteed Stop Loss Order (GSLO), making LCGTrader our recommended platform choice.

Traders should still be well-equipped to trade with Elite CurrenSea’s Wizz, Camarilla indicators and SWAT or CAMMACD tools (available with 25% discount to our clients).

You can also benefit from premium trading tools and trading community access (available for MT4) with up to 25% discount if you join LCG.com via Elite Currensea. Just register an account with both Elite CurrenSea (choose LCG.com as your broker) and LCG.com using our link or contacting your account manager and letting them know that you are coming via the Elite CurrenSea website.

Mobile Trading

LCG offers the native mobile version of both of its offered platforms, including MT4 developed by MetaQuotes, and LCGTrader, a branded version of the cTrader platform by SpotWare Systems.

At LCG, MetaTrader mobile can be used with either Classic or ECN accounts. Moving on to LCG’s other mobile trading app that can be used with either account type, LCGTrader comes available as a mobile app for Android and Apple iOS devices.

To sum up:

Overall, the LCGTrader mobile app is highly versatile and brings a consistent theme with the web-version, thanks to its responsive design. This means nearly all the features available in the web version of the platform are in the mobile app too, including syncing watch lists.

 

Education & Analysis

LCG has been offering webinars throughout the years and has a numerous analytical content pieces, all available, through both, website (no registration required) and Youtube channel (which is actually easier to navigate). Make sure to examine the authors of the content, as often times, the quality of the materials depend on the particular speakers and their understanding of the modern markets.

Economic Calendar

The calendar offers an easy, elbeit basic access to the economic events that might impact on the markets. You will find the usual info based on expected and actual results that can affect specific pairs. Unfortunately, neither additional analysis on the most important events nor setup of custom alerts via email or mobile, based on your trading pairs is available as an additional value.

Video Tutorials

Both, basic and more advanced topics are laid down in an easy to comprehend visual style, presented by either LCG employees or an outsource agency. The tutorials sever as a good starting point to play around with different concepts and strategies, as well as general understanding of the markets.

For more advanced trading education, if you choose to trust our judgement, we suggest you to go through our trading strategies, tools and analysis to get professional help for free.

You can also get up to 25% discount on trading systems and live trading group access when opening an account with LCG.com via our website.

Trading Platforms Tutorials

The sections will come handy to novice traders, as it mainly revolves around basic features of both platforms. This is a useful help for new traders without overloading the account managers.

We appreciate the effort on LCG’s part, however, if you are looking for more advanced material, it’s best to look elsewhere. This being said, London Capital Group does the minimum required effort to satisfy the requirements of the relatively complex trading software (especially in case of MetaTrader 4). Will you need more info on MetaTrader 4 tools and software, make sure to check Elite CurrenSea’s Youtube channel and make sure to check our SWAT software.

Vip Trading Services

Clients with a depo above €25,000 accounts, are eligible for dedicated account managers that would help with round-up of market analysis for the day, as well as premium support. Albeit a good initiative, we couldn’t find enough information to appreciate the effort on LCG’s part. At the time of the review neither of ecs.TradersClub members applied for the program, therefore, in case any information becomes available we will make sure to update it below. Meanwhile, any eligible clients are welcome to leave their feedback below.

Fly or Frie Verdict

LCG brings two decades of experience as an online broker rooted in the U.K. with EU-passports from its FCA-regulated entity. Client trust is further strengthened as LCG maintains its listing as a publicly traded company and member of the London Stock Exchange.

As a true multi-asset broker, obtaining additional regulatory licenses in other jurisdictions would broaden the scope of its licensing beyond just the UK, despite it being in a major financial hub.

Overall, traders looking for a multi-asset solution, including 62 forex pairs, will find more competitive pricing on the firm’s ECN account offering which requires at least $10,000 to be established, compared to the Classic account where spreads are higher but can be opened with any amount (no minimum).

With automated trading supported on both LCGTrader (cTrader) and MT4, LCG can be a viable choice for traders that wish to use these platforms as not all multi-asset brokers offer automated trading capabilities.

Last but not least, don’t forget that you can open up an account with LCG.com and get 25% discount on Elite CurrenSea tradings systems and tools.

Research done by Chris Svorcik and Nenad Kerkez Co-founders of Elite CurrenSea, Nenad and Chris are award-winning traders with over 10 years of technical analysis and teaching experience. They also offer education and technical analysis on top industry websites and constantly works on his proprietary trading system based on wave analysis ecs.SWAT  and technica analysis ecs.CAMMACD.