CapTrader Transparent Review

CapTrader user-ratings: $2000
  • Asset varierity - 0/10
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  • Trading platform - 0/10
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  • Support - 0/10
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  • Fees - 0/10
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  • Deposit/Withdrawal - 0/10
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Facts about the company:

  • Type: Stocks and ETFs Broker 
  • Regulation: BaFin (Germany) 
  • Minimum deposit: $2000
  • Demo account: Free
  • Markets: 135+ Shares, ETFs, Futures, Options, Warrants 

 

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Pros

  • No fees are charged 
  • Demo Account available 
  • Spread starts at 0.1 pip
  • Regulated Online Broker
  • Award-winning Broker

Cons

  • High minimum deposit of $2000

The history of CapTrader

The asset management and consulting company CapTrader was founded in 1997 and was granted a license by BaFin just one year later. In 2004, the expansion of the classic range of services to include online trading software began. 2007 the start with the online brand FXFlat takes place. Two years later FXFlat exceeds the 1.000 customers mark.

2011 FXFlat is elected by the magazine “€uro am Sonntag” as the clear overall winner as best CFD Broker 2011. Further awards will follow in the next years. Due to the strong growth, the company moves to new and bigger offices in 2013. In 2015 a 24h trading department incl. service & support in German and English was established. In the same year, the FXFlat Wertpapierhandelsbank GmbH takes up the securities trading bank business after a successful license extension.

Screenshot of the CapTrader Landing Page

The introduction of accounts without obligation to make additional contributions will take place in 2017, followed by further product launches such as Bitcoin and Forex Spot. The foundation of CapTrader GmbH takes place in 2019 and CapTrader receives numerous awards this year as well. Among others the award of Focus Money 2019 for the highest competence.

Facts about the history:

  • founded in 1997
  • regulated by the BaFin
  • 2007: start of working with FXFlat
  • 2011: Award – best CFD Broker 2011
  • 2017: Different account options are available

Which markets are tradable?

CapTrader offers trading at more than 120 international stock exchanges worldwide and from 26 countries. Therefore all common stock exchanges in North America, Europe, Australia, and Asia are available.

The following products are tradable:

  • Stocks
  • ETFs
  • Options
  • Futures
  • Warrants
  • CFDs
  • Raw materials
  • Certificates
  • Forex
  • Investment funds

For equities and ETFs, 26 countries are available. Moreover, for futures, commodities and futures options, the offering includes more than 35 market centres from around the world. Options can be traded in over 15 countries.

CFDs can be traded on all major indices, currencies, and stocks. The range of stock CFDs currently includes 7,250 stocks from the Americas, Europe and Asia-Pacific. In Forex trading there are about 100 currency pairs to choose from. All warrants and certificates of all common issuers are tradable. CapTrader offers trading with funds that are tradable on the Euronext exchange (Euronext Mutal Funds). There are 11,000 investment funds from over 240 fund families to choose from.

What is the minimum deposit?

In order to open a securities account, a deposit of at least 2.000 dollars (or equivalent in another currency) is required. Alternatively, such a securities account can also be opened by a transfer of securities (total value at transfer: at least 2,000 dollars).

The following payment transaction information gives you further insights on deposits:

Payment transactionsFees
Opening an account from 2,000 dollars (or equivalent in foreign currency)Free-of-charge
Deposit by bank transferFree-of-charge
1st payout in any calendar monthFree-of-charge
2nd and/or every further payout in the calendar month by SEPA$1
2nd and/or every further payout in the calendar month by bank transfer$8

Is there deposit insurance?

There is deposit insurance. The deposit is held at Interactive Brokers U.K. (IB UK). IB UK is a sister company of Interactive Brokers LLC (IB), a Nasdaq-listed company (symbol: IBKR), which has been active in the financial world for more than 33 years and pursues an extremely conservative business policy.

IB employs more than 800 people worldwide, settles more than 1,000,000 transactions daily, and has equity of USD 5 billion. IB was not directly affected by the financial crisis, as risky exposures in subprime loans and CDOs were consistently avoided. The company has been consistently profitable for years, even during the financial crisis. IB is subject to SEC and CFTC standards. IB UK is subject to FSA standards.

All customer accounts are segregated accounts. These are accounts that are separate from the brokerage house accounts. If a Broker becomes insolvent, the customer with a segregated account can still dispose of his money with the relevant Broker.

Customer funds and capital investments are also protected in three different ways:

  1. Customer deposits are held in segregated accounts, which are kept strictly separate from IB’s equity. Claims on IB cannot, therefore, be extended to client funds.
  2. In the unlikely event of IB’s insolvency, customer funds and financial instruments are protected by the US Securities Investor Protection Corporation (SIPC). The protection covers a maximum of USD 500,000 per client, including a maximum of USD 250,000 on cash deposits. In addition, IB has a policy with Lloyd’s that provides protection of USD 30 million per client (including USD 900,000 on cash deposits), with a total maximum of USD 150 million per claim.
  3. In the event that there are positions in non-US index options, non-US index futures, metals, and cash positions in the UK account, customers can choose to take advantage of the UK Financial Services Compensation Scheme (FSCS). This covers up to GBP 50,000 per client. However, if an offsetting procedure with the US SIPC is ongoing or has been completed, an offsetting procedure with FSCS may be rejected.

Please take a look at the following table for more information about CapTrader accounts:

CapTrader accountFees
Account managementsFree-of-charge
Telephone ordersFree-of-charge via Interactive Brokers
CapTrader, TWS, Web- & Mobile AppsFree-of-charge
Iphone/Android AppFree-of-charge

What do I have to consider when opening a deposit account?

The opening of a securities account is divided into three steps:

  1. Fill in the application form for opening a securities account

    This can be conveniently filled out online.
  2. Signature and POSTIDENT

    After a legitimation via POSTIDENT, the signed application and the documents required for the opening of a securities account are sent to CapTrader.
  3. Opening a securities account

    As soon as CapTrader has received the complete securities account opening documents, the securities account is opened immediately via the online broker CapTrader.

How are the deposit and withdrawal?

Deposits and withdrawals can be made quickly and easily via your own account management.

In order to make a deposit, a deposit note must first be set in the account management. Afterward, a deposit can be made. The deposit is usually credited to your own account after two working days.

A reference account must be saved the first time a payment is made. After that, a payout can be made at any time. As a rule, the transfer will be credited to your own current account within 1 to 3 working days.

What are the conditions and spreads at CapTrader?

The conditions and spreads at CapTrader are competitive. The order fees for German stocks and ETFs are 0.10% of the transaction volume. The minimum fee is 4,00€. American shares are tradable from 1 cent per share. 2.00€ is the minimum fee. Stock trading in other countries is also inexpensive and is usually 0.10%.

The fees for trading in futures are also fair. In Germany, the price per futures and options contract is 2.00€. When trading Micro E-Mini Futures in the USA the fee is $1.25 per contract. Otherwise, the fees for US futures are $3.50 per futures and options contract.

For CFDs the commission is 0.01% when trading the Deutschland 30 (IBDE30). For stock CFDs the commission is between 0.05% and 0.1%.

Example of a European Equity CFD
Buy: 100 CFDs Daimler at a price of 52,00€

Calculation: 100 CFDs * 52.00 (price of the CFD)= 5,200€

Result: 5,200 * 0.1% (commission) = 5.20 € order fee

The commission for trading CFDs on Forex is 0.3 basis points * volume. The minimum fee is 3.75€. Holding interest is charged daily on all open CFD positions held at the close of trading. Trading Spot Forex incurs the same fees as trading CFDs on FX.

Example of an FX trade
Purchase: 100.000 EUR/USD at EUR/USD exchange rate: 1.30

(Means: purchase of 100.000 EUR and simultaneous sale of 130.000 USD)

Calculation: 0.00003*130.000 USD=> 3,90 USD Order fee

For certificates and warrants, the order fees are 0.20% and the minimum is $6.00.

How high are the levers and margin requirements?

From 1 August 2018, the European Securities and Markets Authority (ESMA) will set minimum initial margin thresholds and will require IBKR (UK) to liquidate open positions if the qualifying capital in your CFD account (cash and unrealised P&L of CFD positions) falls below 50% of the initial margin requirements for all CFD positions. In addition, IBKR (UK) calculates its own minimum margin requirements (IBKR Margin Requirements) based on the historical volatility of the underlying asset and other factors as detailed below. With respect to retail investors, ICNR (UK) will apply ICNR margin requirements where these exceed those of ESMA. In accordance with the 50% close-out rule, ICAR margin requirements will be twice the minimum margin requirement.

The margin requirement for retail equity CFDs will be 20%. There will also be no margin requirement. For the large Inidzes the minimum is 5%, otherwise it is 10%.

The margin on the major currency pairs is 3.33%. The smaller currency pairs can be traded with a margin of 5%. For exotic currency pairs, the margin is between 10% and 15%.

The margin requirement for the Dax Future, for example, is 13,491 Euro. The overnight margin requirement is 26,983 Euro. Depending on the volatility, however, it is also adjusted accordingly and can therefore be higher on some days.

For EUR/USD, the spread starts at 0.1 pip. The management of the securities account and all services related to the securities account are free of charge. Securities trading by telephone is also free of charge.

Is the final withholding tax paid automatically?

The final withholding tax is not automatically withheld by CapTrader, which means that almost* the entire capital including all income and profits is fully available for profitable further investment. (*Exception: a direct withholding tax deduction for dividend distributions).

Only in the following year do you declare the accrued investment income in your personal tax return. This is possible because the custody account connection is not in Germany, but with the European partner Interactive Brokers.

Does CapTrader have an exemption order?

Due to the custody account management in Great Britain, this step is not necessary with CapTrader. This gives you the unique advantage that the flat-rate withholding tax does not have to be paid until the end of the year via the tax return. For this reason, CapTrader does not need an exemption order.

How can I contact CapTrader?

CapTrader can be contacted by email and phone. The free hotline is manned from 08:30 am to 8:00 pm.

Support available:8:30 am to 8 pm on weekdays
Telephone:00800-08723370
Adress:info@captrader.com
Languages:2+

Which trading tools are available at CapTrader?

CapTrader uses the trading software Trader Workstation (TWS) and the AgentaTrader Mercury

AgentaTrader Mercury

The TWS offers many analysis possibilities with which you can examine the price development of stocks, currencies, options and futures.

CapTrader TWS

Fundamental data, balance sheet information, profiles and key figures can be analysed and displayed. It is also possible to query historical price information. Insight into the order book and Time & Sales are also available. News can also be displayed in real-time via RSS feed.

Furthermore, a variety of trading tools are also included in the TWS:

  • ChartTrader
    In ChartTrader you can trade directly on the real-time chart and customize your chart according to your needs with the help of over 70 technical indicators.
  • BookTrader
    The BookTrader is the right tool for investors who want to enter and transmit orders particularly quickly. With just a few clicks, an order can be transmitted directly in the order book to the relevant stock exchange.
  • BasketTrader
    With BasketTrader you create your own basket/index of securities that you want to trade simultaneously. Of course, these values in the basket/index can be changed at any time. The BasketTrader is therefore also the ideal tool for all investors who regularly trade positions at the same time.
  • FXTrader
    The FXTrader is the optimal tool for, especially active forex traders. With just one click you can trade your desired currencies at lightning speed. With FXTrader you can keep track of up to 16 currency pairs and place, modify or cancel orders at lightning speed.
  • OptionTrader
    Thanks to its clear interface, OptionTrader is suitable for both beginners and professionals. It offers a clear display of available option contracts of an underlying asset, as well as various modules for risk and portfolio analysis.
  • Option Portfolio
    With the help of the Options Portfolio Tool, you can see the risk profile of your option positions at a glance and immediately adjust them based on the option greens. In addition, you can achieve your target of Delta, Gamma, Vega, or Theta by simply specifying this target.

The third-party software AgenaTrader is available as CapTrader customer in the Mercury version free of charge to his capitalized live account. The platform enables fully and partially automated trading and the development of trading systems without programming knowledge via a simple tool. AgenaTrader is connected to the Trader Workstation via the API interface.

A comprehensive presentation of the AgenaTrader software can be found here. NinjaTrader can also be connected to CapTrader.

Does CapTrader offer a training area?

CapTrader offers a comprehensive training. You can find it under the tab “Training”.

There is a large video library with videos for all areas:

  • Weekly outlook
  • trader workstation
  • AgenaTrader
  • Technical analyses
  • NinjaTrader
  • Jens Rabe
  • Carsten Berger
  • André Stagge
  • Martin Goersch
  • Julian Böhnisch
  • Jens Klatt
  • Unicorn Coaching
  • Option universe

Webinars and seminars also take place regularly. CapTrader is also represented by many well-known and renowned speakers. Furthermore, there is also a YouTube channel, which provides a variety of videos.

Where can I find the CapTrader app?

The app CapTrader enables you to use the portfolio on the go – on your smartphone as well as on your table. The advantages of the mobile application are among others the following:

  • Always keep an eye on your portfolio and open orders
  • Trade all stocks, options, futures, currencies and much more
  • Streaming quotes and charts in real-time
  • Use the Market Scanner to filter markets and stocks according to specific criteria
  • Set personal price alerts

How do you classify as a professional client?

Under the rules of the Financial Conduct Authority (FCA), clients can be classified as either retail or professional. Under the Markets in Financial Instruments Directive (“MiFID”), Lynx’s Custodian Broker Interactive Brokers UK (IB UK) may therefore classify clients as a voluntary professional-client where a required “qualitative review” or the outcome of such review allows.

As part of the “qualitative examination” at least two of the following conditions must be fulfilled:

You have carried out an average of ten transactions of significant size per quarter over the past year in the market on which the financial instruments for which you are to be classified as a professional client are traded.
one has bank deposits and financial instruments worth more than $500,000.

One has exercised a profession in the capital market for at least one year, which requires knowledge of the transactions, investment services and ancillary services in question.

Which awards does CapTrader have as a broker?

CapTrader has received various awards for many years. Multiple awards as best online broker and highest satisfaction.

Among others, CapTrader has received the following awards:

  • Wirtschaftswoche – TOP Online Broker
  • Focus Money customer favourite 2017 – Most popular brand
  • BankingCheck: Best Online Broker 2017
  • Broker comparison: 2nd place online broker
  • OnlineBrokerPortal: 1st place Best Futures Broker
  • Online Broker Portal: 1st place online broker
  • F.A.Z. INSTITUT – Germany’s best customer advisors in the field of “custodian banks
  • Focus Money 2019 Highest competence
  • Finance Award 2019 by FMH financial consultancy and news channel n-tv
  • Focus-Money – Award for Digital Service Strength 2019

Conclusion

CapTrader is a powerful and inexpensive All in One Broker. All products and markets are available. The price structure and fees are competitive. Also, execution and pricing are transparent and fair.

The support is easy to reach and has a high level of competence. Due to a large number of speakers and the comprehensive offer of webinars and seminars, CapTrader also offers its customers a comprehensive training area.

Thanks to the strong partner Interactive Brokers, deposits are also secure. With the help of the Trader Workstation, a trading platform is available, which contains all important functions for professional trading. Even those who are not familiar with the TWS will find two powerful platforms with AgenaTrader or the connection of NinjaTrader, which allows trading with CapTrader.

With the app of CapTrader, you can also trade on the go and have an overview of the markets and your portfolio at any time. Also, the numerous awards confirm once more the high competence and the comprehensive offer of CapTrader.


Most asked questions:

Is CapTrader An ECN/STP Broker?

CapTrader is an Introducing Broker of Interactive Brokers and therefore also an ECN/STP Broker like Interactive Brokers.

How Is CapTrader Regulated?

CapTrader is licensed and supervised by the German Federal Financial Supervisory Authority (BaFin).

Where Do I Register For A Demo Account?

The registration for a demo account is easy and uncomplicated via the CapTrader website. You just have to fill out a registration formula. Afterwards, you can start trading.

Does CapTrader Offer Savings Plans?

CapTrader also offers savings plans. The offer includes funds and savings plans on shares, funds, and ETFs. About 6,300 funds and 400 ETFs are eligible for savings plans. This offer is provided by the partner European Bank for Financial Services GmbH (ebase).

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