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Trade Forex Review: Scandinavian Capital Markets
Introduction
Scandinavian Capital Markets, an ECN broker with its headquarters in Stockholm, Sweden, has been serving traders since 2011. This review explores the key aspects of Scandinavian Capital Markets, from its regulation and leverage offerings to its trading accounts, platforms, minimum deposit requirements, fees, and suitability for different types of traders.
Regulation and Safety
Scandinavian Capital Markets, as a Swedish financial investment company, prioritizes safety for its clients. It is authorized and regulated by the Swedish financial supervision authority, Finansinspektionen. Additionally, the broker fully complies with European ESMA standards and the MiFID Directive. This regulatory framework ensures transparency in transactions, with no conflicts of interest between the broker and traders. Clients’ funds are held in separate accounts, further enhancing security.
Leverage
Due to ESMA’s regulatory restrictions, Scandinavian Capital Markets adheres to specific leverage limits. Retail traders can access up to 1:30 leverage for major currency pairs, while professional traders can use 1:100 leverage after confirming their professional status.
Trading Accounts
Scandinavian Capital Markets offers three types of trading accounts, each catering to different needs:
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Standard Account: This ECN account has a minimum deposit requirement of $10,000, with spreads starting from 1.7 pips and zero commissions per lot.
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Premium Account: Designed for more experienced traders, the Premium account requires a minimum deposit of $25,000. It offers spreads starting from 0 pips and a commission fee of $10 per lot.
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Custom Account: For traders with higher capital, the Custom account provides individualized spreads and commission rates. It has a minimum deposit requirement of $250,000.
Islamic traders can also opt for an Islamic account that eliminates swaps.
Eligibility for Trading
Scandinavian Capital Markets welcomes clients from various countries but does not serve residents of the United States, Iran, Syria, North Korea, Yemen, and Cuba.
Trading Platforms
Scandinavian Capital Markets, as an ECN broker, ensures high liquidity for institutional, professional, and retail traders. Traders can choose from renowned trading platforms, including cTrader, Currenex, and MetaTrader 4. These platforms offer a wide range of tools and features to suit different trading strategies.
Furthermore, Scandinavian Capital Markets provides access to automated trading and API communication through the Myfxbook tool. They also offer solutions for managing traders through MAM (Multi-Account Manager) accounts.
Minimum Deposit
To open an account with Scandinavian Capital Markets, traders need a minimum deposit of $10,000. While this amount may be challenging for novice traders, it aligns with the broker’s focus on experienced traders.
Commission and Fees
Scandinavian Capital Markets processes withdrawal and deposit requests swiftly and typically does not charge additional fees for these transactions. This enhances cost-efficiency for traders.
Conclusion
In summary, Scandinavian Capital Markets is a reputable broker that prioritizes safety, complies with regulations, and offers high-quality trading services. It is well-suited for experienced traders due to its higher minimum deposit requirements and advanced trading tools. However, it may not be the best choice for beginners. Traders looking to develop their skills can benefit from the educational materials provided by the broker.
If you’re considering Scandinavian Capital Markets, it’s advisable to read reviews and consult the Forex broker rating to make an informed decision based on your trading preferences and experience level. Remember, every trader’s needs are unique, so choose a broker that aligns with your goals and risk tolerance. Happy trading!
