July 29, 2021


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City Index Review/Test Report 05/2018: Good or Scam Broker?

7 min read

At the beginning of the 1980s, stocks, options, and similar financial products were not exactly an issue that retail investors knew or wanted to gain experience with. One of today’s most important and at the same time most famous CFD saw the light of day in the year 1983. Our City Index experience shows that the provider operates internationally. In more than 50 countries, traders rely on services of this broker.

Of course, the fact that so many traders worldwide trade via City Index CFD is due to the secure trading environment offered to traders with the in-house City Index trading platform – whether as download, web-based version, or the mobile version. In fact, the provider is proud that in 2009, the first iPhone app (“City Trading” application) was launched. Meanwhile, this mobile trade route is also possible for Android and even BlackBerry and Windows Phone users.

The facts at a glance
No minimum requirement for account opening, no fees for account management
Broker has more than 30 years of experience
Provider is regulated by both British and German financial regulators
Mobile CFD trading with the City Trading app for Apple,
Android, Blackberry, and Windows Phone systems
Four-week access to a free demo account
Thousands of markets open to CFD trading
Broker name: City Index
Broker type: Market Maker
Established in 1983
Headquarter in London
Regulated by FCA (UK)
Account Currencies USD, EUR, GBP, AUD, etc.
Account from $0
Payment methods: Bank transfer, credit card
Max. Leverage: 1:400
Margin from 0.25%
Spread on FX majors from 0.7 pips
Spread for indexes from 0.3 points
Spread for commodities from 0.03 points (oil)
Trading Fees Equities 0.1% (at least $10)
Web-based trading platforms, download, mobile phone, and tablet apps
Mobile Trading: Yes
Demo account: 4 weeks free
Languages: English, Polish, Hungarian, etc.
Support: Live-Chat, Phone-line, Email

The UK Financial Services Authority (FCA,) the Financial Conduct Authority, is responsible for regulation controls at the home base of Brokers City Index. According to our City Index CFD experience, the provider is also regulated by the Federal Financial Supervisory Authority (BaFin) in Germany. Both instances are considered, in Europe and worldwide, as the strictest representatives of their guild. The necessary protection of client funds is provided by segregated accounts. Thus, the broker has no direct access to the sums of their traders – the best protection against the consequences of a possible bankruptcy.

With its many years of commitment as one of the pioneers of CFD trading, City Index continues to offer its customers new innovations based on its extensive horizon of experience to make trading easier and more customer-oriented. This does not just include the app for mobile trading with Contracts for Difference. Numerous awards for the low-priced CFD trading since the launch of the CFD offer in 2001 (initially only in the home country of Great Britain) bring the provider into the field of vision of many traders who are either looking for a new broker or a legitimate partner to start, giving them fair conditions and plenty of room for trading.

There are many trading opportunities with this broker. First of all, traders have the choice between many thousands of stocks that can serve as underlyings for the respective CFDs. The securities are listed in principle on all major stock exchanges in the world, such as the United States, Europe, but also in Australia and Asia. But not only in CFD equities, but also in index markets, the broker is well positioned and offers many assets. In addition to stock and index CFDs, the broker offers many other CFD variants, which we also mentioned in our City Index review. This includes, for example, a wide range of metals, such as gold, silver, & palladium. These underlyings can also be traded using CFDs. Of course, this also applies to numerous currency pairs, of which City Index offers more than 40 known and also more exotic pairs as underlyings for CFD trading in the area of foreign exchange trading.

A special feature are certainly CFDs, which are sector-specific. Here traders have the opportunity to build a larger position in the area of a specific industry, such as banks, industry, or oil companies. Last but not least, it is also possible to opt for numerous commodities as underlyings for CFD trading. These include not only gold and petroleum, but also, for example, sugar, wheat, and coffee. It is also possible with City Index to trade CFDs on interest rates and bonds.

City Index has a variety of products available as underlyings (assets,) including equities, indices, bonds, currencies, precious metals, commodities, interest rates, and sectors.

Trading conditions:
The basis for City Index CFD trading is the trading platform named after the broker. Said platform stood as mobile version since the year 2009 once Apple devices were ready. Successively, the broker also developed an Android, BlackBerry, and Windows Phone variant, so that traders can also acquire City Index experience with such devices. Whether fees such as spreads and commissions (exclusively on equity CFDs,) margins, or the requirements for opening an account and the selection of underlyings, in all these points the CFD broker makes clear statements as to what traders can do and what costs arise. Particularly noteworthy are the commissions that are competitive in the equity CFDs and the low spreads. Commissions in the field of equity CFDs amount to only 0.1 percent of the traded equivalent value. For index CFDs, clients have the option to trade DAX CFDs with a spread of 0.7 pips. The offer of City Index can therefore be described as absolutely competitive.

Demo account:
The provider has developed two favorable ways as an alternative to the live account for real money trading. The first is the City Index CFD demo account. For four weeks, the demo account can be used with a maximum capital of $2,500.

Although CFD trading involves a high level of risk, sometimes high profits can be achieved. For this purpose, however, traders must keep an eye on the courses and be able to use a real-time financial chart.
In real time, traders can trade all the usual CFD variants without having to take a financial risk using the demo account.

The second way to gain experience is the provider’s specific learning model, which appropriately bears the name “Learn to Trade” on the website. The customer support can be contacted, among other things via live chat. In addition, there is an email customer service available and also the toll-free phone-line. On trading days, customer service representatives are available around the clock. There is also the opportunity to seek personal advice from retailers.

Easy account opening, low trading fees, and extra features
The opening of the account is carried out in a few steps, which has become the industry standard. Whereby the legal requirements lead to the fact that new customers in addition to providing personal data, need to also provide information on the occupational situation and the financial circumstances. A minimum deposit for opening a trading account is not required. Deposits by bank transfer and debit card are free of charge. If the deposit is made by credit card, the CFD Broker will charge a commission of 1.5%. Payments/withdrawal are always free of charge. Spreads for CFDs start at 0.3 pips with margins at just 0.25% of the minimum trading volume. A whole range of extra features are provided by the broker to its clients, according to our City Index CFD experience/review. The most well-known and at the same time most popular is probably the limit and stop loss function, which can secure profits prematurely or reduce losses.

Trading platforms for beginners or traders with experience?
Even with limits, traders can work easily if they have an accurate idea of the right balance between return and risk management. The video guides explain CFD trading from A to Z. In addition to the web-based trading platform, the platforms for Apple and Android tablets [smartphone apps for Apple, Android, BlackBerry, and Windows Phone,] are available and both beginners and advanced traders can use these. This allow a particularly intuitive orientation of all tools for trading in several thousand international markets. Very good chart packages with far-reaching trend indicators and easy navigation including watch lists and the innovative “price improvement technology” make this approach particularly exciting. Beginners can use their demo accounts at City Index to gain experience in the platforms and general knowledge of webinars.

Conclusion & Rating: 7.1/10
Of course, the City Index CFD demo account and the regulatory activities by the two most stringent regulators in Europe are important assets that appeal to some investors interested in CFD trading. In the more than three decades that the provider has existed, the products and functions, including the fee model, have been repeatedly revised and adapted to the new requirements of the traders. Of course, this includes the highest level of security in the processing of customer data as well as in the areas of money transfer and data protection. From beginner to CFD expert, the broker offers traders everything they need to succeed. Should problems ever arise, the broker takes care of its customers through the high-quality support. And, of course, the City Index CFD products and extras will continue to be optimized in the future so that the trading model can appeal to even more CFD traders.

PRO arguments
Opening a trading account without minimum deposit requirement
Good Regulation
Mobile CFD trading thanks to Apps
Demo account is available
Thousands of markets for CFD trading

CON arguments
Use of the demo account is limited in time
Broker acts as market maker
Commissions on stock CFDs
Limited payment methods

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