Proton Capital Markets Review – 5 things you should know about Protoncapitalmarkets.com

Proton Capital Markets Review – 5 things you should know about Protoncapitalmarkets.com

Beware! Proton Capital Market is an offshore broker! Your investment may be at risk.

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Proton Capital Markets is an offshore Forex brokerage registered in St. Vincent and the Grenadines. It provides the MT4 trading platform and a generous leverage of up to 1:400. The required minimum deposit, however, is quite large at $1000 and definitely not in favor for traders.

Proton Capital Markets regulation & safety of funds

On the brokers website we read that the broker brand is owned and operated by a SVG-based company with the same name as the brand. We even read it is “regulated” by the local  Financial Services Authority, however, this is quite misleading. Saint Vincent and the Grenadines is a well-known offshore zone and a preferred location for shady brokerage. We remind readers that the government of SVG has multiple times publicly stated that it does not oversee Forex trading and thus we may safely conclude that not only is the brokerage not regulated. Furthermore, trading with an offshore, unregulated brokerage hides a lot of risk. There may be commingling which means that the brokerage may commingle together the finances of the firm and the finances of the clients.

However, putting all this aside – the brokerage does provide the MetaTrader 4 trading platform with an available demo account which we consider an advantage. Here is a screenshot:

As you can see – the spread is ridiculously low at 0.2 pips which inclines us to question whether it is in fact the actual spread. A brokerage cannot hope to make money through such a narrow spread and it most likely charges a commission, however, we found no information about such a trading commission on the website. Quite strange, indeed. Furthermore, the platform is provided by a third party which is definite sign of trouble in Forex trading. We also again stress the absurdly high minimum deposit at $1000 which is four times the industry average and quite excessive. No trader should risk such a large sum for an initial deposit, especially with an offshore brokerage.

Overall, the lack of regulation inclines us to suspect that potential clients of the brokerage may be open to substantial risk.

Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the FCA in the UK or CySec in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. With the FCA the compensation is up to 85 000 pounds, where as with CySEC it is up to 20 000 euro per person.

Proton Capital Markets deposit/withdrawal methods and fees

Potential clients of the brokerage may deposit or withdraw only via credit cards and wire transfer, popular e-wallets such as Skrill are sadly missing.

Going through the terms and conditions of the brokerage we did find information regarding fees that is noteworthy. The brokerage charges a $50 inactivity fee every three months on accounts that have not executed a trade for more than a year. This certainly isn’t excessive but it is prudent to highlight. Furthermore, there is a trading volume requirement in order to be eligible for withdrawal which is the most serious red flag about the brokerage. Traders usually are required to execute a certain number of trades when they have taken advantage of a bonus promotion, however, Proton Capital Markets requires them all the same. We highly suspect dealing with this brokerage will only lead to potential breaches of the safety of the client’s funds.

Many scammers choose not to disclose such information to would-be clients. Without proper information on the website we cannot be certain whether clients won’t be charged with any unexpected withdrawal or deposit fees once they invest. This is why we advise traders 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?

Even though the forex trading world is extremely large and encompasses millions of people around the globe, the most common scamming is pretty simple and straightforward and as such – it’s not particularly daring to avoid. Here is a quick overview of how it is done:

Through clicking an ad with promises for fast money, you will be redirected to a website such as DaxRobot or CryptoContracts 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 Traderia – 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.

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!

Rich Snippet Data
Review Date
Reviewed Broker
Proton Capital Market
Broker Rating
1.21star1stargraygraygray

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