Capital Trust Markets is Why im Broke

 50 Words on – Why you can go Broke with Capital Trust Markets?

I often think about what I really want from a broker and I realize I’m quite needy: I want speed of execution, tight spreads, a relatively high leverage, quick and easy withdrawals, peace of mind that my money is secure, no shady spikes that kill my Stop Loss, no platform freezes and last but not least, I want transparency from my broker. I probably forgot some, but even the things mentioned here are too much to ask from a single broker. Maybe some brokers have them all but only for some sort of VIP account with a minimum deposit of 10 – 20K which is rather restrictive for a lot of traders. And this takes me to Capital Trust Markets: they have it all… with a $100 minimum deposit. I’m looking and looking, but I can’t find something that could make you go broke, as far as the broker is concerned (of course, if you can’t trade, a good broker is of no use). The only concern I have is the fact that CTM was launched late in 2013 so I cannot stand by their good will 100%. They started on the right foot, now all they have to do is continue that way.

 

How to avoid going broke with Capital Trust Markets:

  • You know the saying “… if it sounds too good to be true, it probably isn’t”? I honestly hope it doesn’t apply here and that Capital Trust Markets is really a broker to be trusted – they sure look that way so far. However, please apply caution in every aspect until you make sure of their honesty.
  • Capital Trust Markets is a partner of FX Copy, a social trading service that allows you to copy other traders. If you want to follow others, be very careful when picking the person that you’re going to follow/copy. After all, their loss could be your loss.
  • Be aware of the fact that all brokers widen spreads at news or during volatile times
  • They offer a 150% first deposit bonus which is huge for the industry. If you are tempted to accept it – it’s appealing, I’ll give you that – make sure you ask their Support team all the necessary questions. In writing! This applies to all things that are not clearly stated in their Terms and Conditions.
  • Make sure you understand the extent to which your money is tied to their brokerage if you accept that bonus.
  • Withdraw periodically at least until you gain enough confidence that you are dealing with a trustworthy company. Everything looks good so far but better safe than sorry.
  • Read the Terms and Conditions thoroughly – this applies to all brokers.

 

The Quick Roundup

On paper this broker looks outstanding! And believe me, I am not easily impressed. Their spreads are one of the best in the industry (starting at 0.1 pips) and they are publicly available in real time on their main page. In other words, you can see how much they widen spreads during news time before investing money and opening an account. Execution is Straight Through Processing (STP), without a dealing desk and they operate under the agency model, meaning they are not a market maker, hence they don’t trade against you. Commission is 5$ per Lot which means $50 per million traded and this is paid one way (you won’t pay another commission when closing the trade). Although they have just a few user reviews online, not a bad word is mentioned. You don’t hear the usual “I can’t withdraw, platform is frozen, slippage occurs, they are scammers, etc, etc” and instead, they have a maximum star rating on almost all major websites where users can write reviews, including FPA [1]. Keep in mind that due to CTM’s freshness on the market, the stellar reviews could be faked. My personal opinion is they are not faked but there’s always the possibility of me being wrong.

 

Editor’s Note – Would I Trade with Capital Trust Markets?

In the section above is said: “On paper this broker looks outstanding!” Well, I am planning to change that and to eliminate “on paper” because I would like a hands-on approach so I will probably open an account with CTM. Their approach is somewhat different than other brokers’ and – according to them – their founders are traders and account managers so I believe they know what we traders need. I just hope they live up to my expectations.

 

[1] Capital Trust Markets on FPA

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