Beware! East Capital Markets 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.
East Capital Markets says they are offering thousands of financial assets to trade, including forex pairs, and CFDs on commodities, precious metal, indices, ETFs, bonds and even crypto coins with a choice between a web based platform and the MetaTrader4.
In particular we counted 39 forex pairs, some of which minor or exotic like USDMXN, USDTRY, USDCNH, USDNOK, USDSEK and USDZAR, with spreads starting from 1,3 pips, which is generally considered attractive, and leverage of up to 1:400.
Unfortunately the broker is not regulated, and that significantly lowers its credibility.
East Capital Markets regulation & safety of funds
East Capital Markets is owned by MUU Group Limited, which as we understand is a company based in Hong Kong. And because all forex and CFD brokers in Hong Kong should be regulated by the Hong Kong Securities and Futures Commission (SFC), we duly checked the registers of the commission for East Capital Markets or MUU Group Limited, but were unable to find them there.
On top of that the MetaTrader4 platform offered by East Capital Markets is provided by a third party – Solutionmarkets Software, which is also unusual and further rises our suspicions.
Bear in mind that trading with unregulated brokers is extremely risky, because as a rule they are totally unaccountable for the way they handle your money, and also because almost all unregulated brokers are simply involved in scam.
That is why our best advise is to avoid dealing with unregulated brokers altogether and choose instead a reliable trading partner among the brokers, licensed and authorized by a well known institution such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investments Commission (ASIC).
East Capital Markets deposit/withdrawal methods and fees
Although in their presentation East Capital Markets mention the option to pay with e-wallets like PayPal, when we proceeded with our registration it turned out the only payment methods available are credit and debit cards like VISA and MasterCard and bank wire.
Also, be careful with any trading bonuses a unregulated broker like East Capital Markets might offer you, as too often they are simply used as a pretext to cancel your withdraw requests. The problem with all trading bonuses in general is that they always come with some minimum trade volume requirement, which might prove challenging even for professional traders.
Otherwise the minimum deposit requirement is set at 200 EUR.
How does the scam work?
A scam scenario usually starts when you foolishly decide to leave your e-mail and phone, by registering with one of the so called robo scam websites like Bitcoin Profit and Brexit Trader. This websites are basically anonymous and are especially designed to attract gullible investors for unregulated, offshore scam brokers.
A robo scam website is usually about a well cut video ad, promising a “once of a life time” opportunity to get instantly rich. And if you get hooked and register, as we noted, you will instantly be transferred to the web page of unregulated scam broker, while the people who run the robo scam website will get their commission after you deposit your first 250 USD.
Now, trading with the scam broker might seem very promising at first – almost all of your trades will be successful and pretty soon the money in your account will seem to have doubled. Non of this however will be real. Scammers will be manipulating your account with the idea to trick you to deposit more. And that is what your “senior account manager” will also be trying to convince you on the phone – if you really want to make some real cash, you will have to invest at least 10 000 USD.
Believe it or not but at that point most people do invest that kind of cash, without realizing they have been scammed until one day they decide to withdraw some of their funds. Than they are simply told they can not withdraw, because of some minimum trade volume requirement, possibly linked to their welcoming bonus. The excuse might certainly be another, but in the end it will all come to the same – all of your withdraw requests will be invariably canceled.
What to do if scammed?
Among the few viable steps that you can take, in case you are a victim of a scam, is to file for a charge back with your credit card company. Fortunately both VISA and MasterCard currently allowed their customers to file for a charge back within 540 days of the transaction.
And if by any chance scammers have tricked you to tell them your banking details, including credit card numbers and online banking passwords, immediately change the password and block your credit card.
And one final warning – do not trust the so called recovery agencies. They will not be helping you in any way, but simply will collect some fees in advance and you will end up with even less cash.