FMCapitals Review – 5 things you should know about fmcapitals.com

FMCapitals Review – 5 things you should know about fmcapitals.com

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

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FMCapitals is a binary options broker offering just 17 currency pairs, on which you can bet with short term and long term options – the short term bets expiring between 30 sec. and 5 minutes, while the long term between 5 days and 3 months. Payout for the benchmark EUR/USD pair is advertised to be as high as 90%, but when tested with a demo account it turned out to be just 79% with the short term options. The broker offers four account types with a minimum deposit requirement of between 500 USD and the stunning 250 000 USD on a web based trading platform.

FMCapitals regulation & safety of funds

FM Capitals is said to be owned and operated by Riverside Services Ltd. – a company based in Bulgaria, which is an EU country. Here we should note that according to the new European Securities and Markets Authority (ESMA) regulations, since July 2nd 2018 binary options trading is completely banned in the European Union. So basically FM Capitals operations are illegal in EU. Still we checked the registers of the local Financial Supervision Commission and were unable to find FMCapitals or Riverside Services Ltd. there. So basically FMCapitals is an unregulated broker.

On top of that we should note that the Australian Securities and Investment Commission (ASIC) has recently issued a warning against FM Capitals.

Trading with unregulated brokers has always been associated with unacceptably high risk of loosing your money to scammers. That is why we strongly advise you to invest only with brokers, holding a license by respected financial institutions such as the Financial Conduct Authority (FCA) in the UK, the ASIC in Australia or the Cyprus Securities and Exchange Commission (CySEC).

Besides, traders with FCA regulated brokers can get up to 50 000 GBP of their capital back, in the unlikely case their broker goes insolvent. A similar compensation scheme with all CySEC brokers guarantees traders up to 20 000 EUR of their investment.

FMCapitals deposit/withdrawal methods and fees

You can deposit or withdraw funds with FMCapitals using major credit or debit cards like VISA and MasterCard, as well as a wire transfer.

Here we should also note, that like most binary options brokers FMCapitals offers a welcoming bonus of between 50% and 125% to all new customers. Accepting such a bonus, however, means that you will not be able to withdraw any funds until you meet certain trading volume requirements.

How does the scam work?

Most probably you will watch a video, promising you fast return on a modest investment with a cutting edge financial company. And if you fill the small registration form, leaving your e-mail and phone, next you will receive a call form an expertly sounding “financial adviser”, who will most likely convince you to invest something like 200 USD and start making money right away. Your first trades will go great and soon the money in your account will double (that is because your trading platform will most probably be manipulated). And you will receive another call, this time form a “senior account manager”, who will explain you that if you want to win really big, you will simply have to invest more – let say 10 000 USD. Chances are you will deposit those money as well and that is when things will get really interesting.

Basically everything will seem normal until you decide to withdraw some of your funds. It will turn out you can not, because of some clause in the Terms and Conditions, you have agreed with, according which you will have to reach some trading volume, probably linked to the welcoming bonus you have received when you opened your account in the first place. The base line is you will not be able to withdraw any funds.

Beware that at some point the scammers will ask you to send them copies of your ID and a proof of address (your electricity bill for example). They will cite the anti-money laundering regulations, but the truth is, if you provide them with that kind of information personally, they will have a much stronger case, in case you file for a charge back with your credit card provider.

Beware also that some scammers may even try to trick you to install Team Viewer on the pretext to help you with some installation or with the funding of your account. In such a case they will get to your credit card number and online banking password and will try to steal money form your bank account directly.

What to do if scammed?

Immediately file for a charge back with your credit card provider. Mind, that you can do that within a 6 month period only and scammers, knowing that well, will try to retain you that long.

If you have given away your credit card number and other banking details or if you have agreed to install Team Viewer, cancel your credit card immediately and change the password for your online banking service.

Finally, in the unfortunate event you have lost money to scammers, do not try to seek the services of the so called recovery agencies. It will only be a waste of more money and time, as they will just collect an upfront payment without retrieving you a single penny.

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