Beware! Kapitalswiss is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Kapitalswiss is a unregulated forex and CFD broker that claims to be based in Germany. And although their offer includes over 60 forex pairs with plenty of exotic currencies, as well as CFDs on stocks, indices, commodities and even cryoto coins, all of that with a leverage of up to 500:1 and the MetaTrade4 platform, the legitimacy of the broker is rather low as they are not licensed and authorized neither by the Federal Financial Supervisory Authority in Germany, better known as BaFin, nor by any other official regulator in Europe or anywhere else, for that matter.
Kapitalswiss regulation & safety of funds
Kapitalswiss says to be owned by Orion International Limited. and as we already noted they are not authorized to provide financial services on regulated markets like the Europe, USA, Australia or Japan.
Have in mind that only brokers, licensed by reputable financial institutions like BaFin in Germany, the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC) do guarantee the safety of your investment.
Such brokers have to abide by strict ethical and financial rules, among which to provide traders with a negative balance protection, to refrain form offering trading bonuses, to keep all invested funds in a segregated, protected form creditors account, to maintain a certain minimum operational capital, to file regular reports, to allow external audits and with some regulators even to insure traders money.
So if you are trading with a FCA broker, fore example, your account will be insured for up to 50 000 GBP, while with a CySEC broker you will not have to worry about the first 20 000 EUR of your capital.
Kapitalswiss deposit/withdrawal methods and fees
Kapitalswiss does not mention specifically what payment methods do they accept. Have in mind that most brokers accept major credit and debit cards like VISA and MasterCard, popular e-wallets like Neteller and Skrill and bank wire. Otherwise the minimum deposit requirement is set at 250 USD.
Besides, recently Skrill adopted a new anti scam policy, according which if a broker wants to use their services, it would be required to provide a legit forex license.
How does the scam work?
Although there are many scam techniques, here is a pretty popular one, that plagues the forex markets for the past couple of months.
You will happen to watch a short movie on one of the so called robo scam websites like Crypto Revolt and Bitcoin Evolution, where you will be promised fast and easy returns with zero risk and a symbolic investment. All you have to do is register, leaving your e-mail and phone. And if you do that, you will be promptly transferred to the web page of an offshore, unregulated broker, where finally you will have to deposit about 250 USD.
And by the way, your first trades will prove amazingly successful. That, however, will not be a result of your great trading strategy, but simply a manipulation. The idea is that, that way scammers will more easily convince you to invest a larger amount. And do not be surprised when you receive a phone call as well – it will be your “senior account manager”, who will basically explain you, that if you want to make some real cash, you will simply have to invest more – like 10 000 USD or above.
And probably you will invest those money as well without realizing you have been scammed until the very moment you decide to withdraw some of your funds. Scammers will simply refuse your withdraw request, citing some clause in the Terms and Conditions, linking your right to withdraw with some minimum trade volume requirement, connected to a bonus or something like this. Of course it could be something else, but the end result will be the same – scammers will not give you a single penny back.
What to do if scammed?
Unfortunately there are not many steps you can take if you are a victim of a scam. And yet the most important one is to immediately file for a charge back with your credit card. The good news here is that VISA and MasterCard recently adopted some new anti scam policies, according which you will be able to file for a charge back within 540 days.
Also, if scammers have tricked you to tell them your online banking password or credit card number, immediately cancel your card and change your password to prevent scammers form stealing money form your account directly.
Finally, do not waste your money and time by accepting the services of the so called recovery agencies. They will just make you pay them some money in advance and you will not hear from them again.