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City Index review

City Index Review: Is the UK-based Broker an Online Trading Scam?

You’re looking for a City Index review so that you can answer pertinent questions. Is City Index a scam that’s stealing people’s profits? Will you struggle to withdraw funds from your City Index trading account? And is City Index’s customer care any helpful?

Before you engage in CFDs (or contract for differences), find out how they work initially and whether you can afford to take high risks of losing money. Due to leverage, CFDs are complex contracts laden with risks of losing money regularly.

About 67% of retail investor accounts lose money when trading CFDs with City Index. That’s what they claim but we believe the number is way higher.

Have you lost your money with City Index? Schedule a free consultation right away. Our trusted experts can help you get your money—and your life—back on track.

But first, here’s an in-depth City Index review.

City Index Review: What is City Index?

City Index is a UK-based global trading provider specializing in CFDs, FX, spread betting, and options in crypto, interest rates, bonds, commodities, shares, and indexes.

Boasting nearly three decades of experience (with a fast trading interface), City Index has attracted the interest of many traders. It’s also a proud sponsor of the Saracens — one of Europe’s major rugby clubs.

Who owns City Index?

US-based brokerage GAIN Capital Holdings Inc. acquired City Index (a UK brokerage founded in 1983) in 2015, creating an online trading company with estimated customer assets worth $1.1 billion and annual trading volumes exceeding $3 trillion.

Last year, StoneX Group Inc. announced the acquisition of GAIN Capital Holdings, officially owning both City Index trading provider and GAIN Holdings.

StoneX group aquires City Index

Under StoneX Group, City Index boasts robust research facilities catering to global traders and investors, great platform choices, and an impressive product catalog.

But it also has flaws (mimicking a trading scam), including a lack of volume discounts, no secondary insurance coverage, confusing and conflicting options-fee disclosures — and recently, difficulty in withdrawing funds from a trading account.

Who Regulates City Index?

City Index is regulated by renowned global financial authorities, including the Monetary Authority of Singapore (MAS), the Australian Securities and Investments Commission (ASIC), and the UK’s Financial Conduct Authority (FCA).

City Index FCA regulation

Owing to its long track record — and a 38-year existence as a brokerage firm — City Index has tons of investors and traders. Even further cementing its “safe” status is the parent company’s (StoneX Group Inc.) listing on the Stock Exchange.

As a regulated brokerage, it’s difficult for City Index to manipulate market prices. If found to violate any regulatory rules, its regulated status could be stripped. 

Can I Trust City Index?

City Index is licensed under FCA and compliant with European Securities and Markets Authority (ESMA) rules, which compels it to limit leverage and provide negative balance protection (ensuring traders don’t lose more money than they trade on the platform).

In case the City index defaults on payments, the UK Financial Services Compensation Scheme (FSCS) will provide about £50,000 as coverage — however, no additional or private coverage is mentioned by the FSCS.

While fee and spread disclosures provide transparency, City Index doesn’t disclose options costs. Even more conflicting is their fee schedules — and cost comparisons are non-existent. Depending on the venue, you’ll find fixed or variable spreads disclosures.

City Index doesn’t reveal how much spreads widen during off-market hours. So, odds are, you should always anticipate higher trading costs.

Is City Index a Scam?

Traders have lately been complaining (on review sites, mostly) about the brokerage’s “suspicious activities” when trading on the platform, suggesting an online trading scam could be at play. 

Here are some of their complaints:

1. Hidden Fees

City Index purports to offer low forex trading and non-trading fees (including low withdrawal fees), but customers think otherwise.

Many customers decry losing profits overnight, adding (hidden) high fees are to blame yet the said fees are never disclosed in emailed financial statements.

Unclear fees

City Index claims “overnight charges are dependent on the product being traded and direction of the trade”, and that “this information is listed on your platform and can be viewed before placing a trade”. But many customers aren’t convinced.

Freezing account

So far, their level of honesty is wanting.

City Index complaint

The tail-end of the above review says it all. Stay away from the FX broker.

2. Unresponsive Customer Support

City Index claims its customer services are reliable. That you can reach them in many ways and get a fast and relevant answer, especially via phone or chat service.

But in reality, slow email support — with no 24/7 support — is the norm. So, woe unto you if you have a pressing issue that requires immediate or urgent attention.

Poor customer support

It gets even worse from here.

City Index withdrawal issues
Painful customer support

If you’re pressed for time and need to urgently contact City Index’s customer support, rest assured your response will delay.

3. Poor Services

While Credit Index is regulated by top-level financial authorities, their purported services are far from being top-tier — at least judging from recent reviews. So many customers have experienced poor services in the hands of the City Index broker.

Terrible service
Terrible service
Plenty of risks

Can I Try City Index Before Buying?

Sure. City Index offers a demo account for potential traders and investors who want to try its services before actual trading.

That said, using a demo account won’t give you a clear picture of what City Index is currently offering its customers — poor customer services, exorbitant overnight charges, disappearing profits, delayed money withdrawals, and more.

Is City Index legit?

City Index was originally founded in 1983 — about 38 years ago — with its parent company (StoneX Group) listed on the NASDAQ Stock Exchange. Don’t let that fool you, though.

Trading on the platform reveals riskier dealings as many traders experience red flags akin to an online trading scam. And for that reason, City Index and its parent company are violating customers’ trust.

Verdict: City Index is a Regulated Scam

Avoid it if you want to keep your money. 

If you lost money to City Index or any other broker, don’t worry. Book a free consultation with us and we can help you get your money back— and guide you on the next step of action.


Alan Tepfer

Alan Tepfer has been a pioneer of funds recovery for the victims of online trading scam victims for almost five years. His experience in chargebacks, online trading, and banking spans for close to a decade.

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