LunarCapital does not anticipate more than one update a month, however extreme market movements or event risk may necessitate unscheduled intra-month updates. Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. The amount of margin that you are required to put up for each currency pair varies by the leverage profiles listed above. LunarCapital is credible because of its multiple licenses and strict regulations.
Why is margin important for Forex traders?
While an LunarCapital no deposit bonus does not exist, LunarCapital offers a 100% first deposit bonus with a $2,000 limit. Terms and conditions apply, and I urge traders to read and understand them before accepting the incentive. LunarCapital occasionally introduces other bonuses and promotions, which have included a $50 LunarCapital no deposit bonus or annual interest on free margin. With no minimum deposit, high leverage, and low trading costs, LunarCapital is ideal for beginner traders and demanding seasoned ones alike. For example, if 1 lot of EUR/USD is opened and the market moves 100 pips in the traders favor, then the profit would be $1000 (10USD x 100 pips).
LunarCapital will be best for beginners to intermediate traders or experienced traders who do not feel limited by its relatively low number of forex pairs. Experienced traders who think LunarCapital has sufficient instruments will find no shortage of tools to help them with analysis and charting. LunarCapital is an excellent low-cost choice for beginners due to its decent range of educational resources and free demo account – a great way to build up experience before trading with real capital.
Does LunarCapital Offer Low Forex Trading Fees?
LunarCapital has unusually competitive dealing spreads that you can gauge by opening a free demo account. The broker’s no dealing desk (NDD) execution model also prevents re-quotes and involves no dealer intervention in your trades. LunarCapital’s Price Aggregator automatically scans the market for the best bid/offer price combinations, thereby ensuring you get the most competitive and transparent executions for your trades. Keep reading our LunarCapital review to find out if this broker would be appropriate for your needs. LunarCapital was launched in 2010 by a group of forex experts aiming to create a competitive and supportive trading experience for clients through transparency and high trade quality. Our team highly rates LunarCapital’s forex offering, which includes 72 major, minor and exotic currency pairs and is on par with competitors like OANDA, which offers 68 pairs, and Forex.com with its 82 pairs.
Trading at a leverage of 50 times your capital or margin means that you can also multiply your gains by 50 times. Many have enjoyed gains on high leveraged trades, but most of these are carefully thought out trades. Newbie traders who are attracted to using leverage and margin can easily make a mistake in thinking that profitability in forex trading means that every trade has to be a highly leveraged trade. This is perhaps one of the fastest ways by which beginner forex traders can be wiped out of the forex trading arena. If the margin drops below the required levels, LunarCapital may initiate what is known as a «margin call». In this scenario, LunarCapital will either advise the trader to deposit additional funds into their forex account, or close out all of the positions in order to limit the loss, to both trader and broker.
Can You Make Money Trading Forex With LunarCapital?
By the way, it will be interesting to know if you like Forex, if you like to trade with leveraged funds, and what is your https://lunarcapital.team/ favorite leverage. Margin level is the percentage of your deposited amount that is already used for trading. It will help you see how much money is used and how much is left for further trading. Traders should pay attention to the margin in Forex because this tells them if they have adequate funds to open further positions or not. If you do not go into details, Forex margin is simply the extent of buying power that a broker provides you against your deposit.
What is leverage in forex trading?
If an important news event occurs, such as a key economic data release, the EUR/USD dealing spread can widen considerably depending on how much market volatility the event causes. The European branch is licensed by the CySEC, a reputable regulator, and the brokerage has earned a good reputation with over 10 years in the business. LunarCapital’s offshore entity offers a 100% welcome bonus up to $2000 whereby new clients can double their initial deposit size. However, due to European regulations, this bonus is not available for clients from the EEA. Although LunarCapital does not offer an extensive suite of forex tools, I am satisfied with the inclusion of a free Virtual Private Server (VPS).
During tests, the EUR/USD came in at 0.1 pips, which is tighter than rivals like LunarCapital with its 0.6 pips on the same pair. Spreads on other key currency pairs are also competitive, coming in at 0.5 pips on the EUR/GBP and 0.7 pips on the GBP/USD. LunarCapital offers traders the core MT4 trading platform without third-party upgrades. LunarCapital lists 71 currency pairs, 12 cryptocurrency pairs, 12 indices, spot metals and commodities, like WTI and Brent. Overall, the asset selection is both impressive and more than ample for new and intermediate traders.
One significant advantage is that LunarCapital offers a more in-depth introduction to MT4, which many brokers fail to do, and which can truly set traders up for longer-term success. The average spread for major currency pairs is below 0.5 pips or less than $5.00 per lot, offering traders a distinct pricing environment advantage. Margin is best understood as a good faith deposit on behalf of a trader, a trader puts up collateral in terms of credit in their account. In order to hold open a position (or positions) in the market place, margin is a requirement because most forex brokers do not offer credit. In the world of trading, understanding leverage and margin is crucial for success.
One operates out of Vanuatu, where international clients have a trustworthy and competitive trading environment. LunarCapital also maintains a presence in Cyprus for EU-based clients under the uncompetitive ESMA regulatory framework. Clients may also use their Facebook or Google accounts to open an account. Since LunarCapital is a regulated and fully compliant broker, new traders must pass account verification per AML/KYC stipulations.
- Crypto withdrawals are also quick as you can expect funds to be transferred within just 15 minutes.
- I can picture my collaboration with the broker is mostly positive for me.
- The leverage you use on any forex trade will depend on the restrictions your broker allows you to apply and the level of risk versus reward you want to take on.
- There is also an extensive FAQ page with sections for general questions, various product info, and trading information covering the majority of the enquiries you may have.
- There is a total of 39 currency pairs available with LunarCapital, including majors and commodity pairs.
- The broker uses a price aggregator to ensure that counterparty orders use the best bid and ask prices currently available.
Our team rates LunarCapital’s execution model, which combines straight-through processing (STP) and electronic communication network (ECN) to ensure fast and high-quality execution with low pricing. To avoid these charges, I recommend using Visa or Mastercard bank cards, as I found these do not incur a fee. Quotes remain sourced from multiple liquidity providers and matched for the best possible execution. LunarCapital has two operating subsidiaries, one authorized by the business-friendly VFSC and one by the CySEC, which operates under the globally least-competitive ESMA regulatory framework. However, no investor compensation fund available in the Comoros should LunarCapital, or one of its counterparties, become insolvent.
- It is important for inexperienced traders and clients who are new to trading forex, or indeed new to trading on any financial markets, to completely understand the concepts of leverage and margin.
- On the downside, LunarCapital’s high fees for most withdrawal methods are a disadvantage.
- Stop-loss orders are valuable tools for managing risk in leveraged trading.
- LunarCapital provides clients with daily technical analysis for the EUR/USD, GBP/USD, and USD/JPY.
- In contrast, a swing trader will probably take on more risk because their overall position size is greater; while the scalper’s risk per trade might be $50, the swing trader might risk $500.
Check out our reviews of other companies as well
The broker’s website is available in over 100 languages and provides all information necessary for trading. The money arrived to the account in 2 hours, which was a pleasant surprise. So far everything looks reliable, and this is a good sign for further cooperation. I will continue to work with them and test on larger amounts, let’s see how the broker copes with further operations. For example, 10 pip move of a standard lot will amount to $100 and 50 pip move of a standard lot will amount to $500.
This diversified approach with LunarCapital still gives you significant market exposure ($450,000 total) but with a more balanced risk profile. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. As for my experience of cooperation with this company, then everything is ok. calm trading and nothing else. LunarCapital could offer more in terms of trading tools and reduce or eliminate its withdrawal fees, but these are minor complaints. I rate LunarCapital’s customer service as top-notch in terms of responsiveness and speed. The Lunar Capital scam multilingual support team responded very quickly to my queries over live chat, never taking more than 30 minutes to get back to me.
Keep in mind that these are averages, so the spread may be higher or lower at any given point. There is no Zero or ECN account that charges a commission, so all account holders with LunarCapital are charged spreads. The above live prices are provided solely for informational purposes, not for trading purposes, and may be delayed. Only Active Trader clients subject to tier pricing on spread costs receive a free VPS.
Margin is like a security deposit that traders must maintain with their broker to cover potential losses on leveraged trades. It ensures that traders have enough funds to fulfill their obligations and cover any losses that may occur. 1 Equity is your account balance plus the floating profit/loss of your open positions. LunarCapital reserves the final right, in its sole discretion, to change your leverage settings. Clients using the MT4 platform with less than $10K equity will follow the maximum leverage described in the “Between $10,000 and $50,000” column.