CapTrader Broker Review: A Comprehensive Analysis of Features, Pros, and Cons

CapTrader is a Germany-based online broker that provides access to various financial markets, including stocks, options, futures, and ETFs. The platform has been around since 1997 and is a subsidiary of the well-known German bank, Baader Bank AG.

Features

CapTrader offers a range of features that make it an attractive option for traders:

• Access to various financial markets, including stocks, options, futures, and ETFs.
• Trading platforms include the powerful and popular Trader Workstation (TWS) and the WebTrader platform.
• Adequate research tools, including news, analyst ratings, financial calendars, stock scanners, and charting tools.
• Both individual and business account options.
• There is a mobile trading platform, providing users with flexibility to trade on-the-go.
• An inbuilt income tax reference guide which allows traders to calculate their income tax obligation accurately.
• Access to level 2 data and trading in over 135 stock exchanges in 33 countries.

Pros

The following are some of the pros of using CapTrader:

• The ability to trade on more than one hundred thirty-five stock exchanges across thirty-three countries makes CapTrader an appealing option for world traders.
• The trading platform is fully customizable, allowing users to set up a workspace that fits their trading style.
• There are no inactivity fees, making it an excellent choice for traders that do not trade frequently.
• Competitive trading prices and commissions with minimal spreads.
• CapTrader provides traders with access to Interactive Brokers Group’s offerings: One of the World’s leading brokers.
• CapTrader is regulated by BaFin, the German financial regulator; this assures their clients of the platform’s trustworthiness.
• Ongoing webinars and training sessions are available to help traders improve their trading strategies.

Cons

Although CapTrader comes with an extensive list of features and benefits, there are a few cons:

• The broker is best suited for advanced traders who have the skills and capital to take advantage of its advanced trading tools.
• CapTrader does not offer fixed spreads, and the variable spreads can change in response to market conditions, such as news events or market volatility. This can lead to wide spreads that make trading unappealing, particularly for more small-scale traders.
• There are no guaranteed stops, leaving traders open to slippage and potential unexpected losses.
• There are inactivity fees for those who do not trade frequently or do not meet the minimum trading volume requirements, although many brokers apply such fees.
• CapTrader is not available to US clients, which could limit its appeal to traders from other parts of the world who are looking to tap into the US market.

Final Verdict

CapTrader is an excellent choice for advanced traders who want access to an extensive range of markets and a comprehensive set of trading tools. The platform’s customization options, competitive trading prices and commissions, and quality research tools are worth noting.

However, it may not be the best option for new traders who are unfamiliar with the advanced trading features and trading tools, due to variables in the spreads and lack of guaranteed stops. Also, the inactivity fees may become an issue for infrequent traders.

In conclusion, CapTrader is an excellent choice for experienced and professional traders, particularly those looking to explore global trading opportunities.