Beware! AdunoCapital is an offshore broker! Your investment may be at risk.
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AdunoCapital is a Forex brokerage with unclear corporate information. Furthermore, the trading conditions of the brokerage also remain undisclosed and there is sufficient reason to suspect the website is a scam.
AdunoCapital regulation & safety of funds
As was noted above – the website of the brokerage does not contain clear corporate information. We first read that the company behind the brokerage bears the name AdunoCapital ltd in the terms and conditions of the brokerage. Here is a screenshot:
We see an Austrian address given and we remind readers that Austria is a member-state of the European Union and online Forex trading is duly integrated within its regulatory framework which is modeled after the ESMA guidelines. Going through the online registry of the Austrian regulatory agency we did not find the company among the list of licensees. However, reading further through the website of the brokerage we stumble upon another claim that is different altogether. Here is a screenshot:
The brokerage is supposedly regulated by CySEC and the MFSA. However, this is also far from true. It turns out that the brokerage is presenting false information and attempts to mislead traders into thinking it is a brand of a legitimate and regulated company. This is a major red flag and exposes the ill-minded intentions of the brokerage. Upon further research we discover that the authorities in Austria have noticed the illegal activities of the broker and have issued an official warning.
It’s safe to assume that the real company behind the brokerage is deeply involved in scam operations. Furthermore, we warn clients that anonymity is another serious red flag in trading since the reputation of the company is a crucial factor in creating trust between the brokerage and the traders.
Putting that aside, the brokerage presents no clear information regarding its trading conditions and the available trading platform. We see only a very low spread stated which cannot be verified through a test-drive. All in all, the official warning issued against the website, the falsely presented information and the unspecified address highly incline 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.
AdunoCapital deposit/withdrawal methods and fees
We find no information regarding the available payment methods either which isn’t surprising having in mind all the discoveries pointed out above about the website.
Interestingly enough, we read that there are no withdrawal fees, however, this does not mean that the brokerage might charge some unexpected fees. This is why we always advise traders to 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?
Unfortunately, the possibility of a scam looms over almost every trade in forex, especially if you are dealing with an unregulated brokerage. That is why we believe traders should be acquainted with the methods of a scam. Here is how it would typically go about:
Through clicking an ad with promises for fast money, you will be redirected to a website such as Bitcoin Evolution or Crypto Cash 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 motive here is quite straightforward – traders have a limited time window for filing a chargeback with their bank and get their money back. The “recovery department” will simply want to mislead you into missing this crucial period and, along the way, losing any chance you might have of getting the money back.
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. Furthermore, due to the high instances of fraud – both Visa and MasterCard have decided to sidestep scammers as best they can in Forex trading. The first thing we have seen so far is that MasterCard has increased the previous time period of six months for filing a chargeback to a year and a half.
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!