Beware! This is an offshore broker! Your investment may be at risk.
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
CapitalXP is a forex and CFD broker, offering some 60 currency pairs and CFDs on stocks, commodities, spot metals and indices on the MetaTrader4 platform. The broker also says to be offering crypto CFDs with Bitcoin, Ripple, Ethereum and Litecoin, but those were not available, when we opened a demo account.
The benchmark EURUSD spread fluctuated between 0,9 pips and 1,1 pips, which is in line with what traders would expect with a standard account. Maximum leverage allowed is up to 1:100.
CapitalXP regulation & safety of funds
CapitalXP is owned and operated by Quattro Holding Group LTD, which is registered on St Vincent and the Grenadines. However, neither the broker, not the company behind it are regulated by an official financial regulator and that is our main concern about CapitalXP credibility.
Keep in mind that regulation is the single most important factor for the security of any investment. Well respected financial authorities like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC) are effectively enforcing strict financial and ethical rules on all overseen brokers. Among those we should point out the requirement to maintain a certain minimum operational capital and the obligation to keep all clients money is a segregated, protected form creditors, trust account.
FCA and CySEC regulated brokers are even obliged to insure traders money. Under a CySEC backed compensation scheme, for example, traders can receive back up to 20 000 EUR of their capital in case their broker is insolvent. Under a similar FCA backed scheme, traders can receive back up to 50 000 GBP.
CapitalXP deposit/withdrawal methods and fees
With CapitalXP you may choose to fund your account with credit cards like VISA and MasterCard, bank wire, as well as e-wallets like QIWI and Yandex. Here, however, we miss other popular e-wallets like Neteller and Skrill.
How does the scam work?
The most popular scenario goes like this. You will happen to watch a nicely edited video, that will make you believe you can make big, easy money (a passive income as they call it) by simply registering with an innovative trading app. All you have to do is to fill the small registration form, leaving your e-mail and phone.
And next you will be transferred to the web page of an unregulated, offshore, scam broker, like Bitcoinoie or BBM Trade, where you will be asked to make a small deposit – 250 USD and start making money right away. And your first trades will go smoothly and soon the money in your account will double. Have in mind, however, that this will not be real results. The scammers will simply manipulate your account.
Next a “senior” account manager will call and will basically tell you, that if you want to make some really big money, you will simply have to invest more – 10 000 USD for a start. Well, chances are you will make that deposit as well and everything will seem fine, until the day you decide to withdraw some of your funds.
It will turn out this is not possible. There will be some clauses in the Terms and Conditions, you have agreed with, linking the right to withdraw with some minimum trading volume requirement. It could be anything, but the bottom line is, you will not be able to withdraw.
Be aware that at some point the scammers will ask you to send them copies of your ID and a proof of address (your last electricity bill for instance). They will say they need those documents, because of the anti-money laundering regulations. The truth, however, is that if you send them your personal information voluntarily, they will have a much stronger case, when you file for a charge back with your credit card company.
Also, be aware that some scammers might try to trick you to install Team Viewer on the pretext to help you with the installation of a trading software or with the funding of your account. If you agree, scammers will have direct access to your PC and all your banking details and will surely try to steal money from your bank account.
What to do if scammed?
Immediately file for a chargeback with your credit card provider. Unfortunately, you will be able to do that within a 6 month period only.
If you have told scammers your credit card number or online banking password or if you have agreed to install Team Viewer, immediately cancel your credit card, delete Team Viewer and change the password for your online banking service.
And if you have lost money to scammers, do not make the mistake to seek the services of the so called “recovery agencies”. You will be asked to make an upfront payment and basically that is how the story will end.