Company

Spread

for EUR/USD

Min.

Deposit

Platforms

Offered

Account

Types

Spread

Type

Funding

Methods

Customer

Support

Execution

Details

City Index

Offers three ways to trade: Forex, CFDs, Spread Betting

 Offers over 12,000 instruments
City Index
See Details Try a Demo
Your capital is at risk
£25Min. Deposit Learn More
  • MT4
  • WebTrader
  • Mobile apps
See Platforms
  • Micro
  • Standard
  • VIP
See All Accounts
  • Fixed
  • Variable

See Spreads
  • Bank transfer
  • Credit cards
  • PayPal
See Methods
  • Live chat
  • Phone support
  • Email support
Contact Details
  • Market Maker
  • DMA
  • ECN
Learn More
Trust Score:

A

Used by:

140,000

Established in:

1983

Regulated by:

Financial Conduct Authority, A...

CFDs are leveraged products and can result in the loss of your capital. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For Brokers WIth Stop Losses

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose City Index
For Brokers WIth Stop Losses?

City Index scored best in our review of the top brokers for brokers with stop losses, which takes into account 120+ factors across eight categories. Here are some areas where City Index scored highly in:

  • 34+ years in business
  • Offers 12500+ instruments
  • A range of platform inc. MT4, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.5 pips
  • Used by 140,000+ traders
  • Allows hedging
  • 3 languages
  • Leverage up to 1:200

City Index offers three ways to trade: Forex, CFDs, Spread Betting. If you wanted to trade EURUSD through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

City Index have a A trust score, which is good. This is largely down to them being regulated by Financial Conduct Authority, ASiC and MAS, segregating client funds, being established for over 34 years, and much more. For comparison:

Trust Score comparsion

City Index
Trust Score A
Year Established 1983
Regulated by Financial Conduct Authority, ASiC and MAS
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who City Index is (& Isn’t)
Suitable For

As mentioned, City Index allows you to trade in three ways: Forex, CFDs, Spread Betting.

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading

Not Suitable for:

To trade with City Index, you'll need a minimum deposit of $100. City Index offers a range of different account types for different traders including a micro account, mini account, .

Finally, City Index isn't available in the following countries: CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW. They do not offer islamic accounts either.

Part 3

A Comparison of City Index vs. vs.


Want to see how City Index stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
City Index
Fixed Spreads
Variable Spreads
EUR/USD Spread 0.5
GBP/USD Spread 2.1
USD/CAD Spread 2.0
USD/JPY Spread 1.6
DAX Spread 1.0
FTSE 100 Spread 1.0
S&P500 Spread 0.4

Comparison of account & trading features

City Index
Spread type Fixed
EUR/USD Spread 1983
EUR/GBP Spread Financial Conduct Authority, ASiC and MAS
Crude Oil Spread
Gold Spread Private Private Private
DAX Spread

Part 4

Trading Risk Management: Stop Loss

Trading is a high risk activity and it is important to limit the downside risk of trades by using risk management tools made available by online brokers. This is especially the case for traders who are using spread betting, or Contracts for Difference (CFDs) where a sudden, large market move against a traders position can leave the trader having to deposit additional funds with the broker, or even render trader unable to cover their open position. This may result in the traders trade being closed and if the broker does not offer negative balance protection, the trader may be liable for additional funds.

To prevent a trading loss running out of control a trader should understand how to use the variety of risk management features made available.

Stop loss – advantages and disadvantages

The stop loss pretty much does what it says. It stops the loss on a trade that has gone into deficit and is losing money. The Trader will can place a stop loss with the broker to sell the stock or contract if the price moves a set amount against the trader. A trader would need to decide an acceptable range they are willing to leave the trade open as a trader would not want the trade closed as soon as there is a small fluctuation in the price. So generally, the trader would set a price with the broker to close the trade if the market moved say 10% against the price at which the trade is opened. In this case, the trader has a stop loss at 10%. Some brokers will also accept a value, allowing the trader to set a stop loss at a certain price.

The main advantage of a stop loss is that it means a trader does not have to watch the markets at all times and if a major market-moving event occurs, the trader does not have to be online and the trade will be closed automatically even if the market has moved against them unknowingly. The downside of this, is that your stop loss immediately turns into a market order – and that means there is no guarantee on the price you are going to get, if the market is in turmoil and prices are falling rapidly.

The disadvantage of the stop loss, is that markets can be very volatile. If you don’t set the margin for the stop loss wide enough, you will find yourself “stopped out” of your trade because the market has fallen, only to see the market rebound minutes later. If the market has moved in your favour for some time, your original stop loss may no longer be relevant and you will need to reset it, or consider using a trailing stop.

Other Risk Management Tools:

Guaranteed Stop Loss
Limit Order
Trailing Stops

Loading icon