Beware! Gemini Capital 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.
Gemini Capital is an offshore broker based on the Bahamas, which offers 3 account types with leverage of up to 500:1 and the MetaTrader4 platform.
The list of trading instruments include some 36 forex pairs, some of which minor or exotic like USDSGD, USDSEK and USDNOK, as well as CFDs on 13 indices, silver, gold, oil, natural gas and copper. And they also say to be offering 50 US stocks, but those we were not able to find on their trading platform.
As tested with a demo account the benchmark EURUSD spread floated about 2,3 pips and that is about a pip higher than the levels traders would usually consider attractive with a standard account. That however is not our main problem with Gemini Capital Markets, but the fact that they do not have a reliable license.
Gemini Capital regulation & safety of funds
Gemini Capital Markets is owned and operated by an offshore company – IX Capital Group Limited, which as we noted is based on the Bahamas. And they say to be regulated by the Securities Commission of the Bahamas, which in our professional opinion simply lacks the capacity to oversee internationally operating brokers.
Bear in mind that proper regulation is of utmost importance for the security of your investment and that is why regulators throughout Europe, the U.S., Australia, Canada and Japan have very strict rules regarding the retail forex market.
And actually for offshore brokers like Gemini Capital it is illegal to target customers in the above mentioned markets unless they also have a license by a reliable official regulator 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).
Gemini Capital deposit/withdrawal methods and fees
As we understand from the Gemini Capital presentation their preferred methods of payment are bank wire and Union Pay, which is a popular payment method especially in China. The broker says they do not accept payments with credit cards, nor do they mention some popular e-wallets like Neteller and Skrill.
Here we should note that according to their new anti scam policy Skrill partners only with properly regulated brokers, and as we already discussed, the regulatory status of Gemini Capital is not satisfactory.
Also you should be aware of any trading bonuses that the broker might offer you. There are two problems with all trading bonuses in general – they are always linked to some minimum trade volume requirement. For example if you accept the 50% bonus Gemini Capital offers, and you have deposited 500 USD as is their minimum deposit requirement, you will have to trade no less than 7,5 million USD dollars before you will be allowed to withdraw.
The second reason why we do not like trading bonuses altogether is that quite often they are used by scammers as an excuse to cancel your withdraw requests.
Also beware that Gemini Capital reserves the right to delay withdraws for various reasons and to change their fee structure at any time without notice.
How does the scam work?
Among the various techniques scammers use to trap new victims we should note the so called robo scam websites like Bitcoin Profit and Brexit Trader where you may get carried away by the promise of fast and easy money with a minimum investment and “no risk” at all. At least that is what you will be told in the video ad you will be greeted with, if you land on one of those websites. And all you will have to do is fill as simple registration form with your e-mail and phone.
And if you do register, without even noticing you will be redirected to the website of a unregulated scam broker, where finally you will have to deposit about 250 USD. Bear in mind that trading with the scammers might seem like a lot of fun at first. Almost all of your trades will go smoothly and in no time the money in your account will seem to have doubled. That however will not be real. Scammers will be manipulating your account with the single purpose to persuade you to invest a larger sum. And that is exactly what your “senior account manager” will be telling you on the phone – if you want to make some big cash you will surely have to invest more – at least 10 000 USD.
And as absurd as it may seem, at that stage most people do invest that kind of money without ever realizing they have been scammed until the day they decide to withdraw a portion of their funds. Than it suddenly turns out they are not allowed to withdraw because of some minimum trade volume requirement, possibly linked to a trading bonus they have accepted. The reason might be whatever, but the end result will always be the same. Scammers will not be giving a single penny back.
What to do if scammed?
The only feasible option you have, in case you have been scammed, is to file for a charge back with your credit card company. Fortunately both VISA and MasterCard will allow you to that within 540 days of your deposit.
And if scammers have acquired your credit card number or online banking password, immediately change the password and block your credit card. And if you were tricked to install Team Viewer, delete the program as well.
Finally, do not trust the so called recovery agencies. They will simply charge you some fees in advance without recovering a single dollar.