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City Index, backed by StoneX Group, is a renowned brokerage known for its versatile trading platforms, extensive market research, and a wide range of tradeable markets. In this comprehensive review, we will delve into the pros and cons of City Index, analyze its safety measures, explore its offering of investments, discuss fees and commissions, evaluate the trading experience on desktop and mobile platforms, examine the research tools and educational resources it provides, highlight its special features, and conclude with a final verdict.

Is City Index Safe? Trust Score and Regulation

Ensuring the safety of your funds and personal information is paramount when choosing a forex broker. City Index excels in this aspect, as it is regulated in three tier-1 jurisdictions: the Australian Securities & Investment Commission (ASIC), the Monetary Authority of Singapore (MAS), and the Financial Conduct Authority (FCA) in the United Kingdom. These regulatory bodies provide a high level of trust and oversight.

With a Trust Score of 99 out of 99, City Index is considered highly trusted. It is publicly traded and does not operate as a bank. While it is authorized by one tier-2 regulator and one tier-3 regulator, the majority of its authorization comes from tier-1 regulators, further enhancing its safety measures. It is worth noting that City Index does not offer additional private coverage beyond the protection provided by the U.K. Financial Services Compensation Scheme (FSCS), which offers up to £50,000 coverage in case of a broker default.

Pros and Cons of City Index

When considering a forex broker, it is essential to weigh the advantages and disadvantages. Here are the pros and cons of City Index:

Pros

  1. Part of StoneX Group: City Index benefits from being backed by StoneX Group, a reputable financial services firm. This affiliation adds to its credibility and reliability.
  2. Trustworthy and Low-Risk: City Index is regulated in three tier-1 jurisdictions, making it a safe broker for forex and CFDs trading.
  3. Versatile Trading Platforms: City Index’s flagship Web Trader platform offers a combination of advanced trading tools and integrated research, enhancing the trading experience.
  4. Award-Winning Mobile App: The City Index mobile app received recognition for its design and functionality, winning a Best in Class ranking.
  5. SMART Signals Subscription: City Index offers a subscription service that generates 200 distinct trading signals each week using an in-house engine.

Cons

  1. Limited MetaTrader Offering: City Index does not yet offer MetaTrader 5, and its MetaTrader 4 (MT4) offering includes a smaller product range.
  2. Lack of Video Content: City Index has not been actively producing in-house video content or updating its YouTube channel in recent months.

Offering of Investments

City Index provides an impressive range of investment options, including forex trading, spread betting, and CFDs. It offers over 13,500 tradeable symbols, including 84 forex pairs. Additionally, City Index offers CFD trading and spread betting on various markets such as indexes, shares, commodities, metals, bonds, interest rates, and cryptocurrencies. Notably, cryptocurrency trading is available through CFDs, but not through trading the underlying asset.

It is important to note that retail traders in the U.K. are restricted from trading crypto CFDs due to regulatory measures. The Financial Conduct Authority (FCA) has banned the sale of crypto derivatives to retail consumers.

Commissions and Fees

When it comes to fees and commissions, City Index offers competitive pricing, although certain aspects could be improved. Minimum and average spreads are competitive, with a minimum spread of 0.50 pips and an average spread of 0.69 pips for the EUR/USD pair. However, fee disclosures can be confusing, and it can be challenging to find comprehensive information on options costs. The categorization of fixed and variable spreads for different markets could be more intuitive.

Withdrawals are free, and there is no minimum deposit requirement to open an account. However, accounts with no activity for one year or longer are charged £12 per month. City Index provides transparent fee schedules, and withdrawal and other fees are clearly disclosed on their pricing page.

Desktop Experience

City Index offers two primary trading platforms: Web Trader and AT Pro. Web Trader, the flagship platform, provides advanced charts, custom indicators, and integrated research. While it offers an excellent trading experience, it has fewer features and customization options compared to the downloadable AT Pro platform.

AT Pro stands out with its advanced technical analysis tools, detachable charts, and strong customization capabilities. It offers over 100 indicators, historical backtesting, and automated trading. Real-time Reuters news is available on both platforms, keeping traders informed about market developments. However, it should be noted that AT Pro is only available to professional traders.

Mobile Experience

City Index provides mobile trading applications for both iOS and Android devices. The mobile versions offer easy synchronization with the desktop platform, allowing for seamless transitions. The mobile apps provide well-organized menus, custom price alerts, watch lists, and basic charting capabilities. While they may not offer the same level of functionality as the desktop or web platforms, they provide adequate risk management options for traders on-the-go.

Research Tools and Insights

City Index offers an impressive research portal with a range of resources to assist traders in making informed decisions. In-house analysts provide daily market outlooks and updates through a tag-based news page that includes fundamental and technical reports. The research material is well-organized, and many categories are accessible through the trading platforms.

Trading Central, a third-party research provider, is integrated into City Index’s platforms. It offers customizable technical and fundamental scanners that provide trading ideas and insights. The fundamental scanner includes filters and a calculation of fair value.

Education

City Index provides educational resources to help traders enhance their skills and knowledge. The education section features written tutorials organized into eight sections, covering various aspects of trading. Additionally, the broker offers how-to articles on major trading venues and a comprehensive help and support database.

While City Index offers valuable educational materials, there is room for improvement in terms of video content. Although some videos are available on YouTube, the integration between the website and YouTube can be enhanced for easier access to relevant topics.

Special Features

City Index offers several special features that cater to different types of traders. Its API, although primarily restricted to institutional and white-label partnerships, provides advanced backtesting and automated trading capabilities through the AT Pro platform. However, it does not offer VPS hosting, which could be a missed opportunity.

The broker also offers central counterparty clearing on “certain markets” through the Omnibus Segregated Clearing Account (OSCA). While City Index primarily operates as a market maker, it provides central clearing as a free service that requires an additional client application.

Final Verdict City Index Review

City Index is an excellent choice for new and mid-level traders seeking a reliable and reputable forex broker. Its extensive market research, robust trading platforms, and comprehensive product catalog make it a versatile option. The backing of StoneX Group and its strong regulatory oversight add to its credibility.

However, it is important to note that City Index may not be the best fit for full-time or professional traders due to the lack of volume discounts and limited connectivity through VPS and API interfaces. Additionally, some improvements could be made in terms of video content and fee disclosures. Nevertheless, City Index remains a trusted and competitive broker in the forex industry.

In conclusion, City Index offers a comprehensive trading experience, solid educational resources, reliable customer support, and a broad range of competitively-priced markets. It is a trusted broker for traders of all skill levels, with its rich history and London location instilling confidence.

You might be interested in exploring more about trading platforms by checking out the Trading Platform article on Wikipedia. Additionally, if you want to learn about forex trading, you can find valuable information in the Foreign Exchange Market article. Speaking of brokers, it’s worth looking into the Stockbroker article to understand the role they play in financial markets.