Forex trading provides the most significant financial market, and many brokerage firms have established stellar reputations based on their ethical trading practices. Yet, it also gives scammers a lucrative opportunity to steal money from unsuspecting traders.
With this in mind, you need to be very careful not to land in the hands of unreliable forex brokers.
Are you looking to invest with Citi Index? Before you go ahead, please take a moment to read our in-depth review of this global FX and CFD Forex trader.
City Index Review in a Nutshell
In this review, we will address some pertinent issues like who regulates City Index, whether it’s trustworthy and if indeed it’s a legit forex broker.
We will reveal any schemes it uses to scam innocent investors. Finally, we’ll check customer feedback on trusted online forums and deliver an informed verdict.
Now, let’s find out the truth about City Index:
City Index: A Brief Background
According to its website, City Index is “one of the world leaders in Spread Betting, FX and CFD Trading”. It offers its clients access to forex, shares, commodities, and indices across multiple global markets.
Founded in 1983, City Index boasts:
- A diverse range of products
- Competitive spreads
- Great platform options
- Market Research
- Premium research tools
- Reliable customer service
- Tight spreads, quick execution, and low margins
Headquartered in London, the brokerage trades under the name GAIN Capital UK Limited. It is also the property of GAIN Capital, a company listed on the New York Stock Exchange.
City Index was among the initial forex brokers that offered spread-betting in the UK. as well as CFD trading to clients. The firm holds all client funds in segregated bank accounts, and UK retail clients are placed under the Financial Services Compensation Scheme (FSCS).
Who Regulates City Index?
City Index is (again, as per its website) authorized and regulated by the Financial Conduct Authority (FCA). It is registered in England & Wales.
The company is also regulated by the Australian Securities & Investment Commission (ASIC), the Financial Conduct Authority (FCA), and the Monetary Authority of Singapore (MAS). All these are tier-1 regulators.
City Index is thus regulated in the UK, Australia, and Singapore. Does this make the firm a safe or low-risk broker for forex and CFDs trading, or is this a regulated scam? Let’s find out.
Is City Index a Scam?
City Index poses a great attraction to traders in search of low forex fees and great research tools. It is also considered “safe” owing to its long track record – 34 years – regulation by top-tier financial authorities, and its publicly-listed parent company.
Clients have access to the technical analysis portal, which enables real-time market scans for trading opportunities. At the same time, novice traders get excellent educational resources.
However, looks can be deceiving. Let’s explore further.
City Index Scam: The Red Flags
1.Trading with City Index: The Experience
City Index fees on forex or stock index CFDs are low. Account opening is quick and efficient. And you have high-quality and diverse research tools at your disposal.
You need a minimum deposit of £100 to open an account. You get access to multiple payment options and free deposits/withdrawals. However, a fee of £12 per month is applicable if your account stays inactive for 12 months or longer.
The downsides: City Index only offers forex and CFDs, the trading platform is not user-friendly, and stock CFDs attract high fees.
In general, CFDs are complex instruments, and there’s a high chance of losing your money due to leverage. Note that 71% of traders of retail investor accounts lose money when trading CFDs with this provider.
2. Unsatisfactory Customer Support
City Index offers customer support in multiple languages as well as live chat support. Email and phone support are also available. But as we shall see from the complaint below, the support is wanting. Live support also uses chatbots, which take long to respond to customer queries.
3. The Trading Platforms
The broker offers two proprietary platforms – Advantage Web and AT Pro, in addition to the MetaTrader 4. These platforms are also accessible on mobile. City Index doesn’t offer trading volume discounts. This is unfortunate since it discourages large, skilled traders.
Still, customers have complained about the MT4 Trading platform. Some felt they were unable to take advantage of real-time market prices due to delays in order execution. As such, the prices quoted during order placement were different from the prices executed by the broker:
4. What Are Customers Saying About City Index?
Does City Index have favorable online reviews and a good reputation? Are its trading practices transparent?
While there appears to be limited City Index online reviews, there are some where users complain about various practices such as anomalies in funds withdrawal.
Let’s look at the below customer reviews from Forex Peace Army, a reliable online Forex review platform.
The firm was reportedly fined for enticing customers with untruthful testimonials:
Some customers pointed out the lack of transparency:
Clearly, City Index needs to do something about its negative online reputation. It also needs to make a concerted effort to resolve the issues reported. Besides, a lack of decisive action might cost them their FCA license and erode their legitimacy.
City Index Review Verdict: It’s a Scam
There you have it – the unvarnished truth about City Index.
From the negative reviews citing problems ranging from misleading testimonies, the trading platform, to customer support, it is clear that the firm is not transparent. Neither is it customer-focused.
Thus, despite its advantages – used by 14,000+ traders and authorized by reputable regulatory agencies – City Index is a regulated scam.
When choosing a forex broker, it’s crucial to identify one that is reliable and transparent. As we have seen, it’s extremely easy to get lured in by unscrupulous forex firms masquerading as genuine brokerage firms.
Got scammed by City Index? No worries. Book a free consultation, and we will guide you on the next step to take.