Beware! GoldCapitalPro is an offshore broker! Your investment may be at risk.
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GoldCapitalPro is a Forex brokerage registered in both the UK and Romania. Traders are provided with the MetaTrader4 trading platform and a wide range of trading products. From the website we gather that potential clients are also extended an generous leverage of up to 1:200. The spread is fixed at 2.4 pips on EUR/USD which is quite above the industry average and not very favorable for traders. The required minimum deposit is $500 which is also quite excessive in our view.
GoldCapitalPro regulation & safety of funds
According to the website of the brokerage the company behind it has operation in both the UK and Romania by the name Everest Tech Ltd. Forex brokerages in the UK have to be licensed by the Financial Conduct Authority where as brokerages in Romania – an EU member state – fall under the regulatory oversight of the Autoritatea de Supraveghere Financiara. Going through the terms and conditions of the brokerage we find no mention of a regulatory oversight and after diligently checking on the online registries of both regulatory agencies w can safely conclude that GoCapitalFX does not fall under any regulatory oversight. The lack of regulation brings with it a whole hornets nest of troubles, most important of which is the lack of authorities to which to turn in case of fraud.
Furthermore, while researching the brokerage we came across an official warning issued by the Spanish financial watchdog CNMV. Here is a screenshot:
In the official warning we read that the CNMV considers the brokerage a “boiler room” which is another word for scam. Being blacklisted in Forex trading is perhaps the best guarantee that the brokerage is trouble. However, the brokerage does provide the MetaTrader4 trading platform which is the foremost trading terminal in Forex trading at the moment. It further states on its website that the spread on EUR/USD is fixed at 2.4 pips which is quite high. The standard for the industry is a pip and a half. The leverage extended to clients – 1:200 – is quite balanced and in no way excessive. A very high leverage hides the risk of losing more than you have initially invested.
A problem we encountered with the brokerage is the lack of clarity regarding the trading conditions. We couldn’t learn the required minimum deposit which is crucial in a Forex brokerage. The lack of adequate information, coupled with the clear lack of regulatory oversight are all warning signs for traders and reviewers alike. Such irregularities make us suspect that clients will be open to a number of risks.
We urge traders to exclude such risk in trading by only associating with brokers regulated by prestigious regulatory agencies, such as the FCA and CySec, which require compliance with a number of strict rules that give significant assurance for the security of the clients funds.
The segregation of accounts is among the rules which are especially important in the trading world, because it drastically lowers the risk of possible commingling.
Another is the participation in a compensatory scheme by which the client’s losses will be covered in the unlikely case the broker goes bankrupt or attempts to swindle traders.
GoldCapitalPro deposit/withdrawal methods and fees
Potential clients of the brokerage may deposit or withdraw only via the standard VISA and MasterCard, as well as wire transfer. Going through the brokers terms we couldn’t find any worrisome withdrawal conditions except the fact that “any withdrawal invalidates a bonus account.”
The brokerage openly states that there is no withdrawal fees, however, we always remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.
How does the scam work?
One of the reasons regulation has such value in the trading world is because scamming is quite common and it acts as a sort of guarantee that such a thing would not happen. Nevertheless, here is how a typical scam would go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as CashlessPay Group or Crypto Revolt where registration will require you to give your address, email and phone number. After sharing your personal information, you will being receiving calls from brokers, compelling you to invest with them and win big. After a few minutes hearing their pitches, you decide to deposit some $200-250. And just like that – the scammers take a fat commission from this initial deposit.
After they are done with you, senior scammers begin working you into putting even more money. They say it’s the only way to profit from trading even more. After making the mistake of investing even further, you’ll begin wanting to get out of this and withdraw what you have left.
Unfortunately, the con-artists have no such thing in mind. They will now begin persuading you to wait it out and not withdraw right now. The angle here is pretty blunt – traders have a limited time period for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing thе crucial period and, along the way, losing any chance you might have of getting the money back.
It is important here to take notice that both Visa and MasterCard are taking measures to combat unregulated forex brokerages by classifying all forex transactions as high risk. And with the case of Axe invest – they are correct in doing so. Furthermore, supporting their intention with clear actions – MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half. Visa is expected to do the same in December.
What to do when scammed?
As was mentioned above, scamming is quite the common in the trading world and, sadly, even you might suffer from it. In such an unfortunate case there still may be some available options for you.
You may contact your bank or credit card provider and file a chargeback.
If, however, you have provided the broker with your credit card details, immediately cancel your credit card.
If you have given information regarding your online banking pass – you should switch it asap!
Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate to recover their losses. They will require an “up-front” payment to help you, but after paying them, no such help will be coming your way!