United Capital FX Review – 5 things you should know about unitedcapitalfx.com

Beware! This is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

United Capital FX is a binary options broker, offering bets on a choice of currency pairs, precious metals, indices and stocks. However, keep in mind that since July 2nd the European Securities and Markets Authority (ESMA) banned all binary options brokers from operating in the EU – measure, part of a larger regulatory overhaul, aimed at curbing risk investment in Europe.

Here we should also note that it is not immediately clear form the presentation on United Capital FX website that they offer binary options only, instead of forex and CFD trade. Apart form that trading conditions with United Capital FX are also not impressive, with EURUSD payout of just 73%. Have in mind that with binary options bets, payout of less than 85% is considered unattractive. The minimum deposit required to start betting with United Capital FX is 250 USD.

As for the trading software United Capital FX supports a simple web-based trading platform, typically used for binary options bets.

United Capital FX regulation & safety of funds

In the presentation on their website United Capital FX does not mention the name of the company that owns and operates the broker. They just refer to the owner as “The Company”, which is said to be located in Amsterdam. We could not find any information about the broker’s regulatory status either and that is unfortunate as most unregulated websites, offering financial services online, turn out to be scam.

Proper regulation is the single most important factor for the safety of any investment. Legit brokers, licensed by well respected financial authorities, such as the Cyprus Securities and Exchange Commission (CySEC), which along with the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC) have to abide by strict financial and ethical rules and in some cases even to ensure traders capital.

Traders with FCA brokers for example can get back up to 50 000 GBP of their capital, in the event the broker is insolvent. Similar compensation scheme with all CySEC brokers guarantees traders up to 20 000 EUR of their investment.

United Capital FX deposit/withdrawal methods and fees

You can fund your account at United Capital FX with Major credit or debit cards like Visa, MasterCard and American Express, wire transfer as well as with several e-wallets – Carte Bleue or WebMoney, TheFlyingMerchant EcoRepay OrangePay.

And while it might seem like good news that you are entitled to a 50% welcoming bonus with your new account at United Capital FX, have ine string mind that there arattached – according to the “Trading benefits bonus policy agreement” and the “Terms and Conditions” you will be able to withdraw funds from your account only after you have reached a trading volume of at least 35 times each bonus USD dollar. In addition you will be able to withdraw only after you have deposited at least 500 USD (no matter that to open a trading account you have to invest just 250 USD).

How does the scam work?

Usually everything starts with a video, you will happen to watch on the internet. It will tell the story of common people like you, who got instantly rich by trading the forex and crypto markets or just investing with a cutting edge financial company. If you are interested and want to learn more, you will have to fill in a simple registration form, leaving your e-mail and phone.

And next you will receive a call by an expertly sounding “financial adviser”, who will convince you to invest just 250 USD and start making money right away. Believe me, your first trades will go perfectly and in no time the money in your account will more than double – 100% return! However, do not full yourself that you have become a trading genius – the truth is your account will be manipulated.

And than you will receive a second call, this time form “a senior account manager”, who after congratulating you for your amazing trading performance, will try to convince you, that if you want to start making real money, you will simply have to invest more – 10 000 USD for a start. Chances are you will agree and everything will look fine. You will continue to trade, profit will be good and they will surely try to convince you to invest yet another 10 000 USD.

However, everything will change the moment you try to withdraw some of your profit. It will turn out it is not possible because of some clause in the Terms and Conditions section, you have agreed with, according which you are not eligible to withdraw until you reach a certain trading volume, linked with the welcoming bonus you have received in the first place.

At some point scammers will also require you to send them copies of your ID and a proof of address (your electricity bill for instance). They will cite the anti-money laundering regulations. However the truth is that if you send scammers your personal information voluntarily, than they will have a much stronger case, if you file for a charge back with your credit card provider.

Also, some scammers might trick you to install Team Viewer on the pretext to help you with the installation of some software or with the funding of your account. If you do that, scammers will get to your bank details and will try to steal money form your bank account directly.

What to do if scammed?

In the unfortunate event you fell victim to scammers, immediately file for a charge back with your credit card provider. Have in mind that this will be possible within a six month period only.

If you have given away your credit card number or the password for your online banking, cancel your credit card immediately and change the password for your banking service.

And finally, do not seek the services of the so called “recovery agencies”, because you will have to make an upfront payment and that is how the story ends.