LCG Review 2024
Website: www.lcg.com
Min. Deposit: US$ 0
Leverage: 1:30
Trading Platforms: LCG Trader, MT4
Regulation: FCA, CySEC, SCB
Headquarters: UK
Founded: 1996
Regulatory Licenses:
- London Capital Group Limited (LCG) - authorized by FCA (UK) registration no. 182110
- London Capital Group (Cyprus) Ltd - authorized by CySEC (Cyprus) registration no. 341/17
- LCG BHS - authorized by SCB (Bahamas) license no. SIA-F194
Updated on April 25, 2024
Quick Links
London Capital Group, known as LCG, is a provider of CFDs offering its clientele access to more than 7,000 trading instruments across nine asset categories including Forex, indices, shares, commodities, bonds, ETFs, cryptocurrencies, and more. This broad spectrum ensures that traders of all preferences have ample opportunities in the markets.
No, LCG is not a scam. London Capital Group Holdings plc (LCG Group), a company registered in England and Wales and a member of the NEX Exchange, offers low-risk Forex trading. As a UK-based entity, LCG is authorized and regulated by the Financial Conduct Authority (FCA), ensuring high standards of safety and regulatory compliance.
LCG is a legitimate and regulated broker across various jurisdictions. Additionally, the Cyprus entity operates as London Capital Group (CYPRUS) Limited (LCG CY), under the supervision of Cyprus Authorities and the Cyprus Securities and Exchange Commission (CySEC).
Our conclusion on LCG Reliability: LCG's Trust Score is ranked at 8.9 out of 10. This high rating reflects its good reputation and service over the years, as well as its possession of a reliable top-tier license. However, it is important to note that regulatory standards and protection may vary depending on the entity, with one of the regulations being in an offshore zone.
How Are You Protected?
As a regulated broker with 20 years of experience, LCG is committed to operating under strict rules while dealing transparently with clients and their funds. Confidence in the secure storage of funds is provided by tailor-regulated rules, which include holding client funds in Tier 1 banks, full segregation of accounts, and participation in compensation schemes in the event of broker failure. Moreover, LCG offers its clients negative balance protection, ensuring they can never lose more than the balance in their accounts.
Pros
LCG is a reliable broker, listed on the Stock Exchange and authorized by the toptier authority, the FCA.
The account opening process is fully digital, offering numerous funding methods, ECN accounts, and an advanced range of instruments.
Cons
The broker lacks a proper learning and research section.
Spreads may be high for some instruments.
There is no 24/7 customer support available.
LCG Review Summary in 10 Points
Headquarters: UK
Regulation: FCA, CySEC, SCB
Platforms: LCG Trader, MT4
Instruments: ETFs CFDs and spread betting (for UK residents only), Shares, Bonds and Interest Rates, Indices, Commodities, Spot Metals, Forex, Vanilla Options
EUR/USD Spread: 1.45 pips
Demo Account: Available
Minimum deposit: $0
Base currencies: Several currencies offered
Education: News, economic calendar, technical analysis, trading videos
Customer Support: Available 24/5
Overall LCG Ranking
LCG is deemed a good broker, providing safe and favorable trading conditions with transparency. The broker caters to traders of all levels with no initial deposit requirement and is accessible in numerous countries, allowing traders to also benefit from some of the lowest spreads. LCG's Overall Ranking is 8.5 out of 10, based on our testing and comparison to over 1000 brokers.
As a regulated broker based in the UK and Cyprus, LCG adheres to strict guidelines set by regulatory authorities. The leverage levels are confined to a specific set of rules; for instance, UK and European regulators cap the maximum leverage offered at 1:30 for major Forex currency pairs, 1:20 for minor ones, and 1:10 for commodities, among others. This is in recognition of the potential risks associated with the use of very high leverage.
LCG furnishes its clientele with a selection of three principal account types: CFD trading, ECN, and Islamic accounts, catering to the needs of traders adhering to Islamic finance principles. Additionally, for those new to trading or wishing to test LCG's platform, there is the provision to open a risk-free demo account.
How to Open an LCG Live Account ▲
The process to inaugurate an account with LCG is streamlined for ease. Prospective traders are invited to navigate to the "Open Account" page and follow the ensuing steps:
Navigate and select the "Open Account" option
Input requisite personal information (Name, email, phone number, etc.)
Upload documentation for verification of personal data (proof of residence, ID, etc.)
Complete an electronic questionnaire to verify trading experience
After account verification and activation, proceed with depositing funds to commence trading.
Spanning over 9 asset classes, LCG avails more than 7000 trading markets to its clients, encompassing CFDs, Forex, indices, shares, commodities, bonds and interest rates, vanilla options, ETFs, and cryptocurrencies. The breadth of trading instruments positions LCG with a Market Range Score of 8.9 out of 5, highlighting its extensive selection across various asset classes.
LCG structures its fees around a competitive spread and modest commissions for ECN accounts. Traders have the option to engage in share CFD trading with appealing margin requirements. Additionally, LCG offers monthly cash rebates for CFD and spread betting transactions, the latter being exclusive to UK residents. A daily administration fee of 0.04% is applied to positions open at 22:00 UK time, with triple the financing charges for positions held past this time on Fridays. When benchmarked against 1000 other brokers, LCG's fees receive an average score of 8.5 out of 5.
LCG's trading costs, or spreads, vary by traded instrument, averaging 1.45 pips for the EUR/USD pair. However, spreads may exhibit minor discrepancies across the two platforms utilized by LCG. For ECN account holders maintaining a balance of $10,000, spreads commence from 0 pips, accompanied by a commission of $45 per $1,000,000 traded. In a comparative analysis against other brokers, LCG's spreads are deemed average, registering an overall rating of 8.5 out of 5. Notably, while Forex spreads are considered average, the spreads for other instruments are competitively priced.
London Capital Group (LCG) ensures a swift processing time for payments, typically within one business day, while offering a variety of payment methods for traders' convenience. However, it's important for traders to note that the availability of these methods may differ depending on the account type they hold.
LCG's funding options received a commendable rating of 4.3 out of 5. While most fees are either non-existent or minimal, allowing for the utilization of various account-based currencies, the deposit options may vary across different entities.
Pros
Quick processing time for payments
Variety of payment methods
Cons
Availability of payment methods varies by account type
Deposit Options
LCG provides traders with a selection of payment methods, a significant advantage, though it's crucial to verify the availability of these methods based on the broker's regulatory status.
Credit/Debit cards
Bank wire
Skrill
Neteller
UnionPay
LCG Minimum Deposit
Remarkably, LCG sets no minimum deposit requirement for opening a trading account, appealing especially to beginners or those cautious about initial investments. This is in contrast to many other brokers who typically set a minimum deposit threshold of $500.
LCG Withdrawals
Withdrawal processes at LCG are streamlined, offering bank transfers and card payments. Specific conditions and fees, including a 2% commission on credit card deposits for CySec-regulated clients, may apply. However, FCA-regulated clients have access to additional withdrawal methods like Skrill and Neteller, with no transaction fees.
How to Withdraw Money from LCG Step by Step:
1. Log in to your account
2. Click on 'Withdraw Funds' in the menu
3. Specify the amount to withdraw
4. Select the withdrawal method
5. Fill out the electronic request form
6. Confirm the withdrawal details and submit
7. Monitor the status of your withdrawal through your Dashboard
LCG offers access to the widely used MetaTrader4 for desktop, mobile, and tablet users, alongside its proprietary LCG Trader for mobile and browser trading. Its platform performance is rated highly, at 4.3 out of 5, when compared across a comprehensive review of over 1000 brokers. The availability of the MT4 platform is a significant benefit for those seeking professional trading tools.
Customer Support
Providing 24/5 customer service, LCG ensures support through phone, live chat, and email. With a rating of 4.3 out of 5, LCG's customer support stands out for its swift and knowledgeable responses, accessible during the working week.
LCG Education
LCG offers a range of educational resources, including an economic calendar, breaking news, technical analysis, and trading videos. Despite a solid rating of 4.0 out of 5 for its educational offerings, the absence of a dedicated research and seminars section is a notable limitation.
In conclusion, London Capital Group (LCG) presents a secure and advantageous trading environment through its diverse trading products, choice between a proprietary platform and the versatile MT4, and the option for ECN account trading for larger-scale traders. Though the ECN account's minimum balance requirement may be steep for some, LCG's overall offering is well-suited to a broad range of traders, from beginners to professionals, particularly those based in Europe and the UK. LCG stands out for its competitive fees, tight spreads, and supportive customer service, making it a commendable choice for forex and CFD trading, among other financial instruments.
