Accessing the MT4 or MT5 app through an Lunar Capital account is also straightforward, requiring only three easy steps, while mobile traders get the same tight spreads and reliable execution provided by the broker. Lunar Capital offers a decent selection of payment methods including standard card and wire transfers as well as crypto and e-wallet solutions. This is a convenient range and I was especially happy with the inclusion of crypto payments as these are highly flexible and should work for traders based almost anywhere. Upon choosing a level of leverage, bear in mind that, as the leverage increases, so does the risk you are exposed to. Even though a lower leverage requires more funds for placing trades over the market, it will also lower the risk you are facing.

The leverage you use, or need will also vary depending on the overall technique you employ. Your method and strategy might be relatively high in terms of risk versus reward. Therefore, you’ll need more leverage and keep more margin in your account to execute and stay in your trades. Brokers will allow you to push the leverage limits if you have enough margin in your trading account to cover the exposure. But brokers in the EU must abide by specific guidelines laid down by ESMA, a subject we’ll cover in more detail further on. Close to $5 trillion worth of currency gets exchanged each trading day.

Below is a list of trading cost examples for buying and selling the EUR/USD, holding the trade for one night and seven nights, in https://lunarcapital.net/ the ECN XL account. Here is a screenshot of the Lunar Capital quotes during the London-New York overlap session, the most liquid one, where traders usually get the lowest spreads. If you have experience trading with Lunar Capital please share your personal review of the broker and what you think are strong and weak points.

If an investor buys $100,000 worth of EUR/USD, they might need to keep $1,000 in the account as margin; the margin requirement would be 1%. Investors use leverage to enhance their profits from forex trading, and historically the forex market has provided the highest amount of leverage power available to retail investors. For most brokers, the setting for margin, when set at default, will reflect 0.5%.

It creates unrealistic trading expectations, and the absence of trading psychology negates the educational value. I use Lunar Capital for forex trading and have been impressed with the huge range of currency pairs, transparent fees and reliable MetaTrader 4 platform. I think the client dashboard and website could do with an overhaul though – they are pretty dated. As an example, leverage can significantly increase your potential losses if the currency you are trading moves in the opposite direction than what you expected. Therefore, a forex trader’s trading style is strictly controlled by stop-loss orders to control potential losses. Your trading style will greatly dictate your use of leverage and margin.

Lunar Capital does slightly better with its educational content, which includes some basic e-books, articles, and a glossary of key terms. Lunar Capital’s limited research and technical analysis tools are disappointing, especially given how useful these tools can be for discovering trading opportunities. Lunar Capital supports trading via the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, with MT5 added in 2025. This is essentially free credit that can be used for trading purposes, and I was pleased on this occasion that there were no minimum trading requirements. For example, 10 pip move of a micro lot will amount to $1 and 50 pip move of a micro lot will amount to $5.

Each and every trade clients place is matched in an electronic configured network (ECN), through a straight through processing (STP) method. These four critical factors ensure that Lunar Capital clients are enjoying the most transparent access to the FX markets. Leverage has several disadvantages, but it should not deter traders from using it or trading leverage.

How To Open An Account

It is unique as traders get a commission-free cost structure with raw spreads, an unusual offer, presenting Forex traders with a notable edge. Lunar Capital provides clients with daily technical analysis for the EUR/USD, GBP/USD, and USD/JPY. While each analysis is brief, it features all required information for traders to take a position. It also maintains a blog where it publishes market-related content, but the Forex News section does show wide gaps between its posts. With such a useful market analysis, we would love to see the section expanded to other pairs.

Platforms & Tools

Moreover, since forex markets are deregulated, and the parties dealing in currency are cautious, few external factors can affect the exchange rate, and volatility tends towards the lower end. Effective risk management is essential when trading with leverage and margin. Traders should set clear risk limits, such as stop-loss orders, to protect their capital from excessive losses. All traders use borrowed funds in one way or another to increase the potential return on investment. Investors often use margin accounts when they want to invest in stocks or currencies, using money «borrowed» from a broker to control a large position starting with minimal capital.

Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker’s track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Is Lunar Capital A Regulated Forex Broker?

Leverage and margin allows forex traders to trade in amounts that are higher than the capital in their trading account. Forex traders, in effect, are borrowing a certain amount in leverage to cover the rest of the trading capital required to trade certain lots. The forex broker takes care of the leverage while the forex trader is left to put up his share in margin. Although the leverage and margin do not influence the profitability of the trade, they do magnify the amount of gains or losses a forex trader experiences in his trades. The higher the leverage, the more the gains or losses will be magnified.

Forex trading involves buying and selling currencies hoping to profit as the sentiment and value of one country’s currency falls or rises versus another. Lunar Capital serves clients in the EU through a company registered in Cyprus, and clients from the rest of the world through a company registered in the Comoros. Lunar Capital.com uses the MetaTrader 4 platform, made popular through its support of trading robots called ‘Expert Advisors’.

Lunar Capital Demo Account

This is low compared to many brokers, but it’s still a downside since rivals like Vantage charge nothing, making them a better fit for casual traders. In our experience, the 0.2-pip average spread on EUR/USD is far tighter than most commission-free accounts, which regularly charge 1 pip or more for this major pair. The most frustrating absence is stocks, which are entirely missing, though traders can at least speculate on stock markets through index CFDs.

• Compare the markets and instruments offered by Lunar Capital and its competitors.
• 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.
• They dont have their own cooked up half-working trade platform, instead its tried and tested MT4 which is the best trading platform for retail by far.
• We have not experienced any security concerns during our many hours using the trading platform.

• Another bonus for us is the $0 minimum deposit and 0.01 minimum lot size, which makes Lunar Capital more accessible than forex brokers such as Plus500 and AvaTrade, both requiring a minimum deposit of $100.
• Open your account online and contact your account manager for more information.
• Therefore the broker provides leverage by lending its trading capital to traders in the form of varying leverage ratios as a means to enhance its trader buying and selling capacity.
• Honestly, I was having a lot of doubts before I started working with this brokerage company because I have not heard a lot about them.

On the downside, the offshore branch is unregulated, reducing the broker’s safety rating for global traders. Although Lunar Capital does not offer an extensive suite of forex tools, I am satisfied with the inclusion of a free Virtual Private Server (VPS). This works extremely well with MT4’s expert advisors for automated trading, and I frequently make use of it when trading on Lunar Capital. On the downside, Lunar Capital’s high fees for most withdrawal methods are a disadvantage. The $30 – $45 charges are way above brokers such as eToro, which only charges $5, and many brokers we evaluate that offer free withdrawals.

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. Too often new traders are impatient to begin trading and fail to grasp the importance and impact these two critical success factors will have on the outcome of their potential success. To evaluate brokers, we test the accounts, trading tools and services provided.

Lunar Capital runs bonus offers in certain jurisdictions, and when I opened an account with the global entity I was offered a 100% deposit bonus up to $2000. Withdrawals at Lunar Capital are also disappointing, with all methods besides cards and wire transfers incurring a percentage withdrawal fee that can reach a hefty 3.4%, depending on the method. Wire transfers incur a $30-$45 flat fee (minimum limit of $500), many times more than the $5 withdrawal fee at eToro.

Forex traders must know the basic sizes of trade positions that can be used to buy or sell an asset or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.