Beware! Capital World Markets 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.
Capital World Markets is an offshore brokerage which provides it’s own web-based trading platform. The brokerage requires a minimum deposit of $250, which is just about the industry average, and provides clients with a wide range of payment methods, including many e-wallets. Further trading conditions, however, are unclear and the brokerage chooses not to offer a test-drive of its platform.
Capital World Markets regulation & safety of funds
The brokerage chooses not to disclose any information about itself. The website does not inform us about neither the company behind the brokerage, nor its country of origin. We did not read anything of relevance in the terms and conditions of the brokerage as well. Anonymity is something quite preferred by scammers because there is no way scammed clients may contact them afterwards. There is also no mention of a license and we can safely conclude that Capital World Markets does not fall under any regulatory oversight. We may only guess that the brokerage is perhaps registered offshore in some preferred by scammers location such as the Marshall Islands or Seychelles in order to avoid government oversight. Seychelles is among the most favorite locations for offshore brokerages due to lenient registration requirements.
Furthermore, the brokerage purports to provide a web-based trading platform, however, there is no demo account available and we can’t get hold of the brokerage’s trading conditions. Such a lack of clarity regarding the leverage extended to clients and the spread is quite troubling and inclines us to question Capital World Markets’s legitimacy. Furthermore, while researching the brokerage we came upon information that inclines us to believe it may be connected with a shady UK-based brokerage of the same name Capital World Markets (CWM or CWM FX) whose illegal activies last year resulted in a police raid of its headquarters. Nonetheless, such a lack of information is deeply troubling in Forex trading and we recommend traders do not risk it with Capital World Markets.
We further advise traders to only trade with regulated and legitimate Forex brokerage in order to exclude any risk from their transactions.
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 scam traders.
Capital World Markets deposit/withdrawal methods and fees
As is usual with anonymous brokerages – there is no information regarding the payment methods as well. Usually clients are extended payment gateways such as Bank Transfer, Credit Card,as well as popular e-wallets like Neteller, Skrill, Perfect Money or Bitcoin.
We could not find in the Terms and Conditions any nasty withdrawal conditions. However, readers should take notice that this is no guarantee that the brokerage may not charge some unexpected withdrawal fee once it has received the initial deposit. This is why we 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?
Scammers mostly rely on vulnerable and easily tricked people, that is why a well-informed trader is, perhaps, their most difficult target. That is why we believe all traders should be well-versed in the different ways of the scam. Here is the most popular one:
In most cases through clicking a tempting ad with promises for quick and easy profits, you will be redirected to a website like Crown Signals or Top-Algo Trade where registration will require your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for fresh leads. After a few minutes on the phone listening to the whole prepared brokers pitch , you decide to deposit some $200-250. And just like that –a 25 per cent commission gets wrested from the initial deposit by the broker on the phone.
After stinging you for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even budge and continue investing. At some point, however, you’ll probably begin to consider closing the account and getting back your money.
However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, it will be high time for the “recovery people” to take it from here. They will begin further stalling in any way possible in order to remove the last guard you may have – filing a chargeback with your bank. This options expires for good after six months or more have passed since the initial deposit.
What to do if scammed?
A scam could happen to anyone, including you, and, in such a case, it would be best to know what options are still available to you. That way you’ll be certain your reaction will be adequate and on spot.
You may contact your bank or credit card provider and file a chargeback, but only within six months of the initial deposit, as was noted above.
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 change it asap!
So-called “recovery agencies” should not be trusted! Such agencies target scammed and vulnerable traders in an attempt to further swindle them into giving away their money. They will require from you an “up-front payment” in order to get your money back, but no such thing will happen!