Monthly Archives:' July 2021

All information presented on TopBrokers.com website, including charts, quotes and financial analysis, is informational and doesn’t imply direct instructions for investing. To see the full broker review click “See review”, to see the complete table and compare more brokers visit our Comparison page. It’s important to look at regulation and safety before deciding on a broker. The good news is that City Index is a safe and secure broker that has strong regulation. The Financial Conduct Authority (FCA) regulates it in the UK, the Australian Securities and Investment Commission (ASIC), and the Monetary Authority of Singapore (MAS). This regulation means that City Index must adhere to strict guidelines and be transparent about its trading.

The app’s design is simple and intuitive, ensuring that users can quickly access the features they need without any hassle. The platform is designed to be intuitive, making it easy for beginners to navigate. It comes with all the features which would be required by an institutional trader or broker and screen layouts can be formatted to your preference. These favourite layouts can be accessed using both desktop and mobile devices making for a continuous trading experience. Those with queries can contact the broker by phone, Live Chat, email, or WhatsApp with the interactive services being available 24/5.

Does City Index Have Options?

The trading GUI is always on hand and less time-sensitive reports and watch lists are held on separate tabs. Pretty much everything a trader might need to trade can be found on their platform. City Index also offers a swap-free account option, which can be ideal for traders who do not want to deal with overnight swap charges. Commodity spreads are also inline with the multi-asset broker peer group with oil spreads starting at 0.4pts, and spot gold spreads as low as 0.3pts. In addition, City Index has several other customer safety mechanisms in place, such as segregated funds, and negative balance protection.

The platform also offers an extremely customizable trading experience, and some of the most intelligent trading tools you will find. The same leverage limits apply to professional traders even if you are using the professional account type. These spreads start from 0.5 pips on forex, and 1 pip on major indices with the average on the EUR/USD being 0.8 pips and as low as an average of 0.6 pips on the S&P 500 CFD. Beyond just the regulated environment, you can rely on great protection of your funds at the broker.

Jeff holds a Bachelor’s Degree in English Literature with a minor in Philosophy from San Francisco State University. All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running the latest version of macOS to test trading on the go. We test mobile apps and products using iPhones running iOS 17 and Samsung devices running Android OS 14. City Index provides multiple account types, each designed to suit different levels of experience and trading preferences.

• Alongside industry-standard MetaTrader platforms, City Index also has its own proprietary platform, and an app for on-the-go trading.
• Specific to forex, you will find a sizable total of 84 currency pairs available at the moment.
• Additional features which can be built into your bespoke set up include real-time news monitors, portfolio performance analytics, market analysis readings, and SMART signals.
• These favourite layouts can be accessed using both desktop and mobile devices making for a continuous trading experience.
• Simply choose as many markets as you like and receive notifications directly to your phone – complete with links to the platform that allow you to trade immediately.

Market research

Other brokers like Plus 500 and eToro allow unlimited use of their demo platforms and a link to the live platform. The MT4 demo account also comes with 10,000 demo credits, along with access to the forex market. City Index offers CFD trading on 17 major indices from Asia, Europe, the US, and Australia, including Singapore Index, Wall Street, and Germany 30. While we think City Index offers a lot of benefits to traders, we view these two factors as major disadvantages.

The customer support team at City Index is very helpful, professional, and quick to reply to all of your questions. These include through the live chat service hosted on their website, through email, or by phone that is specific to your location. The broker makes available several key tools to help you with risk management. These are offered through your trading platform for the most part and include the ability to set stop losses to help you exit losing positions, and limit orders to help you lock in profits. This demo account will be unlimited and available to you for 12 weeks with access to more than 12,000 assets and a virtual balance of £10,000 for you to trade risk-free.

FOREX.com

Traders are able to speculate on a broad array of bonds and interest rates including US T-notes, UK Long Guilts, Euro Bund markets, and Eurodollar and Euribor rates. Lastly, City Index operates in Singapore and is registered as StoneX Financial Pte. In Singapore, the broker is regulated by the Monetary Authority of Singapore (MAS) and accepts clients across most of Asia. To help prevent negative balance protection from needing to be activated, a margin call system is also used. When your margin indicator level drops below 100%, you will be notified by email to top up your account balance or close some trading positions. This means you need enough balance in your account across open and closed positions to cover your required margin to hold your position.

Up to three debit or credit cards can be used for an account across Visa and MasterCard. When transferring funds from an Australian bank, no deposit fees are charged, and there are no charges for funding through a bank transfer when the account is based in Australia. When setting up the account, we found the opening process to be easy and straightforward. City Index offers a multi-currency deposit solution and can accommodate 9 base currencies (EUR, GBP, USD, CHF, HUF, AUD, CHF, JPY, PLN).

Forex and CFDs Review

We also take an in-depth look at each broker’s commissions and fees, such as bid/ask spreads – including the average spread data for some of the most popular forex currency pairs. We research other trading costs, such as inactivity or custody fees, minimum deposit requirements, VIP rebates and/or discounts, and a range of other important fee-based data points. Backed by StoneX Group, City Index is a trusted brand known for its versatile trading platforms, excellent mobile app, diverse market research, and extensive range of tradeable markets. The firm demonstrates an understanding of trading and what traders need.

• It uses a database of chart patterns, technical indicators and oscillators to identify trading signals which might benefit their clients.
• There is a backtesting excel application that allows you to test the performance of trading signals over past data.
• The material can be accessed on the structured “Courses” page, which bundles lessons on a specific subject into a course, or on the unstructured “Lessons” page, which just lists all lessons available.
• This is for a limited time, but the Standard Account is the next natural step.
• The broker gives traders access to over 12,000 markets across forex, cryptocurrency, stocks, indices, options, bonds, spread betting, ETFs, metals, energies, and other commodities.

Having a range of different ways to obtain support can help clients make problem solving more efficient. It is possible to fund your account using a range of payment methods including, debit card, credit card, bank transfer, EFT, BPAY, PayID. The length of time taken for funds to be credited to your account can vary depending on which payment provider you choose to use. City Index offers its clients the opportunity to trade more than 6,300 markets. These cover asset groups which city index review include stocks, forex, indices, CFDs, commodities, crypto and bullion. For traders who enjoy trading in commodities, City Index offers access to gold, silver, oil, and natural gas markets.

City Index Fees

Whether you’re new to trading or just starting to explore your options, City Index can provide a solid foundation for your trading journey. Standard Account – Provides access to thousands of global markets via desktop platforms and mobile apps. Comes with the TradingView charting tool known for its impressive software tools and this account has tight spreads and no hidden fees. Whether you’re looking into forex trading for beginners or you’re an experienced trader, City Index is a leading option. Not only does it have a range of trading platforms but also a large number of tradable instruments.

Bonus Offer for Forextraders Visitors

This broker offers access to the global indices market, shares in the London Stock Exchange, New York Stock Exchange, and NASDAQ. City Index offers several trading platforms, including MetaTrader 4. This is an industry-standard platform that has many features and analytical tools. WebTrader is the brokers’ own web trading platform, which is easy to use and can be accessed from any web browser. This platform has a number of trading tools, real-time charts, news feeds, and technical indicators.

There is no minimum deposit to open a real trading account, although City Index recommends $/£/€100 to get started. Yes, City Index does allow scalping and hedging strategies for traders. Additionally, automated trading strategies are also permitted which in our view, positions City Index well for high-frequency and quant-style traders.

More than 20 options markets are available with daily, monthly, and quarterly options contracts tradable and low starting spreads. This spread can start from as low as 1 pip on options like the UK 100, Germany 30, and Australia 300, and from 1.6 pips on the S&P 500. The spread here remains tight and starts from only 0.5 pips with the average spreads being 0.8 pips on the EUR/USD, 0.9 pips on the AUD/USD, 0.8 pips on the USD/JPY, and 1.8 pips on the GBP/USD. Variable spreads can change throughout the day based on underlying factors as you would expect. These can include market liquidity, volatility, and other issues though tight spreads are generally on offer.

Therefore, the sellers have to accept the price ascertained by the demand and supply forces of the market and sell the product, as much as they can at the price prevailing in the market. Note that those assumptions are a bit closer to reality than the ones we looked at in perfect competition. When the major competitors in an industry decide that it would be more profitable to become a single large business, they attempt to join together. If successful, the businesses no longer have to compete with one another for profit and can set the price of their product at whatever they wish.

Firms may earn profits due to differentiation but competition limits excessive profits. There is no end to any analysis because the differences between the research might vary from one analyst to another depending upon their approach and objective. Moreover, the strategy and goal of the management might rely upon the time horizon. We hope this article clarifies perfect and monopolistic competition by thinking on the same line. Consumers use the different features of the products and services to determine which goods to purchase owing to taste and preferences.

Can a real-world market ever achieve perfect competition?

Monopolistic competition, on the other hand, is a market structure with many firms producing similar but differentiated products, allowing for some degree of market power. In perfect competition, firms are price takers, while in monopolistic competition, firms have some control over their prices. Monopolistic competition also refers to a type of market structure where a large number of small firms compete against each other. However, unlike in perfect competition, the firms in monopolistic competition sell similar but slightly differentiated products. That gives them a certain degree of market power despite small market shares, which allows them to charge higher prices within a specific range.

A monopolistic market and a perfectly competitive market are two market structures that have several key distinctions, such as market share, price control, and barriers to entry. In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services and has total market control. Contrary to a monopolistic market, a perfectly competitive market is composed of many firms, where no one firm has market control. Monopolistic competition is a market structure characterized by a large number of firms producing differentiated products. Unlike perfect competition, monopolistically competitive firms have some degree of market power, allowing them to have control over pricing decisions.

• A monopoly refers to a type of market structure where a single firm controls the entire market.
• Yes, industries can evolve from perfect to monopolistic competition as firms develop branding strategies, introduce product variations, or implement marketing tactics to create differentiation.
• The horizontal nature of the demand curve reflects the fact that firms in a perfectly competitive market have no power over price – they are price takers.
• As a result, monopolies often reduce output to increase prices and earn more profit.

Perfect competition benefits consumers by offering lower prices, while monopolistic competition provides greater variety, quality, and innovation at slightly higher prices. Many small firms manufacture and supply the same goods (or perfect substitutes) to the end-user in perfect competition. Small firms mean each firm is too small to influence the product’s market price. By looking at those assumptions, it becomes obvious that we will hardly ever find perfect competition in reality.

Monopolistic markets are characterized by the domination of one firm, which can dictate price, supply, barriers to entry, and other terms. In contrast, perfectly competitive markets are composed of many firms, where no single firm has total control. For consumers, perfectly competitive markets can provide cost benefits as firms pass on the efficiencies gained by cost-minimization.

Key Differences Between Perfect Competition and Monopolistic Competition

This is an important characteristic of monopolistic competition, pointing to some degree of inefficiency. Because products in this market structure are differentiated, consumers perceive there are no perfect substitutes for a particular product. Therefore, when a firm raises its price, it doesn’t lose all its consumers, resulting in a downward-sloping demand curve. Monopolistic competition sits somewhere between perfect competition and a monopoly. It’s not a perfect competition because there are many firms competing, but their products are differentiated.

In conclusion, perfect competition and monopolistic competition differ significantly in terms of product differentiation, market power, and entry barriers. Perfect competition represents a market structure with homogeneous products, where firms have no market power and are price takers. Monopolistic competition, on the other hand, allows for product differentiation, branding, and some control over prices. While perfect competition promotes efficiency, affordability, and stability, monopolistic competition fosters innovation, product variety, and potential for abnormal profits.

Which market structure promotes more innovation—perfect or monopolistic competition?

At StudySmarter, we have created a learning platform that serves millions of students. Meet the people who work hard to deliver fact based content as well as making sure it is verified. The concepts of Perfect Competition and Monopolistic Competition play a crucial role in microeconomics, shaping market behavior, pricing, and competition. As stated earlier, this particular topic is one of the very prominent topics covered extensively in microeconomics.

Barriers to Entry and Exit

Hence, it helps managers and business leaders analyze and understand the prevailing situation in the market to make vital decisions. Market structures are not static; they evolve over time as a result of technological advancements, shifts in consumer preferences, and changes in regulatory landscapes. These evolutions can disrupt existing market equilibriums, leading to the emergence of new business models and the decline of others. For this reason, most developed nations have established regulations that stop corporations from growing too large. The United States has passed regulations breaking up several large monopolies on essential resources, including steel and oil.

• Pricing in perfect competition is based on supply and demand while pricing in monopolistic competition is set by the seller.
• Perfect competition fosters innovation and quality improvements as companies strive to attract customers.
• However, whereas monopolistic competition is dominated by a single seller and the competition is zero, barriers to entry are also low, sold products can have substitutes, and non-price competition is also present.
• The concepts of Perfect Competition and Monopolistic Competition play a crucial role in microeconomics, shaping market behavior, pricing, and competition.

Perfect competition, in its ideal form, assumes homogenous products with no variation in quality. It also implies a large number of sellers and buyers, leading to a high level of competition. The difference between Perfect Competition and Monopolistic Competition, as highlighted in economic theories, primarily revolves around product differentiation, pricing power, and market efficiency. From the perspective of society, most monopolies are not desirable because they result in lower outputs and higher prices compared to competitive markets. In the absence of such permission, governments often have laws and enforcement mechanisms to promote competition by preventing or breaking up monopolies. This is because a monopolistic market can often become inefficient, charge customers higher prices than would otherwise be available, and can prevent newcomers from entering the market.

Why are there no profits in a perfectly competitive market?

Higher prices despite competition among firms in monopolistic competition result from product differentiation and non-price competition strategies such as advertising. Firms in monopolistic competition use advertising to differentiate their products and create brand loyalty, whereas firms in perfect competition sell identical products with no need for marketing efforts. In a perfect competition market, there are many competitors, barriers to entry are very low, products that are sold are homogenous and identical, absence of non-price competition. However, whereas monopolistic competition is dominated by a single seller and the competition is perfect competition and monopolistic competition. zero, barriers to entry are also low, sold products can have substitutes, and non-price competition is also present. It is a theoretical situation of the market, where the competition is at its peak.

In reality, some or all of these features are not present or are influenced in some way, leading to imperfect competition. Perfect competition is an economic theory that represents an ideal market structure where numerous buyers and sellers operate, leading to an optimal balance of supply and demand. Perfect competition fosters innovation and quality improvements as companies strive to attract customers. Monopolistic markets and perfectly competitive markets are two different types of market structures.

However, real-world scenarios often deviate from this ideal due to factors that limit competition, such as monopolies and oligopolies, where a single firm or a small group of firms dominate the market. Additionally, government regulations, such as taxes and licensing requirements, can also impact market dynamics by controlling prices and limiting the number of competitors. Governments regulate both market structures to ensure fair competition, prevent anti-competitive practices, and maintain consumer welfare.