The London Capital Group (LCG) has developed into a global player in international trading over the past 20 years. The broker stands for competitive prices with narrow spreads and low margins, modern technology and good customer service. Traders can be active in eight asset classes in more than 7,000 markets. The London Capital Group is listed on the London Stock Exchange. The asset index is also large. Traders who trade in LCG CFDs or currencies can therefore freely choose which currencies or shares they want to trade in. When it comes to currencies, majors such as dollars and euros are always in high demand, and the British broker also enables its customers to gain experience with the popular foreign exchange through LCG Forex. In addition to more than 60 currency pairs, twelve indices, commodities and stocks can also be traded. The daily market overviews and analyzes that the support team sends every day by email are particularly helpful.
4,000 stocks from all over the world
When trading stock CFDs, you can go to<131 at LCG>set over 4,000 all over the world. Shares themselves have been known since the beginning of the 17th century. CFDs are not placed directly on a stock, but instead tries to correctly predict its price. You can bet on rising and falling prices. If the trader is correct with his forecast, he receives a profit. With share CFDs , you do not acquire a share in a company.
The leverage in CFD trading in shares is up to 1:33 at LCG. German shares are tradable from a spread of 0.1 percent, American shares from two cents per share. The offer also includes some stocks from renowned companies such as Apple and Facebook.
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Trade with little capital
You can also use CFDs comparatively little capital investment trade shares. With classic stock purchases on the stock exchange, the full price must always be paid. Therefore CFDs are very cheap compared to stocks. Usually you only have to deposit a margin and pay the spread. In addition, traders often only hold a CFD on stocks for a short time. So they are not a long-term investment vehicle like stocks. If you want to invest long-term, you should rather rely on shares. You can also get a profit from CFDs if the share price drops - provided you have speculated on this development.
Risks in CFD trading
The risk in CFD trading was significantly reduced when BaFin banned CFDs with a margin requirement some time ago. However, with leverage products it is always important to be fully informed of the risks before you start trading. The topic risk management therefore always plays a major role. Among other things, one should not act on the gut, but according to a predetermined strategy. Many traders follow charts or techniques from fundamental analysis.
In addition, the choice of a good broker plays a major role - but this also applies to traders, who are interested in gaining experience with LCG Forex. Among other things, the broker should offer a good trading platform and competent customer service, and all costs should be stated transparently. If you want to trade LCG CFDs or foreign exchange, you can find out the exact conditions in our review.
CFDs known since the 1990s
CFDs have been known since the 1990s. Contracts for Difference means contracts for differences. As the name of the contract for differences already suggests, a CFD is the price difference between the entry and exit times. This is called the spread. Trading usually takes place outside the stock exchange, i.e. in over-the-counter trading. All purchases and sales are processed directly through the broker. This also draws up the relevant prices and determines the conditions at which CFDs can be bought and sold. CFDs are used to invest in underlyings, in this case in shares. It is also possible to trade only one contract. You do not have to buy a large number of shares to make a profit.
Right to dividends
Even if you do not acquire shares in a company, you have through CFDs Right to receive dividends from a company. If traders bet on rising prices and had a corresponding share CFD on the so-called ex-dividend day, they would receive 85 percent of the dividend. However, anyone who owns a short CFD on the day of the dividend payment must pay the dividend. For example, you should check the website of the company whose shares you are trading for when a dividend will be paid.
Registered in England and Wales
The London Capital Groip is in England and Wales registered and offers in forex trading spreads from 0.6 pips on the main currencies. With narrow spreads, traders therefore benefit from small price movements. But there is also good news for all those investors who are wondering whether the LCG CFD experience tends to be positive or negative: The broker can convince here too.
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LCG Forex and CFD trading via MetaTrader 4
MetaTrader 4 is probably the best-known trading software. It is used by many brokers. The software is also available for download. In addition, indicators and chart tools can be used via the analysis package. The Expert Advisor for automatic trading is already pre-installed and can be customized. There is also another platform developed by LCG. However, many traders who opt for the LCG Forex offer are already familiar with MetaTrader 4 and are therefore happy to use it.
Demo account and training offer
Traders can initially use LCG's offer via Test demo account and find out whether the largely positive LCG Forex experience is correct in your opinion. Already in this test phase you can access the user manual for MetaTrader 4 and get to know the trading platform better. It also explains the tools and indicators in detail. The trading account can be managed in multiple currencies and is not subject to a minimum capital requirement.
Security of traders
The broker complies with the European MiFID guidelines for investor protection . In addition, in the event of bankruptcy, compensation of up to £ 50,000 per investor applies. The public limited company listed on the London Stock Exchange keeps all customer funds separate from company funds at international banks. According to its own statements, the deposits at LCG are more than $ 1 billion and the trading volume executed is more than $ 20 trillion. If you have any questions, traders who want to trade at LCG CFD and have any questions can contact the customer service around the clock by phone, email or live chat.
Account opening at LCG
Registration with LCG only takes a few minutes. When opening an account, the broker is obliged to verify the identity and address of the account holder. This can be done online. As a rule, traders opt for the basic account, with which they can start trading after the first deposit. The first deposit should be so high that you can easily cover the margin requirements for your positions.
CFD vs. Forex trading
Conclusion: LCG CFD experience overall positive
The London Captial Group offers assets from eight asset classes, including equity CFDs. Traders who trade LCG CFD on stocks benefit from falling and rising prices. LCG also offers shares in well-known companies such as Apple. The company is listed on the London Stock Exchange. However, traders cannot only acquire LCG CFD experience and knowledge; the LCG Forex offer is also impressive.
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